Why Alexandria Real Estate's Dividend Is At Risk

Alexandria Real Estate Equities (NYSE: ARE) is potentially going through the worst period in its history as a publicly traded REIT.While the company has historically boasted a sturdy dividend and a great balance sheet, recent earnings have highlighted some major concerns. The issue centers on their massive development pipeline. We explore the technical accounting structure where the company capitalizes a lot of interest, and the risk that canceling these early stage projects would force them to expense that interest, heavily impacting their FFO. This unusual accounting construct makes a dividend cut likely, which we expect may be announced soon. Watch to learn the specifics of this risk before their December analyst day.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool