Thank you, and good afternoon, everyone. Mr. Marcus earned his undergraduate and Juris Doctor degrees from the University of California, Los Angeles. from New York University and M.A., M.Phil., and Ph.D. from Columbia University-Union Theological Seminary. Joel S Marcus, Alexandria Real Est Equities: Profile and 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. China of course, but many other locations. And then there are transportation and increased energy costs as well. Alexandria How critical is it to maintain that culture in order to move into new areas and adapt quickly to a changing environment? Joel Marcus is professor of New Testament and Christian origins at Duke Divinity School. As a testament to this point, with the week remaining in April, private biotech tenant rent collection is at 99.7%. So, we are able to pick up some improvement to offset those. But as Winston Churchill once said, "Never let a good crisis go to waste." And then maybe just on that kind of reduction in development spend. These future transactions and 15 Necco account for approximately 57% of the progress needed to meet the midpoint of our disposition guidance. And many banks, including G-SIBs have been working for years to carve out their own share of this market. Hey, guys. And we just completed a lot of product over the last two or three years. 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. 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. Yes. "Their contributions continue to fund the Memorial & Museum's vital exhibitions and programming, such as Revealed: The Hunt for Bin Laden. I don't think we see demand dropping off a cliff here at all. About 80% of our projects are under fixed-rate contracts, and were in the process of finalizing fixed-rate contracts for the remaining 20%, so were insulated as best you can, he continues. Before transitioning to the health of our tenant base, one quick reminder on the differentiation of our life science real estate product from traditional office, importantly, the office component of our life science buildings directly supports researchers in the lab. When we hire, everybody tries to check their egos at the door and we try to really have a mission-driven focus at all levels of the company. [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. 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). at Theyre embracing it, but theyre not very good at it yet. Alexandria Real Estate Equities founder and executive chairman Joel Marcus said Class-A commercial buildings are "scarce assets" on "Mornings with Maria" Tuesday, July 26, 2022. 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. WebJoel S Marcus is Chairman/Co-Founder at Alexandria Real Est Equities. Language links are at the top of the page across from the title. We have a very strong balance sheet. Please find specific details in the tabs below. Please go ahead. So, the two are pretty fundamentally different. I know people who did diligence and they said they could never look at the Edison machine. 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. 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. Alexandria is targeting LEED Zero Energy and Fitwel certifications. Or I'm just trying to piece that all together, so either we're capturing everything or not double-counting something? They were the first to focus on life science real estate and really dedicate the bulk of their business to it. Age : 74. Flexing capital plan and turning to equity as a solution is not really something we are contemplating. Joel S. Marcus. And I mean, if you looked at, say, the Rubius situation, we would say that if there's a management change that then you look at -- or you put that scrutiny at a higher level when it happens. In the first quarter, we delivered 453,511 square feet in five projects into our high barrier to entry submarkets. Alexandria Thanks Peter. The key areas that represent Alexandria's six bedrock social action pillars comprise disease and other threats to human health; hunger and food insecurity; deficiencies in support services for the military; the opioid epidemic; educational disparities; and the homelessness crisis. I think we're still seeing decent activity maybe RTP or RT, I should say, has slowed maybe a bit more than we would have guessed, but part of that's due to my guess is the mix of tenants down there in the -- not so much our tenants per se, but the mix of life science, the components of life science tenants in that market. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Alexandria Real Estate Equities, Inc. and Alexandria Venture 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. There are a handful of dominant companies that control the whole global ag effort. Are you getting any sense that tenants are engaging less on their 2024 expirations or space needs given the large amount of expected deliveries between now and the end? The culmination is continued FDA approvals and 2023 has started at a fast clip. Marcus holds a B.A. Joel Marcus fortunes have risen with those of the life sciences industry. Q1 2023 Alexandria Real Estate Equities Inc Earnings Call So hopefully, that gives you a sense. In 1996, Mr. Marcus founded the companys venture capital arm, Alexandria Venture Investments, to provide strategic investment capital to innovative life science and technology entities developing breakthrough therapies and technologies. Lionel Messi talks through the most iconic moments of his illustrious career, with journalists, teammates and opponents offering insight and analysis into the goals and games that will define his legacy. 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. It's a retail project known as the shops at 10 Fran. LEADERS Interview with Joel S. Marcus, Executive Chairman And we're mindful of your question, but we have so much coming online and that we have completed in recent years. WebEditors Note. 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. It sits within our range of guidance. However, Alexandria has an immense advantage with its long-term relationships with large, industry-leading companies, many of which are revolutionizing the biotech sector. Alexandria Monitor your investments 24 hours a day, around the clock from around the globe. The Alexandria Summit convenes a diverse group of visionary partners and key stakeholders from the pharmaceutical, biotechnology, agribusiness, technology, medical, academic, venture capital, private equity, philanthropic, patient advocacy, and government communities to address the most critical challenges in global healthcare, agriculture, and the environment. 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. 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 innovation cluster locations. And now, I'd like to turn the call over to Joel Marcus, Executive Chairman and Founder. Now we do expect realized gains each quarter from our venture investments for the remainder of '23 to be more consistent to slightly up from the historical quarterly average of $25.8 million that I just highlighted. 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. We've maintained strong guidance while lowering uses and sources of capital. To see all exchange delays and terms of use please see Barchart's disclaimer. Thank you, Paula, and welcome, everybody, to Alexandria's first quarter 2023 Earnings Call. 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. Additionally, he is a member of the MIT Corporation Visiting Committee for the Department of Biology. But as you think about the ability to flex that going forward, if the transaction market stalls even more, how are you thinking about the flexibility on your end? Some of which use SVB, but many of which did not or had multiple banking relationships. And so, a combination of settling in on activity this quarter, as well as our continued outlook for the remainder of the year, so slight improvement overall. Thank you. That has been the secret sauce in trying to get things done. Joel S. Marcus Magnolia Neurosciences Corporation Alexandria Real Estate Equities, Inc. is a real estate investment trust based in Pasadena, California that invests in office buildings and laboratories leased to tenants in the life science and technology industries. Thanks, good afternoon. Thank you for indulging me on that retrospective. No, that's helpful. 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. 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. 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? 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. There are less tenants actively seeking space in the market today, which we believe is being significantly driven by uncertainty in the economy. So its more general TIs, kind of, renovation costs that aren't part of development and redevelopment that we need to scrutinize in our business. Dan, any other comment you would throw out? The 10 most prevalent diseases in the US, heart disease, cancer, chronic respiratory disease, obesity, Alzheimer's, diabetes, substance abuse, infectious disease, chronic kidney disease and mental illness are not being solved to-date. And so, we're reasonably comfortable with our outlook into 2023 and we'll obviously provide an update as we go quarter-to-quarter, but a bulk of what we have under executed LOI or PSA agreements today is sliding to close here fairly soon, plus or minus mid-year. 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. And I think that's probably the best example I could maybe share Peter, but you could give you color. That is 1.1 million students every year. And apologies if I missed it, but do you have any lease termination since this quarter? 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. For Alexandria to own big concentrations of campuses where they can provide the amenity base, as well as the opportunity to expand and move into different facilities and have them run incredibly professionally by one of the most experienced teams in the industry, is a real competitive advantage for Alexandrias tenants.. Got it. Nigerias SEC Plans to Allow Asset-Backed Tokens But Not Crypto, Goldman, Bank of America Slightly Push Back Call for BOJ Move, Australias Rapid Fiscal Revival Brings Budget Surplus in View, Kings Coronation Holiday Provides Latest Drag for UK Economy, How Much ECB Hikes This Week Hinges on One Data-Packed Morning, Americanas Minority Shareholders Add Board Member Amid Crisis, Softbanks Arm Says It Registered Confidentially for US IPO, AI Chatbots Have BeenUsed to Create Dozens of News Content Farms, Jack Ma Joins University of Tokyo as Visiting Professor, Pitched Fight for Stock Market Supremacy Was Masked by VIXs April Plunge, Singapore Voices Grave Concern Over South China Sea Tensions, Peter Thiel Tells Black-Tie NYC Audience That Diversity Is a Distraction, What You Need to Know About the Biden Administrations New Mortgage Fees, Russias Most Famous Fashion Designer, Who Dressed First Ladies, Dies at 85, Pope voices willingness to return Indigenous loot, artifacts, The Slow Dance Between Markets and Central Banks, The Oil Industrys Unhappy Marriage Is Starting To Face Facts, Dont Make It Too Hard for Americans to Investin China, The Boring Old Box Truck Gets the Tesla Treatment, For Banks Under Stress, Theres a Federal Backstop That Provides Help Without Stigma, What the US Can Learn From Europes ESG Mistakes, Singapore Deputy PM Allays Property Price Fears in May Day Rally, Japan Coalition Party Says More Handouts for Kids Top Priority, What to Know About Red-Flag Warnings, an Ominous WildfireForecast, Occidental Hopes to Sell the Carbon It Capturesat the Worlds Biggest Plant, Germany Sets the New Standard for Cheap, National Mass Transit, Chinas Now Spurning Ugliest Buildings That Symbolized Its Meteoric Rise, Broke Chinese Gen Zs Turn Factory Town into Top Tourist Spot, Bitcoin Sags After its Longest Streak of Monthly Gains Since 2021, Bitcoin on Course for Longest Streak of Monthly Gains Since 2021, Chairman/Co-Founder, Alexandria Real Est Equities. Where you're parting ways with your preeminent assets, you only want to do that to a certain degree before -- you're giving away stuff you'd rather own 100%. Good afternoon, everyone. He was named one of Real Estate Forums 2017 Best Bosses in commercial real estate and was previously a recipient of the EY Entrepreneur Of The Year Award (Los Angeles Real Estate). The company also continues to leverage its leadership, knowledge, expertise and resources to develop and implement long-term, scalable solutions to the most pressing societal issues. Yeah. Thank you. Alexandria Real Estate Equities - Wikipedia Peter, can you talk a little bit about the supply comments that you're making in your remarks. Please go ahead. Our funds FFO per share is up 7%, as you see in revenues, top line revenue is up almost 14%. [4] The company has several properties in Kendall Square in Cambridge, Massachusetts, where it has invested over $2.3 billion since its first investment in the neighborhood in 2002. I realize not singling out individual deals, but is there a way to bracket them or bucket them against maybe where your implied cap rate is today, or maybe against the deal that Peter discussed? And I guess that really just speaks to how are you changing maybe your underwriting in the tenants that you're sort of willing to do business with today versus maybe tenants who were willing to do business with either post-SVB or a couple of years ago? 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. Its undoubtedly a differentiator that has borne fruit.. I think we feel we're in pretty good shape. Its part of our DNA. We've got a very low and conservative FFO payout ratio, 55% for the first quarter annualized with 5.3% increases in common stock dividends over the last 12 months. the mental health crisis is continuing to skyrocket, said Joel Marcus, AREs founder and executive chairman. Okay. His publications include two monographs on Mark, a two-volume commentary on the same Gospel in the Anchor Bible series (2000, 2009), Jesus and the Holocaust: Reflections on Suffering and Hope (1997), John the Baptist in History and Theology (2018), and several articles about the parting of the ways between Judaism and the Christianity of the first three centuries of the Christian era. But this is baked into our mall. Those are all 100% pre-leased projects. Joel Marcus co-founded Alexandria Real Estate Equities, Inc. in 1994 as a garage startup with $19 million in Series A capital. WebJoel S. Marcus is the executive chairman and founder of Alexandria Real Estate Equities Inc., an urban office REIT uniquely focused on collaborative life science and technology View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. We're fortunate we have one project moving that is kind of a good niche for earlier-stage companies, mid-stage companies, so we don't have to go on an elephant hunt to lease some really large project, but there's a lot of folks out there that are going to be in a lot of trouble because of what I would think is fairly reckless investing. It's reflective of where we usually start at the beginning of the year. I think the way to think about at a high level is that we just close the conversation about the pipeline. Entitlements are important. 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. Joel Marcus - World Medical Innovation Forum In 1996, Marcus founded the companys venture capital arm, Alexandria Venture Investments, to provide strategic investment capital to innovative life science and technology entities developing breakthrough therapies and technologies. Now the key takeaway is that the scale of our high-quality tenant roster combined with operational excellence from our team, puts us in an excellent position to benefit from the unique pool of demand from our client tenants even in this unusual macro environment. Kids dont have computer science classes even through high school its shocking. Rich, it's Dean Shigenaga here. So is there a, sort of, a number you can point to that this is how much we can raise from a disposition standpoint, still be in a range where we're comfortable with our ownership position in these fantastic assets longer term. I said, Well, in 10 or 15 years, maybe we could be a $1 billion company. And lo and behold, we passed $44 billion in enterprise value at the end of 2021., In May, the company celebrated the 25th anniversary of its IPO. I mean we've always done that, but I think now it just goes to show that they're going to be the haves and the others that have not. For 60 years, Nareit has led the U.S. REIT industry by ensuring its members best interests are promoted by providing unparalleled advocacy, investor outreach, continuing education and networking. Last October, life sciences developer Alexandria Real Estate Equities infamously pulled out of a partnership with industrial giant Prologis to develop a 600,000 [12], In July 2018, the company acquired 219 East 42nd Street, the headquarters of Pfizer, for $203 million in a leaseback transaction.[13]. Joel S. Marcus, Executive Chairman and Founder of Alexandria Real Estate Equities, Inc./Alexandria Venture Investments, Honored by the 9/11 Memorial & That's a hard question to answer because it's pretty -- would be pretty granular for me to understand when I'm looking at leasing reports remembering what is expiring today versus in the future. 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. The following interview has been condensed and edited for clarity. As Peter highlighted, we've advanced transactions aggregating $865 million. We will provide values and cap rates quarter-to-quarter as we close transactions since we're unable to do so sooner while transactions are in process. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science and technology campuses that provide its 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. 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. I'm going to go and briefly touch on our development pipeline, construction costs, leasing and asset sales and then hand it over to Dean. This is a really scalable effort and it is being run by Fred Wilson of Union Square Ventures and is a really effective program. WebJoel Marcus Senior Partner at Marcus & Pollack LLP - the real estate tax law firm New York, NY. The companys balance sheet has $5.7 billion of liquidity as of March 31, 2022. Yes. We actually have a number of choices still in the market. [7], Its first purchase was of 4 buildings in San Diego which had been negotiated and structured by Kendell R. 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. One of Alexandrias largest efforts is OneFifteen, a data-driven opioid treatment and recovery campus in Dayton, Ohio, created in partnership with Verily, the life science arm of Google-parent company Alphabet. Now turning to outstanding financial and operating results, we had really strong growth of $342.9 million or up 13.9% in total revenues for the first quarter annualized in comparison to the first quarter of 2022. Please go ahead. Clearly, demand is overall down from the peak of 2020 and 2021. They add a lot of value. With that, I'm going to hand it over to Dean. Sign up for our newsletter and event information. Alexandria raised about $100 million in capital, which led to its IPO in May 1997, becoming the first REIT focused on lab space. Alexandria For decades, Alexandria has been a leader in building sustainable campuses. One of the more interesting programs we launched when we revamped our philanthropy and volunteerism program a year and a half ago is a program we call Alexandria Access. Mr. Marcusand Alexandria virtually joined thousands of patriots, partners, colleagues and friends to remember those that the nation lost in the attacks and honor the courage of everyday heroes in the aftermath. I would now like to turn the conference over to Paula Swartz with Investor Relations. 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. Yeah, Rich, it's Dean here. We think about who the greatest person is for the role we need, and it always works out. And Dean will go into the metrics, but almost 100% collections, which is -- bodes well for our continued strength and stability of the company. Well, if you can't look at the Edison, how it works and so forth, you can't underwrite the tenant. Alexandria Reports Higher Revenues But Pauses Some Projects The life sciences REIT raised rents 48 percent the highest quarterly rate growth in company The next question comes from Michael Carroll with RBC Capital Markets. Now transitioning to the health of our world-class diverse life science tenant base, perhaps the best way to frame the current environment is the old adage in God we trust all else spring data. Alexandrias already-strong performance was amplified by the pandemic when demand surged from new and existing tenants across its portfolio, as billions of dollars flooded into the research and development of a COVID-19 vaccine and other therapies to combat the virus. Yes, it's somewhere around -- I think last quarter, it was somewhere around 27%. Right. 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. I just wanted to follow-up on some of those supply comments, particularly the San Francisco supply. But just curious, from a geographic perspective, are there certain markets or submarkets where the normalization is a little bit more onerous? 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.