Alexandria Real Estate Equities

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]

Alexandria Real Estate Equities, Inc.
TypePublic company
NYSE: ARE
S&P 500 Index component
IndustryReal estate investment trust
FoundedOctober 1994 (1994-10)
FounderJoel S. Marcus
Jerry M. Sudarsky
HeadquartersPasadena, California, U.S.
Key people
Joel S. Marcus, Chairman
Dean A. Shigenaga, CFO
Revenue $1.531 billion (2019)
$350 million (2019)
Total assets $18.390 billion (2019)
Total equity $10.154 billion (2019)
Number of employees
439 (2019)
Websitewww.are.com
Footnotes / references
[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, 2019, the company owned or had investments in 290 operating properties and development projects comprising 39.2 million square feet.[1]

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

Rank Tenant % of 2019 Revenue
1 Bristol-Myers Squibb 4.1%
2 Takeda Pharmaceutical Company 3.1%
3 Facebook 3.0%
4 Illumina, Inc. 2.8%
5 Eli Lilly and Company 2.7%
6 Sanofi 2.6%
7 Novartis 2.2%
8 Uber 2.1%
9 Merck & Co. 1.9%
10 bluebird bio 1.8%

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

Rank Location % of 2019 Revenue
1 Greater Boston 36%
2 San Francisco 26%
3 San Diego 16%
4 New York City 6%
5 Seattle 6%
6 Maryland 6%
7 Research Triangle, North Carolina 3%
8 Other 1%

Properties are generally located near universities to attract tenants.[4] 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.[5] 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.[6][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.[7]

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

In 1997, it became a public company via an initial public offering, raising $155 million.[4]

In October 2002, the company acquired the headquarters of ZymoGenetics for $52 million in a leaseback transaction.[8]

In 2007, the company began development of the West Tower of the MaRS Discovery District in Toronto.[9] 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.[10]

In January 2013, the company sold a research facility in Seattle to Trammell Crow Company for $42.6 million.[11]

In March 2017, it was added to the S&P 500 Index.[12]

In June 2018, the company acquired an office building leased to Amazon.com in Seattle from The Blackstone Group for $95 million.[13]

In July 2018, the company acquired 219 East 42nd Street, the headquarters of Pfizer, for $203 million in a leaseback transaction.[14]

References
  1. "Alexandria Real Estate Equities, Inc. 2019 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. Ross, Carey (April 14, 2015). "A real estate empire grows in Kendall Square". The Boston Globe.
  5. Ramsey, Lydia; Johnson, Hollis (July 14, 2016). "Take a look inside the stunning offices where companies are reinventing NYC's biotech scene". Business Insider.
  6. Derven, Ron (Fall 2019). "Alexandria Real Estate Equities, Inc.: People, Passion, Purpose". NAIOP.
  7. "ZymoGenetics sells headquarters in $52 million lease-back deal". American City Business Journals. October 7, 2002.
  8. "MaRS selects Alexandria Real Estate Equities to expand the MaRS Centre in the Discovery District of Toronto". MaRS Discovery District. June 26, 2007.
  9. Benzie, Robert (September 23, 2014). "Ontario government bails out MaRS building for $309m". Toronto Star.
  10. Stiles, Marc (January 23, 2013). "Trammell Crow Co. back in the game in Seattle with $42.6 million acquisition". American City Business Journals.
  11. "Alexandria Real Estate Equities, Inc. to Join S&P 500 Index". PR Newswire (Press release). March 16, 2017.
  12. Stiles, Marc (June 7, 2018). "Another Amazon-leased building sells for $95 million". American City Business Journals.
  13. "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.
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