While the macro environment remains challenging, we are reasonably optimistic that we can execute on our disposition plan in 2023 at attractive values and cap rates. at [1], The company also has a venture capital arm, Alexandria Venture Investments, which invests in life sciences firms. This concludes our question-and-answer session. Thank you. 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. One reason, we will likely not see the supply many are expecting beyond what is under construction today. And we just completed a lot of product over the last two or three years. To access all the content for free, please sign up by entering your email. Gross unrealized gains in our venture investments as of March 31st were $459 million on a cost basis of $1.2 billion. Yes, it's somewhere around -- I think last quarter, it was somewhere around 27%. We also gave updates on significant dispositions and partial interest sales aggregating $865 million including significant transactions that are under executed LOIs and purchase and sale agreements. I mean are you seeing developers being more cautious pursuing new projects? How do you focus Alexandrias corporate responsibility efforts? So that's maybe a way to frame it, but I think you'll be pretty impressed. Supply in all submarkets is very likely to be muted beyond what is under construction today due to high construction costs that I referenced, higher cost of capital and the lessening of generic tenant demand. In 2021, US academic institutions accounted for 20,000 invention disclosures and nearly 1,000 new startups. Alexandrias accomplishments havent gone unnoticed. [7], Its first purchase was of 4 buildings in San Diego which had been negotiated and structured by Kendell R. Public asset : 49,278,736 USD. Or have you seen kind of any institutional interest that you hadn't seen before? To see all exchange delays and terms of use please see Barchart's disclaimer. As Hallie put it, this market is and will continue to warrant extreme prudence. Inspired by the OneFifteen platform, Alexandria is developing a new model in Seattle to combat the home- lessness crisis. So it kind of meets all the requirements that we have for monetization. Continued strength in same-property NOI growth of 3.7%, 9% on a cash basis and really reflects the benefit of strong rental rate growth on leasing in recent quarters, contractual annual escalations in rent and the burn-off of some free rent. 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. Well, I think the way -- and I'll have Peter certainly and Dan may want to comment as well. Our results prove it out. How challenging is it to disrupt that model? Alexandria is a publicly traded real estate investment trust that builds commercial properties and leases them to life science companies. Were also big thinkers. Well, it's all reflected in our guidance. So -- what you're really focused on though in your question is a spend outside of that, which goes to quite a bit of activity, site work, advancing site work as well as entitlements. We beat guidance and we raised guidance. 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. The court previously dismissed an earlier version of the suit on similar grounds but gave Alexandria an opportunity to resubmit it with more evidence. So rightsized for delivery to requirements in the market, they're not lumpy, large build-to-suit opportunities that could be more specific to larger requirements. At $47.5 billion, the NIH's 2023 budget is a 21% increase over 2019. 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. Now, our policy has been these large significant unusual items. What happens on these campuses is intertwined with our other three verticals. It will be ultra-efficient, minimizing its carbon footprint and harnessing geothermal energy and renewable electricity, which is really a game-changer, Marcus says. So without any further hesitation, let me turn it over to Hallie, who's going to give you some bird's-eye view of our view on the life science industry. Absolutely, that's helpful. Get short term trading ideas from the MarketBeat Idea Engine. And we're very pleased that we just received new -- one of Newsweek's most trusted company awards. And we're mindful of your question, but we have so much coming online and that we have completed in recent years. But that's been filled in by some other new folks coming in that want exposure that are also high-quality institutional investors. While the outlook for Alexandria certainly looks solid, one thing that people are watching is the health and liquidity of the underlying biotech industry, Rodgers notes. 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. Mr. Marcus has built Alexandrias unique business model around four business verticals real estate, venture investments, thought leadership, and corporate responsibility. But we also agreed to credit our partner $5.5 million in fees payable, because we sold 33% of the total 37% our partner purchased those fees equate to approximately $15 million in value. The Academic and medical institutions continue to be highly productive, a key metric being the pace of new intellectual property. I think, as I mentioned on the call earlier, we're mindful of the macro environment. If you look back over time, I think we've enjoyed the opportunity to move rental rate growth and same-property performance northward as we make our way through the year. I don't think we see demand dropping off a cliff here at all. Well, that's kind of how we looked at Sorrento. And so I was wondering -- if I don't know if there's an Alexandria dashboard, so to speak, or what, but can you maybe give us a sense as to what either like leasing traffic, rate or just the aggregate amount of demand that's coming out of your portfolio today looks like versus, say, now two, three, four quarters ago? Lang. 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So that group of tenants, you're always looking now even much more so for much nearer-term value inflection milestones and really good data and importantly, large unmet medical needs. This prestigious recognition highlights Mr. Marcus's many meaningful contributions to the Memorial & Museum and his unwavering support of its mission to commemorate those who lost their lives in the terrorist attacks of September11, 2001 and February26, 1993; educate the public and a new generation about their ongoing global impact; and inspire Americans and people around the world to value courage, public service, hope, empathy and resilience in the face of adversity. We encourage everyone to be super entrepreneurial and not think like they work in a structured corporation. Thank you for your continued support. And what we saw in 1994 in the embryonic days of the life science industry is multiplied geometrically today, 30 years later, as Steve Jobs said, the 21st century will be the century of the intersection of biology and technology innovation. And then, we've also had a few tenants that have come back, as you guys are well aware and have come back to and their lease a little bit early. Its a really fabulous benefit for people when theyre unfortunately in need of something like that. In fact, across this tenant base, they have raised over $1.9 billion from BC and pharma partnerships since the beginning of the year, of which $800 million has closed following the collapse of SVB. RUNLABS plans to provide offices and shared laboratory space to life science firms and is starting in Europe with a 150,000-square-foot building that Steven Marcus hopes to open in Paris next year. There are three key takeaways here. [Operator Instructions] [Operator Instructions]. 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So, the two are pretty fundamentally different. Alexandria began as a garage startup in 1994 when biotech was still an emerging industry. I agree with that assessment. Yes, thanks. Alexandria has filed another claim against Steven Marcus in a California state court. The other projects have activities that are winding down as we speak, meaning capitalization will cease over the next month to a number of months going forward. You're right. We focus on four core areas: first, biomedical research to help discover drugs and new technologies that will help cure disease. Thanks for taking the question. Nareits REITworks, taking place June 28-29 in Las Vegas, is the premier ESG meeting for REIT and CRE professionalsoffering educational sessions, dynamic speakers, and engaging roundtable discussions on the latest ESG trends in the industry. 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. Ismail says the platform gives Alexandria a competitive edge. Yeah. Any number of cities would like to get there but probably dont currently have those characteristics: Chicago, Denver, Phoenix. The younger Marcus also allegedly falsely claimed his startups evolved from Alexandria, according to the suit. Second, 371,000 rentable square feet of the recent vacancy has significant rental rate growth of 110% on a GAAP basis and 115% on a cash basis; and third, 29% of this 371,000 rentable square feet has already been leased with occupancy of some of the space beginning in the third quarter of '23. Thank you, and good afternoon, everyone. Such relationships are a huge differentiator for us and will continue to drive solid leasing even in tough environments. 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. Our per share outlook for 2023 was updated to plus or minus $0.05 of a range from the midpoint of guidance, down from the plus or minus $0.10 range last quarter. The cluster model has worked well for life science companies because they innovate together and theyre purpose-driven around therapies there are 10,000 diseases that have been identified and only 500 therapies to date, so were in the early innings. In San Francisco, direct vacancy is 3.5% and sublease space is at 5.8% and unleased supply directly competitive with our assets continues to be the highest in all of our markets at 6.6% and 8.9% to be delivered in '23 and '24, respectively. "Their contributions continue to fund the Memorial & Museum's vital exhibitions and programming, such as Revealed: The Hunt for Bin Laden. Some private and preclinical clinical stage companies are making do with the space they have today until they can better understand their ability to raise capital on its cost. Alexandria raised about $100 million in capital, which led to its IPO in May 1997, becoming the first REIT focused on lab space. If you look at us today, we'd say, well, let's think carefully about site work given cost of capital considerations with the macro environment today, and let's just hold on that until the right time. Each of the markets is seeing strong demand. WebJoel Marcus. Prior to co-founding Alexandria, he had an extensive legal career specializing in corporate finance and capital markets, venture capital, and mergers and acquisitions. Great. Well, I mean, a couple of years back now, I think it was two years ago, Jamie, we took -- the market was able to deliver on some unique liquidity events within the portfolio, and we had something just north of $200 million in realized gains. This quarter, it's closer to 22% overall in the whole portfolio. However, we're not dependent at all on broker deal flow. But Peter, you want to comment and Dan, you could comment as well. When I rang the opening bell at the IPO, I was interviewed and someone asked, How big could this company be? Marcus recalls. I spend a lot of time as a board member of mission-critical social responsibility organizations, and one of the most important things each of us can do is to participate in a number of ways with such things. Theyre a giant in a very small industry, which has been really unique for them, and its been a great attraction for investors, says David Rodgers, Baird & Co. Inc.s senior analyst covering office real estate. However, from Alexandrias standpoint, they should be able to continue to fund their growth. Please go ahead. 6.7 million square feet under construction or including 1.2 million to start in the near-term here. Rooted in its mission to advance human health, improve nutrition and enhance the quality of people's lives, Alexandria partners with leading local and national non-profit organizations, medical research institutions and municipalities to make a tangible positive impact in its clusters and communities. Copyright Nareit 2023. [2], The company is named after Alexandria, Egypt because of that city's connection to science. But from an NOI perspective, if that's your fundamental question, the future pipeline doesn't have any significant NOI being generated at the moment. Now key highlights of our continued strong operating and financial performance Strong growth in revenues, adjusted EBITDA and FFO per share was driven by the continued strength across key areas of our unique and differentiated business. Plus after having been in real estate for about eight years at that point, I could see a tremendous value in offering mission-critical facilities over commodity product. He also sued his father and Alexandria in New York state court, alleging that Alexandria owes him more than $12 million for devising a new financing strategy for the company in 2013. We were ahead of that curve because, historically, life science companies did not want to collaborate with institutions and other companies either. [9] The company stopped construction during the financial crisis of 2007-08, and in 2014, it sold its interest to the Government of Ontario for $65 million. Driven by a voracious appetite for space, Alexandria raised the outlook for funds from operations (FFO) per share growth to 8% for the year. Well, I think maybe South San Francisco might be not so much for us, but maybe others. We participate in corporate giving and were quite philanthropic in that respect, but we have a lot of programs that allow team members to get involved: matching gifts; a volunteer rewards program that rewards those who volunteer on their own time; quarterly engagement opportunities so every office has a volunteer opportunity each quarter at a local charity; and, of course, volunteer time off in the form of two paid days a year for folks to volunteer at a charity of their choice. 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. And altogether for the year, nearly 60 novel medicines have been scheduled for FDA approval review which mirrors 2018's record year of 59 novel FDA approvals. Next to public biotech, our tenants with marketed products make up 14% of our ARR generated $150 billion in revenue in 2022 and include names such as Amgen, Gilead, Vertex and Moderna. I'm curious as to what you've committed to in terms of development spending. 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. If you look at Hallie indicated, if you look at the tenant collections by segment, they're 99% to 100%. Over 80% of that demand comes from our existing 1,000 tenants.
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