Why An Earnings Beat Is Likely For Alexandria (ARE) In Q4?
Zacks Investment Research | Jan 23, 2018 09:15PM ET
Alexandria Real Estate Equities (NYSE:ARE) is slated to report fourth-quarter 2017 results on Jan 29, after the market closes. The company’s funds from operations (FFO) per share as well as revenues are anticipated to be up year over year in the to-be-reported quarter.
Last quarter, this Pasadena, CA-based urban office real estate investment trust (REIT), which primarily focuses on collaborative life science and technology campuses, delivered a better-than-expected FFO per share.
Over the trailing four quarters, the company surpassed the Zacks Consensus Estimate in two occasions, met in another and missed in the other. The company delivered an average positive surprise of around 0.3% during this period. The graph below depicts this surprise history:
Alexandria Real Estate Equities, Inc. Price and EPS Surprise
For Alexandria, which focuses on Class A properties concentrated in urban campuses, primarily for the life science and technology entities, the operating environment is likely to have remained favorable in the quarter under review. The locations of its properties are characterized by high barriers to entry and exit, and a limited supply of available space. The highly dynamic setting adds to the productivity and efficiency of the tenants.
Moreover, high demand for Class A properties in AAA locations is likely to have boosted the level of occupancy in the quarter under review. The company has been witnessing elevated demand for space in key life-science markets.
This trend is anticipated to have continued in the to-be-reported quarter as well and helped generate steady rental revenues from its properties. Also, Alexandria is expected to have adequate financial flexibility to cushion and enhance its market position.
The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $299.8 million, reflecting a 20.3% rise from the prior-year quarter figure. In addition, over the past 30 days, the Zacks Consensus Estimate for FFO per share for the quarter remained unchanged at $1.54. It reflects a year-over-year improvement of nearly 8.5%.
Alexandria’s shares have climbed 6.2% over the past six months, outperforming the Original post
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