Barclays Maintains an 'Overweight' on Alexandria Real Estate (ARE); Working to Improve Asset Efficiency

Barclays maintains an 'Overweight' on Alexandria Real Estate (NYSE: ARE), PT $84.

Barclays analyst says, "Over the past couple of quarters, Alexandria has acquired $580 million of operating and development assets and sold $278 million of land. By our estimate, land still makes up about 14% of the company's gross asset value, and we believe that management would like to reduce this non-operating asset exposure in favor of operating and development assets...We believe ARE is attractively valued given our view that portfolio results will remain strong and the capital markets remain open. We are maintaining our 12-month target price of $84 per share, which implies 21.8x our 2011E CAD of $3.85 (was 22.0x $3.83). Specifically, our price target is based on a DCF of $88.13 (70%), an NAV of $70.16 (10%), and a sentiment/regression projection of $75.43 (20%). Combined with the 2.3% dividend yield, our price target implies a 9.9% total return." (Barclays lowers FY11 EPS estimate to $4.52 from $4.65)

For more ratings news on Alexandria Real Estate click here and for the rating history of Alexandria Real Estate click here.

Shares of Alexandria Real Estate closed at $78.08 yesterday.

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