Mizuho Upgrades Alexandria Real Estate To Buy

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In a report published Thursday, analyst Richard Anderson of Mizuho Securities upgraded
Alexandria Real Estate Equities, Inc.ARE
from Neutral to Buy. The price target was raised from $98 to $104. The company released its 1Q15 results, with same store growth of 7.8 percent, which was higher than Alexandria's guidance for 2015. The North American occupancy rate came in at 96.8 percent, excluding redevelopments, while tenant retention has been averaging about 85 percent for some time now. "A contributing factor to ARE's same store performance is its strong rental spreads on released/new leasing," the analysts said, while adding that the company has a "very healthy and stable platform of internal growth." In addition, Alexandria saw virtually no early lease terminations during the quarter, which Mizuho believes was due to its high quality portfolio and large development platform. "Although consolidation in the biopharma sector has reared its head here and there, resulting in some moving parts for the REITs, we think the underlying business continues to provide a strong backdrop," the analyst added.
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Posted In: Analyst ColorUpgradesPrice TargetAnalyst RatingsMizuho Securities
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