Analyzing Alexandria Real Estate Equities (NYSE:ARE) and NorthWest Healthcare Properties Real Estate Investment Trust (OTCMKTS:NWHUF)

Alexandria Real Estate Equities (NYSE:ARE) and NorthWest Healthcare Properties Real Estate Investment Trust (OTCMKTS:NWHUF) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Dividends

Alexandria Real Estate Equities pays an annual dividend of $2.88 per share and has a dividend yield of 5.5%. NorthWest Healthcare Properties Real Estate Investment Trust pays an annual dividend of $0.87 per share and has a dividend yield of 23.2%. Alexandria Real Estate Equities pays out -47.5% of its earnings in the form of a dividend. NorthWest Healthcare Properties Real Estate Investment Trust pays out -155.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Alexandria Real Estate Equities has increased its dividend for 15 consecutive years. NorthWest Healthcare Properties Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Alexandria Real Estate Equities and NorthWest Healthcare Properties Real Estate Investment Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexandria Real Estate Equities	$3.03 billion	3.03	-$1.43 billion	($6.06)	-8.68
NorthWest Healthcare Properties Real Estate Investment Trust	N/A	N/A	N/A	($0.56)	-6.67

NorthWest Healthcare Properties Real Estate Investment Trust has lower revenue, but higher earnings than Alexandria Real Estate Equities. Alexandria Real Estate Equities is trading at a lower price-to-earnings ratio than NorthWest Healthcare Properties Real Estate Investment Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Alexandria Real Estate Equities and NorthWest Healthcare Properties Real Estate Investment Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexandria Real Estate Equities	3	11	2	0	1.94
NorthWest Healthcare Properties Real Estate Investment Trust	0	0	0	0	0.00

Alexandria Real Estate Equities currently has a consensus price target of $52.85, indicating a potential upside of 0.44%. Given Alexandria Real Estate Equities’ stronger consensus rating and higher possible upside, research analysts plainly believe Alexandria Real Estate Equities is more favorable than NorthWest Healthcare Properties Real Estate Investment Trust.

Institutional & Insider Ownership

96.5% of Alexandria Real Estate Equities shares are owned by institutional investors. Comparatively, 15.5% of NorthWest Healthcare Properties Real Estate Investment Trust shares are owned by institutional investors. 1.4% of Alexandria Real Estate Equities shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Alexandria Real Estate Equities and NorthWest Healthcare Properties Real Estate Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexandria Real Estate Equities	-36.08%	-5.21%	-2.92%
NorthWest Healthcare Properties Real Estate Investment Trust	N/A	N/A	N/A

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

About NorthWest Healthcare Properties Real Estate Investment Trust

Northwest Healthcare Properties Real Estate Investment Trust (TSX: NWH.UN) (Northwest) is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT provides investors with access to a portfolio of high-quality international healthcare real estate infrastructure comprised as at September 30, 2023, of interests in a diversified portfolio of 229 income-producing properties and 18.2 million square feet of gross leasable area located throughout major markets in Canada, the United States, Brazil, Europe, Australia, and New Zealand. The REIT's portfolio of medical office buildings, clinics, and hospitals is characterized by long-term indexed leases and stable occupancies. With a fully integrated and aligned senior management team, the REIT leverages over 300 professionals in ten offices in eight countries to serve as a long-term real estate partner to leading healthcare operators.