Alexandria Real Estate Equities, Inc. (ARE) Q3 2022 Earnings Call Transcript

Alexandria Real Estate Equities, Inc. (NYSE:ARE) Q3 2022 Earnings Conference Call October 25, 2022 3:00 PM ET

Company Participants

Paula Schwartz – Investor Relations

Joel Marcus – Executive Chairman and Founder

Hallie Kuhn – Vice President, Science & Technology

Peter Moglia – Chief Executive Officer & Co-Chief Investment Officer

Dean Shigenaga – President & Chief Financial Officer

Conference Call Participants

Michael Griffin – Citigroup

Nick Joseph – Citigroup

Anthony Paolone – JPMorgan

Steve Sakwa – Evercore ISI

Rich Anderson – SMBC

Georgi Dinkov – Mizuho

Dave Rogers – Baird

Tom Catherwood – BTIG

Michael Carroll – RBC Capital Markets

Joshua Dennerlein – Bank of America

Operator

Good day, and welcome to the Alexandria Real Estate Equities Third Quarter 2022 Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note this event is being recorded.

I’d now like to turn the conference over to Paula Schwartz with Investor Relations. Please go ahead.

Paula Schwartz

Thank you, and good afternoon, everyone. This conference call contains forward-looking statements within the meaning of the federal securities laws. The company’s actual results might differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in the company’s periodic reports filed with the Securities and Exchange Commission.

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

Joel Marcus

Thank you, Paula, and welcome everybody to the Alexandria’s third quarter earnings call. With me today are Peter Moglia, Dean Shigenaga and Hallie Kuhn. First of all, thank you to our Alexandria family team for their continued exceptionalism in the phase of a challenging macro environment, mostly self-inflicted by a really deleterious set of government actions and policies, coupled with the Fed, which has been slow to act. I think I would characterize third quarter is really an exceptional quarter and when you look at earnings in this challenging macro environment delivering 9.2% and 8.3% FFO per share growth for the third quarter and then 2022 year-to-date is really exceptional especially again given the size and scope of the company with almost 75 million square feet in its total asset base.

I’d say the health and resilience of the broad and diverse life science sector, the niche, which we pioneered, remains strong and there is a continuing strong R&D investment, Hallie will speak to this. But in general, we’ve seen life science R&D funding in 2021 approaching almost $500 billion. I think the number is actually about $480 billion, which is astounding and $1.8 trillion since 2017, and we expect totals in 2022 to be very strong continuation of that. I think it’s also important to recognize that the strong life science sector employment trends remain positive, and the core strength of the life science industry and our key cluster markets remains resilient and continuing strong.