Q3 2024 Alexandria Real Estate Equities Inc Earnings Call Transcript
Key Points
- Alexandria Real Estate Equities Inc (ARE) reported a strong operational performance with increasing FFO per share and dividends per share growth despite a challenging economic environment.
- The company achieved a high occupancy rate with nearly 100% collections, showcasing strong tenant relationships and operational excellence.
- Leasing activity was robust, with almost 1.5 million rentable square feet leased, reflecting a 48% increase quarter-over-quarter.
- The company has a strong balance sheet with great liquidity, allowing it to continue its self-funding capital recycling program successfully.
- ARE's mega-campus strategy is well-positioned to meet the demand for flexible and scalable life science spaces, aligning with industry trends.
- The stubbornly high cost of capital across equity and debt markets poses a challenge for Alexandria Real Estate Equities Inc (ARE).
- The company faces a tough funding market, with a disciplined approach required due to past overflows of capital in the biotech industry.
- There is a significant amount of competitive supply expected to be delivered in key markets, which could impact future leasing demand.
- ARE's same-property NOI growth is expected to face pressure due to a lease termination at a major property, affecting fourth-quarter results.
- The company is selling non-core assets at higher cap rates than the yields on new developments, which could be dilutive to FFO in the short term.
Good day and welcome to the Alexandria Real Estate Equities third quarter 2024 conference call. (Operator Instructions). Please note, today's event is being recorded.
I would now like to turn the conference over to Paula Schwartz with Investor Relations. Please go ahead.
Thank you, and good afternoon, everyone. This conference call contains forward-looking statements within the meaning of the Federal Securities Laws. The company's actual results might differ materially from those projected in the forward-looking statements.
Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in the company's periodic reports filed with the Securities and Exchange Commission.
And now I would like to turn the call over to Joel Marcus, Executive Chairman and Founder of Alexandria. Please go ahead, Joel.
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