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ARE profits during COVID crisis

COVID crisis

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Alexandria Real estate Equities is known by the stock name “ARE”. It is a real estate investment company that is situated in Pasadena, California. It is a big company with many offices and branches situated all over the US. The rent revenues for this company come from Amgen, Celgene, Eli Lilly, Bristol- Myers Squibb, Merck, etc.  It has been calculated that the most recent rent collections in a month have been almost 99.4% of all of its leases. The NYSE: ARE at https://www.webull.com/quote/nyse-are has almost 97% of all of its leases at tripe-net. This very well means that all of the science tenants pay both rents as well as the taxes. 

The general insurance and the maintenance are included which also reduces the risk of all the unexpected costs and a good dependable portfolio in general. At most 95% of all these leases have been locked with an annual agreement along with rent escalations. This means that the ARE has inflation as well as the cost control protection on its long-term leases. There is a clause present in the agreements of these that states that the rent increment is possible as negotiated. 

ARE has given a lot of its clustered buildings and properties to single as well as multiple tenants in the cities Boston, New York, San Diego, San Francisco. The research and science labs have been given for lease in North Carolina along with leading universities. All the areas are situated outside of DC which makes them the suburban ones and the most comfortable. All the government entities and the NIH is to be thanked for. 

All of these buildings are equipped with high biotech and life sciences equipment as many of the people working in and around the United States are either working remotely or from offices. You can completely set up your own controlled environments with filters for air and water as per your comfort. These are critical for all the equipment and technologies used in labs that work on critical missions. All of the labs even before the COVID-19 crisis have been provided with filter controls and stringent air above the HEPA and the MERV-13 standards. This also proves that all the employees working from the office are safer than at home. 

The growth rate of ARE:

The growth rate of ARE has seen an increase of 15.4% compared to last year according to recent data. There has been a continuous increase in the number of sales that have been providing strong gains. The average has reached up to 18.9% in the past three years compound wise. The shareholders have been getting a steady rise in the share prices.  You can do free commission trading at online stock trading platforms.

Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

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