Alexandria Real Estate Equities Inc (ARE)

Business Description

Alexandria Real Estate Equities, Inc. (ARE) is a Maryland-based Real Estate Investment Trust (REIT) specializing in the life science, agtech, and advanced technology sectors. The company is renowned for owning, operating, and developing collaborative life science mega campuses in major innovation hubs such as Greater Boston, San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle . ARE's portfolio includes Class A/A+ properties that foster dynamic and collaborative environments for tenants, which consist of multinational pharmaceutical companies, biotechnology firms, and academic institutions . The company's revenue is primarily generated from rental payments and operating expense reimbursements under leases, with a significant portion of tenants being investment-grade or publicly traded large cap companies . Additionally, ARE diversifies its revenue through venture capital investments in transformative life science companies .

Real Estate Operations - Owns, operates, and develops Class A/A+ life science mega campuses in key innovation clusters, providing dynamic environments for tenants.
Leasing - Generates revenue from rental payments and operating expense reimbursements, with a focus on investment-grade or publicly traded large cap tenants.
Venture Capital Investments - Engages in investments in transformative life science companies to diversify revenue streams.

Key Metrics

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Leadership

Name	Position	External Roles	Short Bio
Joel S. Marcus ExecutiveBoard	Executive Chairman and Founder	None	Co-founded ARE in 1994; instrumental in transforming ARE into a leading life science REIT; previously CEO and President; founded Alexandria Venture Investments.
Andres R. Gavinet Executive	Chief Accounting Officer	None	Joined ARE in 2012; oversees accounting operations; played a key role in strengthening ARE's balance sheet and extending debt maturities.
Daniel J. Ryan Executive	Co-President and Regional Market Director \u2013 San Diego	Board Member at Biocom California, San Diego Economic Development Corporation, and Curebound.	Joined ARE in 2010; oversees San Diego region; previously CEO of Veralliance Properties, managing a $1 billion life science portfolio.
Gary D. Dean Executive	Executive Vice President \u2013 Real Estate Legal Affairs	None	Joined ARE in 2004; oversees real estate legal issues and compliance programs; previously practiced law at Skadden, Arps.
Hunter L. Kass Executive	Co-President and Regional Market Director \u2013 Greater Boston	None	Joined ARE in 2018; oversees Greater Boston region; previously worked at MITIMCo managing real estate transactions and developments.
Jackie B. Clem Executive	General Counsel and Secretary	Co-founder of Pasadena Education Network.	Joined ARE in 2006; oversees legal affairs; previously practiced law at Paul Hastings specializing in real estate transactions.
Joseph Hakman Executive	Co-Chief Operating Officer and Chief Strategic Transactions Officer	None	Joined ARE in 2006; oversees property acquisitions, dispositions, and strategic transactions; previously worked at Colliers International and PwC.
Kristina A. Fukuzaki-Carlson Executive	Executive Vice President \u2013 Business Operations	None	Joined ARE in 2005; oversees talent and business operations; contributed to Alexandria\u2019s COVID-19 Task Force.
Madeleine T. Alsbrook Executive	Executive Vice President \u2013 Talent Management	None	Joined ARE in 2012; manages strategic talent acquisition and employee development initiatives.
Marc E. Binda Executive	Chief Financial Officer and Treasurer	None	Joined ARE in 2005; oversees accounting, finance, and treasury strategies; leads cybersecurity risk oversight; previously EVP \u2013 Finance and Treasurer.
Orraparn C. Lee Executive	Executive Vice President \u2013 Accounting	None	Joined ARE in 2009; oversees accounting operations and venture investment portfolio; previously worked at Deloitte.
Peter M. Moglia Executive	Chief Executive Officer and Chief Investment Officer	Nareit Advisory Board of Governors; Boards of BioscienceLA and Chaminade College Preparatory.	Joined ARE in 1998; previously Co-CEO and Co-CIO; led Seattle region operations; extensive experience in underwriting, acquisitions, and due diligence.	View Report →
Cynthia L. Feldmann Board	Director	Director at STERIS PLC and UFP Technologies, Inc..	Director since 2022; extensive experience in accounting, finance, and capital markets; public company board experience in the medical device industry.
James P. Cain Board	Director	Managing Partner of Cain Global Partners; Counsel to Kilpatrick Townsend & Stockton LLP.	Director since 2015; former U.S. Ambassador to Denmark; extensive leadership experience in law, business, sports, and diplomacy.
Maria C. Freire Board	Director	Director at Exelixis, Inc., Biogen Inc., and Koneksa Health Inc..	Director since 2012; extensive expertise in pharmaceutical and biotechnology industries; former President of the Foundation for the National Institutes of Health.
Michael A. Woronoff Board	Director	Partner at Kirkland & Ellis LLP; Adjunct Professor at UCLA School of Law.	Director since 2017; extensive expertise in corporate and securities law; previously co-founder of Shelter Capital Partners.
Richard H. Klein Board	Director	CFO of Industrial Realty Group, LLC.	Director since 2003; Chairperson of the Audit Committee; extensive experience in real estate organizations and accounting.
Sheila K. McGrath Board	Director	Director at Granite Point Mortgage Trust Inc.; Advisory Board Member at Rutgers Business School's Center for Women in Business.	Director since 2023; extensive experience in equity REITs and commercial real estate; former senior managing director at Evercore ISI.
Steven R. Hash Board	Lead Director	Non-Executive Chairman of The Macerich Company; Lead Director of Nuveen Global Cities REIT.	Director since 2013; extensive experience in real estate investment banking and equity research; previously President and COO of Renaissance Macro Research.

Questions to Ask Management

Given that tenants are transitioning to a "just-in-time" model for space and leasing cycles are taking longer due to increased Board scrutiny , how do you plan to maintain occupancy levels and lease growth in this more conservative environment?
With high cost of capital and increasing financing costs impacting your ability to fund new developments , how are you evaluating the trade-offs between asset sales to fund construction and maintaining future growth opportunities?
Considering that companies without clear catalysts are struggling to access additional capital, affecting pre-commercial public biotech companies which constitute 9% of your ARR , how does this impact your tenant base and what strategies are you employing to mitigate potential occupancy risks?
As sublease space in key markets like Boston and the Bay Area remains available despite stabilization , how are you addressing the competition from sublease space, and what impact do you anticipate this will have on your leasing activities and rental rates?
With AI advancements potentially optimizing drug discovery and clinical trials, possibly reducing the need for physical lab space , how are you positioning Alexandria to adapt to these technological changes and ensure sustained demand for your lab facilities?

Debt Maturity Schedule

Year	Amount Due (in billions)	Debt Type	Interest Rate	% of Total Debt
2025	0.600	Unsecured Senior Notes Payable	3.45%	4.9% = (0.600 / 12.244) * 100
2025	0.600	Unconsolidated Joint Venture Debt	4.57%	4.9% = (0.600 / 12.244) * 100
2026	0.800	Secured Notes Payable	4.30%	6.5% = (0.800 / 12.244) * 100
2026	0.800	Unsecured Senior Notes Payable	3.80%	6.5% = (0.800 / 12.244) * 100
2027	0.350	Unsecured Senior Notes Payable	3.95%	2.9% = (0.350 / 12.244) * 100
2028	0.425	Unsecured Senior Notes Payable	3.95%	3.5% = (0.425 / 12.244) * 100
2029	0.700	Unsecured Senior Notes Payable	4.50%	5.7% = (0.700 / 12.244) * 100
2030	1.150	Unsecured Senior Notes Payable	4.70%	9.4% = (1.150 / 12.244) * 100
2031	0.750	Unsecured Senior Notes Payable	3.375%	6.1% = (0.750 / 12.244) * 100
2032	0.900	Unsecured Senior Notes Payable	2.00%	7.4% = (0.900 / 12.244) * 100
2033	1.000	Unsecured Senior Notes Payable	1.875%	8.2% = (1.000 / 12.244) * 100
2034	0.800	Unsecured Senior Notes Payable	2.95%	6.5% = (0.800 / 12.244) * 100
2035	0.500	Unsecured Senior Notes Payable	4.75%	4.1% = (0.500 / 12.244) * 100
2036	0.400	Unsecured Senior Notes Payable	5.25%	3.3% = (0.400 / 12.244) * 100
2049	0.300	Unsecured Senior Notes Payable	4.85%	2.4% = (0.300 / 12.244) * 100
2050	0.700	Unsecured Senior Notes Payable	4.00%	5.7% = (0.700 / 12.244) * 100
2051	0.850	Unsecured Senior Notes Payable	3.00%	6.9% = (0.850 / 12.244) * 100
2052	1.000	Unsecured Senior Notes Payable	3.55%	8.2% = (1.000 / 12.244) * 100
2053	0.500	Unsecured Senior Notes Payable	5.15%	4.1% = (0.500 / 12.244) * 100
2054	0.600	Unsecured Senior Notes Payable	5.625%	4.9% = (0.600 / 12.244) * 100

Customer Concentration

Customer	Relationship	Segment	Details
Eli Lilly and Company	Leases from ARE	All	4.3% of total annual rental revenue, $90.3M.
Moderna, Inc.	Leases from ARE	All	4.3% of total annual rental revenue, $90.1M.
Bristol-Myers Squibb Company	Leases from ARE	All	3.7% of total annual rental revenue, $77.2M.
Takeda Pharmaceutical Company	Leases from ARE	All	2.3% of total annual rental revenue, $47.9M.
Roche	Leases from ARE	All	1.8% of total annual rental revenue, $37.4M.
Illumina, Inc.	Leases from ARE	All	1.7% of total annual rental revenue, $35.9M.
Alphabet Inc.	Leases from ARE	All	1.7% of total annual rental revenue, $34.9M.
2seventy bio, Inc.	Leases from ARE	All	1.6% of total annual rental revenue, $33.5M.
United States Government	Leases from ARE	All	1.4% of total annual rental revenue, $28.9M.
Cloud Software Group, Inc.	Leases from ARE	All	1.4% of total annual rental revenue, $28.5M.
Novartis AG	Leases from ARE	All	1.3% of total annual rental revenue, $28.0M.
Uber Technologies, Inc.	Leases from ARE	All	1.3% of total annual rental revenue, $27.8M.
AstraZeneca PLC	Leases from ARE	All	1.3% of total annual rental revenue, $27.2M.
Boston Children’s Hospital	Leases from ARE	All	1.2% of total annual rental revenue, $26.2M.
The Regents of the University of California	Leases from ARE	All	1.1% of total annual rental revenue, $23.5M.
Sanofi	Leases from ARE	All	1.0% of total annual rental revenue, $21.4M.
Merck & Co., Inc.	Leases from ARE	All	1.0% of total annual rental revenue, $21.4M.
New York University	Leases from ARE	All	1.0% of total annual rental revenue, $21.1M.
Charles River Laboratories, Inc.	Leases from ARE	All	1.0% of total annual rental revenue, $20.6M.
Massachusetts Institute of Technology	Leases from ARE	All	1.0% of total annual rental revenue, $20.2M.

Auditor

Name	Start Date	End Date	Reason for Change
Ernst & Young LLP	1994	Present	Current auditor

Latest news

Recent press releases and 8-K filings for ARE.

Alexandria REIT Q1 2025 Earnings & Capital Activities Report

•ARE

Earnings

Share Buyback

New Projects/Investments

Debt Issuance

Dividends

Strong financial performance: Q1 2025 total revenues up 4%, EBITDA increased 5% year-over-year, with adjusted FFO per share at $2.30.
Robust leasing performance: Over 1 million square feet (1.03 million RSF) leased with rental rate increases of 18.5% on renewals and 7.5% on a cash basis, supported by a diversified tenant base.
Key capital activities: Raised $550 million in unsecured senior notes due 2035, executed approximately $208 million in share buybacks this quarter (with a remaining plan of about $242 million), and repurchased 2.2 million shares at an average price of $96.71.
Dividend & balance sheet strength: Declared a common stock dividend of $1.32 per share (yielding 5.7%), backed by liquidity of $5.3 billion, a market cap of $28.8 billion, and total equity of $15.7 billion.
Earnings nuance: Reported a diluted net loss per share of $(0.07) for Q1 2025.

Apr 29, 2025, 7:01 PM

Transcript Press Release 8-K