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Colorado Wealth Management Fund Analyzes Alexandria Real Estate Q3 2024 ResultsAlexandria Real Estate (ARE) reported Q3 2024 results after the market closed. Alexandria Real Estate is a popular REIT. When I poll readers asking which REITs they want me to prioritize for updates, Alexandria performs quite well. If you're reading my content, you should know that I'm better known as Colorado Wealth Management Fund on Seeking Alpha. I'm posting here under my given name. Results for FFO
Results for AFFO
Guidance for FFO
Guidance for FFO as Adjusted
Wall Street’s Definitions for FFOThe wording can be a bit strange here because Wall Street is sloppy. Consensus analyst estimates are labeled as “FFO” and “AFFO”. Someone might assume that FFO would represent FFO and AFFO would represent FFO as Adjusted. However, that would be wrong. The Wall Street estimate for “FFO” goes with what Alexandria is calling “FFO as Adjusted”. The Wall Street estimate for “AFFO” is a metric Alexandria Real Estate does not (directly) report. Instead, it has to be calculated by making other adjustments. That generally isn’t too bad, except for the fact that analysts disagree on which “other adjustments” need to be made. The TakeawayAlexandria Real Estate tightened guidance for FFO as Adjusted, which is the most relevant number they report for FFO. The tightened guidance continues to match the consensus analyst estimate. Leasing SpreadsSpreads for leasing were unusually weak.
Guidance for 2024 full-year leasing spreads was unchanged:
Year to date leasing spreads:
Total leasing activity was elevated for the quarter, leading me to think ARE prioritized occupancy over spreads. Occupancy came in at 94.7%, which is only a higher than 94.6% from each of the prior 3 quarters. However, it is up nicely from 93.7% one year ago. ConclusionLooks like a reasonable quarter. I added some extra images for analysis in my Alexandria Q3 2024 update. Join The REIT Forum by Colorado Wealth Management Fund, trusted by over 60,000 investors for expert analysis on REITs, BDCs, and preferred shares. Disclosure: Long ARE On the date of publication, Michael Vanloon had a position in: ARE . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. |
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