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.
REIT Set to Help Cure Cancer
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts