To foster innovation and collaboration in the nations top life science ecosystems, Alexandria made the crucial decision to pursue its urban cluster campus strategy as the first mover in Mission Bay (2004), New York City (2005), and Cambridge (2006). Alexandria 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. 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. Joel Marcus co-founded Alexandria Real Estate Equities, Inc. in 1994 as a garage startup with $19 million in Series A capital. I think the way to think about at a high level is that we just close the conversation about the pipeline. Mounjaro, which aims to treat obesity in type two diabetes, is predicted to eclipse $50 billion per year globally in revenue. 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. Alexandria is definitely not a health care service facilities company, nor a generic office company. Copyright Nareit 2023. The 1.2 million square feet leased in the first quarter is above our five-year pre-2021 average and is the 12th consecutive quarter with leasing volume above one million square feet. They generally have good and deep backers, whether it's venture or institutional. As an active supporter of the Memorial & Museum since it opened in 2014, Mr. Marcus has been a member of its board of trustees since 2018. Alexandria has successfully utilized Harvard Business Professor Michael Porters cluster theory as the foundation for its proven cluster model, which identifies four critical components for life science clusters to thrive: location, innovation, talent, and capital. So you said $7.6 million You use any pipeline place you want. And that's kind of the critical message. 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? 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. Well, I think the way -- and I'll have Peter certainly and Dan may want to comment as well. 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? We want to make sure you get the most out of our platform. Marcus We continue to refine our plan for 2024 because as I mentioned earlier, the $610 million of pipe, that pipeline does not require much more equity capital at stabilization because we have so much already in CIP, which the incremental EBITDA will allow us to debt fund leverage neutral, the wide majority of the incremental capital for that pipeline. Yes. Alexandria And I mean it's a world-class building with a world-class tenant. Joel S. Marcus, founder of Alexandria Real Estate Equities Inc. Pat Greenhouse/Globe Staff/File/2014/Globe Staff. Nareitis the worldwide representative voice for REITs and publicly traded real estate companies with an interest in U.S. real estate and capital markets. Joel Marcus - Biography - MarketScreener.com I don't think we see demand dropping off a cliff here at all. How has the mission of Alexandria Real Estate Equities evolved since the founding of the company in 1994? I saw you revised upward the leasing spread guidance. When it comes to upcoming lease expirations, you're typically in conversations with tenants a year or multiple years in advance. Yeah, Rich, it's Dean here. Tony, it's Dean here. These are the characteristics of real estate investment. So, Hallie? Thanks, good afternoon. There's so much equity type capital that's invested in CIP today, there's very little incremental equity needed to fund that pipeline. Executive Chairman & Founder, Alexandria Real Estate Equities, Inc. Joel S. Marcus, JD, CPA, is the Executive Chairman and Founder of Alexandria Real Estate Equities, Inc. (NYSE: ARE), the urban office REIT that pioneered life science real estate from a specialty niche to a mainstream asset class and today is the preeminent and longest-tenured owner, operator, and developer uniquely focused on collaborative life science, agtech, and technology campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. When you look at the focus on agtech, was this a natural progression for Alexandria? I think, as I mentioned on the call earlier, we're mindful of the macro environment. The Academic and medical institutions continue to be highly productive, a key metric being the pace of new intellectual property. So put off a piece of the portfolio makes sense. Alexandria sued Steven Marcus in US District Court in December, saying he misused Alexandrias name and logo, an image of the Alexandria lighthouse in ancient Egypt, in fund-raising pitches emailed to venture capitalists in California, including former Vice President Al Gore. They add a lot of value. 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. At that point in time, the U.S. was And then just one -- second question, maybe a bit of detail. Yes, that's a good example. Were not a real estate company that is wrapped up in the deal or the financial return. 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. 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. But a judge dismissed the complaint last month. I mean are you seeing developers being more cautious pursuing new projects? 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. On the supply side, we track high quality projects, we believe, are competitive to ours in the high barrier-to-entry submarkets. 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. We continued with very strong adjusted EBITDA margin of 69%. That is almost -- that's hard to do generally, and it's so submarket and building specific, Tony. Yes. 2023 Berkley Center for Religion, Peace & World Affairs, The Culture of Encounter and the Global Agenda, Politicization of Religion in Global Perspective, Religion and the Crisis of Displaced Persons, Revitalizing Global Religious and Interfaith Networks, Transatlantic Policy Network on Religion and Diplomacy, Intercultural and Interreligious Dialogue. The health of ARE's best-in-class life science tenant base and innovation is a long-term driver of life science industry growth. So we're giving away not too much upside by selling part of it, right? Very few people in that industry would not want to be in a cluster; the same is true of the agtech world. And many banks, including G-SIBs have been working for years to carve out their own share of this market. 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. Yeah. Please go ahead, Joel. 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. The legal war between Joel Marcus, 72, and his son may not be over, however. Mr. Marcus was one of the original architects and co-founders of Accelerator Life Science Partners, for which he serves on the board of directors, and AgTech Accelerator Corporation, for which he serves as Chairman of the board. Now our strong occupancy was in line with our expectations. So that ties to the $610 million for others of incremental net operating income. 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. 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. Paula Schwartz - Investor Relations. Were almost a $20-billion market cap company, which is hard to imagine since we started with $19 million. 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. Its first quarter revenue rose 28.2%, from the year earlier, to $615.1 million. Tycoons lawsuit against son dismissed - The Boston Globe As you can imagine, the cost of this equipment is reflective of these shortages and paired with high labor cost is making new laboratory office projects more expensive to build than ever before. And how much of that is potentially some place where you can sort of tap the brakes like you kind of did this quarter in deference to the current capital raising market, please? All rights reserved. We were ahead of that curve because, historically, life science companies did not want to collaborate with institutions and other companies either. Depending on who you ask, demand is at slightly below or slightly above pre-COVID levels. This concludes our question-and-answer session. There are a handful of dominant companies that control the whole global ag effort. Please go ahead. Our focus on advancing human health is made up of fighting disease and it is now increasingly including nutrition. With a focus on sustainability and philanthropy, Alexandrias corporate responsibility business vertical affirms the companys commitment to making a positive impact on the world. Flexing capital plan and turning to equity as a solution is not really something we are contemplating. We are constantly in communication with the regions about their upcoming renewals in a year to two years, even three years ahead at times, our -- what's the status of the Company and are they expanding? So hopefully, that gives you a sense. We also absorbed $71,000 of vacancy from a building located in Texas. Joel Marcus - Berkley Center for Religion, Peace, and World Affairs Alexandria Real Estate Equities, Inc. and Alexandria Venture Investments. Such relationships are a huge differentiator for us and will continue to drive solid leasing even in tough environments. Alexandria Reports Higher Revenues But Pauses Some Projects The life sciences REIT raised rents 48 percent the highest quarterly rate growth in company history. Great. So that's maybe a way to frame it, but I think you'll be pretty impressed. Just some new recent starts and one, large one in particular in South San Francisco, you made up most of that change. 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. Despite these challenges, the demand for high-quality life science assets which is vastly different from office assets continued in the quarter. [1], The company also has a venture capital arm, Alexandria Venture Investments, which invests in life sciences firms. 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. 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.