Alexandria Real Estate: Upgrading Rating To Buy, I Disagree With Jonathan Litt
Summary
- I upgrade Alexandria Real Estate Equities from "hold" to "buy" due to strong like-for-like performance, favorable financing, and an improving balance sheet.
- Alexandria's Q1 2023 results showed the highest quarterly rental rate growth in the company's history at 48.3% and a strong same-store quarterly NOI growth at 9%.
- Alexandria's balance sheet remains resilient, with a debt ratio of around 36% compared to the sector average of 61%, and the company is able to leverage its investment grade rating to capture favorable financing terms.
- All of the expressed concerns by an activist investor lack substantial basis and go against both the Q1 2023 facts and financial prospects.
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