Real estate investment trust Alexandria Real Estate Equities (ARE) will raise its quarterly dividend by 2.6 percent to $1.18 per share in Q2 of 2022. The year 2021 marked 12 years of higher dividends by the REIT with the company typically announcing two dividend hikes every year.
The next ARE dividend is payable on July 15, 2022, to shareholders of record on June 30, 2022. The common stock dividend for the 12 months ending June 30, 2022, of $4.72 per common share represents an increase of 24 cents, or 6 percent, over the 12 months ended June 30, 2021. The new annual dividend rate of $4.72 per ARE share yields 2,8% at a stock price of $165.
ARE DIVIDEND HISTORY
- Years increased: 13 (as of 2022)
- Average 5 year CAGR: 5.6%
- Annual dividend payment: $731 million
- Biggest dividend hike this decade: 2013 (+21.4%)
In its press release ARE states that `the dividend allows the company to share its continued high-quality, strong and increasing net cash provided by operating activities with its 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 (FFO) payout ratio (quarterly common stock dividends divided by quarterly funds from operations) remains favorably low at 57 percent for the three months ended March 31, 2022. 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 FFO 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.