joel marcus, alexandria joel marcus, alexandria

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? It's obviously the best way to or one of the best ways to raise equity capital right now for you guys today. And then as technology developments or take hold that you are informed about. Please, go ahead. The new company proved that biotech companies were underserved, and that there was strong market demand. To access all the content for free, please sign up by entering your email. And I think as we think about different assets, we're trying to make sure that we're more focused on the highest barrier to entry markets rather than less. 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? We were the first group that identified life science real estate as a niche, which could both garner and deploy capital to an important industry, which really had no major infrastructure capital going into it in the early 1990s, Marcus says. Now this represents a strong 6.4% growth in FFO per share for 2023 following excellent growth last year of 8.5%. That's helpful. Their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns. 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. We want to make sure you get the most out of our platform. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. Or was it projects that were previously signed and then kind of the lease went away? 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. During that time, he acquired an expertise in the biopharmaceutical industry and was one of the principal architects of the Kirin-Amgen EPO joint venture in 1984. As a testament to this point, with the week remaining in April, private biotech tenant rent collection is at 99.7%. Literally every day, we hear of great progress. 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. Many institutions want exposure, especially pension funds, life insurance companies, traditional investors, and even private equity, Marcus says. And I appreciate the color that you guys have provided thus far on sort of demand and the normalization on that front. The following interview has been condensed and edited for clarity. But I suspect that maybe some of them are not retail. I think, as I mentioned on the call earlier, we're mindful of the macro environment. Our team made excellent progress on our dispositions and sales of partial interest only four months into 2023. Thanks for taking the question. We all have a responsibility to ensure that we never forgetthat we continue to pay tribute to those we lost; recognize the heroism, sacrifice and resilience of so many; and share lessons learned with new generations. Could you please provide more color on the internal leasing pipeline that comes from your existing tenants? Or I'm just trying to piece that all together, so either we're capturing everything or not double-counting something? We have a lot of agriculture technology (agtech) initiatives coming up in the pipeline, which reflects an evolution in our mission. 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. Hi. How has the mission of Alexandria Real Estate Equities evolved since the founding of the company in 1994? Bloomberg Daybreak Europe, anchored live from London, tracks breaking news in Europe and around the world. All Rights Reserved. I work specifically on our philanthropy and volunteerism efforts. One reason, we will likely not see the supply many are expecting beyond what is under construction today. 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. Nareit and its REESA partners continue to advance adoption of the REIT model worldwide. Stripping that $15 million from the purchase price gets you to a total valuation of $561 million increasing the cap rate to 5.4%. 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. 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. Accordingly, we're tracking direct vacancy in Greater Boston to be 2.8%. 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 This is such a natural part of what we do we think of it every day; it is not something we strain to do. And 29% of that space has already been leased. 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. The legal war between Joel Marcus, 72, and his son may not be over, however. But that was really a handful of leases over the last couple of quarters. Steven Marcuss firms issued a brief statement, saying RUNLABS is pleased to see justice rendered.. However, Marcus says existing assets will become more valuable as a result. Our funds FFO per share is up 7%, as you see in revenues, top line revenue is up almost 14%. And now 20 years later, in the brutal wake of the end of the country's war in Afghanistan, we again find ourselves immensely indebted to the thousands of service members who have devoted and sacrificed so muchespecially the many who have made the ultimate sacrificefor the sake of their missions and their teams, the defense of our country and the fight against terrorism at its roots, and the safeguarding of our freedoms.". So information comes in different ways in different fashions. 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. 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. 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. But at what point does it become too much? So, Hallie? Mr. Marcus founded Alexandria Real Estate Equities, Inc., or Alexandria Real Estate, a The health of ARE's best-in-class life science tenant base and innovation is a long-term driver of life science industry growth. 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. 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. That's where Joel Marcus, executive chairman of Alexandria Real Estate Equities Inc., met up with Verily CEO Andrew Conrad. So we decided to pass on that. Joel S. Marcus, founder of Alexandria Real Estate Equities Inc. Pat Greenhouse/Globe Staff/File/2014/Globe Staff. And I mean it's a world-class building with a world-class tenant. 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. And we're mindful of your question, but we have so much coming online and that we have completed in recent years. After over 25 years in the industry, our various executives have an amazing network, which we have developed through our summits and our real estate, as well as through our venture investments. Joel S. Marcus. The firm has maintained strong financials despite the ongoing economic storm, according to Executive Chairman and Founder Joel Marcus. Just some new recent starts and one, large one in particular in South San Francisco, you made up most of that change. The Global Biotech Epicenter | New England Now and in 2030. And I think that's probably the best example I could maybe share Peter, but you could give you color. I could not have made a better decision as it all proved out. So hopefully, that gives you a sense. Mr. Marcus has built Alexandrias unique business model around four business verticals real estate, venture investments, thought leadership, and corporate responsibility. The REIT owns, operates, develops, and acquires Class A buildings in urban cluster campuses in key markets and offers tenants top-of-the-line amenities and the highest-quality, sustainable building materials. I just had my 25th anniversary with the Company, In addition to that milestone reminding me of how fast time moves by brought about a nostalgic look back at my time at Alexandria. Yeah. Adding to the difficulty to execute in this environment is the increasing desperation of a number of office building owners, trying to raise cash to stay afloat by offering quality long-term leased assets with credit tenants at 6.5% to 7.5% cap rates. The next question comes from Joshua Dennerlein with Bank of America. A lot of people have left these companies and are now starting companies. 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. 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? 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. And so, I think, we're going to look hard, as I mentioned earlier, over the next couple of quarters. No, I think not Peter said it perfectly. The upside for us is that 84% of our costs for our active development and redevelopment projects are under GMP or other fixed contracts with contingencies behind that. We dont even give it a second thought its part of our culture and DNA. Yes. That annual leasing activity is projected to generate more than $6 billion of contractual triple-net base rents. Alexandria Real Estate Equities, Chairman, Chief Executive Officer, and Founder, Intelligent Assistance and Bots Ecosystem. We have 10,000 known diseases reeking havoc on human beings each and every day and the personal and economic cost of sickness, illness and today, the mental health crisis is continuing to skyrocket. We just don't want you to double count the square footage as you go towards the future pipeline. And are the investors that we attracted really like the building, and it was an opportunity to fund something that was near-term dollars. Driven by a voracious appetite for space, Alexandria raised the outlook for funds from operations (FFO) per share growth to 8% for the year. I would now like to turn the conference over to Paula Swartz with Investor Relations. Now we've got continued consistency and growth in dividends from really high quality cash flows we generate in our business. This conference call contains forward-looking statements within the meaning of the federal securities laws. This is an important distinction in any part of the cycle, but perhaps even more when things have slowed down. Steven Marcus has asked the US Trademark Trial and Appeal Board to take Alexandrias registered trademarks off the books. An Interview with Joel S. Marcus, 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. WebJoel 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 You guys talked about driving a lot of your leasing from just internal relationships in your existing tenant base. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors. STEM education is extremely important to us, so we fund a variety of efforts. And let me maybe put a footnote on that, Steve. Launching the niche was the first step. Those are the areas we focus on, but we impact those areas in a variety of ways and we try to engage our team members throughout the company. You asked about the nature of underwriting. 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. Its a really fabulous benefit for people when theyre unfortunately in need of something like that. 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. No, that's great. Learn more about Alexandria's social impact leadership on the Corporate Responsibility page of the company's website. Clearly, you are flying above the clouds or just have a better portfolio, a better tenant base, but it's so hard to handicap just how bad this cycle could get for you. 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%. Is there anything you're seeing from a buyer or kind of bidder pool buyer pools kind of change relative to what you've seen really over the last 12 months, just given kind of where financing costs have moved different institutions either fallen out? The fact that the defendants do no business in the United States remains unrebutted, she wrote in a 26-page decision. 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. You're right. Marcus says those four components are necessary for life science companies to flourish. And rumor sometimes when you're dealing with public companies, you have to -- sometimes we have confidentiality agreements, sometimes we don't. 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. 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. 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. The company's revenues are derived in the following markets: Properties are generally located near universities to attract tenants. 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. I don't know that -- I mean, we don't call it a credit watch list. Thank you, Paula, and welcome, everybody, to Alexandria's first quarter '23 Earnings Call. Biotech is also not reliant on venture debt to the same extent as the tech industry. What was that a function of just market rent growth or just leases you actually signed in 1Q? Alexandria Reports Higher Revenues But Pauses Some Projects The life sciences REIT raised rents 48 percent the highest quarterly rate growth in company history. 326 E 8th St #105, Sioux Falls, SD 57103 So put off a piece of the portfolio makes sense. Joel S. Marcus; Founder & Executive Chairman; Alexandria Real Estate Equities, Inc. Peter M. Moglia; CEO & Co-CIO; Alexandria Real Estate Equities, Inc. Our daily ratings and market update email newsletter. It has really taken off and become a great model. 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. Over 80% of that demand comes from our existing 1,000 tenants. Annual NOI for these deliveries totals $23 million, and the initial stabilized yield is strong at 7.3%. We decided to hold on further redevelopment of the second building, aggregating 71,000 rentable square feet until we lease up the remainder of the 131,000 rentable square foot building. Pasadena, California-based Alexandria is the only publicly traded, pure-play office/laboratory REIT. Each of the markets is seeing strong demand. Very few people in that industry would not want to be in a cluster; the same is true of the agtech world. Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio. But Dean, do you want to highlight that for a moment? Nareit serves as the worldwide representative voice for REITs and real estate companies with an interest in U.S. real estate. I saw that I guess in the last supplemental, you talked about sort of dealing with 1,000 tenants. And where could equity play into that? Joel Marcus co-founded Alexandria Real Estate Equities, Inc. in 1994 as a garage startup with $19 million in Series A capital. 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. Some that don't have pre-leasing today are multi-tenant projects anywhere from a building to multiple buildings. The court previously dismissed an earlier version of the suit on similar grounds but gave Alexandria an opportunity to resubmit it with more evidence. With me today are Peter, Dean, Hallie and Dan. Thanks. Kids dont have computer science classes even through high school its shocking. Thank you, guys. How do you focus Alexandrias corporate responsibility efforts? With me today are Peter, Dean, Hallie and Dan. 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 the companies with tenured management teams and strong differentiated technologies and near-term value inflection milestones are the ones that rise above the fray. Yeah. The Alexandria Summit convenes a diverse group of visionary partners and key stakeholders from the biopharma, technology, agribusiness, medical, academic, venture and private equity capital, philanthropy, patient advocacy, and government communities to address the most critical challenges in healthcare. Even now, many office buildings in the country are 30% to 40% occupied. At this rate, this represents over $1.1 billion of capital for reinvestment over the next three years. Mr. Marcus also founded and continues to lead Alexandria Venture Investments, the companys strategic venture capital platform. Okay. from 8 AM - 9 PM ET. Yes. The initial business plan included founders Kendell Lang, Alan Gold, Gary Kreitzer, and Steven Stone as part of the initial management team. 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. Prometheus Biosciences, while not a tenant exemplify how data drives the lifeblood of the industry. This month, the Company's personalized mRNA cancer vaccine in combination with an immunotherapy drug from tenant Merck, demonstrated promising clinical trial results in aggressive forms of skin cancer. I just want to make clear that there's a line item that adjusts the future pipeline for square footage that's sitting in operations, but those cash flows are in the operating portfolio of, Tony, as you pick up that NOI to value the company. Its a program that allows our 400 employees to access Alexandrias network of expertise. Alexandria is designing it to be the most sustainable commercial lab building in Cambridge. 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. But to give you some color, the parties agreed to evaluation at closing to be $576 million or $1,665 per square foot, which is an initial yield of 5.25% on their investment based on in-place NOI at closing. 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. No, that's helpful. When typing in this field, a list of search results will appear and be automatically updated as you type. I saw you revised upward the leasing spread guidance. 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. Joel S. Marcus Executive Chairman and Founder at Alexandria Real Estate Equities Well, and also, historically, if you go back to my comments, I said we have tried 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. CONTACT: Courtney Mulligan, Senior Director Communications, (646) 939-7471, [emailprotected]. Its a perfect time. WebJoel Marcus. And that's fairly normal activity. Joel S. Marcus, the real estate tycoon credited with helping to turn Cambridge into one of the worlds biggest biotech hubs, has lost a key battle in a legal war against his son. 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. This individual is not a direct affiliate of the Berkley Center. Overnight on Wall Street is morning in Europe. The government loves quotas, but thats not a way to operate a business. So that's just two examples. Well, if you can't look at the Edison, how it works and so forth, you can't underwrite the tenant. And first of all, I want to send a big thank you to our entire ARE family team for an operationally and financially strong first quarter in a tough -- continuing tough macro environment. Steven Marcus v. Alexandria Real Estate Equities, Inc. et al 2:2021cv08088 | US District Court for the Central District of California | Justia Justia Dockets & Filings Ninth Circuit California Steven Marcus v. Alexandria Real Estate Equities, Inc. et al Steven Marcus v. Alexandria Real Estate Equities, Inc. et al RSS Track this Docket Alexandria hopes OneFifteen will encourage similar projects around the country. The Academic and medical institutions continue to be highly productive, a key metric being the pace of new intellectual property. So operator, can we go to questions, please? There are 330,000 open construction jobs today and the time it takes to train the new entrants to be highly skilled as measured in years. 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. Marcus was one of the original architects and co-founders of Accelerator Life Science Partners, for which he serves on the board of directors. In the ag business, you mentioned that two or three companies control that business globally. The culmination is continued FDA approvals and 2023 has started at a fast clip. For chronic diseases, which drives the bulk of health care spend in the United States, there are over 800 medicines in clinical development. In San Diego, direct vacancy is at 4.1%, sublease space is at 2.3% and unleased competitive supply is 3.2% in 2023 and 5.4% in 2024, a slight increase of 0.2% over last quarter. As for long-term risk driven by instability of regional banks, unlike some tech companies that maintain significant cash and deposit accounts, our tenants largely rely on safer third-party custodial and sweep accounts to minimize cash deposits. Age : 74. 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. The company's actual results might differ materially from those projected in forward-looking statements. Focusing on sustainability and philanthropy, Alexandrias corporate responsibility business vertical affirms the companys commitment to making a positive impact on the world. 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. Then we also feel its important to support military families. Clearly, demand is overall down from the peak of 2020 and 2021. So that's really, I think, where the mindset is. 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. Given that the receipt of cash flow is over a year away, it's difficult to translate the valuation to an operating cap rate. Theyre certainly not overcommitted in any way, and they have several great projects going forward. Bayer bought Monsanto, Syngenta got bought by ChemChina, Dow and Dupont merged, and BASF is out there. 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. Marcus teaches New Testament with an emphasis on the Gospels and the context of Read More E. Rene Salas, CPA Hi, guys. The company outperformed its expectations for 2021 and is reporting a robust 2022. They come to us directly as we are a trusted partner with a long successful track record of developing and operating mission-critical facilities. Marcus is also personally engaged in numerous mission-critical philanthropic efforts, which include his service as Chair of the Navy SEAL Foundations 2017 New York City Benefit in support of the Naval Special Warfare community and their families. It invests in disruptive life science, agri-food tech, climate innovation, and technology companies. It raised an additional $155 million on the public market. [Operator Instructions] [Operator Instructions]. 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.