Real estate investment trust Alexandria Real Estate Equities (ARE) will raise its quarterly dividend by another 3.0 percent to $1.03 per share. This brings the total dividend hike this year to 6.2 percent and follows a 7.8 percent dividend hike announced in 2018 by the REIT.

The next dividend is payable on January 15, 2020, to shareholders of record on December 31, 2019. The new annual dividend rate of $4.12 per share yields 2.5% at a stock price of $161.94.

In its press release the company states that 'the dividend allows the company to share its continued high-quality, strong and increasing net cash provided by operating activities with common shareholders while it retains significant cash provided by operating activities for reinvestment into its highly leased pipeline of development and redevelopment of new Class A properties. The company's funds from operations payout ratio (quarterly common stock dividend divided by quarterly funds from operations) remains favorably low at 57 percent for the three months ended September 30, 2019. Additionally, growth in net cash provided by operating activities after dividends continues to generate opportunities to increase the company's quarterly cash dividend per common share while enabling it to maintain a low funds from operations payout ratio.'

Alexandria Real Estate Equities, Inc. is an urban office real estate investment trust (REIT) focused on collaborative life science and technology campuses in AAA innovation cluster locations. Its locations include Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland and Research Triangle. Alexandria Real Estate Equities was founded in 1994 and has paid a dividend every year since 1997.