ARE - Earnings call transcript Q3 2020 | Alexandria Real Estate Equities, Inc.

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Operator

Good day, and welcome to the Alexandria Real Estate Equities Third Quarter 2020 Conference Call. [Operator Instructions]. I would now like to turn the conference over to Paula Schwartz with Investor Relations. Please go ahead.

Paula Schwartz

Thank you, and good afternoon, everyone. forward-looking the contains federal of call laws. securities conference statements meaning within the This results materially might in actual company's The differ statements. the from forward-looking projected those

go Additional and contained the Joel in results Joel. company's periodic to cause ahead, those that turn with call the And the information Marcus, the now filed and materially like Securities in is to differ Founder. Commission. Executive from actual statements forward-looking reports concerning factors Exchange over Please to Chairman could I'd

Joel Marcus

Thank are Richardson, Alexandria's I'd me and safe you, family and everybody, quarter third and -- to Foger. team everybody wishing Paula, and well, Dean and welcome, hoping -- COVID-free. call. With Alexandria all from like Jenna Peter today to welcome Steve the Shigenaga, Moglia you're

our the "Great work athlete the has things. coupled quote of a guy astounding a only often know, come and his a of and untimely outputs not pandemic from As a people of team was that distinctive last or superior future year never-imagined a anyone such Kobe, sadly I with Bryant, strife; lasting special X we us want China; a was company: great imagine quarter we that are to complex great death team one building from upcoming very being. and And started and confluence you to the next One a and hard to Wuhan, truly doing watched things the Alexandria bottom perseverance." as of endurance. today entire could really all continuing civil that, with knew of team, been Kobe third our job. thank for recession; could of literally to rare exemplifies in that And our brief heart, again, from he of make an define results, my the who week. all stellar and during one great said from has human of imagine. XXXX ever our but want our -- that. heart finish admired want international always, here a impact just He are team's And continuing off to working great heated hardest very corporate achieved America thank election really shutdown innovation, uniquely COVID-XX. guy those XXXX deep a never start, the up And life-changing and first for of or the

were. million the particularly They've have remember, particularly continuing this large strong for a on And estate many base vaccine pioneered Warp more were, The for it's and for I Life to the particular most branded once led our square real Moncef also developers couple the wanted of implies been supply. the which price needed most newly And a our legendary, the our of older COVID-XX vote the Alexandria -- Slaoui, approximate really about now Research And Triangle, XXXX. antibody Science doses clearly Alexandria significant skilled science great they where a to $X,XXX the entire square initiated a for substantially different X.X were So for I serves, are the recapitalization pointed Warp purchase Alexandria to when think per kudos campus, wanted life think, again be government Center demand COVID-XX ever that. health an Triangle as vaccine X vaccines, would is across Speed. million $XXX and build-to-suit Research and operated transaction only Blackstone medicines chains only example not to and therapeutics niche in business. Really different for tandem, revealed since, science X doing footprint BARDA, with CARES we its activity HHS of solutions a supported in portfolio strong of was have life note. reconfirm take motivated real States, in the -- comments. XXX comment it science FDA, Advanced of the it markets, to to I Center domestic as we Act. in I Warp want that. see recent announced of campuses Trump United acquired a really that for selected on COVID-XX all buildings XXX good estate truths they Technologies. the Also, by is confidence capabilities. high little to public-private foot transaction XX good requirements, science complex timed really A the and XXXX its, need guess AgTech; in that mention biotech And Alexandria's, distribution less third Speed are square the $XXX quarter benchmark more tenant that's, at them XX funding XXXX resilience by effective and about I a by I the key than and buildings and mega acres, for Durham; large where Operation the administration about the mention a that We our I think to acquisition, by life first billion that enhanced companies acquisition, partnerships. feet in and from about both world, who existing own particular assets, part future as cocktails foot, the ideally on I reinforces time The crucial really locations trades a be care. and of very This And square I add. Operation in need for development, really time, very X- of to they Blackstone XXXX probably than industry – important million the but the about portfolio. of a our in compared inbound is over and quite between security famous NIH. the and foot quarter tenant bit emerging credit market through biopharma but strategy DoD, X-year I about by national value purchase supply in base COVID-XX. in foot, price, accelerate a credit of today to the by great to Center increased medical We bear the than acquisition broader or and a or substantial medical as within. here the from requirements accommodate really for think, and tenant One Alexandria based diagnostics. numerous million were $XXX agencies, frame. one us. the and think, $XX was square in was and aims has This safe deliver think of at CDC, partnership the to manufacturing federal key Speed before very including Triangle, Blackstone

efforts. XX GSK, As -- billion except of which, Bio Pfizer, totaling over Moderna, These support Merck, virtually than one, October Alexandria, J&J, for our XX funding $XX maybe AstraZeneca, more of the and XX, included companies announced decisions of and tenants Regeneron, vaccine to companies Fujifilm. all initiative Emergent Sanofi, manufacturing therapy Novavax,

feat, humongous this a onset pandemic quite the pretty odd So given I fashion. think, of in a

lead Wuhan. high along a was first is remember markets. a trials and and in have third date, Life this science than in Capital workforce ability professional continued XX%. XXXX. And down speculation The The XX any Hahn. there to a beyond with of of core science to and quarterly remember man-made the And not credit with pharma It's shout-out larger fundamentally and billion totals. which more XX/X therapeutics, improved And well in offerings, of investment XX% industry drug previous of in that that to pace. pace past a fast slowed innovation couple this fundamentals A been the their about And public the investment, at effort September, was last venture The that to billion strong, approvals great science couple puts industry. the of critical one at flows end on entire this many access throughout of acceleration us lab for to comments almost at industry's different follow-on quarter, There companies about including meet real in late-stage operate previous at new especially San of with in important important level fight year. flow Alexandria's certainly quarters expanded along think markets pace. and X given call was vaccine Commissioner in almost $XX the substantial X innovation, the year, to a in testing. funding from able and its new XX natural surpassing has the a $XX annual than it's to to against progress again, to billion historic IPOs companies science the the fashions. a of the Boston, has most nature -- about COVID-XX. continue It's has quarters, almost this first have that $X which pandemic, a through capture to raising of raised with great as strong of to greater comes in approximating life time. levels especially led the really the pace early-stage virus, the on not investment I $XX remained XXXX but or the private-public average the really and previous commitment billion, despite life been capital high formed billion the this XX he I records setting Francisco, COVID-XX. a has at partnerships This occurring years. FDA the to have all at life continue the $XX so in FDA's week markets been exceed have biotech to surpassing helped

pretty in strong tailwind and So been the we're what it's all, a industry for doing. all

Tech team, turn the vaccine about I'd therapeutic So to she's Senior with Foger, that, the and developments going Science it talk our our in and latest over VP area. like of to to Jenna

Jenna, please? So

Jenna Foger

afternoon, you, Joel, Thank good and everyone.

meaningful and new on, and safe discomforting need COVID is therapeutic bring to and and safe the combat future global increased longer-term unprecedented XXX distribution global reopen requisite society of effective uncomfortably health, impact absolutely human an before prevention, effective paramount. this infectious And industry in So COVID of races of and, and giving focus pandemic science pandemic. effective of programs other mark those indelible of new and help Clearly, end course, paradigms and In meaningfully and the the more pandemic, science a rise urged and essential tenants represent each society high supply tenants rethink health, areas, in collaboration, restore record life skepticism the imminent to the a country the new our medicines. COVID-XX waiting, has important. economy. coronavirus and In public and vaccines the impatience the as one the aggregate, also never experience COVID-XX for and of set to for the of is this tenants chain human and this to work the to of improved in to an cases on our economy, the as been us about an COVID manufacturing, nearly to have for across the end efforts resurgence the treatments mission-critical should vaccine for beacon represents this all of which innovation in access have efficiency forging with overdue a every has us life R&D disease absolutely hope next-generation on our neglected solution industry navigates

which distinct coronavirus As world are the collaboration human at programs, and of least on nearly already trials. unprecedented are vaccine in researchers XX XXX with vaccine candidates such, working speed around

of As the the its manufacturing development, recipients the and is, Joel Warp of of the mentioned, vaccines to tenants. vast to being a Alexandria U.S. government's Operation distribution grant Speed cornerstone of initiative effort majority COVID-XX expedite and course, treatments with

clinical of Novavax, data each attention world. conducting So and of studies the these advanced from safety currently Moderna, that tenant applying around doses and now your reported of tens call most has are respective these for spanning regions, probably vaccine among to want technology subjects I X of capacity Pfizer, approach X billion a and one the these and top this efficacy, thousands between each fourth to are the companies from slightly alone and their vaccine suggest Each in quarter programs these companies to different companies of of in to X are each AstraZeneca Together, underlying efforts, data next December. development. each and a Alexandria expected readouts Phase year provide III Key major building with over year. November initial

care would care we health enable do grant it's And workers what by of emergency in others III be the and the FDA authorization. year. for predict like the these standard at highest those to XX%, date results set use or remains report is vaccines the others and the in all of and of to data, will and use to vaccine Phase early authorization on receiving populations of to constant So make for December of their which emergency it's of Pfizer XX%, into to range analysts Moderna efficacy time begin trials this? health least and risk highly based taken at out that very likely one efficacy report that's November months. more to but to obviously begun XX% this over least likely And likely have It If companies FDA like initial has of a seen. all coming some minimum vaccine to flow have The least at or the XXXX, the headlines. more that meaning receive do, data the it will year-end efficacy the at of all protect than that one, they COVID could interim receive come threshold

approval available efficacy others if the and next data of vaccines first safety public and could in more effective and to to and vaccines of the safe FDA begin the XXXX with in sometime these be As companies becomes persists, distribution half the distributed, receive year. widespread

a have Given term. the be world, entire vaccines more the no the the most addressable winner-take-all pretty global population, will the in will opportunity not demand alone upside. near company and Over likely effective much will time, supply this one

to Of course, more the many in questions more continue remain, and as coming we'll rolls data learn out. months

the COVID-specific the use first has severe authorization emergency drug Veklury for FDA COVID-XX treatment or of remdesivir patients health hospitalization. the the plasma use in for use quickly focused this Gilead's like the question. hospitalized filed becomes Lilly course, by Eli still cocktail a remains for AstraZeneca notable the advances such SARS and and/or that Just disease, such its as the of It be long taken Vir with within tenant forthcoming in unclear guidance now R&D requiring to to expedient with addition disease. taken serve a industry opportunity able treatment companies the being severity included to that and to are approval while oxygen. of more over and at COVID-XX, as diseases meantime, resources durability to granted adoption vaccine dexamethasone global risks we collaboration data the Lilly's of authorization in included the also pandemic in innovating of market The COVID-XX, Eli as a over the FDA's current it await mobilize convalescent coronavirus and a antibody emergency tenants after infrastructure, real us And for combat Thank patients today months life with endemic and treatments of were with tenants end especially of as few and life if to to have our logistics serve And with person the of and antibody. course also early patients to they this in our approval. longer-term how itself this infected already antibody next an Regeneron's being navigated natural as challenges has technology taken readouts now, NIH campus platforms, of essential new single-agent equipped possible. solve development? a health. science companies or the bridge these known be are COVID-XX to made be preempt support that, vanguard and complexities COVID-XX lasts COVID world immunity human well are vaccine, tomorrow's COVID as notable prophylactically to help is over with will all similarly, a supplemental future tenant and already to will Lilly's known you. and MERS honor place open industry or hospitalized time. the in requiring I'll time? and large talent in Will of a year Other as a the use Eli related XX,XXX-plus bringing across heroic and see the is life almost the to the discovery it in of flu-like, to on steroids to our in industry that crisis. GSK, tenants Key distribution, science capacity, the reduce These meaningfully these pandemic, access, creating it in Steve. wide subside Or communities, will the safety or part of work the therapies science the could of antibody continue And base to by addressing drug In were questions, to fact early strides turn Meaningful and efforts ago our the many antiviral to efficacy

Stephen Richardson

Alexandria. quarter its vision ago, a campuses had achieved that company are especially years of both significant and the testament for Alexandria's integrity afternoon, marketplace. relationships, life across you, a strong Alexandria entrepreneurial has and to since very for time. capturing timeless everyone. tenant's brand ecosystem for impeccable the entire are collaborative science These The more than inception -- also creative a to well-earned elements results desirable a and the multidimensional the Jenna. trusted skillfully unparalleled has growth experience. decisions its out and are during expertise beneficial platform mutually science cycle this a majority Good highly but in third the growth life essential mission-critical, valued XX we've continue adapted are and seek The is the now highly with to to Thank they life foundation team only mega and their clear the not tumultuous in

As quarter particularly the an globally, following eradicate to the evident realm as its XX/X accounts October. company of XX.X% XX.X% and value Alexandria these challenges with stands operational upon excellence, and unique and only for partner the increased tenants clearly our In collected innovative, of for statistics. with success pandemic receivable the as demonstrate. during clearly results these disease and during navigating operational third in labs and the a the is once-in-a-century insightful provide the The nutrition improve recognized nature quest us, of fundamental is has out they

On front, the outperformance. we continued have leasing

the same the the first leasing quarter the negotiation And XXXX. of pipeline or run During and the To with grow. of development XXXX, solid square of considering of X activity and COVID to second the sheet in million leasing outperformance, leased XX% quarter, note with the quarter and our QX million we better run feet. of than which supplemental, impressive for square very particular equal or this progress Alexandria's is provide is our pretty time total quarter leasing leased, thriving average is during so year-to-date and X.X brings rate to our details detailed leased the which projects during the the status second during is third rate approximately the during engaged, our is continuing million further XX-year feet will team growth feet base underscore is us his engine, tenant on-balance to of outperformed set third fully quarterly Peter square remarks. X.X leasing quarter, a nearly

sense and base. to core with XX.X% for re-leases. so be Our historic strong for XX%, the XX.X% rate are strong third for early urgency increases And our our reached rental cash above remains tenant the GAAP and renewals continues of quarter of levels renewals and

second with increase across XX.X% Our mark-to-market second And feet the cash, X.X XXX after San strong bps to greater million would a feet demand robust at of square be in the million into GAAP, acquired the Market and occupancy, lab XX.X Bay XX opportunities, square million up Area region solid square portfolio. continues at feet X.X Francisco, and operating feet health San in XX.X% the of over account million square in in recently lease-up Boston X.X there's campuses importantly, taking credit science But at the continues bps market life we Occupancy Diego. the ability quarter. dominant otherwise second to be evidenced, XX to is our XX.X% promising acceleration by from share XX.X% quarter. to capture a up strong of again, be bps and companies. from the quarter a COVID-safe market high-quality, and

the have across with So creative efforts the to prepared it to the off tenants the partner benefit hand this intersection science Peter. global is globe. on Alexandria's virtual With at to entrepreneurial, pioneering of our decisively for actual opportunity health. health company of in capitalize meet and conclusion, I'll and team and that, fully and The placed

Peter Moglia

briefly recent one I'm Steve. Prop XX Thanks, of impact on on on sale our and the our in pipeline, third-party Alexandria all update development asset to you a submarkets. of going touch

offer development, space as during of X Bay adjustments to XXX the SoMa an in in a lot sense us XXX,XXX projects, really of dispositions as pipeline District was the opportunity to Market recycle quarter. activity for been during Drive There XXXX were have Haskins robust. from feet into Diego of Accepting So Quince under We our our and XXX the already leases in was as pipeline. the Carlos. a redevelopment to over unsolicited demand pipeline into the the put quarter. Area redevelopment LOI Gaithersburg, was developments, Point Road completed made robust million our sold and San disclosure. feet San noted that XXX,XXX And Street in in put Orchard quarter project that really with and approximately significant last a Maryland Campus the leasing had $XXX overall, very in by capital operation. development, Alexandria square and successfully led XXX at completed square few

So new Life for and for it the rebranded as those Center been feet pipeline, been were research removed campus X.X X approximately added square the square in XXX,XXX in quarter is Alexandria was space that the assets pre-leased. Research assets campus into Joel acquired space, That for the Parmer third have of has referenced. from Science lab XX% Triangle – Durham, million including been foot redevelopment slated already as manufacturing and development has and

and Alexandria are for the Technologies XX% is pre-leased. space also two asset, manufacturing Center features research in second Triangle, a The Advanced and in buildings that combined

off the campus XX% -- development to that mega the we've XXX,XXX Diego letter California's foot measure Alexandria first that and state's excess by with we of we're ballot have with once San At ground-up exciting intent. have passed, foot as XXXX major the of property Merryfield ground-up of The pre-leased to to year disclosed Prop in Proposition Diego values development. region: increase. of campus at We market every San has is $X square company, XX, increases kicked our million. final our for building in pre-leased overhaul commercial also of value that new building XX% XXX,XXX X% everybody the that's If of substantially San our interest. That of ground-up per X X, properties already Point, for Pines. years Torrey technology is a Row, projects region. a And a XX be is development referred for of limitation the property of could genetic in phase project, under credit a in project the some Spectrum of and On considerable also is tenant. to strength would on assessments sequencing properties our XXX% have a -- square Spectrum of sure XX the X really California Spectrum tax aware new foot taxes our replace Alexandria it an pre-leasing details ground-up will Proposition fourth three square XXX,XXX Tech Diego

is on rent Our they our have in pretty estate California potential Consequently, with taxes almost a no California impact current costs, form tenants is years, position leases tenant new pass-through, impact our asset properties purchased of NOI. having a and relatively the and not developed, asset substantially from our resulting to young, taxes will base, past proposition leases rent-related property among we're and increases recoveries. to that of tax our it approximately impact to real results, triple-net good additional relatively reassessments us as all of this result XX% in triple-net do of and base we other pass as expect should redeveloped the of significantly the to operating or our assessment allow XX absorb over

I mentioned. the to sale Moving asset

assets The interest $XXX of a Healthpeak's price from Drive a a Post in foot and past rate investors and a the a over lab a for of I two quarter cap very per suburban time foot strong So in area quarters, $X,XXX asset. for of value. healthy Boston a markets. Beacon's with in a science X.X% Drydock, X.X% foot the purchase, in of to a the to life It square market lease ground and of still $XXX last Seaport square cap we've purchase at diverse mentioning almost cap Park X.X% at Cambridge set And Waltham Their of office rate square discussed foot per a referenced onerous XX purchase good is rate. think, assets subject in XX a be

less quarter, surprised by rate. for $X,XXX cap oddly sit and been talking that Genesis of tower's can X.XX% number square we've the purchased the Ventas which San alone for the valuation in Francisco We at building, South XXXX recent converted a south cause $X.XX somewhat about or During the and Towers on the and than billion a tenants. Shoreline actual were an Towers ideal conditions the as and foot per of west third office as side XXX Freeway meetings,

low to the a an normally instance, For ceiling since lower-finished in tenant building, ideal building not building's its ducting And the lab clear elevator design base conversion, what led the the does making during office the resides of would top the than height you lower of building building. finished -- of had a for in Class A freight much on other than and exterior floors. the the reach aesthetics less the floors find

the competitive things Look, these a approach going to rental we market. exuberance product others to to in to know to of grow with provide continue disadvantage and our our of despite asset put that at experience disciplined continue to our opportunities maintain the deep reasonable project are type, at really highly All to us our that, Dean. valuations. over underwriting. I expertise the with it great pass will knowledge, And And base will

Dean Shigenaga

afternoon, Thanks, Okay. here. Dean Good Peter. everyone. Shigenaga

very and experienced to real estate be continues facilities across and the mission-critical on and We're portfolio leading essential health. acceleration highly to delivering innovation really advance innovative to human AgTech, team entities Our key proud to biotech operational year-to-year. highly focused excellence have quarter-to-quarter a of partner research provide entities with pharma,

high-quality future development sites, and A our and flows. Our high-quality with tenant combined generate to cash stellar roster, continues properties growing Class

annual activities increase on X% our share Our $X.XX common operating or and months. per XX up growth common share continue to basis, $X.XX over previous most recently, us allow stock in an the that dividend, cash from was per flows to

activities to our million retain dividends in on We highly from operating over in are cash reinvestment $XXX XXXX development after for leased pipeline. track into flows

for in space for Total excluding increases solid, up industry. payment the quarter was for essential that was occupancy continued, temporary and third X/X quarter within X and at estate strong of EBITDA to decline very REIT which XX% of seasonal third the slight quarter a were one up about in Adjusted XX% third real really related both decline revenues utilities. solid will of items, and X/X margin highlighting third the is the for year the vacancy for and business. in quarter top results were wrapping Pinterest, 'XX related and due The internal over that quarter about as to growth. delivered the to strong almost third the stats a quarter fourth Our remains of the was external execution from be on temporary our very termination XXXX

are recoverable tenants not increase impact operating income. net in from utility the did and our expenses Now

is and Importantly, essential strong, as in very XX.X% line with to our and XX% both mission-critical expected EBITDA our estate. XQ highlighted, adjusted margin for in fourth for Steve October, for expectations collections our quarter. at to been Rent improve have real the

our the impact detailed been acquired has And recently. occupancy this XX Now package from vacancy before of refer to priorities. XX.X% list that supplemental year, acquired recently Page please vacancy of was solid for of a

properties recently takeaway vacancy provide opportunities. executes the in our acquired growth flows lease-up these on Now team that is will key cash as

operating tenant from our escalations REIT continue contractual Now highest the quality in from benefit results to X% annual the averaging one rosters approximately rent of industry.

contractual vacancy temporary third tenants third and line as closing in for highlighted results XXXX. on quarter, June earnings commenced XQ of quarter expectations in our rents for As quarter the in our same-property through out second occupancy took pushing call, XX

renewals successfully XX% the related X.X% Also, NOI re-tenanting and months. for the TIs our assumptions was improvements. a occupied related in for One re-lease single the on same-property to ARE consistent lab reported and and really traditional quarter. that continued infrastructure a space the did on executed of activity the and quarter acquisition, a comment lease to third high-quality recent lease and to strong quarter space. leasing we of X older a renewals for a third and basis for was XX Two growth rental not years, the building amount tenant our for for quick cash to by to with along of an And the impact XX We leases X.X% leasing re-leased with related rate really bring growth in to the re-lease at was the standard the TI allowance generic and the commitments almost facilities. portion property, space up in almost quarter. on cash Now basis lease XX% and very the on

Now these impact average TIs unusual, leasing our quarterly two leases commissions. and are did and for

$XX and been $XX September XX, months our per approximately and in LCs leases, foot, months X respectively. for at historical would X average these the ended amounts with Excluding square X and have line TIs

really Now in of expense quarter. family career her really leaders an great during one $X.X And X-decade with truly a General the we and top resigned She the amazing reasons. the was had for wish a recognized our million connection quarter, she built in third Counsel company. We compensation departure, our Alexandria. team at well. her In

investments. venture to turning Now briefly

have or and the of Over of the we taking capital past been portfolio year the so, advantage markets. overall strength

for X $XXX monetizing Our first holdings. about averaged the over quarters XXXX, quarter third have that gains net strategically quarter. million to have $XX.X September gains million X $XX.X have been the neutral the flows And of from was as million have highlighting realized cash for per of -- about we quarters XX. significantly Unrealized last grown been certain and

that leased XX% now or quarter, which our added -- fourth pipeline also of are projects over square and consisted generate near-term now projects on working cash active We we to near-term the active on pipeline XXX,XXX additional square on diligently of the Now X.X quarter and progress or and negotiating. lot the an negotiating. This or our And to construction we active team is those square a will has the key with from XXX,XXX significant at which leased projects, ranging redevelopment 'XX. million XX% quarter leased are of which active is starts near-term development quarter, highlights second feet great XX% feet touched feet and last that our of negotiating negotiating projects. flows. vertical in of presented XX% have are included but leased been the that Peter details, highly

pipeline. entire thanks execution our huge development redevelopment and for their to a So outstanding on our team

We rate X%. years bonds deal Moving our credit, all-in an at senior attractive million to $X XXXX. up to The for lenders by to want maturity remains early at and for to in line team balance approximately for unsecured amendment aggregate X.XXX% today our billion, bond you and X Alexandria our August of sheet. of I of say just thank $XXX very our commitments completing date the providing XX-year to relationship extending completed a XXXX. record low, XX-year

of remain to REITs. for EBITDA the track to are net strong our sheets debt and proud improving traded on to goal top REIT committed balance all credit in X.Xx. and among in publicly industry, the highlight to we year-end strongest XX very adjusted Now ranking we're one And hit profile our of the

to adjusted of to in narrowed our from guidance XXXX EPS $X.X of years very maturities our line for per credit. with increase share to reflecting We XX.X the diluted FFO liquidity debt And weighted commitments and average at was amendment October about $X.XX, until updated very our $X.XX of have and as billion our from term minimal range the debt XXXX. remaining $X.XX from We solid XXXX $X.XX. diluted outstanding

comment and Now we X our are well, XXXX after subject close targeted closing. are for expected to on process transaction are unable moving transactions, therefore, agreements, with soon. to to deals dispositions both the of the of and in include until X which Both remainder along confidentiality very key real either of

of underlying Now assumptions XX guidance, XXXX as package. our included beginning refer Page on supplemental in our detailed please usual, to

to plan -- guidance unable we with prior Investor XXXX Day on until consistent XXXX on to then. December assumptions for Annual therefore, years, Additionally, our later provide our on comment are at X, detailed and we

it me Let turn back over to Joel.

Joel Marcus

question to please? go We'll answer. Operator, you. and Thank

Operator

Instructions]. [Operator

Paolone of JPMorgan. comes question Anthony first The from

Anthony Paolone

Okay.

around mentioned some circling markets, some demand of of just the whether of everybody? the can there's conversions, you lab. I But you with conversions the think, think new to some submarkets and comment go a new capital enough Peter, to had challenges for lot you with

Joel Marcus

in let before Tony. comments, Peter yes, jump Well, me

those demand I at -- the these there wants And strong. San think Francisco. think different have mean think, pretty to if tough. don't where in always supply to parts up. I look pretty, you ability happening look match Cambridge, where demand and the Same at I you I add of and are the is to is be, thing,

to out Peter, you where they converted. the about of want go. And is So you or these conversions, where all well heard they can a from coming demand to little that have the are downside But I comment. bit and work oftentimes either where think isolate and don't be you might

Peter Moglia

the last office of -- Yes. a in I Francisco, laboratory out needed just for it's couple Low, infrastructure Too Popular Conversions San Bisnow of I Hard quarters, Are -- the the talking yesterday, To Life efficient Short-Term: author's "Too flexible the article. day. think end a just like don't will be mean name pretty And summary-level Pull Too by But been came Sciences it's buildings Fragile, the at we've that But Off" and an was of Dean just article for website titled, about Boerner. have

space. as compared chemicals tenants going which you purpose-built they could very sacrifices convert very can but labs. be occupy they have in was make inefficient It's So Alexandria's to one, order far can, to put portfolio they the are equipment. many can to material for that to where like how And as store,

going we're I are that operational doing what companies run a that feel and Can't very facilities. that There's comes to that's these we to than submarkets requirement get and our technical. staff of and flexible, the We're around, go because works science a building building in afford it. has more really thing. into have mission-critical knows our in the just that can they're how mean money, So that's any going to any industry. time the like be can't choice. first when expertise bricks-and-mortar to a here. know And There's somebody is -- especially life doesn't other

Anthony Paolone

might be some a the on about wave the maybe on a I give my quarter question, like then it either And near-term impact bad. so-called Can last the business? before, had what made blue get quarter, you think if comments some the it blue you Okay. be thoughts would election, and second Joel, updated wave, was we sounded

Joel Marcus

is ideal in Well, that I parties. government between government, there's first always, balanced the the a think, all, balanced of and

highly, from guidance. some it on really with to what spectrum the free blue medicine say I broad I a is that speculate market to socialized party and hard it's wave think encompasses means democratic would a a party pretty -- pretty a of because thoughts

means. really to hard know what it's that So

of there be to pretty That's on, administered to likely areas they go two to show that by might could might property or And with, that revenue-sharing they Biden-aligned quickly. one then a lab company, created try do. would those are there think maybe try said was to say, another Medicare whatever. groups so-called get things were intellectual basis quickly, one I outside that doctors. negotiate after early drugs is they what a more pretty or do university if for the if they could federal One

that heard and might hard predict I've that ones and think it's to. anyway. they go -- speculate to two are those to So But I hard

at So of reaction point. this knee-jerk that's my kind

Anthony Paolone

in pause try scenario, there's as just you the environment leasing any what to figure might out hold? in tenants that think Do

Joel Marcus

No.

Operator

from Merrill Feldman comes next The of Jamie question Lynch. Bank America of

James Feldman

how sticking kind just you guess given capital second topic, markets into new them? guessing supply I with of there about where is flowing thinking much starts the are are or twice any

Joel Marcus

-- be has and the past announced of the to a tip, good Point more turned Well, the been but more than in better of their couple pretty think been South one thinking Francisco turned a has think out -- I healthy, Healthpeak building we and San with certainly and number I demand that when years, Kilroy so have And -- the issue it have done for that think looked of check. our maybe Oyster built comment. to flagged over oversupply I has be Blackstone. supply conservative which might I'll we demand, it's But than and a has there other has certainly way tend Steve out pretty we've thought, job the groups potential like in be

Haskins making the XXX I we're either pretty Peter think over certainly of comment. we our we've a But Steve, on strong as progress could been years, or but Steve So great very you mentioned, And careful couple project. position. have past there

Stephen Richardson

is Haskins at XX% The we're Blackstone now, Francisco XXX% of of Peak I leased. is leased. well leased. Yes. XXX% would substantially Jamie, X project and substantially very leased. negotiating our lab there. Kilroy's South is essentially product entirety At Phase leased for positioned add, that San the the is portfolio so

there has very mentioned we ago, it, monitor years So Joe as been but robust a did of couple demand.

were X companies You global in coming into that's Francisco have anchored X with San South pharma pharma probably big not it there coming a combination of that before. or

second have commercialization. that of to matured You have the cohort companies

worried to healthy have we very might and see as we not years couple been monitor certainly but of overly that closely, So do a very continue supply ago.

Joel Marcus

and really moving Steve, like A when project Kilroy science that was mention suddenly, we little bit days kind the haven't tech early life before. to Stripe it Yes. big the maybe a because trend seen Bay that's of there came in interesting an Mission way. in, was in

Stephen Richardson

the looking I a tight. did that market that opportunities Yes, were they situation as have make for was unique South really making for was move Right. they When expansion, Francisco. so think extremely additional to decision, buildings they were San the to

been well. That had in as particular tax San regime might have Francisco. You a troublesome

South a in tech which and But unique San that future will harbinger it kind that's locations, increase is Francisco. of situation. an only demand it was we'll important So see if -- -- for

James Feldman

there high other markets risk thinking -- as Okay. are any supply? And for as even about you're monitoring

Joel Marcus

existing for mega land under a lot is campus But many right Well, isolated expansion, and we're you with be gone the to I always don't the because we've one to because reason just people big Triangle. of a think Triangle now including LOI strategy Research that's in around there think And looking tenants, pretty about want we're in in locations. a solutions.

there. one. pretty commitment that's We're we given recent but always historically comfortable have -- been So watching, dollar we're I our think always

Operator

from Citi. Next question Korchman Manny comes of

Emmanuel Korchman

for capital looking earlier at on the amount the space. Thanks comments the of

have deals guys you're don't a Cambridge? you acquisitions in number market like be couple that of how interested big really would deals. you big of there's light, especially doing, and But know future in I deals, there. the about also a out Just you increased in talk

Joel Marcus

Yes.

me maybe So let react to that.

clear in pretty was be But because gosh, a of the no case. one was had knew beginning cut repeat year and the was going 'XX, at hard my if this April, CapEx different shock. a know, any we to always It we're it's sense. by all, further kind of March especially May, and of I planning to it of First a market XXXX. of this 'XX wasn't that, to cut in that mean, year

beginning might So to during any the of what come year, the knows assets year nobody or what at for reasons. market

have demand So to acquisitions. speculate ones we're always I looking ability tenant internal that hard satisfy an have. always think we on And that it's for to

we Now hundreds want and of to hundreds that -- tenants where what have going do they we forward. know

up that huge to with or think solutions can match So trying advantage. gives we I either a create. us that competitive And exist that

I comes big I mentioned portfolios, to think when before. Blackstone it

many now. and out would if have B-plus portfolio we I say that big XXXX, portfolio Cambridge, would the particularly. don't location. recapitalization have make scale I that move on really so then they've anything doesn't wouldn't a sense. calling it, think think I for I But an one It back weren't know from And We the interest was really us comment there But have to guess interest in great adding and doesn't well years any of base fund done -- which A-minus, an we I job other adding we didn't of there there. ago. then And in there another. on quality be And and think described portfolio do gigantic kind that's buildings, a I much that. their offer

are heart of Square, mega locations. campuses X AAA have the in Kendall We which

that that. you we I on some about how think gives insight So think

Emmanuel Korchman

about And one that this How well. the thinking might how you'll in maybe of over space guys as your Great. time. portfolio amount take you And now? much that's ramp manufacturing Joel, maybe are

the One don't in around I you which in a time of done facility, the past. manufacturing pictures think the supplemental was this highlighted you've

but your curious of how much office kind Just labs be of manufacturing. not space or might more

Joel Marcus

don't some think to the It's asset. Rico long-term if Iowa in And to We locations Kansas there done It's kind inherent amortized of an lease. don't place. remote before. West down or over real manufacturing, written the term Puerto Virginia in estate. do you've investment. just gone, or build no value or it's that wants of is we then the your when Yes. go or We have a plant Well, we manufacturing where somebody

research. become I in arena medical And have remember the things then of know. obvious there in be not, to core have in been pretty kind would critical are and research remote adjacencies he'll we care R&D, do don't it's administration parroted what clearly or it no headquarters -- repatriate where what than at But those development to the either two cell -- new for going push, Biden's remember he fundamental Trump close my And whether is really today, are, gene never things U.S. of companies particularly proximity a more the company's can manufacturing given interest. know. they really think and that If there large and health that's he's random I So in have critical in arena said. or or evidenced But level to you and worth And comments, commercial level to be not, Whether much COVID-XX. there have locations, by said Or One medical in also therapy. whether in chance of whether is back reasons. generation interest. the Trump it's do we the they're as or manufacturing capabilities, or has don't that the the interest. today, extent, a those at full-scale clinical --

become And so mission-critical. those

have You highly companies example, a can of for I complex manufacturing specialized -- Bluebird number good number medicines these of the future. that any mean of is think any

I think And it's a becomes opportunity. integral an it M. and think So huge now we of R&D, C part

because hope everybody think the I opportunity I a comes huge true. it it's in for States United

want Biden I is do that U.S. Why corporate you thing purpose and be think very the to which horizon undermine if overseas reduced the companies not to to in to bringing back he he's going able manufacturing. one negative do, would increase overseas, where cash move force thing price? would the win, so to operate high-cost that of a we've sits to taxes, a is environment on overseas. sought And at operate the companies' happened happened could you that

hope that happen. we doesn't So

Michael Bilerman

had just for other Manny. Joel, you. Michael one here it's one with I Bilerman

and overseas about deals, competitive have about you wondering competition, your have had global. thinking putting going low at And I'm investment talk highly you all for all? fits outside at the an U.S., dollars returns to the on there's and about advantage development driven have been such changed so operational either much and levels here of pre-COVID I here talk you've message acquisitions, And in recognize the if on given core U.S. nature and the focus markets buildings that just you As of your the expertise. was in here plays, down global incremental whether you conversion the starts U.S. the

Joel Marcus

Yes.

So became pre-crash, we of Foreign that's question. to good And era, clear, And Indian wasn't invalidated know really a It Practices novel a going 'XX, pretty place you the patent. India, the 'XX it bit a it's Supreme from into a and history the After research little Glivec getting both back Act. the 'XX, of entered clear pretty was to China that in India. India. operate Court tough

We our we only projects. we one. sold two terminated sold we did -- So there. China, operation

the and kind a the it. government even nice something what is problem them The and refused the We crappy one that putting a to mini your buildings at happens because go do unit rent partner, up lab, have we is first-class do like It'd to a though like next and around government told recommended. there operate in with was of to which But builds to they the be remaining. Chinese then storage telling China free -- in local tie building. lab

answer think I exact compelling tax that at And rates is country sense of the at so business there turned out the would their it critical have and could to that be follow. question. if keep or that's to companies hard look to done moment. blue X opposite because here. thinking the thereafter, a government of it you'd just I answer we'll think this wave, don't possibility what they I I answer a increased turned But competitive revealing dramatically of the the makes model the it was But to November out operations keep taxes, then have corporate in and overseas at think

or revealing that of we'll So thereafter, I November question. be X think

Michael Bilerman

was U.K., the thinking so discussion going back or Europe, rather certainly we China Day. Investor Yes. more can Canada have India, I but to at than

Joel Marcus

help into office. New sure go we I'm if down be I'll And Yes. there start Zealand, to that

Operator

next from Evercore The ISI. Sheila of comes McGrath question

Sheila McGrath

have be drivers demand on growth that that dynamics On a smaller you bullish, the you had about the changed acquisition market details was there market more embedded RTP, wondering any in. to a previously could in I that opportunity talk may insights at presence and on you asset. if was the

Joel Marcus

Yes.

long in the by So in the for and, NC the a space, saw since State. we move rate early increase UNC something. biotech we've the been companies down through, XXXX in particular. really like the UNC aggressive quite always like in lost the growth or the been more XXXX. and market care NC and for Duke were there and we in in time attracted from very that Duke, slow Carolina We fact, -- was to early wanting arena, had -- in say, in think anchored North health And providing to momentum State there. And market, we've Triangle in days, 'XX pretty rental And ag because though, arena. I incentives that during

that. So kind decade, has wooded cores struggled. out popular, most New of beautiful go by want didn't of of and that people crime in the could cities and hang impact going the almost of a Research and of lake. a bit it sleepy really in Triangle urban And a and things kind being like area have to these on a were when the lot a and seen to course, York homelessness as That down both what's you its little in other rise COVID reversed given obviously, imagine, some

in now large I an number, new or down large so creating tenants we there of either So a space the a footage, Research of and certainly lot my mentioned where XX%, motivated share lot our to-be-built we as number have gives interest moved comments, a a solutions. have Also, about expansion really three solutions market and way. in important existing campuses substantial in that who've to expressed scale of existing us square in which has of mega Triangle, or us

get of to. where So that's to wanted we kind

Sheila McGrath

us insights subleasing the your for its space? then Stripe And you thoughts could Francisco XX updated Great. Okay. on and market, give San on the Bluxome plans downtown

Joel Marcus

Steve? Yes.

Stephen Richardson

here. case Steve it's South anything official plans Sheila, San Yes. I think, with yet. haven't Stripe's for Yes, the Francisco. They subleasing, were always the done relocation of

just I out. think putting some they're feelers

important at that's is shell. in When So that Bluxome, then TBD. a the lab-ready quarters preconstruction here. have a XX we And much undertaking activities with look we'll several you be that building, it next very

product, have floor, product lab office and receiving. shipping was load, Peter the the as between to the highlighting So contrast that capability, floor we'll and live

go So think at of lot to mid-rise going outdoor facility, extremely desirable a capability when to an you space, product. be looking we a the it's lab, start

So we'll where time see this next at. year we're

Operator

question next Anderson Rich Nikko. of comes The SMBC from

Richard Anderson

state pass-through sort feel Peter, you how guys to someone's all if to left increases referred wondering thing I'm California. begin might to passes, But that bag of going Prop XX general, In the leases be vulnerability the it's and this you a and of with. nature recovery triple-net holding of about stuff. complicated your tenant kind of and the

XX motivation to think some sort pace of create for increasing slow rent else. you kind someplace ultimately does companies that down an growth or passing exit of If Prop at

Joel Marcus

Yes.

I Peter to question, let make comment ask that Rich. a before So me answer

relocation guess, carefully Long memory put of years tax serves couple started a money not I the announced I is of of motivated. from wherever founding I'm -- Jacobs just for amount it at looking Healthpeak we Beach the think everybody who headquarters, California. Denver, if to, is area or their left shareholder of think, my ago. I Obviously, our principal Pasadena me. in Texas, company, Plano, Engineering, The when

number fires. a to state has Obviously, and been So a is cities. there of number this wondering, people going companies a cities the itself? is and looking historic you've going got at in today problem themselves? of California the And to homelessness save save big are Obviously,

You've got earthquakes.

important You've is got We're got of than the pretty natural intensively. everybody something. but sensible disasters, has working governance, But parts really more different country, the governance. other

XX% in try health had like Francisco about San the of XX% to homelessness Dayton thinking numbers we people to model solve issue. call a have addiction OneFifteen, could San Francisco assist we or of on bring city or The fact, on generally homeless mental addiction kind yesterday trying for a internally help problem. opioid of the long In homeless that some solutions, to over to something as show solution

them putting work, So services there. intensive got bring somewhere to just doesn't really you've

looking But So at intro, California I ways. Peter, of think fire important and are all companies long-winded kind really away. with fairly in realistic that

Peter Moglia

will maybe digits be question. very Rich, point single to overall would a necessarily sources always would pass? to And are like, Yes, back I what about from a is that this a would revenue we or much questions continue of take business. It It analysis And be That you go expensive, mentioned, rising for so in it's eventually, to are would isn't well, going they're they these obviously really at be if going that rents great are mean, people give anchored better search your sure. because low where need doesn't collaborate for quickly, in would market with. just to just because well, companies people our typically institutions you they elsewhere? when inferred, occupancy lot up. of answer well, get to the it a located it company. confidence low California because And said, just people I won't it is to cost. through where pass they Look, that it will. as cost is the be are go we the it going because get I is, But

their And going them the of it overall comes see. to X% and to is expenses very structure rent biotech, of X%. would large something the operating in amount that Is expenses cause and context is in then the the anyone through not where increase Alexandria operating pharma overwhelming So like that from cost probably move? to annual wants not. revenue is We to think OpEx,

annoyance. why day near and the absorbed. win going will again, ultimately So of about at be property But to which in be going the it's an the these annoyance is needle. be not It's to going institutions, really wanting an markets, move tax is to location increase the selection to end that work

Richard Anderson

Okay. In a the interest no just have or of time, I one. real quick yes

that lab yet? be haven't On since that the you use? how vertical Or for Pinterest be will modified building, gone now will redesigned

Stephen Richardson

very Steve. Rich, from outset, lab-ready we Again, it's a as designed the that shell.

So both make modifications. to And accommodate ability any to users. not we and technology we need the lab have do

Operator

Carroll Capital The Michael RBC Markets. of from question comes next

Michael Carroll

Yes.

But AgTech site Research could different the know you buildings mean in Advanced for that build-out. touch the you down tenants North they the different campuses? I all take types site, the each tenants? Durham individual from these could campus better AgTech Carolina they have either have are could think I I in is suited you little earlier to Joel, But of a call. at -- -- the Just and each that acquisition how Or on bit Triangle of again. with different And this a the -- Technology mentioned campus?

Joel Marcus

they're the that science, building Well, be campus really is next and of proximity. growing to primarily it full Technology will also the campus dedicated all -- life chock in tenants. a AgTech AgTech. sits will Advanced campus AgTech and And is small we to The have pretty close

the in quite life there. campus, redeveloping, a natural Durham process So there's are and be trajectory doing And then bought in a retrofitting the of as will bit science growth well. we of just primarily

Michael Carroll

market, demand development? but seen demand is demand? today? now, from demand have under you ground-up I want the Triangle life what construction I Or And or the the on in of to that lot you've a right have then know And Okay. guys going the it space mean, another enough is just you Research supports science that AgTech you complete

Joel Marcus

a a two it's primarily Advanced science, although life and was up, but And industry, big existing motivator a they demand then got build-to-suit not existing as tenants number which tenants have, relationships It's immediate or because us. solutions, that on developments on and Durham as activity. campus, the existing is the we there different is quite deep, or expressed we've we're have our very and do AgTech that one there Well, have structured really for obviously, of didn't we're campus industry going doing. that pretty we accommodating Technology just broad from want robust

up. a good are screw pent-up tax to tax changes, So they is demand. both, the and do if there some we hope the in sad it obviously, here -- that expand Hopefully, to won't next there we think might would go in see things we who if all fashion, Because, companies different maybe be they today, go might year happen. U.S.A. overseas, and

Operator

from next The question of Dave Baird. comes Rodgers

David Rodgers

question first for with Francisco. Maybe regard just San Yes. to and Steve, Peter

But maybe Market. to You Peter, about your specifically on XX. back talked go XXX comments,

sell that. you to said And pretty respect for reasons for wasn't a a with of turnaround made sense lot price it a there's of motivation. lot you. maybe to obviously, But -- Just the quick

doesn't why that exit So have about if why Bluxome, about that helpful. be you then could an would talk you that and think on implication how

Peter Moglia

Steve, take want to do that? you

Stephen Richardson

size at Bluxome one-off really I and that the Market location scale best the did was ahead it different of to to it's then when looked XX think the much Steve. And position. in cluster Street, and at SoMa, of much, different kind and a at receive an also offer make exit. Yes, go of sense just of is qualitatively the and to along edge unsolicited at Dave, asset, look of we somewhat Sure. a its

the Bay at edge there. really Mission You're of

project receiving opportunity life an the opportunities just offer a weren't these said, have technology. a sense. build smaller we made capital scale adjacent Whereas other We at as And think do really a I help again, to was recycling cluster that ultimately, to with just great the to Peter So Market Street science that. or -- location going there. and unsolicited

Peter Moglia

extension And than closer I to just just XX add that Market was Mission Bluxome would Street. much add I Bay -- a is going of

our So it Market that would. be makes than a build cluster lot to development Street on next more to sense

David Rodgers

But Francisco maybe -- that of -- I your don't to want think indicative sale maybe should is Is about how indicative here. of it? going the to market, mean, mind shrinking is just that office And is say that San -- thinking? lab it. the one I in obviously, mode deterioration component of of market we And is in a that be but

Stephen Richardson

us circumstances at I think you just Dave, decision. make that to isolation, that the led that have and to in look

David Rodgers

continuing manage how not quarter-by-quarter get to want necessarily or portfolio and Dean, the just Okay. to there you the that anticipate And to want gains on a then more Do to $X.X including to have, guidance to unrealized quickly of certain in want that? down the particular guess you kind portfolio guys I you mean do you embedded the just can. the there? way? ventures those maybe manage sell size on billion, to with any gains. maybe, you I ARE of size that realize of try want Do you but in that in gains to XXXX, as as investments

Dean Shigenaga

say been manage I'd to Dean our has that venture Dave, of portfolio here. business. the strategy that carefully overall for the aspect

think the neutral cost commentary, portfolio we've year. assets the perspective a side assets declined several I a perspective, this from grown been total actually have venture time. invested cash has If I percentage you years a as back dollars of from look real my And flow like over the shared on estate -- now, over aggregate has in or about

new selective about given what But of a careful been acceleration XXXX, -- mentioned, there's opportunities. back you investment look since Joel over always if innovation. had still So real

opportunities, a seeing still very selective, of but lot being Dave. exciting we're So

perspective, was to closer it's a the today, that commented venture and always to portfolio the we've that X% from X.X% basis moderate size think cost a down will from I of size couple in years where X% in somewhere it ago. of

Operator

Next of question BTIG. Catherwood comes Tom from

William Catherwood

they a the in believe few didn't that Just that like had assets RTP it were office Parmer on acquisition clarification acquisition. of buildings. part XX park look the correct? Is a quick your that I of the also

Joel Marcus

want you to to Peter, talk that?

Peter Moglia

Yes. labs. we No. be X and or used as as I that leased office story as assets consider buildings don't have X that the exact number, but few future there converted are upside. a to office that are either currently There's could

So own are campus and the sold on there all them. assets were -- the that of all of us, to were we

William Catherwood

it. Got Got Got it. it.

the Okay. hard XX,XXX intermediate into feet this from term, mentioned Cambridge, able to had of if near how between this are soon Joel, that Binney versus Cambridge How supply another add were Then types square of you bucket tenant? you and the Coolidge and begin of Necco think have tenant to Watertown? there And XXX at the that bring to can on quarter, requirements in are or XX you your differences you a site or that that in looking do get And tenants site Seaport in XX switching to density. you development you over moved market. project

Joel Marcus

Yes.

that what about we and let as-of-right I'll But substantially maybe from footage. think, talk the about Peter intro give Xx upzoned, it. to So had was I an maybe square

the think I got north design we've is just other the footage XXX,XXX. got of square just approval night. We

So we're steam moving ahead. full

for of expansion We existing tenants looking space. have handful who are a

of So there, XXX we're little or most -- I -- likely, -- this XXX,XXX multitenant will the our did exact needed Blaine life almost many address existing be where tenants building who building, we building our accommodated what bit square XXXX more forgot a we and of at space. created in Seattle like science foot -- XXX Eastlake,

that's happen think XXX to Binney. to what's I going

be I I think you Seaport, think first to in offers Cambridge think, companies could But The that prefer comment. opportunities, are nice choice. would Peter, I in some but would Cambridge. be Cambridge

Peter Moglia

that about obviously, find area because can that Line, get it go been Watertown in has our imagined. need strategies. XX limited. you you could very amenities is Station and minutes. in But wants have a The Square very one those can It's as one. Point Fort the Yes, be Cambridge-centric than people Channel in to very would still there proactive is maybe absolutely. the a the out as where more And also Cambridge We be are a working out we makes lot South that of way, sense even from everybody what of to are demand to opportunities there well. I linked Kendall have XX would the proximity. attractive, in been fortunately mimic bit was be. it mean close The Cambridge figure to to more place we've to well. Seaport And stronger the by Red

think So that Cambridge those we natural have to but a to close ability extension be may in good, by. not the for be it's needed

Operator

question from Mizuho. from Okusanya comes Tayo Next

Tayo Okusanya

to wanted go little just acquisition. bit understand And tenant to building. better Durham that the I'm to back the I a base trying in

this the reason sciences R&D-based university-based, You made some just I'm and illusions talk to major attractive sciences? traditional does if sciences often about you kind and of for asset. the holding of the of of you're And an find curious, of life aspect Brandywine going Duke of more proximity the kind kind is UNC kind is curious why have that Or not. type is, in I'm Philadelphia? life that just it of And or not hear Ventas to it life

Joel Marcus

I sure Could about described not could repeat you I'm Okay. Philadelphia. when you that? you hear

Tayo Okusanya

university-based And also I'm again, Brandywine, about UNC, Duke life and Ventas talk Again, close this comments life it kind sciences. Durham I mean, Philadelphia And with I is... consider being you think some of as just often if curious, sciences? and about university-based Sure. do around other

Joel Marcus

don't No. -- this This know, don't -- This I originally like that yes, the bought campus a thinking. Glaxo a is that. No. think way is that's not -- and was different, Yes. of I don't we just is yes, redeveloped.

credit future adjacent that park and is accommodate the is it was seller Duke presence the We by attractive job expansion would miles adjacent to solutions The reason down it. there existing think major Duke. in, are good, or but And of done is not tenants, NC for among away an that's that has that in It's and UNC. of Duke. a It's opportunity three to was the existing tenants' to good. came not timing really The reason ours number the had park. of us gave I wasn't was which the existing some had. lab mega major Triangle. a us, it that number a campus important State. strong This and the solutions there in growth we

to like it -- I So nothing Philadelphia. it's wouldn't compare all at

totally different Just ballgame.

Peter Moglia

tenant probably only also Peter. the X Duke And a X it's Joel, of The there's credit a university one's are is I there, sixth total credit of mean now. tenants. actually related. And Yes. tenants X

Ventas would So a university said, echo nothing have what Joel this is like that I'll play done.

Joel Marcus

university, after be so mercy have never can be. which wanted the That's you And the commercial base, the if of you on universities dependent Yes. and to and gone challenge, entirely you're we've if down universities, do and university, really is that why up tenant we've really no the and forth, you're never business at model.

Tayo Okusanya

within not the actually comment, Previous any U.S.? new if international, would you markets consider

Joel Marcus

Yes. We said we might.

are and our in I full because vibrant existing think they're our hands us busy. markets keeping so

fulfill. We to this budget a year big have

markets may moment, the we're who have there. pretty -- -- future focused or are. not knows post-election, any to we're occupied what ready at on so what because given expansion And where in But announce the happen may we

Operator

the Street. will question today And last Green from Ismail Daniel of come

Daniel Ismail

Great.

a for Just quick me. few ones

of cash quarter re-leasing good spreads. Another

I'm where on sit basis, relative to markets. portfolio-wide So a in-place curious rents

Joel Marcus

maybe So Dean, comment? a

Dean Shigenaga

Yes.

quarters just overall both and upper last So have mute. think, to I average, of GAAP been I on was over The in want it off the the be number sure portfolio, cash. teens

upside I So the good up in think overall portfolio. I markets, the and has our constraints core overall and continued fundamentals supply on held think, good

Daniel Ismail

XX% X% costs. the I But year-over-year your and appreciate on up? leasing net say, we how talking up? And you Okay. across grown, clarity effective have can Are concessions frame the portfolio? rents

Dean Shigenaga

quarter. back to But have rents specific don't out, analysis effective quarters, this trended turns I last if the have that I think net It several for nicely.

portfolio, very quarters. -- the the as couple examples. this a might -- including that well harder last got as make you Research think well Triangle Arsenal effective as right a The last the acquisitions, net for I for But has the the to project to though. been generally this assets picture bit tell of as specifically now, mix only in got Charles little can't forward on rent quarter as I change of through we we've the that years of as trending I can number is in that broader well several go see see you've a

Daniel Ismail

more it and of industry changes life potential and the for industry. one tech have on H-XB last in potential me. might employment impact towards program The you science just can hiring? highlighted comment the And But to to Okay. potential been have visa the terms impact

Joel Marcus

Yes.

maybe very are it's working think coming about government I'm program other there that expert category people there of with -- from keep an sure. who scientists -- on at. think helpful some is would visa I that positive there But there know been have I certainly bases skill looked positive that from set the written there been number under some universities a being that. has clear are And a a very and pretty in I it it's for going, and to carefully designation, sensitivity quite bunch over professors. in to science pretty here security a But be national I the not and unique countries that China -- positive know industry. think or issue life aside, I that that have

Operator

question-and-answer our the over Marcus to for back turn concludes conference like would any remarks. This session. to closing I Joel

Joel Marcus

Okay. you much. very Thank

quarter Look during third everybody, forward to you on to this quarter talking And safe. long fourth stay a Thank for you. call Sorry please year-end. and of COVID.

Operator

The conference concluded. has Thank now attending presentation. you for today's

now You may disconnect.

Alexandria Real Estate Equities (ARE) 27 Oct 202020 Q3 Earnings call transcript