ARE's 2Q Earnings Outperform Estimates

LOS ANGELES—Alexandria Real Estate Equities’ 2Q earnings outperformed estimates from analysts. ARE reported a 2Q14 FFO of $1.19, surpassing estimates, both from RBC Capital Markets and consensus by $0.01. Lower-than-expected interest expenses, according to a report from RBC Capital, drove the modest bump. In addition to surpassing FFO estimates, ARE also issued $700 million of unsecured bank notes, $150 million more than expected.

ARE’s portfolio delivered strong results with a year-over-year NOI growth of 5.7%, a 1.4% increase from 1Q14, and revenue growth of 5.3%. Occupancy increased in the portfolio as well by 320 basis points throughout the quarter with a total occupancy of 95.3%. The REIT signed only 750,000 square feet of leases; about 150,000 square feet lower than the trailing five-quarter average.