PASADENA, Calif., May 24, 2023
/PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE),
the first, preeminent, longest-tenured and pioneering owner,
operator and developer of collaborative life science, agtech and
advanced technology campuses in AAA innovation cluster locations,
today announced the completion of the sale of 11119 North
Torrey Pines Road in its San Diego
cluster to DivcoWest, a DivCore Capital company. The fully leased
72,506 RSF single-tenant property sold for $86 million at an impressive capitalization rate
of 4.6% (based upon cash net operating income for 1Q23 annualized),
resulting in significant realized value for Alexandria. Alexandria purchased the property in 2007 as a
fully occupied stand-alone building in its Torrey Pines submarket and successfully
redeveloped it into a Class A laboratory facility. The sale is the
latest example of the company's exceptional execution of its
strategic value harvesting and asset recycling
program, through which Alexandria capitalizes on the strong private
market valuations by sourcing significant equity-type capital for
reinvestment into its value-creation development and redevelopment
projects. As of March 31, 2023,
Alexandria's highly leased
pipeline of 6.7 million RSF of current and near-term projects is
expected to generate more than $610
million of annual incremental net operating income,
primarily commencing from 2Q23 through 1Q26.
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"11119 North Torrey Pines
served us well for more than 15 years, but this stand-alone asset
no longer fits with our focus on aggregating our highly
sought-after mega campuses. The strategic disposition of this
stabilized asset is a testament to our irreplaceable and dominant
platform, which, coupled with the scarcity of high-quality life
science real estate assets, continues to create strong demand for
investment opportunities arising from our value harvesting and
capital recycling strategies," said Peter
M. Moglia, chief executive officer and co-chief investment
officer at Alexandria Real Estate Equities, Inc. "This sale also
underscores our ability to monetize our investments at significant
profit margins, even in challenging times, and enables the funding
of the next generation of Class A life science campus assets. It
was a great outcome for us, and we are pleased to
continue building a long-term relationship with
DivcoWest."
Building off its strong execution of strategic dispositions and
sales of partial interests, Alexandria is making excellent progress on its
2023 plan. The company is targeting $1.5
billion (midpoint of guidance) in dispositions and sales of
partial interests this year, with approximately $865 million in transactions that have been
completed or are subject to signed letters of intent or purchase
and sales agreements as of April 24, 2023. These proceeds will
serve as an important source of capital that eliminates
Alexandria's need to issue common
equity in 2023.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P
500® company, is a best-in-class, mission-driven
life science REIT making a positive and lasting impact on the
world. As the pioneer of the life science real estate niche since
our founding in 1994, Alexandria
is the preeminent and longest-tenured owner, operator and developer
of collaborative life science, agtech and advanced technology
campuses in AAA innovation cluster locations, including
Greater Boston, the San Francisco Bay Area, New York City, San
Diego, Seattle,
Maryland and Research Triangle.
The trusted partner to over 850 tenants, Alexandria has a total market capitalization
of $33.0 billion and an asset base in
North America of 75.6 million SF
as of March 31, 2023, which includes
41.9 million RSF of operating properties and 5.5 million RSF of
Class A properties undergoing construction, 9.7 million RSF of
near-term and intermediate-term development and redevelopment
projects and 18.5 million SF of future development projects.
Alexandria has a longstanding and
proven track record of developing Class A properties clustered in
life science, agtech and advanced technology campuses that provide
our innovative tenants with highly dynamic and collaborative
environments that enhance their ability to successfully recruit and
retain world-class talent and inspire productivity, efficiency,
creativity and success. Alexandria
also provides strategic capital to transformative life science,
agrifoodtech, climate innovation and technology companies through
our venture capital platform. We believe our unique business model
and diligent underwriting ensure a high-quality and diverse tenant
base that results in higher occupancy levels, longer lease terms,
higher rental income, higher returns and greater long-term asset
value. For more information on Alexandria, please visit www.are.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking statements include, without limitation,
statements regarding the effectiveness of Alexandria's strategic value harvesting and
asset recycling program, supply and demand for real estate
investment opportunities, Alexandria's ability to monetize its
investments and fund future growth opportunities and Alexandria's progress on its 2023
plan. These forward-looking statements are based on
Alexandria's present intent,
beliefs or expectations, but forward-looking statements are not
guaranteed to occur and may not occur. Actual results may differ
materially from those contained in or implied by Alexandria's forward-looking statements as a
result of a variety of factors, including, without limitation, the
risks and uncertainties detailed in its filings with the Securities
and Exchange Commission. All forward-looking statements are made as
of the date of this press release, and Alexandria assumes no obligation to update
this information. For more discussion relating to risks and
uncertainties that could cause actual results to differ materially
from those anticipated in Alexandria's forward-looking statements, and
risks and uncertainties to Alexandria's business in general, please refer
to Alexandria's filings with the
Securities and Exchange Commission, including its most recent
annual report on Form 10-K and any subsequently filed quarterly
reports on Form 10-Q.
CONTACT: Sara
Kabakoff, Vice President – Strategic Communications, (626)
788-5578, skabakoff@are.com
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SOURCE Alexandria Real Estate Equities, Inc.