Alexandria Real Estate, Trivia, and More (Issue #28)
Alexandria Real Estate Equities (NYSE: ARE — $23.34bn) is a specialized REIT. The company owns buildings with labs equipped for biotech and pharmaceutical research. While many fear offices becoming less utilized by companies this is an industry where in-person workspaces are necessary.
This space (biotech and pharma) is growing and the real estate needs to grow with it. Alexandria has more than doubled its asset base over the last 5 years. 29.6m SF in 2017 to 67m SF in 2021. These are also in key markets. For example, Cambridge is by far their biggest market and San Francisco is the second largest domestically.
The company pays a 4.04% forward dividend that has almost doubled since 2019. This is strong, but not excessive since it is a REIT. Alexandria is more of a growth opportunity than a dividend payer compared to most REITs, but the dividend is a nice benefit.
The company is valued at a very reasonable 1.36x Price/Book. This is even better when put in the context of a grow oriented company.
Like if you think this is worth a deep dive! Now on to some trivia:
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ANSWER
Canal Dredging! Markel owns Ellicott Dredges a marine dredging company for canals and channels.
Portfolio Update:
Stay tuned for the remaining current 3 holdings in the portfolio. Go here to access all of the deep dives so far.
Meme Of The Week:
Insight Of The Week:
Thread Of The Week:
Until Thursday,
Soren
Disclaimer: Soren Peterson and Pillars And Profits Newsletter are not responsible for any investment results. This is not financial advice. Always do your own research.