joel marcus, alexandria

There's no significant cash flows from assets that are sitting in the pipeline. We have a large mountain decline, and the industry is really in its formative days. Specific to life science buildings, the availability of switchgear and equipment such as HVAC units and generators are -- has slightly improved but their lead times are still extraordinarily long with custom air handlers taking 27 weeks longer to get than before COVID and switch gear and generators and astounding 64 weeks longer. Today, Alexandria, which celebrated its 20th anniversary as an NYSE listed REIT in May 2017, is the only publicly traded pure-play office/laboratory REIT. Our mission is to create clusters to ignite and accelerate the worlds leading innovators in their pursuit of advancing human health by curing disease and improving nutrition. While this market is and will continue to warrant extreme prudence, it is an opportunity for the best companies to hone in on their long-term fundamentals and thrive. That's that we'd be out--. In addition, we've built an irreplaceable world-class asset base of robust and highly differentiated properties and campuses that attract a diversified best-in-class tenant base who values our expertise and operational excellence by providing 75% to 85% of our leasing quarter-to-quarter. We have taken judicious measure to cut our capex, while at the same time, making strong progress on our funding plan for 2023, and you'll hear more about that from Peter. With strong operational performance and balance sheets, REITs are well-positioned to navigate economic and market uncertainty in 2023. We first identified and pioneered the lab space niche back in 1994 and then through our disciplined execution of our original vision using the strategic architecture of our cluster model, which we customize to the life science industry. Cost of materials and supply chain volatility were the initial drivers of construction inflation, but now the primary driver is labor with a triple whammy of wage increases, shortage of workers and the inefficiency of the remaining labor force due to the retirement of older, more skilled labor. Joel Can you talk about the credit watch list today and just what that looks like as a percentage of your revenue versus, say, six months ago, how that number has changed? Nareits members are REITs and other real estate companies throughout the world that own, operate, and finance income-producing real estate, as well as those firms and individuals who advise, study, and service those businesses. How does that play into capitalized interest and interest expense in 2023? Our client tenants continued very timely payment of rent year-to-date through April. Thank you for accessing our content on the Topio Networks Market Intelligence Center. And that's what our tenants and Alexandria exemplify. On lease sublease space is at 3.9% and unleased directly competitive with our AAA locations and building quality to be 1.5% to be delivered in 2023 and 5.1% to be delivered in 2024, a 1.3% total increase in availability from last quarter. He was also a practicing certified public accountant and tax manager with Arthur Young & Co., where he focused on the financing and taxation of REITs. This is very similar to last quarter, but in response to the uncertainty and volatility in the markets, we have made a strategic decision to reduce 2023 construction spend by $250 million by pausing or delaying projects that had been classified as under construction, so we can focus our capital on the most strategic projects that have the most attractive terms, enabling our highly bedded and vast tenant base. I thought you were asking about the $38 million right above it. WebEditors Note. But you have to start prioritizing and that one just kind of lost some of it shine when the opportunity to expand kind of went away. Well, it's all reflected in our guidance. Beyond that, like we highlighted, not just during this call, but over the last couple of quarters, we've had, as you would always expect some normal lease expirations that occur at the end where the tenant doesn't choose to extend. But I suspect that maybe some of them are not retail. To access all the content for free, please sign up by entering your email. Yes. So, I would say that there's a nice amount of pent-up demand building and I would say a couple of years from now that, that's definitely going to be in the market if not sooner. I don't know that -- I mean, we don't call it a credit watch list. Even now, many office buildings in the country are 30% to 40% occupied. And some of those aspects of what would otherwise be a high barrier to entry market don't exist there. Is it difficult to make long-term investments with the short-term, quarter-to-quarter pressure for results? We achieved attractive economics primarily from our vast tenant base, accounting for 85% of the leasing this quarter, resulting in a rental rate increase of 48.3%, which was the highest in company history and a strong cash rate of 24.2%. Alexandria Real Estate "pretty darn cautious" about investments Clearly, demand is overall down from the peak of 2020 and 2021. In addition to this transaction, we have signed letters of intent or purchase and sale agreements for a number of assets, including the office campus referenced in the press release, aggregating to a total sales price of $799.3 million. Correct. There are less tenants actively seeking space in the market today, which we believe is being significantly driven by uncertainty in the economy. We couldn't understand the science, not that we had some ability to say, hey, this is going to fail or not fail, but we simply could not understand the science that we passed on the tenancy. The REIT also signed a 334,00-square-foot lease with Eli Lilly and Co. for the development of Lillys new state-of-the-art Institute for Genetic Medicine at 15 Necco Street in the REITs Seaport Innovation District submarket ofGreater Boston. I don't think we see demand dropping off a cliff here at all. Is there any something about that building that didn't like or that was more particularly attractive to certain investors, I guess, why that property? Alexandria is definitely not a health care service facilities company, nor a generic office company. Chairman, Chief Executive Officer, and Founder Get daily stock ideas from top-performing Wall Street analysts. Joel S. Marcus - Foundation for the National Institutes of Great. I think the way to look at our capital point is what we are doing internally, like we did in the current quarter for earnings as well as over the last several quarters and prep for initial guidance for Investor Day this year was to really challenge the uses of capital. Executive Chairman and Founder Joel Marcus spoke with S&P Global Market Intelligence about the company's life sciences focus and contribution to developing research hubs at campuses across the country. Thank you. And today, for example, one of our greater Boston tenants, Morphic Therapeutic which has an oral drug addressing moderate to severe ulcerative colitis. It's in operations, the book value would be sitting in the operating component if a larger campus had two operating buildings and a pad to support two buildings, the pad to support the future buildings would be in the future pipeline, the book basis, but the cost base is related to the operating buildings would be in operations, not in the pipeline. So you said $7.6 million You use any pipeline place you want. SOURCE Alexandria Real Estate Equities, Inc. Cision Distribution 888-776-0942 Venture capitalists are more discriminate, disciplined and demanding of current and future investments. But that's just one example as a historical data point, Jamie, is -- but if you look back for now, I think this would be the third year that we're into this run rate right at about $100 million, $105 million on average, I think, for the last couple of years. 1-800-3-NAREIT The result is tenants like Eli Lilly that continue to translate this R&D into transformative medicines. The Company announced stellar data in December, driving their stock up over 600% in the past 12 months and culminating in a $10.8 billion acquisition by Merck. I dont like a view that is focused on pure quotas. There are 2 older and 29 younger Prometheus Biosciences, while not a tenant exemplify how data drives the lifeblood of the industry. Alexandria Real Estate Equities (are.com) is an urban office REIT uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations. Get MarketBeat All Access Free for 30 Days (Ad), Array Technologies Brings Solar Flare To 2023 Earnings Forecast, Mondelez International Pricing Power Takes It To New Highs, Dont Chase Church & Dwight Higher; Let The Price Come To You, Rollins Pest Control Needs to be in Your Watchlist, Demand For Public Safety Technologies Drives Motorola's Growth, Boeing Cleared For Takeoff In Earnings Turnaround, 3 Volatile Mid-Caps to Trade This Earnings Season, Morgan Stanleys Earnings Is Fuel For The Rally, Teslas Earnings: So Bad Theyre Nearly Good, Johnson & Johnson Earnings Mix Some Good with Some Concerns. So we have added a lot of high-quality assets to our portfolio in recent years as well as coming online here over the next two to three years. And I think people would be impressed when we do our second quarter call. In Alexandrias fourth-quarter 2021 earnings call, Marcus said, Literally, [theres] no real presence of commercial life science [in Texas] today, but our intent is to create a market and really bring early-stage commercial life science to Texas, much like we did in New York.. Thank you. Steven Marcus, 41, the eldest of Joel Marcuss three children, started two companies, London-based RUNLABS UK and Dublin-based RUNLABS Ireland, that plan to house life science firms in Europe. Alexandria also provides strategic capital to transformative life science, agtech and technology companies through our venture capital platform. Diversity is fundamental to our culture. What's driving these delays are chip shortages and demand from electrification projects happening all over the world as investors, governments and end users demand improvement in carbon emissions. 1 for 4 weeks, First Republic in limbo as US regulators juggle bank's fate, Alibaba's Jack Ma turns up in Japan as college professor, On May Day, workers rally for better labor conditions, 'Waste of time': Community college transfers derail students. For example, for Prometheus Bio was originally spun out of Cedars-Sinai, which is set to receive nearly $800 million from the recently announced M&A. At this rate, this represents over $1.1 billion of capital for reinvestment over the next three years. Alexandria Real Estate Equities, Inc. (ARE) Q1 2023 Earnings I mean, the comments I provided on the vacancies that came up just in the first quarter alone with mark-to-market, both GAAP and cash north of 100%. I work specifically on our philanthropy and volunteerism efforts. WebJoel Marcus. PASADENA, Calif., Sept. 10, 2021 /PRNewswire/ --Alexandria Real Estate Equities, Inc. (NYSE: ARE), an urban office REIT and the first, longest-tenured and pioneering owner, operator and developeruniquely focused on collaborative life science, agtech and technology campuses in AAA innovation cluster locations, today announced that its executive chairman and founder, Joel S. Marcus, was honored last evening for Distinction in Civic Engagement and Renewal by the National September 11 Memorial & Museum during its Benefit Broadcast commemorating 20 years since 9/11. I mean if you look at the tenant base and where we, again, how they went through each of the segment or a number of the segments, and I think you could always say to me, the privates are in pretty good shape because they're not exposed to the public markets, and they generally assuming we've underwritten them well, and we have. [1], In 1993, one of the partners of Jacobs Engineering Group, Jerry M. Sudarsky, was presented with a Business Plan written by Kendell R. Lang titled BioProperties Management Group, Inc., which was a plan to form a REIT dedicated to funding biotech properties. And to put this in perspective, nearly one out of every $4 of US health care spend is deployed to care for people with diabetes. Its first quarter revenue rose 28.2%, from the year earlier, to $615.1 million. We have found that technology companies are not collaborative because they dont want other companies taking their technology or poaching their people. In the biomedical area, the federal government supports basic research and makes us the leader in the world to the tune of $40 billion from the National Institutes of Health. There are pending opportunities from our vast tenant base that the broader market likely does not see due to our direct relationships with company management teams. Okay. With that, let me turn it back to Joel Marcus. We will now begin the question-and-answer session. WebJoel S. Marcus, J.D., CPA Executive Chairman & Founder, Alexandria Real Estate Equities (NYSE: ARE)/Alexandria Venture Investments Read More Rory B. Riggs, MBA Co-Founder and Director, Royalty Pharma; Founder and CEO, Syntax LLC, Locus Analytics; Managing Member, Scientia Ventures. Joe, look, I can appreciate that you still haven't closed a lot of these deals, but I think the market would certainly appreciate just any range of commentary you could provide on how to think about cap rates? And for the most part, Rich, for the most part, those are either 100% leased projects or multi-tenant projects, most of which have some level of pre-leasing. Since its inception in 1996, it has strategically invested in disruptive life science, agrifoodtech, climate innovation, and technology companies advancing transformative new modalities and platforms to meaningfully improve human health. And rumor sometimes when you're dealing with public companies, you have to -- sometimes we have confidentiality agreements, sometimes we don't. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: Good day, and welcome to the Alexandria Real Estate Equities First Quarter 2023 Conference Call. Could you please provide more color on the internal leasing pipeline that comes from your existing tenants? So, Hallie? Alexandria All rights reserved. Thank you, Joel, and good afternoon, everyone. Well, and also, historically, if you go back to my comments, I said we have tried to shape the Company and allocate our capital as much as possible the high barrier to entry markets and mega campuses. I think we feel we're in pretty good shape. And then you look at public, which are preclinical or in the clinic, but don't have near-term milestones. And I guess just on that line of thought, like our markets like in the non-cluster markets, like RTP, suburban Maryland, are those sort of seeing similar kind of normalization demand trends as San Francisco versus maybe like your core mark submarkets like Cambridge, BTC, Torrey Pines in San Diego. Please go ahead. He was also a practicing certified public accountant and tax manager with Arthur Young & Co., where he focused on the financing and taxation of REITs. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland and Research Triangle. So, great locations, great facilities, and I think our operational excellence and our brand puts us in a great position to capture mark-to-market on most of these spaces that have come back. Just some new recent starts and one, large one in particular in South San Francisco, you made up most of that change. Then we also feel its important to support military families. And if you've ever had it, it is a tough condition, a major GI indication announced that it hit its Phase 2a clinical trial endpoint and their stock has been up 75% this year. Tomorrow, on September11, theAlexandria CenterforLife Science, the first and only commercial life science campus in New York City, will participate in the 9/11 Memorial & Museum's Tribute in Lightsan extension of the Memorial & Museum's annual Tribute in Lightto commemorate the 20th anniversary of the 9/11 attacks. For instance, in New York City, were a founding supporter of Computer Science for All. Certainly, there are -- there have been -- there has been spec building, especially in Boston. WebJoel S. Marcus Executive Chairman & Founder Alexandria Real Estate Equities, Inc./Alexandria Venture Investments Joel S. Marcus is the Executive Chairman and Founder of Alexandria Real Estate Equities, Inc. (NYSE:ARE), an urban office REIT uniquely focused on collaborative life science and technology campuses in AAA We started this whole life science real estate niche with the purpose of helping to solve human diseases. The pandemic helped supercharge a demand story that existed pre-COVID. It also highlighted the resiliency in terms of the essentialness of the underlying real estate, he says. After commenting on construction costs for the past two years, I can still say they remain volatile but are on their way to stabilizing. We continued with very strong adjusted EBITDA margin of 69%. Yeah. I guess what I'm trying to just make sure if I'm putting a cap rate on ARE's NOI and getting a value, what from that slide do I need to add to that to kind of capture the totality? Additionally, high-level interest rates always have an impact on real estate, but thats where Alexandrias strong balance sheet comes in, Rodgers continues. Alexandria Real Estate Equities, Inc. pioneered the life science realestate niche and continues to break new ground in the sector. from New York University and M.A., M.Phil., and Ph.D. from Columbia University-Union Theological Seminary. And that's kind of the critical message. In 2022, biopharma deployed an estimated $267 billion into R&D. Those are all 100% pre-leased projects. Alexandria, which celebrates its 25th anniversary as a New York Stock Exchange listed company in May 2022, has a total shareholder return exceeding 2,500% as of December 31, 2021. Paula Schwartz - IR. For Alexandria, these buildings stayed open and operational because its very difficult to do lab work from home.. Marcus teaches New Testament with an emphasis on the Gospels and the context of early Christianity within Judaism. They're one-off. How has the mission of Alexandria Real Estate Equities evolved since the founding of the company in 1994? It sits within our range of FFO with other assumptions offsetting those changes. So it made a lot of sense. Alexandria, which celebrated its 20th anniversary as an NYSE listed REIT in May 2017, is the only publicly traded pure-play office/laboratory REIT. We have brought the mission-critical real estate infrastructure of the life science industry and integrated it with an unparalleled and world-class 24/7 operational excellence service component aimed to protect the hundreds of billions of dollars of leading-edge science, which is conducted 24/7 within our asset base. In sum, with the majority of our academic and institutional ARR from investment-grade tenants and funding cycles that are based on multiyear grant funding time lines, this segment continues to be sheltered from larger macroeconomic conditions. If you want to look at it from that perspective, redevelopments were placed into operations as vacant assets, development projects for the future for -- they have been paused on a few circumstances, which basically were left in the future development pipeline. We had continued strength and timely payment of rent from our client tenants, 99.9% and for the first quarter and 99.7% for April that was through April 21, only three weeks into this month, pretty amazing. Driven by a voracious appetite for space, Alexandria raised the outlook for funds from operations (FFO) per share growth to 8% for the year. And I think we see in Maryland, it's still pretty good. And we continue to be the dominant owner as well. Thanks for taking the question. Maybe I'll start from the back end of your question. As CEO from March 1997 to April Briefly on venture investments, realized gains from the venture investments included in FFO averaged about $25.8 million per quarter for the last eight quarters through the end of 2022 in comparison to $20.7 million for the first quarter of 2023. And that's just how we do things. Please go ahead. Expands Its First-in-Class New York City Regional Life Science Cluster Franchise with the Strategic Acquisition of 219 East 42nd Street in Manhattan, Subject to a Leaseback", https://en.wikipedia.org/w/index.php?title=Alexandria_Real_Estate_Equities&oldid=1141941026, Companies listed on the New York Stock Exchange, Financial services companies established in 1994, Real estate companies established in 1994, Real estate investment trusts of the United States, Official website different in Wikidata and Wikipedia, Creative Commons Attribution-ShareAlike License 3.0. Business data for Alexandria Real Estate Equities, Inc.: This page was last edited on 27 February 2023, at 17:43. At quarter end, projects under construction and near-term projects expected to commence construction over the next four quarters totaled 7.6 million square feet and are 74% leased or under negotiation.

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