As the FAST Graph below illustrates, Alexandria possessed a very strong record of increasing funds from operations coming into the Great Recession of 2008. However, the recession brought on two years in a row where FFO, which is a close cousin to operating cash flows, fell as a result of weakness within the sector.
Consequently, the company was forced to cut its dividend, as evidenced by the pink line (dividends) on the graph. However, since the Great Recession, Alexandria has stabilized its funds from operations; now the company appears reasonably valued, as it is trading within its normal price to FFO ratio (of 14.1x), and slightly below its FFO's justified fair value. The 4.06% current yield is attractive in today's low interest-rate environment and should grow along with strengthening FFO.
Chart courtesy of FAST GraphsI plan to report on the Alexandria Summit later this week and provide more news on Alexandria's innovative approach to critical health care that shapes the future. At the time of publication, Thomas held no shares in stocks mentioned. Follow @swan_investor This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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