October 08, 2025 a 02:47 am
ARE: Dividend Analysis - Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. exhibits a strong dividend profile with a commendable track record. With a current dividend yield of over 6%, it provides an attractive income stream for investors. The company’s steadfast dividend history and cautious approach to managing dividend payments make it appealing to income-centric portfolios.
Overview 📊
Analyzing the fundamental financial data is crucial for understanding the capacity of Alexandria Real Estate Equities, Inc. to maintain and potentially increase its dividend payments.
| Key Metric | Value |
|---|---|
| Sector | Real Estate |
| Dividend yield | 6.34 % |
| Current dividend per share | 5.22 USD |
| Dividend history | 29 years |
| Last cut or suspension | None |
Dividend History 🗣️
The historical analysis of dividends aids in understanding the company's commitment to returning value to its shareholders. Consistency in dividend payouts over decades signals company stability.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 3.96 |
| 2024 | 5.19 |
| 2023 | 4.96 |
| 2022 | 4.72 |
| 2021 | 4.48 |
Dividend Growth 📈
The dividend growth rate is vital to anticipate future income from the stock and align with investment goals.
| Time | Growth |
|---|---|
| 3 years | 5.03 % |
| 5 years | 5.35 % |
The average dividend growth is 5.35 % over 5 years. This shows moderate but steady dividend growth.
Payout Ratio ✅
Assessing the payout ratios provides insights into the sustainability of the dividend payments relative to the company’s earnings and cash flows.
| Key figure | Ratio |
|---|---|
| EPS-based | -6915.06 % |
| Free cash flow-based | 63.61 % |
The negative EPS payout ratio indicates earnings deficits, while the FCF payout ratio suggests that dividends are covered through cash flows. This discrepancy warrants closer investigation.
Cashflow & Capital Efficiency 💵
Cash flow stability and efficient capital utilization are critical when evaluating the company's ability to sustain long-term dividend payments.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 8.96% | 7.53% | 5.50% |
| Earnings Yield | 1.92% | 0.48% | 2.22% |
| CAPEX to Operating Cash Flow | 0% | 0% | 0% |
| Stock-based Compensation to Revenue | 1.96% | 2.92% | 2.23% |
| Free Cash Flow / Operating Cash Flow Ratio | 1 | 1 | 1 |
The stability of cash flows over the years indicates robust operational execution, facilitating continued dividend distributions.
Balance Sheet & Leverage Analysis 📊
Financial stability and a well-structured balance sheet safeguard against potential risks and highlight liquidity strength.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.71 | 0.63 | 0.56 |
| Debt-to-Assets | 0.34 | 0.32 | 0.30 |
| Debt-to-Capital | 0.42 | 0.39 | 0.36 |
| Net Debt to EBITDA | 6.42 | 7.65 | 5.98 |
| Current Ratio | 0.40 | 0.39 | 0.58 |
| Quick Ratio | 0.40 | 0.39 | 0.58 |
The company maintains a conservative leverage, suggesting a prudent approach to balancing debt with equity, which enhances durability against credit stresses.
Fundamental Strength & Profitability 📈
Measuring key profitability metrics offers valuable insights into the operational efficacy and overall profitability of the company.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 1.81% | 0.56% | 2.75% |
| Return on Assets | 0.86% | 0.28% | 1.47% |
| Margins (Net) | 10.59% | 3.65% | 20.15% |
| Margins (EBIT) | 22.84% | 12.50% | 29.54% |
| Research & Development to Revenue | 0% | 0% | 0% |
Though operational performance exhibits volatility, the company’s margins and returns demonstrate an ability to navigate competitive pressures effectively.
Price Development 📉
Dividend Scoring System 🏆
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 5 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout ratio | 2 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 30/40
Rating ⭐
Alexandria Real Estate Equities, Inc. presents a robust dividend yield with a consistent history of payouts, making it a viable candidate for income-focused investors. Caution is advised due to the high payout ratio relative to earnings, yet the solid cash flow coverage and financial stability mitigate some risk factors.