This demonstration of collective remembrance brings awareness to The Never Forget Fund, launched by the 9/11 Memorial & Museum to ensure the next generation continues to learn the lessons of hope, resilience and unity from that day. To access all the content for free, please sign up by entering your email. Their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns. I mean there was one nuance to kind of focus us on 275 Grove, which was when we acquired that, there was a thought an opportunity to expand our holdings in that neighborhood and in fact, adjacent to it. However, the mega-mergers in the agricultural field that have occurred over the past two years have made it clear that the only way to disrupt the entire farm-to-table system is by spawning a whole new system of startups in the agtech area. These real estate companies have to meet a number of requirements to qualify as REITs. [10], In January 2013, the company sold a research facility in Seattle to Trammell Crow Company for $42.6 million. Marcus co-founded it with $19 million in Series A capital. "Joel and Alexandria's tremendous support has made a lasting impact on the 9/11 Memorial & Museum and enabled us to commemorate and honor the nearly 3,000 victims of these attacks and all those who risked their lives to save others," said Alice M. Greenwald, president and CEO of the National September11 Memorial & Museum. They were the first to focus on life science real estate and really dedicate the bulk of their business to it. I could not have made a better decision as it all proved out. The result is tenants like Eli Lilly that continue to translate this R&D into transformative medicines. With me today are Peter, Dean, Hallie and Dan. So, the $4.2 million does have some meaningful NOI associated with it. Joel S. Marcus; Founder & Executive Chairman; Alexandria Real Estate Equities, Inc. Peter M. Moglia; CEO & Co-CIO; Alexandria Real Estate Equities, Inc. So I guess, a long way of saying, Rich, I think we feel comfortable with what we've rightsized for the pipeline of activity. We focus on four core areas: first, biomedical research to help discover drugs and new technologies that will help cure disease. They're either completed or subject to executed LOIs or purchase and sales agreements, including the new JV partner for our build-to-suit project for UI Lilly. And we're mindful of your question, but we have so much coming online and that we have completed in recent years. Patrick Gunn, a San Francisco lawyer for Alexandria, said he was disappointed in the ruling but was considering refiling the suit in the United Kingdom or Ireland. Technology Square (Cambridge, Massachusetts), "Alexandria Real Estate Equities, Inc. 2022 Form 10-K Annual Report", "Alexandria Sets up Incubator, $25M Seed Fund For NY Bio Startups", "Alexandria Real Estate Equities: More Than Just a Landlord", "The #1 Real Estate Stock To Own Is Built On Trends", "A real estate empire grows in Kendall Square", "Take a look inside the stunning offices where companies are reinventing NYC's biotech scene", "Alexandria Real Estate Equities, Inc.: People, Passion, Purpose", "ZymoGenetics sells headquarters in $52 million lease-back deal", "MaRS selects Alexandria Real Estate Equities to expand the MaRS Centre in the Discovery District of Toronto", "Ontario government bails out MaRS building for $309m", "Trammell Crow Co. back in the game in Seattle with $42.6 million acquisition", "Another Amazon-leased building sells for $95 million", "Alexandria Real Estate Equities, Inc. A lot of people have left these companies and are now starting companies. I'll take that. Some of which use SVB, but many of which did not or had multiple banking relationships. And then maybe just on that kind of reduction in development spend. 20007. Although the case was dismissed, it was a limited basis, he said. For instance, in New York City, were a founding supporter of Computer Science for All. Occupancy across Alexandrias portfolio was 94.7% in the first quarter while rent growth was 32.2%. 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 concludes our question-and-answer session. Jonathan Saltzman can be reached at jsaltzman@globe.com, #ada-button-frame { Thanks. You can name a dozen cities.. That is almost -- that's hard to do generally, and it's so submarket and building specific, Tony. Tycoons lawsuit against son dismissed - The Boston Globe 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. Alexandria Real Estate Equities, key financial backer for Starting with pharma, which makes up 18% of our ARR, this segment continues to operate from a position of strength with strong balance sheet and significant free cash flows, pharma is less sensitive to rising rates. Real estate investor finds earnings success in early days of Prior to co-founding Alexandria, Mr. Marcus had an extensive legal career specializing incorporate finance and capital markets, venture capital, and mergers and acquisitions with special expertise in the biopharmaceutical industry. Thanks, good afternoon. The availability and price of commodities such as steel, copper, aluminum and concrete, continue to fluctuate due to shortages of raw materials, low yields for mines, high demand from electrification or low capability utilization rates in the mills and fabrication shops due to labor shortages. In addition to biomedical research and STEM education, we also do a lot in our local communities the communities in which we live and work and in which our tenants live and work. I don't think we see demand dropping off a cliff here at all. [6][1], The company's San Diego properties are primarily in Torrey Pines, San Diego, University City, San Diego, and Sorrento Mesa, San Diego. Flexing capital plan and turning to equity as a solution is not really something we are contemplating. That being said, Alexandria is eyeing Texas as the next emerging market, where the REIT is in the process of a series of transactions, although Marcus says he cannot comment further. And I think people would be impressed when we do our second quarter call. So, I guess the short answer is, I don't -- I haven't noticed anything. But directly on transportation, we felt was a huge competitive advantage in landed a world-class tenant to 100% occupy that development. }Customer Service. Just following up on Michael's previous question about Boston. WebJoel Marcus. But this is baked into our mall. So we've, I think, done an extraordinary job of managing rent collections and monitoring all of our tenants in a way that I don't think anyone else could even imagine. I mean, for example, we turned down a lease with Sorrento Therapeutics down in San Diego some years ago, because we -- it was kind of like Elizabeth well, Theranos, forget her last name, but Elizabeth Holmes. I think the way we're trying to think about it is to -- I mean, we have a very significant position in the Greater Boston market, 14 million, 15 million square feet. But I think it's fair to say if you look at our pipeline, which is pretty highly leased, I think we have a reasonably high level of confidence that we can fully lease those projects. Since co-founding the company in 1994 as a garage startup with $19 million in Series A capital and a mission to advance human health, he has led the remarkable growth of Alexandria into an S&P 500 company that, as of December 31, 2021, has a total market capitalization of $44 billion, and a total equity capitalization of $35 million that ranks it among the top 10% of all publicly traded U.S. REITs. There's definitely expansion needs. I'm curious as to what you've committed to in terms of development spending. Were funding some of the premier biomedical research institutions across the country in helping to bridge that gap between basic science and translational research and also supporting some translational research. For decades, Alexandria has been a leader in building sustainable campuses. I think Hallie indicated, we have a pretty methodical deep and judicious approach that has always been there. When typing in this field, a list of search results will appear and be automatically updated as you type. Alexandria Reports Higher Revenues But Pauses Some Projects The life sciences REIT raised rents 48 percent the highest quarterly rate growth in company Alexandria Real Estate carves out life sciences REITs historically have delivered competitive total returns, based on high, steady dividend income and long-term capital appreciation. In 1993, the partners at Jacobs Engineering Group asked Marcus, a certified public accountant and biotech industry attorney, to create a business plan to launch a private REIT that would exclusively own and invest in life science real estate, essentially, creating a brand-new asset class. And rumor sometimes when you're dealing with public companies, you have to -- sometimes we have confidentiality agreements, sometimes we don't. Alexandria paid $81 million to buy a 600,000 square-foot property at 421 Park Drive in the Fenway neighborhood of Boston for a mixed-use Landmark Center redevelopment project. 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. We dont focus on hiring a certain number of people in certain groups, we focus on hiring the most qualified candidates. Mr. Marcus also founded and continues to lead Alexandria Venture Investments, the companys strategic venture capital platform. Well, I don't know that -- I mean, it's interesting the way you posed the question. 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. Mr. Marcus is also personally engaged in numerous mission-critical philanthropic efforts, including through his service as Chair of the Navy SEAL Foundations 2017 New York City Benefit, which raised $12.8 million to help support the Naval Special Warfare community and their families. It's a premium priced, non-commodity product, generally characterized by high barrier to entry markets, where we have a dominant franchise and where we exercise pricing power, especially in our highly sought after Alexandria-branded mega campuses, and those markets exhibit deep science base, deep life science talent base, a rich abundance of risk capital and also are ones that are generally safe and have excellent transportation access. Prior to co-founding Alexandria, he had an extensive legal career specializing in corporate finance and capital markets, venture capital, and mergers and acquisitions. 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. It sounds like that's where the biggest incremental change was when you're looking at 2023 and 2024 on lease unleased new supply. We chose not to win the Britannia assets came for sale quite a number of years ago and in those days, HCP bought that, I think, almost $3 billion, we valued at about $1.7 billion. So, you're referring to the page 34 for others on the call, which is in the bottom right-hand corner. But US District Court Judge Lucy H. Koh, of Californias Northern District, ruled her court has no jurisdiction because Steven Marcuss companies operate strictly in Europe and Steven lives in London. See Joel S Marcus's compensation, career history, education, & memberships. Okay, I understand. I think kind of Hallie said it all that, when we look at private companies or we look at preclinical public companies or even companies in the clinic that are public. Jacobs invested in the company with $5 million. And 29% of that space has already been leased. But as Winston Churchill once said, "Never let a good crisis go to waste." The firm has maintained strong financials despite the ongoing economic storm, according to Executive Chairman and Founder Joel Marcus. Thus, the office component cannot be broken out or compared to traditional office, but is an adjacent, highly integrated and critical component of laboratory design and workflows. So it certainly is one of those opportunities that would attract a variety of capital sources. And then as technology developments or take hold that you are informed about. The government loves quotas, but thats not a way to operate a business. Now we've got continued consistency and growth in dividends from really high quality cash flows we generate in our business. My sense is half of that is, is retail tenants that maybe are leaving for an asset. Its a program that allows our 400 employees to access Alexandrias network of expertise. Additionally, he is a member of the MIT Corporation Visiting Committee for the Department of Biology. To be clear, in the process of developing novel medicines, there will always be some that fail no matter what the market conditions. Could you please provide more color on the internal leasing pipeline that comes from your existing tenants? Overnight on Wall Street is morning in Europe. Yeah. $37.889 million. And do we want in the portfolio or not. And the other -- if you add the other $119 million to be funded to completion and divide it by the 33% we sold, you get $561 million. When the world is in a tumultuous situation of global conflict, economic stress, and rising interest rates, those are a series of things that investors worry about, Rodgers says. So that's maybe a way to frame it, but I think you'll be pretty impressed. Joel Marcus - Executive Chairman and Founder Peter Moglia - Chief Executive Officer & Co-Chief Investment Officer Dean Shigenaga - President & Chief [12], In July 2018, the company acquired 219 East 42nd Street, the headquarters of Pfizer, for $203 million in a leaseback transaction.[13]. Were building in Seattle, San Francisco, San Diego, Boston, Maryland, and North Carolina. We just don't want you to double count the square footage as you go towards the future pipeline. The construction spend, plus or minus will play out like a normal curve for spend over that pipeline, roughly two years from the start of new projects, the active pipelines part way through that already. Yeah. In addition to exploring potential new geographic markets, Alexandria is also staying on top of innovations in the life science industry through Alexandria Venture Investments, a venture capital platform Marcus created in 1996 that invests directly in the companies it serves. Language links are at the top of the page across from the title. Steven Marcus has asked the US Trademark Trial and Appeal Board to take Alexandrias registered trademarks off the books. Alexandria has played a critical role in the evolution of the life science industry over the last three decades by creating and growing the ecosystems and clusters that ignite and accelerate the world's leading innovators in their pursuit to advanced human health, which is our solid mission. After commenting on construction costs for the past two years, I can still say they remain volatile but are on their way to stabilizing. So, hopefully, that gives you just some color on how we're thinking more broadly about it. Alexandria Real Estate Equities, Inc. (NYSE:ARE) Q4 2021 Results Conference Call February 1, 2022 3:00 PM ETCompany Participants. As we all know, the rapid rise in interest rates have not only increased investors' cost of capital, but created a lot of uncertainty causing a number of investors to remain on the sidelines. The following interview has been condensed and edited for clarity. Same platform but with new and improved features. Alexandria is targeting LEED Zero Energy and Fitwel certifications. It is just uncanny that people are still trying to put new products into the queue in a market that has a lot of vacancy. 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. With strong operational performance and balance sheets, REITs are well-positioned to navigate economic and market uncertainty in 2023. Thank you for accessing our content on the Topio Networks Market Intelligence Center. [1], The company's largest tenants are as follows:[1]. Next question comes from Jamie Feldman with Wells Fargo. Hey, guys. He says he came up with the Alexandria name and logo as an undergraduate student at the University of Pennsylvanias Wharton School and that they belong to him. Its a really fabulous benefit for people when theyre unfortunately in need of something like that. Joel S. Marcus, founder of Alexandria Real Estate Equities Inc. Pat Greenhouse/Globe Staff/File/2014/Globe Staff Joel S. Marcus, the real estate tycoon Pasadena, California-based Alexandria is the only publicly traded, pure-play office/laboratory REIT. With that, I'm going to hand it over to Dean. And how that demand compares to the broader industry? Many cities want to become the next emerging life science market, but obstacles exist. This is an important distinction in any part of the cycle, but perhaps even more when things have slowed down. Mr. Marcus serves on the boards of directors of Applied Therapeutics, Inc. (NASDAQ: APLT), Frequency Therapeutics, Inc. (NASDAQ: FREQ), Intra-Cellular Therapies, Inc. (NASDAQ: ITCI), and MeiraGTx Holdings plc (NASDAQ: MGTX). Please go ahead. Just some new recent starts and one, large one in particular in South San Francisco, you made up most of that change. Marcus followed Harvard Business Professor Michael Porterstheory of cluster development and began operating under an urban cluster model, where a world-class location, technology and innovation, a talent pool of scientists and professional managers, and ample risk capital all merged. Reflecting this, in April, we've collected 100% rent from our preclinical and clinical stage public biotech tenants. (844) 978-6257. Alexandria Real Estate Equities and the Transformation of Life But as Hallie mentioned, BCs are more discriminate disciplined in demanding of future investments and companies with tenured management teams, strong differentiated technologies and near-term value inflection milestones are the ones that will rise above the fray. They generally have good and deep backers, whether it's venture or institutional. [11], In June 2018, the company acquired an office building leased to Amazon.com in Seattle from The Blackstone Group for $95 million. Site work shrinks the time to deliver buildings to a tenant, which -- if you looked at us two years ago, we said, let's move that along. We've had very solid leasing with the highest-ever rental rate increase, and we've had continuing strong operating and EBITDA margins. Next, transitioning to academic and institutional tenants, which constitute 12% of our ARR, it's an opportunity to remember that the life science industry's cornerstone is innovation, which is not slowing. There's no significant cash flows from assets that are sitting in the pipeline.