NEW YORK - Alexandria Real Estate Equities, Inc. (NYSE:ARE) reported third quarter results that exceeded analyst expectations, while narrowing its full-year guidance ranges.
The life science real estate investment trust posted adjusted funds from operations (FFO) of $2.37 per share for Q3, topping the consensus estimate of $2.26 per share. Revenue came in at $791.6 million, surpassing analyst projections of $766.97 million.
Alexandria's quarterly revenue rose 10.9% year-over-year, driven by strong leasing activity. The company completed 1.5 million square feet of leasing during Q3, up 48% compared to its previous four-quarter average.
"Our third quarter results demonstrate the continued strength and resilience of our high-quality tenant base and strategic life science real estate portfolio," said Peter M. Moglia, Alexandria's CEO and Chief Investment Officer.
For full-year 2024, Alexandria narrowed its guidance ranges. The company now expects straight-line rent revenue between $147 million and $162 million, down from its previous forecast of $169 million to $184 million. General and administrative expenses are projected at $176 million to $186 million, compared to the prior range of $181 million to $191 million.
Alexandria maintained its occupancy rate at 94.7% for operating properties in North America. The company's development and redevelopment pipeline is expected to generate $510 million in incremental annual net operating income, primarily by the first quarter of 2028.
The REIT declared a Q3 dividend of $1.30 per share, representing a 5% increase over the prior year period. Alexandria's shares closed at $97.45 on Monday, down 0.3% for the year-to-date.
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