Alexandria Real Estate Equities (ARE) Tops Q1 FFO by 2c

Alexandria Real Estate Equities (NYSE: ARE) reported Q1 FFO of $1.17, $0.02 better than the analyst estimate of $1.15. Revenue for the quarter came in at $176.2 million versus the consensus estimate of $172.51 million.

"Our first quarter results in 2014 continued to highlight the momentum of our improving fundamentals, which is driving stable and solid growth. The sustained migration into Class A collaborative science and technology campuses in urban innovation clusters continues to drive demand for our properties. The solid operating performance we achieved in 2013 continued into the first quarter of 2014 and included (i) solid same property NOI increase of 4.3% on a cash basis, (ii) strong rental rate growth of 10.4% on a cash basis related to lease renewals and re-leasing of space, and (iii) continued significant growth in NOI from our recently delivered value-creation developments.

"Our leasing volume was considerable, particularly in light of the extremely low level of contractual lease expirations in 2014. Occupancy in 2014 continued to increase to record levels and we completed $142.7 million of acquisitions thus far in 2014. We repaid $210.8 million of secured notes payable in the first quarter of 2014. We also expect to opportunistically issue unsecured bonds in 2014. Our Class A developments maintained their path towards stabilization with our 499 Illinois Street project in Mission Bay now 98% leased and our 430 East 29th Street project at our flagship Alexandria Center™ for Life Science in Manhattan up to 69% leased or under negotiation. Our confidence in our ability to continue per-share earnings growth and increase shareholder net asset value in 2014 and beyond remains on track," said Joel S. Marcus, Chairman, Chief Executive Officer, and Founder of Alexandria Real Estate Equities, Inc.

For earnings history and earnings-related data on Alexandria Real Estate Equities (ARE) click here.

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