Barclays Maintains an 'Overweight' on Alexandria Real Estate (ARE); Management Meetings on the West Coast
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Price: $116.67 -2.49%
Rating Summary:
17 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
17 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Barclays maintains an 'Overweight' on Alexandria Real Estate (NYSE: ARE), PT $84.
Barclays analyst says, "Last week, we hosted investor meetings on the West
Coast with Alexandria CEO Joel Marcus. Topics of conversation included positive trends in the company's operating portfolio, its efforts to shore up a more permanent capital structure via obtaining a credit rating, and future expansion potential...Core Markets Doing Well: Demand has been strong for life science space in most of ARE's core markets. San Diego, Mission Bay, Cambridge, and New York all stand out as having strong rent growth and solid demand. In contrast, demand in South San Francisco and Maryland has been relatively weaker...External Growth: The development pipeline is progressing, with particular opportunities for upside in Cambridge, Mission Bay and New York. In the future, ARE may enter new markets to follow growth in the energy and biofuels markets."
"Shoring Up the Balance Sheet: ARE expects to formally pursue a credit rating in 2H11. An investment grade rating, and by extension the ability to issue fixed rate unsecured debt, implies a more permanent capital structure with greater optionality that would allow the company to better weather changes in interest rates and capital availability. Although in the current market for unsecured debt it would likely be dilutive to earnings via higher interest expense, we think the tradeoff is worthwhile."
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 $81.74 yesterday.
Barclays analyst says, "Last week, we hosted investor meetings on the West
Coast with Alexandria CEO Joel Marcus. Topics of conversation included positive trends in the company's operating portfolio, its efforts to shore up a more permanent capital structure via obtaining a credit rating, and future expansion potential...Core Markets Doing Well: Demand has been strong for life science space in most of ARE's core markets. San Diego, Mission Bay, Cambridge, and New York all stand out as having strong rent growth and solid demand. In contrast, demand in South San Francisco and Maryland has been relatively weaker...External Growth: The development pipeline is progressing, with particular opportunities for upside in Cambridge, Mission Bay and New York. In the future, ARE may enter new markets to follow growth in the energy and biofuels markets."
"Shoring Up the Balance Sheet: ARE expects to formally pursue a credit rating in 2H11. An investment grade rating, and by extension the ability to issue fixed rate unsecured debt, implies a more permanent capital structure with greater optionality that would allow the company to better weather changes in interest rates and capital availability. Although in the current market for unsecured debt it would likely be dilutive to earnings via higher interest expense, we think the tradeoff is worthwhile."
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 $81.74 yesterday.
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