ARE Announces $500M Stock Repurchase Program

By Bobby Samwell • Monday, December 09 10:19 • Permanent Link

In a press release today, Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced a $500 million common stock repurchase program authorized by the company’s board of directors. The program allows the company to repurchase its outstanding shares of common stock, par value $0.01 per share, until December 31, 2025. The repurchases may occur in the open market or through negotiated transactions, accelerated share repurchases, or using derivatives.

As of the last financial report, Alexandria Real Estate Equities, Inc. reported a total cash and cash equivalents of $1.2 billion, an increase of 20% from the previous period. Additionally, the company's operating cash flow stood at $900 million, representing a 15% increase from the prior period. Furthermore, the company's net income for the last reported period reflected a 10% increase, reaching $300 million.

The company plans to fund the stock repurchases on a leverage neutral basis with net cash provided by operating activities after dividends and proceeds from asset sales. This move comes as Alexandria Real Estate Equities, Inc. aims to optimize its capital structure and enhance shareholder value.

Alexandria Real Estate Equities, Inc. is an S&P 500® company and a prominent player in the life science real estate sector. The company prides itself on being a best-in-class, mission-driven life science REIT with a focus on creating a positive and lasting impact on the world. Since its founding in 1994, the company has been at the forefront of the life science real estate niche and is known for its collaborative megacampus™ ecosystems in AAA life science innovation cluster locations across the United States.

This stock repurchase program demonstrates the company's confidence in its financial position and its commitment to delivering value to its shareholders. It will be interesting to see how this move impacts the company's financial performance in the coming quarters. Following these announcements, the company's shares moved 2.2%, and are now trading at a price of $106.19. If you want to know more, read the company's complete 8-K report here.

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