Earnings call transcript Q1 2023

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Operator

Good day, and welcome to the Alexandria Real Estate Equities First Quarter 2023 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Paula Swartz with Investor Relations. ahead. go Please

Paula Schwartz

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

could concerning is to statements differ actual information Securities the in Company's those Additional filed cause the and with Commission. from the in results that factors forward-looking contained materially periodic reports Exchange

Please like to Executive turn the ahead, to over Marcus, Founder. I'd call Chairman Joel and now, go Joel. And

Joel Marcus

Thank everybody, 'XX you, Dean, quarter continuing first Alexandria's Earnings operationally our first to to Call. Dan. tough to a tough ARE Peter, macro in environment. you want of entire, and an and and are send family Paula, financially welcome, thank for -- first a all, I strong With quarter me Hallie big And today team

one-of-a-kind company Alexandria very most -- know, trusted truly pleased is we you one just that we're As XXX new awards. received a company. And Newsweek's of S&P

We model, We're kind to the pure original the of first back field, of a have through disciplined no our life in cluster customize execution strategic identified pioneered niche space industry. using our lab our our peers. and play. which we then and we vision In XXXX the architecture of science

type service office nor is of not and conducted generic science, hundreds brought estate have respected the we the recognized operational this infrastructure Alexandria have within unparalleled company. to We definitely which world-class component integrated an base. product to highly mission-critical asset of care and a estate protect XX/X the real facilities And health dollars is and excellence brought of with a real a company life science XX/X of it industry aimed our billions service today. leading-edge

patented we pricing dominant by we in our and power, lab entry where sought talent priced, product highly premium non-commodity are barrier after focus and transportation It's and trademark access. Alexandria-branded excellent are exercise risk high franchise those life where deep have generally campuses, a science generally Our markets disciplined a abundance base, characterized space. also mega a of exhibit deep is that to and core have and markets, our rich ones safe science base, capital especially

the we saw is the years of days in of and what said, And technology as XXXX the multiplied century in XXst be science will Steve embryonic today, industry century life the Jobs later, XX the of intersection innovation. biology geometrically

and economic known havoc and beings sickness, of have illness skyrocket. diseases mental health day crisis continuing is cost wreaking human on today, each personal the every We the and XX,XXX and to

up tenants national critical innovation of unmet medical XX% Therapeutic major transformative medicine today, moderate great Boston one And And the Continued trial ulcerative it to Greater stock is work need. announced has which the tenants, and day, this Xa has is an clinical absolute a indication a of we its in is to Phase been GI hit condition, addressing endpoint the our in example, progress. colitis. Morphic it that severe of and every for had an ever our if hear tough oral massive priority it, drug their addressing year. Literally industry you've

illness diabetes, in obesity, prevalent infectious chronic are disease, the mental disease heart substance disease, kidney respiratory U.S., and being diseases chronic not most XX cancer, Alzheimer's, disease, to-date. The abuse, solved

and days. very Weathering in its a the tough decline, is quarter. mountain environment, solid macro formative large a ARE industry a have We posted really first

well stability is of strong We've is top strength uses per line our funds see you XX%. lowering maintained XXX% Company. revenue in for will of up the sources into Our continued but revenues, -- share as FFO and almost go and And which almost while up Dean is metrics, bodes capital. X%, the collections,

period rate rental took increase, We've and had highest-ever highly appreciate a very management margins. had multiyear and a the stakeholders implemented disciplined and years. to self-inflected sheet with continuing successfully recognize policies over that the various balance this current strong EBITDA fortress a last team storm over should operating we've solid we now to economic create by approach is weather the All many leasing the what

We cut that judicious you'll our same from XXXX, to strong plan measure Peter. for time, funding more progress at while our have about making taken CapEx, and the on hear

bird's-eye without view me the science over to view going on give you turn any let it Hallie, further life industry. of hesitation, So who's to our some

So, Hallie?

Hallie Kuhn

is and on I'm is Technology Today, best-in-class and Thank health good life science Kuhn, industry. Beginning and Silicon to a President Science industry afternoon, the everyone. collapse This innovation you, industry impact science collapse remains driver Valley Joel, tenant of comment long-term some the growth. its on going science the life of Markets. ARE's science on Bank. Capital life life SVB, long-term Hallie and Senior with misperceptions base the of there of following Vice of The

working used community what out necessarily their used, for share everyone years because and needs it also tightened of provider the because else while banking not particularly many And was other banks, of G-SIBs start-ups serving no there that's a this within was work And created segment, certainly including for in many the Early-stage has have companies, own to industry. niche many options. market. were SVB SVB go-to a been cultural. carve tech SVB venture-backed very a

private collapse, our XXX For biotech own the we days companies. in conversations had over tenants the with following

use many not or of banking of had which relationships. did SVB, multiple Some but which

payroll from as hours companies bank were XX risks start had run, mitigated. the approximately access of and deposits within to all such Importantly, near-term the making the

And by venture driven debt cash means accounts, risk minimize safer sweep deposits. to deposit also largely those tenants by Biotech long-term is third-party custodial and companies and SVB extent is that on for do as no the same accounts seek only venture for reliant not industry. to debt, our the tech cash option. the tech significant rely instability that some maintain on unlike banks, of regional As

by closed in shortly. and as April, in that on touch rounds so expected venture is to life minimally will do March expect that sector be We the continue in going detail I'll financing more science affected which forward evidenced

base, the estate of one component buildings in health tenant from the our life researchers on differentiation of our to science of directly reminder office supports product the transitioning lab. our the Before importantly, traditional science real office, life quick

office of scientist in an traditional design not next data, does between the adjacent, spend example, all A with of be component the component forth analyze back day out and bench, broken and but integrated workflows. to, to or colleagues. the laboratory time is experiments office, at critical and moving office cannot compared meet Thus, spends highly for plan and set and adjacent but lab order

is be from this can that not course, home. also work Of done

from environment Now the with transitioning segment with trust life pharma, to old to of ARR, and we to base, rising perhaps our operate else balance in XX% God science a of data. which sensitive the position adage flows, health the strength this to continues significant our way the spring less rates. Starting diverse current best frame all world-class is makes sheet free cash strong up of pharma is tenant

estimated biopharma X revenue. deployed aims billion continue Lilly care $X $XX And with R&D. lost is eclipse estimated costs that XXXX, costs to Eli to deployed trillion over productivity. to $XXX transformative this in account is result diabetes, Mounjaro, tenants into year translate per direct is U.S. economic in in treat U.S. in for like people health care in the spend which of The In health out into every perspective, of type in additional due to diabetes. obesity $X.X with obesity globally nearly to for to billion one billion predicted an indirect And medicines. R&D is put an to care $XXX this

such that of which Transitioning levels, total a to health which the private peak historic care To drive more broadly. up potential see strong and by deployment venture from while to we X% pre-XXXX, makes our venture-backed Mounjaro, end, remains the of significantly to ARR, cost continue down down have standards. as save extend biotech and reset therapies XXXX lives of to

future demanding ones inflection discriminate, and Venture teams the companies milestones disciplined rise And and and with strong tenured value the of near-term fray. more that the current technologies are and investments. are above differentiated capitalists management

We broader remain and biotech underwrite and all continue private to tenants market. closely, to the our monitor tenants compared

have has BC pharma of the since tenant over and $XXX partnerships the of this across they closed year, following from raised million collapse SVB. the fact, In $X.X which billion beginning base, of

remaining As point, week with rent a biotech at XX.X%. in the private April, is testament to collection tenant this

skin of such Next and platforms as trial in to demonstrated Amgen, deliver This highlight public $XXX biotech, vaccine names of medicines from Vertex immunotherapy XX% results products the drug XXXX the make in month, combination an Merck, up our marketed tenants generated with patients. of personalized cancer clinical to promising Company's Gilead, aggressive with to continues in include new revenue potential and forms to tenant novel Moderna mRNA Moderna. in ARR innovative cancer. our billion

also innovation continue product high launches. Companies to and continued for set bars

For has entail plan example, by which particularly by M&A. additional out drug advancement XXXX, current ambitious will of oncology, Alexandria approvals Gilead to their in achieve tenant supplemented XX an laid pipeline, new

raised culminating XX data Company the $XX.X stellar XXX% clinical up public not The clinical stock as acquisition driving data of additional the Fusion, their promising Tenants preclinical recently of Merck. data. in of compelling a a stage exemplify such drives lifeblood past for our industry. remains clinical how capital have For ARR, and data XX% Biosciences, tenant comprising over December, biotechs king. while the announced Prometheus example, [indiscernible] in by billion and our in Biomea months and

conditions. process medicines, there fail no market the be clear, baked mall. some But developing matter our To in the into what this is be that novel always of will

tenant further relationships the this, backfill can tenant of XXX% we space highest of we've operations, base, every With from our preclinical and and tenant our and deep collected quality April, Reflecting to rent ahead optimize potential challenges clinical the public tenants. in biotech the across stage in facet get base. industry,

to and continue institutions. new a which strong. research the activity new being nearly constitute institutions and disclosures our academic support XX% highly which U.S. In opportunity for be academic over of invention institutional to the important these science is transitioning XX,XXX tenants, and At metric in mechanism this that And XXXX. billion, is XXXX, a X,XXX productive, life funding startups. ARR, cornerstone $XX.X industry's property. to innovation, medical institutions XXXX an science NIH's the return The an long-term pace slowing. Bipartisan intellectual for key Next, it's for remember of remains budget increase is life Academic not XX% is accounted

spun on $XXX are this announced multiyear segment was funding For nearly investment-grade grant majority continues that example, cycles for of academic institutional out sum, with Prometheus is the conditions. our set and macroeconomic to which and to recently of lines, originally from larger based tenants be time receive million the In from Cedars-Sinai, Bio funding ARR from M&A. sheltered

to gene points the and the life next data on the but quarters few of growth the to there final orient topic innovation, the and Staying beyond of are clinical cell According Therapy, the over decades a X,XXX few to American RNA science Cell in and therapies preclinical industry of come. to Gene development. Society

there For States, care clinical medicines chronic diseases, spend in of are bulk United the over the XXX drives health which development. in

is scheduled therapy Tenant for ALS started a novel for The FDA have medicines of year, culmination this approval novel novel for altogether XX and including announced XX which XXXX therapies review approvals. have has developed FDA clip. XXXX's nearly year at been by just approvals novel been XX continued approved Biogen record morning. fast FDA And the Year-to-date, mirrors a

and of and and aware to patients abundance the value To separation to bring investors. have medicines that acutely I will of down the are to end, and continue the have-nots and years the capital haves passed on that industry most the of want as widen reiterate drills that easy technologies we that

for But is prudence, Churchill good to an as this and crisis to their said, is and a that's the fundamentals Alexandria long-term will companies to Winston our and in While it warrant on hone thrive. And opportunity let best market what go continue tenants once "Never waste." extreme exemplify.

With that, off Peter. to it pass I'll

Peter Moglia

about help XXth I my addition a time nostalgic Alexandria. interview Joel, milestone had to recall at industry, me anniversary where about an had bent which novel look Company, science of fast on just back equally by inspired both life to a me real changing that nobody idea forming estate the before of the time at In how brought my that hell nervous with world. moves as and to was this Hallie. I reminding company learned done made it Thanks, my ever with enable I industry serve the

estate at could years better Plus contemplation, I after opportunity commodity proved out. heck have eight been decided that real having in it made After it. tremendous going the all about I in decision as that in to value if mission-critical serious this world, was offering different was point, do not I I for over of to it make a could an a see product. facilities a

evolution a our ignite Alexandria the leading and creating science critical life solid clusters that innovators growing played and has last role three over their health, industry decades of mission. accelerate advanced in and in is the pursuit world's to the which the by the human ecosystems

In to robust and world-class XX% leasing base that asset of excellence highly values quarter-to-quarter. a expertise base who addition, properties we've built by diversified irreplaceable best-in-class campuses an and and tenant providing our of XX% differentiated attract our operational

to long us facilities. rely here directly cycle, of successful The is brand on important part in result a of this more where even an parties us They perhaps but we record with all bring come is slowed that distinction are as a down. without puts third we to of have track built don't we operating have us a a in position This and partner when things the mission-critical developing any trusted tenants.

deliveries results indulging then our XXX,XXX on touch is In hand the me leasing the square projects strong development that it costs, pipeline, it entry Thank for to submarkets. in and and I'm for sales NOI we high delivered you totals at going Dean. barrier initial go first quarter, these Our over asset into to retrospective. yield to our and stabilized briefly Annual and on million, prove X.X%. construction $XX five out. feet

the XX% volatility expected over in next made construction enabling the to the our projects the is bedded had pausing end, This are or square X.X most totaled tenant very attractive a last by XXXX focus that construction construction capital vast and response construction, commence projects but quarter, strategic strategic or the delaying under million four to and quarters on we and markets, so under by uncertainty can $XXX base. near-term to leased highly quarter projects similar classified spend negotiation. million feet have and At terms, projects as under decision to we most have been that reduce in our

say quarter but $XXX the aluminum in deliveries shortages mills commencing costs of high the the low two such of results way reduction to commodities primarily stabilizing. The past capability availability remain years, utilization continue After yields from NOI in commenting for first concrete, fabrication labor of 'XX and quarter on shortages. to price can through approximately low on the they raw in to to spend for fluctuate of copper, demand as materials, shops their second due The due steel, and construction million. 'XX volatile are and from be still to or mines, from rates electrification I

jobs inefficiency increases, now supply volatility driver materials the triple be of XXX,XXX takes it measured labor chain as train and and entrants new and inflation, primary labor. remaining with force to the of older, are the labor highly is the were today skilled of years. of in skilled initial construction but of the to a open whammy due wage to Cost retirement more There drivers of the time construction the workers shortage

us be while. will inefficiencies these a with So for

gear availability longer. switch as XX companies, to by equipment air science the of XX and get. and units weeks as availability generators as weeks get to and are switchgear custom utility Specific times take COVID worse provided which and their to with than such three are the long life longer lead is but -- Even now can handlers the still before years of has buildings, extraordinarily slightly generators taking astounding long transformers and improved large HVAC

governments as are and all happening from in over delays improvement demand What's projects world electrification end users investors, chip emissions. the carbon demand driving and these shortages

of can As more build shortages this you of projects cost making new reflective equipment paired the imagine, these is is high labor cost expensive and ever before. with than office to laboratory

under fixed that upside GMP us or our is projects are The other contingencies and our for of active XX% behind that. for with redevelopment costs contracts development

So, building delays of the costs, feasibility contemplating to we high will a risk. days contend Anyone financing which will the and and these these speculative at are considerable have in. project locked associated put development with largely

likely One under is strong offerings feet The expecting square in feet. numbers excellence million drive in a leasing many our challenging the consecutive square market. million our reason, we strong campus are leasing, leased X.X beyond and quarter Transitioning continue is and operational leasing X is see to supply above the will not today. volume brand loyalty, first what construction to the pre-XXXX above with average XXth five-year quarter mega

a the XX% in of history We from base, increase was vast a of XX.X%, economics rate rate the resulting primarily quarter, in and of tenant achieved attractive rental XX.X%. accounting company this cash leasing strong for our highest which

As normalized the is space you slightly XXXX. today, levels. are has seeking by demand less pre-COVID we who which driven uncertainty is below record above at have actively year noted believe in economy. the demand being on in from previously, ask, significantly we Depending or slightly the market of There tenants

put and warrant it, extreme this prudence. Hallie market continue is As to will

However, we're and leasing from to with direct our drive the will even broker are likely us management deal pending flow. There for see all a huge teams. in tenant continue opportunities not base are differentiator solid company that Such dependent to at relationships our broader tough relationships does on environments. due not market

is companies stage capital Some raise private the to available. its they making can better they space ability their and Capital until have do are preclinical clinical on with understand today cost.

take halves mentioned, teams, technologies and companies will demanding who which inflection as value of our nots above ones are their asset space fill disciplined the future management differentiated with base are underwritten large the the world-class placed tenant who with can fray. differentiated BCs as are milestones that rise near-term any base, from in investments underwriting Those strategy. But tenant discriminate hope and have into of strong and by that Hallie others have on more we and are the Alexandria's tenants, tenured

side, projects, X.X% be direct to sublease our a track building in availability in total from the we high space to to in is and high-quality be barrier-to-entry in Accordingly, submarkets. On are directly be increase Greater last and delivered Boston in On supply we lease believe, quality delivered unleased with vacancy tracking XXXX the be competitive X.X% locations to XXXX, X.X% X.X% we're to ours quarter. competitive X.X%. and at AAA

is to X.X% X.X% X.X% This be direct San be at is largely X.X% continues highest of competitive building X.X% our vacancy In sublease directly markets an our in and all assets driven by last to with in the unleased over 'XX Francisco, supply delivered is 'XX, respectively. and spec in and at space in South Francisco. San and quarter, total increase availability of

X.X% In direct over competitive last muted high is XXXX, what under be likely very is increase today slight X.X%, the is space costs on where X.X% and higher is and barrier-to-entry Supply beyond is all to cost lessening submarkets that tenant and supply sublease in vacancy construction high San unleased capital primarily of X.X% of quarter. supply at I of X.X% XXXX focus We demand. construction in is at Diego, in referenced, markets generic limited. a to due inherently

deep I'll those generic drive end which to supply. mine market our markets on and will locations primarily our continually harvesting leasing some and impact recycling in with us to barrier and entry lessen focus barrier operational our the tenant offerings progress. enables to high commentary We vast of value mega-campus and likely base activity, excellence on entry AAA high brand to

investors' investors lot of not in know, rates rapid sidelines. remain causing As but a of number the uncertainty the on increased to created rise we have cost of all only capital interest a

science cash the of building credit with quarter. Despite from difficulty is vastly number quality raise desperation the different the stay challenges, in at to leased rates. is assets offering to environment office trying by afloat this in of to a office assets owners increasing which the execute for to demand Adding X.X% long-term to high-quality tenants X.X% life cap continued these assets

JV XX% fund noted at they XX% the in prior asset is project. pleased construction until property The deliver this to of and we flow remainder we to transfer cash the were be control not to in which The in delivered XX with As our costs Necco press until construction and which ownership, our tenant sale. the under owned current the release, will interest our mid-XXXX. end of remaining a reach will the commencing to to to buyer the XX% cost is deliver be the year expected an

our receipt the it's of at color, parties year an cash over translate agreed X.XX% be square payable. $X.X $XXX you also per the NOI on closing initial partner to to operating million to is an or agreed rate. evaluation yield difficult closing. investment Given million valuation on cap based give But their to in-place a which the to $X,XXX of But some is that foot, flow at to in we fees away, credit

XX% from XX% sold approximately $XX to price million cap $XXX of Stripping the purchased our total value. million we Because to of a you valuation the that in rate $XX partner million to equate increasing gets the total those X.X%. fees purchase

want the divide price completion to you other $XXX XX% you million. you that And million to to the If $XXX $XX by sold, XX%. -- other we for it the to million be the the and the get funded add supplemental, if tie

the great monetize and value management investor to and creation with remaining partner outcome asset secure capital This to manner an all Alexandria were while a retaining for for was able fees. control a we the in of spend as the accretive the world-class

the We fourth have an so on in quarter. LOI we quarter, transaction on closed yet the but to not second expect we other signed the in do

of future including assets, to million. $XXX.X disposition for this XX% aggregating Necco agreements progress in the These office to we XX price the a release, and account number to approximately the have In or signed addition press a guidance. of transactions total our of needed letters sale and referenced purchase midpoint sales campus the for intent meet of transaction, of

over With to that, to going it Dean. hand I'm

Dean Shigenaga

We consensus everyone. strong that here. excellent and a core is our and off afternoon, results to Good strong solid financial results, Thanks start reported a with for exceeded team growth towards Peter. Dean XXXX. Shigenaga operating

tenants of payment Our timely very through continued April. client rent year-to-date

sheet. We a very strong have balance

meaningfully reduced payout FFO dividend life of estate. XXXX, real excellent sales and have dispositions of brand capital have ratio uses for for a are and science the interest, a progress partial conservative We and growing made on go-to

with a very until balance strong have debt sheet $X.X in XXXX. no billion We liquidity, maturities

Our only team made excellent sales XXXX. partial progress into on of interest and our months four dispositions

As or targeted for project to Peter highlighted, Lilly. $XXX or we've purchase the either LOIs June including aggregating UI build-to-suit transactions transactions They're executed million. on are sales Many advanced agreements, and completed subject of or partner the in-process to new our XX. JV close for about

year Now $X.X dispositions bring interest we of partial and have total also the identified to sales for our billion. other to

While rates. environment plan challenging, reasonably values in our attractive are we disposition at can remains that XXXX we optimistic execute on cap and the macro

provide process. will values transactions close while as we in to and rates transactions We cap quarter-to-quarter unable so since sooner are we're do

JV $XXX XXXX and Lilly. New partner of over partial dispositions forecasted just the from added project for $XXX year, in construction contributions this most capital of contribute interest, sales billion of spend the full to of our we build-to-suit In for towards will million addition $X.X to the including year the Eli new million

our contributions disclosures were JV package. joint to including forecasted supplemental on added XX to Now Page of our spend, construction ventures detailed

up again, share in XX.X% to the basis track comparison of share for on for $XXX.X strong comparison had $XXX.X Adjusted FFO we XX-month growth X.X% first XX.X% FFO results, total really quarter very operating in to the in strong on XXXX, X.X% million to and the quarter quarter financial of for outstanding off annualized was of a trailing revenues per to million up in first and strong growth or growth EBITDA of quarter per the start XXXX. in or for turning really XXXX. first Now a

strength first adjusted for pretty Now our tenants, and continued of per strong key was XX, growth strength performance amazing. from this and share driven client Strong operating FFO the that our and highlights We revenues, weeks financial had for across key payment timely continued quarter rent in was unique EBITDA of by only business. and and of into differentiated XX.X% and areas our month, three through XX.X% continued April the April

same-property X.X%, growth some of cash recent reflects benefit in of strength and rate rent. on NOI rental leasing Continued and in strong in of basis rent on annual the escalations quarters, growth X% the free really a contractual burn-off

XXXX basis, consistent same-property NOI GAAP same basis on -- growth. generally strong on a X% a property growth is with X% Our outlook for outlook and XX-year our our cash strong for average

Now record leasing lease rate basis, growth GAAP and rental into on continued strong growth basis and the a cash rental on XX.X% turning XX.X% rate renewals to quarter. at re-leasing XXXX a space first from the strong volume, in

of Now this XXXX. rate at GAAP rate GAAP rental the both growth, year Company's than the rental exceptional was history, and an cash the growth full rate XXXX higher in and highest strong rental growth the for

strong million record-level slightly leasing and the strong was volume feet, rentable XXXX prior to volume first leasing both quarterly volume average X.X for square leasing quarter in ahead at Now XXXX. of exceptional the of the

roster our macro unusual the to tenants is benefit environment. excellence excellent scale this takeaway that of the key pool tenant the an Now position puts unique demand in client from from team, our combined high-quality of in with operational us from even our

expectations. Now our strong year-end our with with was was and earnings in as and the of occupancy in on line line Occupancy XX provided March comments call. I XX our XX.X% expectations really --

There are three here. key takeaways

in occupancy back the is expected to half of First, year. the improve

quarter with XXX% a been XXX% of cash XXX,XXX third basis; of of on leased of occupancy some and vacancy the basis growth GAAP rentable this significant of and the on recent space square XXX,XXX rental rate has feet of in Second, a XX% has rentable already third, beginning 'XX. the square feet

on XX for Please more package refer Page supplemental information. to of Footnote X our

pre-leased and of of hold up foot the one remainder a We rentable quarter, redevelopment. We also two rentable buildings XX,XXX until to one decided XXX,XXX redevelopment aggregating feet feet is square $XX,XXX were aggregating in redevelopment XX% Texas. is square located of currently This of absorbed that building, last rentable building lease undergoing vacancy square XXX,XXX undergoing building. on we the building, from further the second

is properties. The XX,XXX is vacant rentable foot and in operating square classified building

with margin our for adjusted relationships roster, the are is true continued tenant Briefly science tenants rated on to very investment-grade XX%. the a brand partner a long-term estate, life EBITDA traded We XX% has top science really publicly and trusted real of companies. built large-cap life industry. XX high-quality or strong of Alexander is

of team. high-quality Briefly we gains tenants, the was last first rent on eight due highlighted continued of client payments to FFO that really for XXXX of investments underwriting per reflects comparison about XX.X% the of important strength research in of first our from the rent end the at the in tenants realized strength our $XX.X quarter $XX.X tenant client million quarters And the quarter of high-quality timely and million through the from in venture venture relationships for XXXX. quarter investments, included averaged from

up expect in for investments highlighted. average venture Now a venture billion. of unrealized our our of 'XX consistent we the on do March Gross historical just investments realized $XXX each gains to I gains quarter $X.X that XX million as the slightly from basis remainder be of to from more $XX.X million quarterly were of cost

our dividends in Now generate we and got business. high-quality really consistency growth in cash we've flows from continued

common this At FFO represents ratio, for XX% We've stock conservative operating three the $X.X months. million activities first got XX over cash next the rate, a after net $XXX reinvestment. billion payout We're this reinvestment the annualized in over for in very dividends over years. of for increases capital with from quarter X.X% low flows projecting dividends and last

quarters XXXX, of Briefly XX% of operating remaining XXXX, about our remaining the square XXXX X% commence incremental XX% this is growth, in will in pipeline we feet leased. three XX% in on X.X external $XXX net of commence about million income XX% the million and will of Approximately NOI have from that thereafter.

We underlying guidance. of to on turning XXXX. Now supplemental are X assumptions guidance updated These assumptions for Page our disclosed package. our

of range Our or was $X.XX the last updated per XXXX of range the midpoint or $X.XX minus to share down minus outlook for guidance, plus plus from from quarter. a

is at guidance and and as is of of midpoint diluted share for for with per no change $X.XX adjusted Our range range $X.XX. a to the $X.XX $X.XX FFO EPS $X.XX to

for XXXX share growth per FFO following in growth last X.X% excellent of strong a represents year this X.X%. Now

Now and million $XX in reduction underlying a billion. capital, $XXX to key acquisitions $XXX $XXX a at and midpoint both including following: reduction in construction significant detailed the reduction million $X.XXX assumptions included million of in updates of on spend of the uses million a sources the

We also aggregating on updates executed $XXX and under sales agreements. transactions and sale significant dispositions million are significant interest partial including gave LOIs and that purchase

growth points basis square XXX,XXX while re-lease and lease to in hold Texas range redevelopment cash to that from to XX GAAP renewals, is building located vacancy of lease a in was to was is occupancy on on GAAP rate that increased X% leased. XX% building we and rentable XX% the currently reflect XX% XX% foot adjusted both rental under on adjacent this and up space cash for for XX% Now

recover of to expected is XXXX. second in occupancy Importantly, half the

With that, let you. me to Thank turn it Joel back Marcus.

Joel Marcus

So operator, can we go to questions, please?

Operator

[Operator Please begin The We today Steve with question session. Evercore. first will the go comes ahead. question-and-answer now Instructions] from Sakwa

Steve Sakwa

a how think about cap lot closed rates? I realize the that appreciate or against bracket them kind of where you maybe would to but rate bucket just still is discussed? cap can against range way today deal provide out them not sort to of your of you market singling of there certainly could I implied individual maybe or that Peter of think Joe, is I deals, the but any commentary a haven't on deals, these appreciate look, sort

Joel Marcus

and -- as Well, I way think I'll the to have well. Dan and want may comment certainly Peter

cap low is which were about X.X%. posting a couple explanation through, in on I clear essentially Boston, I Greater a we transaction over and Class just think went thought, again, Peter it's years, last of the pretty the fair facilities to rates, of A think X%

adjustment time might an over think maybe about rates maybe of cap economic points. basis this transitioning transition of So you XXX

second So And that's I we think maybe a but do But way pretty be comments? frame Peter, I impressed it, impressed. when would call. people think quarter be to you'll our any

Peter Moglia

than when X% to with five stable, I be assets on it's see mark-to-market if can good have potentially there's a things going agree high-quality But assessment. I it Yes, we this monetized. did. that still like that lower handle a one will say that just opportunity would are that

Joel Marcus

you would Dan, comment throw any other out?

Dan Ryan

I did think Peter not Yes. perfectly. No,

Joel Marcus

that's hopefully, Steve, helpful. Okay.

Steve Sakwa

willing you suspect mentioned kind the you're today maybe do This Joel, really that supplemental, who and comment. of you you've sort retail for SVB are X,XXX were in are And great. then, that leaving tenants that maybe business of changing could with talked post in I time, business just ago? Hallie that's of you underwriting is No, some I the is sort that and I or to $XXX. maybe couple of that how tenants. But tenants with maybe your My I versus last of half speaks years that guess saw do them either not Yes. guess asset. about are to a to retail. sense tenants dealing of with maybe just an willing And

Joel Marcus

have But moment? highlight We want Yes. you XXX Dean, to for didn't do failures. a that

Dean Shigenaga

Yes.

the in known campus So was shops It's that was at development XXX. the -- change to future acquired. the Fran. That to simple Steve, as of tenancy almost retail really a of huge X,XXX project the so we change mega project due the all from majority roughly a XX

right. You're

had early. that's few And just that, the end over lease that tenant some like bit extend. come have activity. call, their of little we as then would a come expirations at you this as highlighted, back, the quarters, well fairly And expect and occur where guys not to always we've couple tenants to but normal back also are doesn't the had, that have Beyond and normal you aware choose during we've last lease a

handful that over really a was of of the couple But quarters. leases last

do markets. high-quality good the a selecting you really I think look, in the though locations life job core we know big takeaway at really science of the that cluster is,

and think I brand these and to us of great on facilities, great a capture our puts most locations, great have operational in So, position back. mark-to-market excellence our spaces come that

comments of already XX% that vacancies came in quarter leased. the been that has I cash with the space just mark-to-market, and mean first both up on And XXX%. of I north alone provided GAAP the

gave in had go to that comments comments pre-leasing back my If just you similar well. on the fourth rolled of I quarter, as space I believe

good activity. crux was the So, we've again, mall. almost And your Steve, back in of going that shopping the tenancy at retail related change to all got that question,

Joel Marcus

a maybe Yes. put footnote Steve. on that, me And let

asked You the about nature underwriting. of

private of all kind public the companies it at when look in Hallie or companies at companies or clinic said even think I preclinical we that that look we are public.

much think unmet So now that, we've always needs. going the show for others it I but inflection good large value the that that group and milestones have be to tenants, data done you're even goes that to looking of importantly, just more mean nearer-term medical now and I much and so really always they're not. haves

where is. So really, that's mindset the think, I

Steve Sakwa

lost Dean, portfolio Great. one what of have And of overall question, do last an on just the assets today? leases overall on the you like kind kind mark-to-market think you the

Dean Shigenaga

rate, we whole Meaning portfolio? if were mark-to-market to on the Steve, the rental

Steve Sakwa

Yes.

Dean Shigenaga

was it's Yes, around somewhere I quarter, -- last around think XX%. it somewhere

This in overall quarter, XX% it's the closer whole to portfolio.

Operator

comes question ahead. Anthony Please from next with JPMorgan. go The Paolone

Anthony Paolone

of You guys talked tenant leasing your base. existing in about just driving a internal your lot from relationships

that's the your what, what us two, just quarters there's dashboard, like or traffic, looks but say, versus, to was a Alexandria maybe so out or like portfolio I either can so speak, if amount wondering ago? leasing of as an now And today to -- of I don't aggregate you demand coming give know sense four three, rate if

Joel Marcus

Tony. is 'XX overall is the generally, down of from to so -- it's That and submarket and and hard demand almost Yes. do that's Clearly, 'XX. building specific, peak

you on our either of just or which everywhere five-year over You benchmark the historical has see around last a see more and XX-year. bounced of it leasing, certainly normalization that

the the then Peter companies this, public biotechs that manufacturing are supply biotech so product that And the or maybe companies to they pharma, have are that data bigger But side. thing clearly, and be coming. say good whether on private got active service to much focused think alluded and aren't that I is side or

where I think you numerical that. give I'm it, not see we of sure but a you that's could characterization

Anthony Paolone

do you the I your the growth years? way of know you coming guess coming if as development the next enough also we Or see ask is demand portfolio, different should a demand maybe and the think due today you space you do couple space about of years, absorb that's is online pipeline, couple to within where lower. think in moderation in next your it expect levels you the occupancy to in is some that's see

Joel Marcus

could we yes, those fully can high a And as at have you I confidence if on that Well, off projects that reasonably we Peter, demand be on think we're let pipeline, well. But projects. see which I pretty here show as that future the doesn't all. think lease a leased, But look and you Peter comment it's is maybe are with. want board our drawing to level dropping at cliff highly there up we on even that fair that I'll comment say comfortable to today Dan, well. think you also of demand may comment don't I

Peter Moglia

expansion reduction needs. them, activity demand. boards There's just the There's They're the to is and in been is the definitely a in which trying companies to out of figure with contributing heading. really just fact slowdown that some to going are economy due where forward Yes. not

to nice going if not I market that, would years I definitely amount would say the demand building. of couple pent-up And So, that's that be a of a in from there's sooner. now say

Anthony Paolone

double-counting question, the a of buckets, just to I'm Or Okay. the out that break capture -- so either operating you the of if in operating and future portfolio we're something? capturing kind package in understand sure the I'm to I'm second Page I not just all rate just together, And buckets opportunities to need bit guess between some then NOI a on trying opportunities. totality? In various these ARE's detail. maybe to assets of future the from assets one some I if supplemental what to there's add or slide that putting that trying of value a to just So getting trying on make XX, those? if cap piece what I'm everything and do

Dean Shigenaga

here. Tony, it's Dean

from construction operating, the everything different categories to for Page future. page the pipeline, of of the referring to others This right-hand in most which square bottom you're So is the XX footage the our our corner. on but importantly, call, highlights

from value cash flows line that the to sitting operating in sitting portfolio future a in pick that the in significant to are NOI for just the as I square that that cash footage pipeline you item up are adjusts the assets clear There's but make no Tony, flows pipeline. want Company. those operations, of, that's there's

don't the count future the just as significant generated NOI square if perspective, you future We at NOI footage doesn't pipeline moment. fundamental an question, have to the pipeline. from double the your towards want that's being But you go any

Anthony Paolone

from So X.X an million like not picking would be we that that square that NOI appreciable of feet, there's up. amount

Dean Shigenaga

$XX.XXX $XX million operations, is We'll today. in were you the properties asking above I wait $X.X Tony. the million about right it. in thought million It's rental second, a

Anthony Paolone

Right.

So, with the NOI $X.X million meaningful does associated That's that be have some out... it. we'd

Dean Shigenaga

Correct.

the you to footage million. that down in double want roughly -- we there. count So disclosure the footage square XX $XX That's why square don't to net

Peter Moglia

Right, right. But that million the in there. book value has $X.X

Dean Shigenaga

would operations, the sitting the related buildings value to the would basis, operating operating in buildings book have future pipeline, the value buildings cost related operating base is operations, buildings, the only in support book two operating the the support be campus a if two the It's pad would and be to in not larger be would in pad The to the the extent in a the but component, to to not it's pipeline. future had book Tony? component it

Operator

comes Please Nick Joseph go question The from next ahead. Citi. with

Nick Joseph

are on that? and thinking into where think the more, are transaction Obviously, play forward, flexibility there's And points your could that end? equity the cycle you flex how interest different partial at that right to you just ability uses. to the on stalls sourcing the the But if dispositions sales continuing even Maybe about market now. come as about going in

Joel Marcus

Yes.

So Dean?

Dean Shigenaga

turning the something as a and solution it's Well, from don't interesting is Flexing I'll the equity start way posed contemplating. really of you your Maybe I end I capital that back plan to mean, question. are not know -- we the question.

look quarter Day challenge for way think the internally, for guidance of for Investor and the well uses as capital point I year current quarters to our as are several last this doing in really we the what did prep we like earnings the capital. at over is to initial was

that is invested incremental $XXX think little pipeline today, of needed are leased CIP our that there's keep equity today. very pipeline. incremental There's equity in from projects net million operating I so capital that's to to much is one in thing that fund highly income type -- mind

be looking 'XX spend things be and And as other beyond things on into that look shouldn't we that at to be so, just projects and we're holding across we're into the we sure prioritizing forward maybe over should we macro investing given environment.

more that you thinking color hopefully, about So, we're on gives just it. broadly how some

I end the a of mentioned macro as here are on call where in also on activity think, April good position we I environment. pipeline. we're the earlier, know mindful We're we of where with lot at the the a of

XXXX our we're is close we soon, bulk update comfortable provide quarter-to-quarter, and fairly here outlook a mid-year. under today PSA or but of what go have reasonably an we plus sliding And we'll obviously agreements to or minus as into executed with so, LOI

and next So feel an through it, we'll go as quarters. two things eye about the we good on keep we

Nick Joseph

interest into then expense in And capitalized of play helpful. spend. that's kind development that interest just in How that and does XXXX? Absolutely, reduction maybe on

Dean Shigenaga

we review Yes. hold. in to on obviously, on number just Well, reflected strategically a was projects down details, guidance. them in there a the and so of -- We temporary -- our it's all were gave number in you did wanted no if changes capped put you do saw of interest what we

to development they for circumstances, on at been left for want the future were in the -- basically few look that as assets, redevelopments future which paused have it projects vacant into a perspective, operations were from you development pipeline. If placed

perspective, that went building into that's in capitalization went capitalization sorry, the operating a that ceased building I'm -- From vacant operations immediately. redevelopment that

number as of going down activities forward. projects next we over capitalization month will the The have a cease other that are months winding speak, meaning to

the in basically small. they're they're down all in the term relatively scheme near But things, of shutting

our of able It other within those with offsetting to sits our been FFO assumptions range range It guidance. within that. sits So, of we've absorb changes.

up So, those. we offset to are able improvement to some pick

activities our down undergoing qualifying are a projects that So of accordingly. I we gives at activities carefully capped you them shut hopefully, and that construction and all sense. look mean across interest

So small some that, fairly in scheme of you the will but see this. they're of

Nick Joseph

have That's very cap on And given kind anything pools months, buyer fallen bidder just helpful. Or over the kind XXX know just touched before? of you kind institutions you you seeing I each asset, seen interest either relative seen change there where institutional seen about points maybe XX you're in really costs the of buyer financing Is transaction a of though. that you've different of basis up then different, kind market, what have out? hadn't or to rates, any on pool moved from last

Peter Moglia

there Peter. have a We sidelines are some still are It's actually the take But that. of are folks Yes. market. that on I'll definitely the that choices number facing redemptions. in

And in have But this life accumulating we at that liquidity, and want product, that now. interested high-quality can't also more are that science other but about exposure filled not investors. folks that's so, they're I'm in right they play in yes, been necessarily institutional too by some new point. And coming concerned

where rate spending in I once think cost is the get get for it land their in is to comfortable and so 'XX. of where more there's certainty people going capital terminal allocations better will

Operator

ahead. Markets. The Carroll Capital next from question go comes Michael with Please RBC

Michael Carroll

saying developers the agree data remarks. with are in projects? you're can that about new know still seeing a I being sources projects would Boston, out pursuing making that life there's you are comments Peter, a science I that you more talk your bit supply mean, in developers mean you pursuing statement? I specifically little cautious there few

Peter Moglia

there And are our areas are there don't core that Boston. there. has submarkets in hearing there Certainly, no in vacant activity. it's of we is there we're been been buildings there's no -- outside are have sitting What we tours, -- especially Yes. spec product, building, -- own seeing where there's

believe, we buildings to few a There in. that's ours. that don't necessarily we So, projects, are think coming do competitive are and are percentages where those obviously, that those

'XX, So stuff obviously, there's has delivered. lot There's some been a coming. more more coming 'XX, in of already

is very today. new seeing starting that are little We

Francisco quality but projects that here San South beyond of knows? is our start our that, and manner, on compete not just believe that that in which But is in new recently, would numbers in we anything if who started -- any, in we comprehension. don't project out, one was there that of will people least has think a material outside at from think many, I

Michael Carroll

And Great. didn't was investors, something XX Necco, or what's Okay. on that development selling I guess, that building for why then Is like stake? there specific, the that to property? that reason that I attractive any last, more just about guess, particularly certain

Peter Moglia

fairly yield. Well, it was a low

by part the So investors fund selling attracted the dollars. building, of really an something right? to too we're not that upside like it and we was away giving that near-term was opportunity And are much it,

made a lot it of So sense.

Joel Marcus

world-class Yes. And tenant. a a building I mean with it's world-class

attract certainly a of it dominant those So we as the would be variety of one sources. that capital to is continue opportunities And owner well.

all that monetization. meets have of kind requirements it for So the we

Operator

comes question Rich next Please from with SMBC. The go Anderson ahead.

Rich Anderson

market, that much what terms imply does how -- deference pipeline, development current foot potentially kind of is some square spend like where that place to million how in please? the And capital sort can tap you quarter of this XXXX? raising in $X.X the much on So, did the you of in of brakes

Dean Shigenaga

Rich, it's Dean here. Shigenaga

So you said $X.X million...

Rich Anderson

I'm want. what pipeline You of to terms use any place you in development spending. committed as curious to you've

Dean Shigenaga

number I referring you're to. see what

million X.X XXX% you another pre-leased Those So $X.X projects. million under plus feet, to were near term. that's construction, square pipeline are referring all the

income. So of operating for net incremental that ties million to the others $XXX

broken 'XX down generate slimmed not related focus We of bucket is that's haven't $XXX number for to the -- that spend NOI. million to of what that within to the just out that, but now we've continuing

the those or of of And XXX% for the part, most either multi-tenant for projects, pre-leasing. have most which some Rich, level are leased part, most projects

pre-leasing building have multi-tenant a multiple projects today don't that Some anywhere are to from buildings.

specific that more So in rightsized opportunities the requirements lumpy, requirements. large market, not for be delivery to they're to build-to-suit larger could

out already. like for guess, the way play a curve of comfortable that or projects, minus active normal from years the start The new Rich, two part saying, construction that spend, will pipeline, with of pipelines over long spend what a I for the we way pipeline of through activity. roughly plus we've I think feel rightsized So

focused what of well value. at that you're -- question site entitlements. as Site work which your to the a of bit move advancing ago, add time So really though, They a a which lot goes us in you a quite of as spend site deliver outside on, buildings looked let's important. if work two work, said, to activity, tenant, that, Entitlements along. are years to shrinks is we

If today, with you environment carefully just the right look hold well, at and given think today, we'd considerations site cost about work on the that time. let's macro let's capital until say, us of

And so, as mentioned look earlier, I to I we're think the going of couple over next quarters. hard,

general so We of part wide to fund refine pipe, need require renovation will neutral, more redevelopment because mentioned that we stabilization allow more such aren't does already of which plan to pipeline scrutinize as I our pipeline us and capital TIs that development that because our CIP much that the of leverage XXXX in the we incremental costs to debt in for continue majority kind of equity business. incremental the capital at million $XXX EBITDA have earlier, for the much not

Joel Marcus

kind message. And that's critical of Yes. the

Rich Anderson

much? then to that right preeminent now on it to from only to today. you'd But certain you're stuff to does before equity one for way capital the with the own Yes, the me having is It's too interest. got want a raise parting and XXX%. rather what guys you asset do point of you giving your away assets, the And at Where you're ways degree become sales best ways it. that obviously you're success second for best question partial

where So can ownership much we're to fantastic how longer point raise be that in is with a we a this number comfortable term. a standpoint, there from our a of you can sort these range in disposition assets still is position

Dean Shigenaga

here. Rich, it's

a the or about years. including way completed the is of we the feet three in level or conversation X.X to start about think under square just That's a here. that X.X near I think of the over we a two at lot the last just pipeline high construction to term And close lot product million million product.

lot high-quality to So, have years recent as two assets next years. three portfolio here well of added over we our coming as online the a in to

portfolio the we we're much that makes years. completed have of piece recent And and a your of mindful off put in have question, coming So online but so sense. we

we feel I think we're pretty shape. in good

Operator

The Tom next question comes go ahead. with BTIG. Please from Catherwood

Tom Catherwood

not is And acquisitions, Street? more insight read-through Greater redevelop up following provide Boston. previous to presidential Can on the question Boston you other decision about some on Michael's any XXX like there Gatehouse Just way? Grove to Drive recent or

Joel Marcus

Yes.

as can think Peter comment I well.

think market, I about XX it in position think mean, we're I million way Greater million, -- a to very trying have XX significant the to we the Boston feet. square is

be barrier felt good set And economics entry a a and thought kind rightsize economics but us. as high of good really of see prune to markets, high-quality and well you buyers but assets, for workhorse we to in locations were tougher I it's we've good what for in good example necessarily of environment, that year not think done a macro -- last we would sold

make rather as example think best we're I entry we're focused give think you barrier that we could to I I assets, to color. Peter, than And could the different less. highest And but that's maybe markets probably more about think trying on share sure the you

Peter Moglia

expand nuance fact, an Yes. our opportunity there adjacent kind to Grove, us of I a one holdings that, in to that in neighborhood and was it. focus to mean when was we thought there was XXX on acquired which

to the we forward. enter, really on also to emphasis to enough we us in and opportunity do move aggregating mega for focused attractive are addition So that wasn't high-barrier to into

But of when asset. really it this of the away. kind kind of kind office ended that with have expand to and And one just shine which so is some opportunity asset, up lost start of prioritizing good a to stand-alone we you went

Tom Catherwood

Got their it. of now expected space and large sticking and it to the a availability when your upcoming you year are the 'XX comes And deliveries. in getting appreciated then deliveries rates Are comments years less sense tenants XXXX between on expirations Peter, including with with lease engaging multiple expirations, you, conversations you're end? typically 'XX on amount given advance. any that tenants or needs in or When

Peter Moglia

to statistics granular strong at versus early I believe when understand renewal hard question be I'm a That's reports it's expiring been fairly pretty -- leasing me the But to today would looking is in our answer pretty for because future. have remembering what recently.

I answer noticed So, I guess the short is, anything. don't -- I haven't

our we are their three they in portfolio upcoming a communication We with at years are the Company not. ahead constantly two year expanding? the about what's times, of the status renewals even years, and regions to the in do want And or in --

if -- And some there think was by aware. probably I would I weakness I And noticed pretty so, there, we're it think if now. have

Operator

question Please go comes with next from America. Bank of ahead. Dennerlein The Joshua

Joshua Dennerlein

front, coming and kind comments, of like signed were it on new Francisco then lease new lease when supply was sounds particularly projects just looking went where supply. on What I follow particular the on previously change supply up It the at that's kind away? biggest that online? you're was the unleased wanted of XXXX Or of in San some to changed incremental those supply. and 'XX that

Peter Moglia

of Francisco, It companies, of you of so to one Just a out going mid-stage I we are in don't that new reckless is moving earlier-stage products kind what to is starts that of one, go trouble into lot fairly we fortunate project, that an large for have investing. a South would uncanny lot and are there just good of folks put elephant think made some companies, be people in lot San but have in trying change. project vacancy. market that a new because on niche lease a a really up of to some has there's one hunt is still particular recent the to We're in that most queue large

Joel Marcus

to much shape capital and if high as historically, markets also, go and you have comments, possible the Company as we barrier mega my campuses. I tried to entry and Well, our back to the said allocate

number and a at $X of days, Britannia for had never we win those we've valued $X.X think, Francisco, not I sale billion, San South that, position. came about ago HCP quite bought chose years a almost billion. assets in the dominant to We

to So that. we on pass decided

Francisco company, creating much MIT in a not a transportation is is but But Genentech like what's company company, was now changed a issue. transitioned Genentech Roche, like South San like is to is. world-class of for in spin-outs great that which market factory a bit they're an

And to market some exist of would what a of there. high aspects barrier otherwise be entry don't those

last you had number saw option some exiting passed of of we -- do in passing South So the development. on we San to moves on a a year we made Francisco, an assets,

continue. there, And that and being cautious you'll pretty so darn we're see

Joshua Dennerlein

guidance. saw And spread that growth just just the actually signed upward of leasing market then leases other function rent I revised one question. What was a you or XQ? in you

Dean Shigenaga

reflective start beginning where the usually It's of we year. of the at

I you northward performance enjoyed we as we've If rental growth same-property and the year. time, look opportunity through over think way to make rate back move our the

our improvement a for as slight on so so, of the remainder overall. well combination of in outlook this settling as continued the activity And quarter, year,

Operator

Next question comes Please from Dylan Burzinski with Green ahead. go Street.

Dylan Burzinski

that provided little sort submarkets color demand you a the appreciate a normalization normalization bit or from curious, guys of just far certain are the is where on the and geographic that I have And markets there on thus perspective, But more onerous? front.

Joel Marcus

be and suit a maybe us bit maybe but world-class a But limit advantage so directly And Francisco really build of submarket, bit there our it's to South transaction the minimize in a San to San it's development. was might example. little that's was Yes, felt landed a XXX% in transportation, South that for occupy we've huge competitive -- tenant that a out on others. good we think Francisco to much there. I exposure tried Well, not we but

that's example, So, one I think yes.

Dylan Burzinski

Diego markets, And Cambridge, of core Maryland, on suburban versus line BTC, maybe in like the Torrey Pines normalization RTP, Francisco that San submarkets San non-cluster your markets like of thought, similar mark like demand like just kind our in I trends as of those sort guess are seeing like

Joel Marcus

Yes.

not science, so maybe activity maybe a is but tenants per has science of of there than decent guess tenants seeing have part RTP that the RT, components life mix my -- slowed that's market. should our mix the due more bit in of to guessed, much down say, or still we're se, of in we think life tenants the but the would I I

we 'XX has that than Maryland, we're obviously It's numbers. slower think activity heavily peak still in we're matches that still say, market, it I would And obviously, good. seeing COVID I but pretty on focused dollars it's see historical decent were times because pretty been and our and 'XX

two just examples. that's So

Operator

Dinkov next Mizuho. question from ahead. Please with The go comes Georgi

Georgi Dinkov

from that compares And Could existing to on internal you more industry? leasing broader provide tenants? pipeline color your please how comes demand the that the

Joel Marcus

of depth tenant base those here, pretty we needs I using don't the of in we the just kind about you're think the tenants scale you're the no your market secondhand. brokers has that do, because you can that know say, one of versus and and compare if and instantaneously hearing

So, the fundamentally pretty two are different.

Georgi Dinkov

have since Understood. if And apologies any if And but I do lease quarter? missed how you it, so, this termination much?

Joel Marcus

Dean?

Dean Shigenaga

significant in quarter. nothing Yes, the

Operator

Great. Appreciate it.

Joel Marcus

comes from go Please Feldman with ahead. question Jamie Fargo. Wells Next

Jamie Feldman

looks as ago, watch and like six of changed? that list how what a today months say, the you number talk just percentage Can about has your revenue versus, credit that

Joel Marcus

Yes. know list. -- I that a we it I credit watch don't call don't mean,

mean, put we that change look at, a Rubius approach I that and judicious deep say been the think has methodical pretty we And level you that it that at happens. I a would scrutiny or situation, higher if a if have when always looked management you say, you there's indicated, -- there. at Hallie then

And then to when have you -- don't. sometimes agreements, sometimes And dealing you're confidentiality you sometimes companies, with have technology developments as informed that hold about. or public rumor are take we we

-- much more fashions. work with more have comes in clients. We information So ways approach a different hands-on just in different

the line. simple is think bottom line I bottom the But

If at you XX% by you collections segment, if look look Hallie tenant they're indicated, XXX%. at to the

could all extraordinary we've, a way I anyone rent job So collections monitoring tenants and managing imagine. an think, done of even our don't of in else I think that

Jamie. So if I it, helpful a way that's to characterize know don't

Jamie Feldman

you that a I could kind to base, are just bad I think handicap the on look. guess for what's portfolio, is get mean, the better clouds a so have sees you helpful. headlines the or hard everyone cycle of just tenant I how life in science. it's picture Clearly, above No, is big this flying better on like you but going if

Joel Marcus

I generally the at public institutional. me, the good where pretty They and not if number mean segments, we've exposed say they're look base through each have the they we, always well, of went them you of they tenant think I markets, or shape you we again, good segment and assuming to in backers, a could Yes, generally how are privates venture because and to the it's deep or and and underwritten have. whether the

And near-term or milestones. at don't public, then in are you preclinical look have clinic, the but which

Sorrento last well, there. area Therapeutics turned lease that we name, think exposure limited that's -- the was down for ago we have San really I focused because I in years very down Diego of a like and mean, forget with Elizabeth some is example, her it Elizabeth we everybody kind Holmes. on, Theranos, but

look the I could underwrite said and Well, know at the and how tenant. diligence Edison Edison Well, did they forth, of it can't kind you so that's works they look we if you can't machine. Sorrento. at the how people at looked never who

science we we couldn't just to the not some simply passed not do going we the say, things. how understand that's ability that understand to not the science, We fail this or could that And but we on is had fail, hey, tenancy.

Jamie Feldman

might item? back $XX.X gains million the that guess, on you show. to your you just on could the what's that's that helpful. Dean, And line on I No, Okay. then mean think I of comment maximum you do number

Dean Shigenaga

deliver Well, on in to years some and something had back ago, I we mean, Jamie, we -- able was the couple north liquidity just portfolio, $XXX a it market was of realized within now, took two gains. of million the think years I unique events

we has as that million of from large events our per items. significant share. you one-off. unusual And Now, policy been those, aren't was They're that go There about excluded $XXX these FFO control. back

this -- if this back for we're data individually would that's year Jamie, I but third one were point, that a just very as is think into significant But the now, average, at you lower run These example about general look gains. than historical on million, outlook couple I other the slightly for having And kind years. number of rate think, the quarter. first that's million last a $XXX the right $XXX be for of

Operator

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

Joel Marcus

to you on talking look we call. simply and much, forward Just to quarter thank second very you

Operator

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

disconnect. now may You

Alexandria Real Estate Equities (ARE) 25 Apr 232023 Q1 Earnings call transcript