November 12, 2025 a 11:31 am
ARE: Dividend Analysis - Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. is a leading player in the real estate investment trust sector with a strong dividend track record. Despite some recent financial challenges affecting earnings, the company maintains a reputable dividend profile with substantial growth opportunities. This analysis delves into the dividend attributes that define its appeal to income-focused investors.
📊 Overview
Julia is firmly rooted in the real estate sector, showcasing a noteworthy dividend yield of 6.34%. The current dividend is set at $5.22 per share, with a robust history of 29 consecutive years without any cuts or suspensions. This longevity underscores the company's commitment to providing shareholders with consistent returns.
| 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
Examining the dividend history provides insight into the company's commitment to returning value to shareholders. Alexandria has exhibited a stable and upward trending dividend, which is indicative of its prowess in generating cash flow.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 3.96 |
| 2024 | 5.19 |
| 2023 | 4.96 |
| 2022 | 4.72 |
| 2021 | 4.48 |
📈 Dividend Growth
The growth trajectory of dividends over recent years underscores Alexandria's ability to increase shareholder returns. A steady growth can enhance investor confidence and long-term investment appeal.
| 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
Evaluating payout ratios helps assess dividend sustainability. The EPS payout ratio is notably negative at -213.71%, while the FCF payout ratio remains at 65.60%. This indicates a reliance on cash flow rather than earnings to support dividends, a point of concern for stability.
| Key figure ratio | Value |
|---|---|
| EPS-based | -213.71 % |
| Free cash flow-based | 65.60 % |
The payout through EPS reflects unsustainable levels, posing risks if cash flow weakens.
💰 Cashflow & Capital Efficiency
A comprehensive cash flow and capital efficiency analysis is vital to understanding the company's ability to fund operations, investments, and dividends.
| 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 | 1.95% | 2.91% | 2.23% |
| FCF/Operating Cash Flow Ratio | 1 | 1 | 1 |
Alexandria's solid free cash flow yield indicates strong cash generation, yet the earnings yield lags, suggesting potential inefficiencies.
📉 Balance Sheet & Leverage Analysis
Assessing leverage and balance sheet health is crucial to perceive financial risk and sustainability.
| 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 | 9.70 | 7.65 | 5.98 |
| Current Ratio | 2.51 | 0.39 | 0.58 |
| Quick Ratio | 0.40 | 0.39 | 0.58 |
| Financial Leverage | 2.10 | 1.99 | 1.87 |
The leverage ratios indicate a moderately healthy balance sheet, although net debt remains a concern with increasing EBITDA dependence.
🔧 Fundamental Strength & Profitability
Profitability ratios show how effectively a company utilizes its resources for financial gain.
| Metric | 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% |
| EBIT | 22.84% | 12.50% | 29.54% |
| EBITDA | 62.27% | 50.97% | 62.93% |
| Gross | 70.19% | 69.77% | 69.75% |
| R&D to Revenue | 0 | 0 | 0 |
The company's profitability indicators display solid gross margins; however, a declining return on equity may impact its competitive advantage.
📷 Price Development
🌟 Dividend Scoring System
| Category | Score | Indicator |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 2 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 29/40
🗣️ Rating
Alexandria Real Estate Equities, Inc. demonstrates a compelling dividend profile, characterized by long-standing stability and a commendable yield. However, challenges remain in earnings growth and payout ratios which merit attention. The recommendation is cautiously optimistic for dividend-seeking investors who prioritize stability over rapid growth.