Border to Coast Pensions Partnership Ltd has adjusted its investment portfolio, selling a significant portion of its shares in Alexandria Real Estate Equities, Inc. (NYSE: ARE) during the second quarter. The transaction involved the sale of 50,000 shares, marking a 25% reduction in the pension fund's holdings in the life science real estate investment trust (REIT).
According to a recent filing with the U.S. Securities and Exchange Commission (SEC), the sale leaves the pension partnership with 150,000 shares of ARE stock. This remaining stake is valued at approximately $10.9 million and represents about 0.09% of Alexandria Real Estate Equities.
Key Takeaways
- Border to Coast Pensions Partnership Ltd sold 50,000 shares of Alexandria Real Estate Equities, a 25% decrease in its holdings.
- The pension fund now holds 150,000 shares valued at nearly $10.9 million.
- Other major institutional investors have been actively trading ARE shares, with some significantly increasing their positions.
- Alexandria Real Estate Equities recently reported quarterly earnings that beat EPS estimates but missed on revenue.
- The company declared a quarterly dividend of $1.32 per share, yielding 6.1% annually.
Institutional Investor Activity Surrounding ARE
The move by Border to Coast Pensions Partnership is part of a broader trend of significant trading activity by large institutional investors concerning Alexandria Real Estate Equities. While the pension fund reduced its position, other major firms made substantial additions during the first quarter of the year, signaling varied outlooks on the REIT's future performance.
Notably, AQR Capital Management LLC dramatically increased its investment, acquiring over 1.2 million shares. This purchase boosted its total holdings by 511.9% to 1,517,842 shares, with a reported value of $140.4 million.
Other firms also demonstrated confidence in the company. Invesco Ltd. increased its stake by 39.0%, adding over 882,000 shares to bring its total to more than 3.1 million shares, valued at $291.2 million. Similarly, Price T Rowe Associates Inc. MD expanded its holdings by 79.0%, adding nearly 545,000 shares for a total position valued at $114.1 million.
Institutional Ownership Snapshot
Hedge funds and other institutional investors collectively own a commanding 96.54% of Alexandria Real Estate Equities' stock, underscoring the company's importance within institutional portfolios.
Further activity included Goldman Sachs Group Inc., which grew its stake by 21.8% to nearly 1.85 million shares. Strs Ohio also initiated a new position in the company during the first quarter, investing approximately $41.5 million.
Financial Performance and Market Position
Alexandria Real Estate Equities, which trades on the NYSE under the ticker ARE, has experienced a volatile year. The stock's 52-week trading range has been between a low of $67.37 and a high of $125.60. Recently, the stock opened for trading at $86.61.
The company currently has a market capitalization of $14.98 billion. Key financial metrics show a debt-to-equity ratio of 0.61. The stock's 50-day simple moving average is $80.03, while its 200-day simple moving average stands at $79.41.
Who is Alexandria Real Estate Equities?
Founded in 1994, Alexandria Real Estate Equities, Inc. is an S&P 500 company specializing in the life science real estate sector. It owns, operates, and develops large-scale campuses for life science, agtech, and technology companies in major innovation hubs like Greater Boston, the San Francisco Bay Area, and New York City.
Recent Earnings and Future Guidance
In its latest earnings report released on July 21st, the company announced mixed financial results. The REIT reported earnings per share (EPS) of $2.33 for the quarter, which was $0.04 higher than the consensus analyst estimate of $2.29.
However, quarterly revenue came in at $737.28 million, falling short of the anticipated $748.02 million. This represented a slight year-over-year revenue decline of 0.6%. During the same period in the previous year, the company had posted an EPS of $2.36.
Looking ahead, Alexandria Real Estate Equities has provided full-year 2025 earnings guidance in the range of $9.160 to $9.360 per share. Market analysts currently project that the company will achieve an EPS of 9.32 for the current fiscal year.
Dividend Declaration and Analyst Outlook
Alexandria Real Estate Equities has maintained its commitment to shareholder returns by declaring a quarterly dividend. The company announced a dividend of $1.32 per share, which will be paid on October 15th to shareholders of record as of September 30th.
This payout translates to an annualized dividend of $5.28 per share, resulting in a dividend yield of 6.1%. The ex-dividend date for this payment is also September 30th.
Wall Street's View on ARE
Research analysts have offered varied perspectives on Alexandria Real Estate Equities' stock in recent months. The consensus rating among analysts is currently a "Hold," with an average price target of $98.25.
Recent analyst actions include:
- Evercore ISI: Upgraded the stock from "in-line" to "outperform" and raised its price target from $91.00 to $104.00 on September 15th.
- Royal Bank Of Canada: Set a "sector perform" rating and adjusted its price objective down from $100.00 to $98.00 on July 29th.
- Baird R W: Lowered its price target from $129.00 to $102.00 in a June 12th report.
- Mizuho: Reduced its target price from $121.00 to $91.00, also on June 12th.
- Citigroup: Made a significant reduction to its price objective, from $110.00 to $74.00, on June 2nd.
Currently, three equity research analysts have assigned a "Buy" rating to the stock, while seven have issued a "Hold" rating, reflecting a cautious but mixed sentiment from the financial community.
