Alexandria Real Estate Equities (ARE +0.10%) is potentially going through the worst period in its history as a publicly traded REIT.
NYSE: ARE
Alexandria Real Estate Equities
Today's Change
(0.10%) $0.05
Current Price
$52.29
Key Data Points
Market Cap
$9B
Day's Range
$51.63 - $52.72
52wk Range
$51.63 - $112.42
Volume
36K
Avg Vol
2M
Gross Margin
25.22%
Dividend Yield
0.10%
While the company has historically boasted a sturdy dividend and a great balance sheet, recent earnings have highlighted some major concerns. The issue centers on their massive development pipeline. We explore the technical accounting structure where the company capitalizes a lot of interest, and the risk that canceling these early stage projects would force them to expense that interest, heavily impacting their FFO. This unusual accounting construct makes a dividend cut likely, which we expect may be announced soon. Watch to learn the specifics of this risk before their December analyst day.