We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alexandria Rewards Investors With 3% Sequential Dividend Hike
Read MoreHide Full Article
Alexandria Real Estate Equities, Inc. (ARE - Free Report) has announced a quarterly dividend of $1.06 per share, reflecting an increase of about 3% from its earlier payment of $1.03 per share on Mar 31, 2020. The increased dividend will be paid on Jul 15, to shareholders of record as of Jun 30, 2020.
Based on the increased rate, the annual dividend comes to $4.12 a share, resulting in an annualized yield of about 2.7%, considering Alexandria’s closing price of $154.10 on Jun 1.
This hike in dividend also represents a 6% year-over-year increase from Jun 30, 2019. The company’s low dividend payout ratio of 58% for the first quarter, along with strong net cash flow from high-quality assets, aided this hike in dividend.
Alexandria focuses on Class A properties concentrated in urban campuses, primarily for the life-science and technology entities. The dynamic setting adds to the productivity and efficiency of the tenants, which in turn, ensures steady rental revenues for the company.
As of first-quarter 2020, investment-grade or publicly-traded large-cap tenants accounted for 51% of annual rental revenues in effect. Furthermore, 74% of the annual rental revenues are from Class A properties in AAA locations. Weighted-average remaining lease term of all tenants is 7.8 years. For its top 20 tenants, it is 11.4 years.
Moreover, the company’s liquidity position is comforting, with about $4 billion of liquidity in April with an additional unsecured senior line worth $750 million. Also, the company has no debt maturities until 2023 and has a weighted average debt maturity of 10.3 years. Additionally, with the company’s lower payout ratio compared with the industry’s, its dividends are likely to be sustainable.
However, the company has revised its guidance for full year funds from operations (FFO) per share in the wake of the coronavirus pandemic. In addition, the company expects a decline in revenues from its retail tenancy and transient/short-term parking business with reduced construction spends for the year.
Alexander & Baldwin, Inc.’s (ALEX - Free Report) FFO per share estimate for 2020 moved up from 22 cents to 83 cents over the past month. The stock currently sports a Zacks Rank of 1.
City Office REIT, Inc.’s (CIO - Free Report) Zacks Consensus Estimate for the ongoing-year FFO per share moved 13.3% north to $1.11 over the past month. The stock currently flaunts a Zacks Rank of 1.
One Liberty Properties, Inc.’s (OLP - Free Report) Zacks Consensus Estimate for the current year’s FFO per share moved 2.2% north to $1.89 over the past two months. The stock currently sports a Zacks Rank of 1.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
Image: Bigstock
Alexandria Rewards Investors With 3% Sequential Dividend Hike
Alexandria Real Estate Equities, Inc. (ARE - Free Report) has announced a quarterly dividend of $1.06 per share, reflecting an increase of about 3% from its earlier payment of $1.03 per share on Mar 31, 2020. The increased dividend will be paid on Jul 15, to shareholders of record as of Jun 30, 2020.
Based on the increased rate, the annual dividend comes to $4.12 a share, resulting in an annualized yield of about 2.7%, considering Alexandria’s closing price of $154.10 on Jun 1.
This hike in dividend also represents a 6% year-over-year increase from Jun 30, 2019. The company’s low dividend payout ratio of 58% for the first quarter, along with strong net cash flow from high-quality assets, aided this hike in dividend.
Alexandria focuses on Class A properties concentrated in urban campuses, primarily for the life-science and technology entities. The dynamic setting adds to the productivity and efficiency of the tenants, which in turn, ensures steady rental revenues for the company.
As of first-quarter 2020, investment-grade or publicly-traded large-cap tenants accounted for 51% of annual rental revenues in effect. Furthermore, 74% of the annual rental revenues are from Class A properties in AAA locations. Weighted-average remaining lease term of all tenants is 7.8 years. For its top 20 tenants, it is 11.4 years.
Moreover, the company’s liquidity position is comforting, with about $4 billion of liquidity in April with an additional unsecured senior line worth $750 million. Also, the company has no debt maturities until 2023 and has a weighted average debt maturity of 10.3 years. Additionally, with the company’s lower payout ratio compared with the industry’s, its dividends are likely to be sustainable.
However, the company has revised its guidance for full year funds from operations (FFO) per share in the wake of the coronavirus pandemic. In addition, the company expects a decline in revenues from its retail tenancy and transient/short-term parking business with reduced construction spends for the year.
Shares of Alexandria Real Estate, a Zacks Rank #3 (Hold) company, have depreciated 4.7% so far this year, while its industry has declined 4.7%. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Stocks to Consider
Alexander & Baldwin, Inc.’s (ALEX - Free Report) FFO per share estimate for 2020 moved up from 22 cents to 83 cents over the past month. The stock currently sports a Zacks Rank of 1.
City Office REIT, Inc.’s (CIO - Free Report) Zacks Consensus Estimate for the ongoing-year FFO per share moved 13.3% north to $1.11 over the past month. The stock currently flaunts a Zacks Rank of 1.
One Liberty Properties, Inc.’s (OLP - Free Report) Zacks Consensus Estimate for the current year’s FFO per share moved 2.2% north to $1.89 over the past two months. The stock currently sports a Zacks Rank of 1.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
See the 5 high-tech stocks now>>