Alexandria Real Estate Equities

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Alexandria Real Estate Equities, Inc.
TypePublic company
NYSE: ARE
S&P 500 component
IndustryReal estate investment trust
FoundedOctober 1994; 27 years ago (1994-10)
FounderJoel S. Marcus
Jerry M. Sudarsky
HeadquartersPasadena, California, U.S.
Key people
Joel S. Marcus, Chairman
Dean A. Shigenaga, CFO
RevenueIncrease $1.885 billion (2020)
Increase $760 million (2020)
Total assetsIncrease $22.827 billion (2020)
Total equityIncrease $13.432 billion (2020)
Number of employees
470 (2020)
Websitewww.are.com
Footnotes / references
[1]

Alexandria Real Estate Equities, Inc. is an American real estate investment trust that invests in office buildings and laboratories leased to tenants in the life science and technology industries.[1]

The company also has a venture capital arm, Alexandria Venture Investments, which invests in life sciences firms.[2]

The company is named after Alexandria, Egypt because of that city's connection to science.[3]

Investments[]

As of December 31, 2020, the company owned or had investments in 338 operating properties and development projects comprising 49.7 million square feet.[1]

The company's largest tenants are as follows:[1][4]

Rank Tenant % of 2020 Revenue
1 Bristol-Myers Squibb 3.7%
2 Takeda Pharmaceutical Company 2.8%
3 Facebook 2.7%
4 Illumina, Inc. 2.5%
5 Sanofi 2.4%
6 Eli Lilly and Company 2.3%
7 Moderna 2.2%
8 Novartis 2.1%
9 Uber 1.9%
10 Roche 1.7%

The company's revenues are derived in the following markets:

Rank Location % of 2020 Revenue
1 Greater Boston 36%
2 San Francisco 25%
3 San Diego 16%
4 New York City 6%
5 Seattle 6%
6 Maryland 6%
7 Research Triangle, North Carolina 4%
8 Other 1%

Properties are generally located near universities to attract tenants.[5] The company has several properties in Kendall Square in Cambridge, Massachusetts, where it has invested over $2.3 billion since its first investment in the neighborhood in 2002.[6] Its largest campuses in Boston are the 2,365,487 square foot Alexandria Center at Kendall Square and the 1,181,635 square foot Technology Square (Cambridge, Massachusetts).[1]

The company's 740,972 square foot Alexandria Center for Life Science in Manhattan has several biotechnology tenants.[7][1]

The company's San Diego properties are primarily in Torrey Pines, San Diego, University City, San Diego, and Sorrento Mesa, San Diego.[1]

History[]

In 1993, the partners of Jacobs Engineering Group approached Joel S. Marcus, a lawyer and CPA, with the idea of starting a company to provide laboratories and office space to biotech firms. The company was founded in 1994 and Jacobs funded the new company with $5 million.[8]

Its first purchase was of 4 buildings in San Diego.[5]

In 1997, it became a public company via an initial public offering, raising $155 million.[5]

In October 2002, the company acquired the headquarters of ZymoGenetics for $52 million in a leaseback transaction.[9]

In 2007, the company began development of the West Tower of the MaRS Discovery District in Toronto.[10] The company stopped construction during the financial crisis of 2007-08, and in 2014, it sold its interest to the Government of Ontario for $65 million.[11]

In January 2013, the company sold a research facility in Seattle to Trammell Crow Company for $42.6 million.[12]

In March 2017, it was added to the S&P 500.[13]

In June 2018, the company acquired an office building leased to Amazon.com in Seattle from The Blackstone Group for $95 million.[14]

In July 2018, the company acquired 219 East 42nd Street, the headquarters of Pfizer, for $203 million in a leaseback transaction.[15]

References[]

  1. ^ a b c d e f g "Alexandria Real Estate Equities, Inc. 2020 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ Fidler, Ben (June 8, 2016). "Alexandria Sets up Incubator, $25M Seed Fund For NY Bio Startups". Xconomy.
  3. ^ Alcorn, Stacey (January 25, 2016). "Alexandria Real Estate Equities: More Than Just a Landlord". HuffPost.
  4. ^ "Real Estate Companies In Orlando". Sunday, 22 August 2021
  5. ^ Ross, Carey (April 14, 2015). "A real estate empire grows in Kendall Square". The Boston Globe.
  6. ^ Ramsey, Lydia; Johnson, Hollis (July 14, 2016). "Take a look inside the stunning offices where companies are reinventing NYC's biotech scene". Business Insider.
  7. ^ Derven, Ron (Fall 2019). "Alexandria Real Estate Equities, Inc.: People, Passion, Purpose". NAIOP.
  8. ^ "ZymoGenetics sells headquarters in $52 million lease-back deal". American City Business Journals. October 7, 2002.
  9. ^ "MaRS selects Alexandria Real Estate Equities to expand the MaRS Centre in the Discovery District of Toronto". MaRS Discovery District. June 26, 2007.
  10. ^ Benzie, Robert (September 23, 2014). "Ontario government bails out MaRS building for $309m". Toronto Star.
  11. ^ Stiles, Marc (January 23, 2013). "Trammell Crow Co. back in the game in Seattle with $42.6 million acquisition". American City Business Journals.
  12. ^ "Alexandria Real Estate Equities, Inc. to Join S&P 500 Index". PR Newswire (Press release). March 16, 2017.
  13. ^ Stiles, Marc (June 7, 2018). "Another Amazon-leased building sells for $95 million". American City Business Journals.
  14. ^ "Alexandria Real Estate Equities, Inc. Expands Its First-in-Class New York City Regional Life Science Cluster Franchise with the Strategic Acquisition of 219 East 42nd Street in Manhattan, Subject to a Leaseback" (Press release). PR Newswire. July 13, 2018.

External links[]

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