Good afternoon, and welcome to the Alexandria Real Estate Equities first quarter 2022 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Paula Schwartz of Investor Relations. Please go ahead. 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. Now I'd like to turn the call over to Joel Marcus, Executive Chairman and Founder. Please go ahead, Joel. Thank you, Paula, and welcome everybody to today's call, April 26, 2022, previewing or highlighting our first quarter. I want to also let everybody know with me today are Dean Shigenaga, Peter Moglia, and Steve Richardson. I want to make a shout-out, happy birthday to someone very special listening here today. I want to welcome and thank you for joining our first quarter earnings call. I want to wish everyone God's blessings and just watching the war in Ukraine gives us pause to appreciate everything we have. The Good to Great author, Jim Collins, has spoken about Alexandria. We have achieved three outputs that define a great company. Superior results, distinctive impact, and lasting endurance. I want to congratulate the entire Alexandria family team on a first quarter earnings performance, really by all metrics exemplifying Alexandria exceptionalism at its finest. In fact, as Jim Collins said, our superior performance. Wanna thank the entire family team as well for what they do each and every day for this mission-driven company, profoundly committed to driving forward our distinctive impact approach to address some of society's most pressing challenges through our long-standing bedrock social responsibility pillars. As Jim said, our distinctive impact, and we have worked in these pillars, accelerating groundbreaking research, medical research, harnessing the agri-food ecosystem to combat hunger, empowering underserved students to achieve long-term success, bolstering the resilience of our military, conquering the opioid epidemic, building a model for comprehensive and sustainable solutions to address homelessness, one of our newest programs, addressing the mental health crisis with a focus on helping children cope with suicide loss, another new focus, and supporting museums to preserve our history and honor our greatest heroes, also a new focus pillar. I wanna also share that next month, May 2022, we'll celebrate our 25th anniversary of Alexandria's initial public offering. Since our IPO in 1997, we've maintained the highest standards of excellence and continue to drive long-term value for our stockholders, significantly outperforming major industries and companies. With a total shareholder return through the end of the year from 1997 to 2,532%, which has beat the NASDAQ average for that time of 1,291%. We beat Warren Buffett at Berkshire during that time at 953%, the MSCI US REIT Index, all REIT index at 939%, the S&P 500 for that timeframe, 790%, the Russell 2000, 721%, and the FTSE Nareit Office Index at 552%. As Jim Collins said, Alexandria's lasting endurance. I wanna move to the first quarter characterized by Alexandria's preserving its very strong core while stimulating strong and continuing future growth. Alexandria continues to have pricing power in each of our core markets. As Dean will talk about our very strong NOI growth in the first quarter and out of a sense of conservatism, we raised our midpoint of our guidance $0.02 given the macro environment. On the other hand, we have very strong conviction for the coming three quarters of 2022 and the delivery of strong NOI growth, both internally and especially from our stellar external value creation pipeline. Steve will highlight our second highest leasing quarter in the company's history, and Alexandria continues to experience the strengths across each and every one of our markets here in our overall portfolio. Dean will highlight our very strong same-store performance and increased guidance as we continue to see positive occupancy gains and strong rental rate growth. With our extreme attention to each and every detail of our unique and special life science real estate business, we're seeing modest increases in our development yields, as well as we're highly focused on tightly managing all aspects of our business with a tough macro environment, and with rising recession risks. Today reminds me of 1979 with government policies failing the American people. Alexandria has been very focused on tenant quality, and 50% of our annual rental revenue is from investment grade or publicly traded large cap tenants. I think it's pretty amazing that Alexandria's tenants have made astounding progress in developing groundbreaking medicines. 48% of FDA novel therapy approvals have been granted to Alexandria tenants since 2017, almost half of all approvals. The life science industry has seen the explosion of biotech over the past decade, from 2013 to 2021, with funds flows up generally 5 x historical averages, advancing broadly innovative pipelines for large unmet medical needs. Every one of us knows either a family member or friend who suffers from some form of disease still not treatable effectively with today's medicines. The move in inflation, starting in the first quarter of 2021, now we're five quarters into it, coupled with the myriad of problematic U.S. policies and macro threats have ended that boom. Over the last five quarters, what has emerged are the haves and have-nots. The have-nots are a range of small and mid-cap biotech companies with programs that are preclinical, as well as many are in the clinic, have seen their values drop, and the open markets of the last nine years, by and large, are closed. The haves are large biotech, as well as biotechs that have reached commercial stage together with big pharma and are as flush with cash as ever being estimated to be over $500 billion of available, immediate cash. Alexandria's tenant selection has been a cornerstone of our unique business model and has enabled us to select and grow with the best and highest quality and most innovative, tenants. One of the absolute bedrocks of our really our business model. With that, let me turn it over to Steve for some details on the quarter on the growth side. Thank you, Joel, and good afternoon, everybody. Steve Richardson here. As we bring Q1 2022 to a close, I'd like to highlight two critical factors driving the continued momentum and success of Alexandria. One is the demand for Alexandria's unique and highly differentiated facilities. Operational excellence services and mega campus offerings continues at a very COVID and post-COVID level, with leasing during Q1 totaling 2.5 million sq ft, and within that total, 1.4 million sq ft in our development/redevelopment pipeline. This activity is the second highest quarterly leasing volume in company history in each of these two categories, following historically high leasing during 2021 and particularly Q4 2021. Two, importantly, the exceptional quality and long-term nature of Alexandria's leasing results overall, and especially this quarter, is truly noteworthy and one to double underline. We signed a long-term lease for a ground-up Class A laboratory office flagship facility comprising 427,000 rentable sq ft with Bristol Myers Squibb, a company with a market cap of $164 billion, as they chose Alexandria to design, build, and operate their mission-critical innovative research hub at our CampusPoint mega campus. Let me just say that this type of outcome is the result of Alexandria's historic pioneering efforts in establishing the life science asset class. We started working with BMS during 1998, so 24 years ago, and began building trust and confidence at every level of the organization. Bristol Myers Squibb is now our top tenant and present in 5 of Alexandria's core clusters, a truly unique partnership and a distinct and compelling competitive advantage. The entirety of Alexandria's brand value and BMS's decision to select Alexandria was crystallized with this inspiring achievement. First, a deep and meaningful, trusted, and mutually respectful historical relationship was further cemented. Second, the unique ability to scale in a single mission-critical facility featuring cutting-edge design and infrastructure was realized. Third, a marquee destination at CampusPoint with a highly curated and first-class suite of amenities to meet BMS's imperative to retain and recruit the absolute best talent sets a new mega campus gold standard. We also signed this quarter another Class A+ laboratory office facility comprising 334,000 rentable sq ft at our Seaport campus with Eli Lilly, a company with a market cap of $280 billion for their state-of-the-art Institute for Genetic Medicine. Eli Lilly is a similarly exceptional story. Our teams first worked with Lilly during 2000 and embarked upon a journey together to create world-class laboratory office facilities in five of our core clusters as well as Lilly's team pursues its cutting-edge research. The foundational work during these past 22 years provided a bedrock of trust and enabled our teams to envision the profoundly positive impact upon Lilly's ability to compete for the best and brightest scientific and entrepreneurial talent in the greater Boston cluster with a premier high visibility waterfront site offering expansion optionality, adjacency to transit, and unparalleled amenities in an iconic design certain to be a landmark for generations. These are showcase examples of Alexandria's formidable and irreplaceable position, deeply embedded within the life science ecosystem. The strength of our internal growth engine is unassailable. We have now more than 1,000 tenants providing us with unmatched insight into not only their current and future space needs, but more importantly, the ability to stay ahead of the curve, to deliver sophisticated operational expertise for these mission critical facilities, and curate the precise amenity mix to drive the holistic recruiting and retention of talent platform essential to these innovative companies' success. These leasing accomplishments are a testament to the entirety of the Alexandria team's passion, commitment, and unwavering work ethic towards our shared mission. The continued demand for our facilities is also borne out by the following stellar results. Growth within the core provides critical and immediate value to the company with impressive renewal and releasing spreads of 23.2% cash and 39.8% GAAP, when excluding the block of short term swing space for BMS, as we begin construction on their flagship facility noted earlier. The portfolio mark to market remains strong at approximately 30%, and as we noted on the last quarterly call, this is significantly greater than the mark to market of 17% at the end of Q4 2020. Accounts receivable for Q1 was 99.9%. Again, huge kudos to our best in class operations team. Early renewals for this quarter were 51%, somewhat below our historic rate, but a clear sign that our tenant base continues to actively seek to lock down their valuable laboratory office facilities. Healthy demand is also evidenced by the exceptional health of Alexandria's value creation pipeline. As mentioned earlier, the 1.4 million sq ft in the pipeline is the second highest total in the company's history, and further contributed to the highly de-risked nature of the pipeline as 77% of this 8 million sq ft, which is projected to generate $665 million of incremental revenue, is leased or negotiating. Peter will provide additional detail and color on the pipeline during his comments as well. Moving on to supply and demand. Demand overall, as we highlighted during Investor Day back in December and again on the Q4 2021 earnings call, and now on this call for Alexandria's mega campus continues. Our irreplaceable set of relationships and central role in the life science ecosystem positions us very well to engage and secure the very best innovative companies in the country. Market supply. We continue to monitor market supply on a granular level, including the actual assets, the operators, and the capital sources behind potential projects. When we look at 2022, it is important to note that the vacancy rates are very low in each of our three largest clusters, and the overall new supply is either leased or adding very incrementally, say 1% or so in our key markets. In 2023, projects that are actually under construction are much more modest, say 25% of what various broker reports might indicate, as those reports include planned or proposed projects. The 2023 deliveries are again either leased or contributing just 3%-4% of availability to the total market size, which will likely be further reduced during the coming quarters. In 2024 and beyond, in these three markets, there are no projects actually under construction with delivery dates in this timeframe. Yes, there are a number of planned or proposed projects or dirt being moved around, but we'll have to see if the operators, and more importantly, the capital partners behind these projects, actually commit significant capital to the projects on a purely speculative basis to their oftentimes inexperienced development operators. Let me finish this supply summary with a reminder of the significant difference and highly valued difference by quality life science tenants between Alexandria's Class A+ facilities as part of our fully amenitized mega campuses and one-off buildings and commodity locations. In conclusion, the first quarter of 2022 was a very strong quarter and positions the company very well to drive immediate and long-term value through our core operating base, as well as our substantially lease negotiating 8 million sq ft REIT-leading development, redevelopment pipeline. With that, I'll hand it off to Peter. Thank you, Steve. I'm gonna update you all on the value creation pipeline, discuss the continuation of construction costs and supply chain macro issues, and comment on the 100 Binney Street disposition. Leveraging our unique market industry insights and the proven expertise of our best in class team, our value creation pipeline is tactically broadening our core clusters to meet the needs of our world-class tenant roster. Reflecting the continuing strong demand referenced in Steve's comments and our ability to capture it due to our trusted brand, AA A locations, inspiring aesthetics, operational excellence, curated amenities and capability to elevate the tenant experience. Our value creation pipeline of projects that are either under construction or expected to commence construction in the next six quarters has increased to 8 million sq ft. That is projected to add more than $665 million in annual rental revenue, primarily commencing from the second quarter of this year through the first quarter of 2025, a $55 million increase over what was discussed last quarter. As of quarter end, 77% of this remarkable pipeline was either leased or under negotiation, which means we have an executed LOI. With an astounding 94% of the activity coming from existing relationships, highlighting the incredible loyalty to our stellar brand. Our tenant base is in a war for talent and recognize that space at an Alexandria campus is mission-critical in that fight. Without question, our ability to offer our tenant base scalability and comprehensive amenity offerings through our mega campuses is a truly unique differentiator and why Alexandria is the clear choice to provide mission-critical facilities to the life science industry's most innovative and successful companies. During the first quarter, we delivered 566,655 sq ft from 10 projects located in 8 different submarkets, reflecting the diversity of our pipeline made possible by strong demand across all regions. The deliveries provide strong GAAP yields at approximately 6.7%, translating to approximately $36.1 million of annual NOI. Alexandria's tremendous execution on our value creation pipeline represents a key component of our compelling growth engine, and an example of this is the extraordinary job our highly seasoned development teams are doing in managing cost escalations and supply chain disruptions that continue to proliferate throughout the construction industry. Approximately a year ago, in our first quarter call for 2021, we included commentary on construction cost trends because construction cost inflation was anticipated to be outsized due to double demand for materials and labor caused by the simultaneous restart of paused and new projects, combined with shortages in materials and labor due to closing of mills and fabrication shops, weather events, and the loss of workers who migrated to different careers. It was all expected to be transitory, and even last quarter, we noted expectations for things to start normalizing in 2023. However, war, COVID in China, and transportation issues have become the latest antagonists in this story and reversed any thoughts of a near-term stabilization. The war in Ukraine's biggest impact on construction costs is an astronomical increase in fuel costs. Sustainability experts will tell you that the embedded carbon of constructing a building is equal to the carbon used to operate the building for thirty years, much of it coming from fuel burned by the trucks delivering materials to the site and the machinery that produces the earthwork on the build. In addition to fuel, the war has reduced the supply of critical semiconductor materials such as palladium and nickel, exacerbating the chip shortage, which affects such things as building control systems and emergency generators, the latter of which can now take up to a year to deliver. Other raw materials that come from the area are used to make certain metals like aluminum and contributing to their inflation. Transportation issues proliferate throughout the economy, and construction is no exception. If you spend any time on a construction job site, you will marvel at the amount of coordination that needs to take place as trucks come in and out of the job, delivering materials or hauling things away. In addition to the cost of fuel, inflationary pressure is coming from an estimated 50,000-80,000 trucker shortage emanating from outdated compensation models and the allure of last mile delivery companies reducing the pool of candidates. In addition to trucking, we're keeping our eye on labor negotiations for over 22,000 dock workers on the West Coast. The deadline to reach an agreement is July 30th, and if they strike, it could place pressure on alternative ports and further delay delivery of materials. Specific material problems today include steel, copper and aluminum, roofing materials, elevators, HVAC equipment, switchgear, transformers, and emergency generators. Materials and equipment are both expensive and tough to get. Many of these items take twice as long to get than in normal times and continue to go up in price by double digits. Rest assured, we are tightly managing these conditions. As mentioned last quarter, the biggest asset we have to leverage is our decades of experience in developing purpose-built laboratory buildings, enabling us to mitigate delays. Currently, approximately 82% of our costs for development and redevelopment projects aggregating to 5.4 million sq ft are subject to guaranteed maximum or other contracts that enable us to mitigate the risk of inflation. We have contingencies behind those contracts to account for scope creep and unknowns. The other 18% is from projects that are currently pending guaranteed maximum contracts that are in process, and those disclosures include larger contingency allowances. The voracious demand for high quality life science assets in key cluster markets led to a highly competitive bid for our 100 Binney Street asset. Our excellent execution led to our third asset sold with a valuation exceeding $1 billion and the fourth to achieve a sub-4% cap rate. We sold a 70% interest in the 432,932 sq ft lab office building, anchored with long-term credit tenants for a purchase price based on a total valuation of $1.02 billion, through which we received proceeds exceeding $700 million. The cash cap rate was a record for our capital recycling program at 3.5% and enabled us to harvest a profit of approximately $410 million. The price per square foot of $2,356 exceeds the record price we set last quarter in the sale of 50-60 Binney by 3.7%, which is meaningful considering the uncertain interest rate environment we were and continue to be in during the quarter, and the disruption caused by Russia's invasion of Ukraine that happened on February 24. With that, I'll pass it over to Dean. Thanks, Peter. Dean Shigenaga here. Good afternoon, everyone. We reported very strong operating and financial results for the first quarter of 2022, highlighting that we are off to a great start and on track for 8%+ growth in FFO per share. Now this is impressive considering the consistency of bottom line growth year after year and following a historic year in 2021 of operating and financial performance and significant achievement of historic milestones. We reported first quarter 2022 revenues of $576.9 million or $2.3 billion annualized, up 24.4% over the first quarter of 2021, and NOI was up 22.7% over the first quarter of 2021, highlighting very strong growth and outstanding execution by our team. Bottom line, we beat consensus this quarter and raised our outlook for FFO per share growth to 8%. More on this in a moment. Alexandria has tremendous scale in key innovation cluster submarkets across the country that allows us to provide optionality for innovative life science entities looking for high quality laboratory space from a trusted partner. We have a very high quality and diverse tenant roster consisting of over 1,000 tenants that provides us a unique and strong position to address current and expansion space requirements. We continue to reap the benefits from these attributes as shown in our continued strong operating and financial results. We generated a REIT industry leading adjusted EBITDA margin of 71%, highlighting highly efficient execution by our team. Occupancy was up 70 basis points to 94.7% since December 31, and our team is on track to achieve our exceptional growth in occupancy by the end of 2022 of 150 basis points in comparison to December 31, 2021. Now the key takeaway from our leasing activity in the first quarter, beyond achieving the second highest leasing volume in the company's history, is that the strong rental rate growth in the first quarter of 39.8% and 23.2% was higher than the annual rental rate growth reported for the full year of 2021 and 2020. We are also on track to hit our very strong rental rate growth projections for 2022, ranging from 30%-35% and 18%-23% on a cash basis. Same property NOI growth continues to benefit from strong demand from our tenants as they look to renew and expand with Alexandria. We reported same property NOI growth of 7.6% and 7.3% on a cash basis. The primary driver of this exceptional performance was strong rental rate growth on renewals and releasing the space in recent quarters. A larger impact this quarter from a number of leases and same property NOI in the first quarter also benefited from 110 basis points in growth in occupancy. For the full year of 2022, we expect a total of 150 basis point increase in same property occupancy. During the first quarter, $36 million of annual net operating income commenced on average on February 14, related to the 567,000 rentable sq ft of development and redevelopment projects that were completed and placed into service, including a couple of projects that were completed earlier than projected. We completed acquisitions in the first quarter aggregating 7.3 million sq ft of development and redevelopment opportunities. Acquisitions in the first quarter also included some operating rentable sq ft that added $75 million in annual net operating income that commenced on average on January 23. Now looking forward, our team has uniquely positioned Alexandria with excellent visibility of growth within the REIT industry, with $665 million of incremental annual rental revenue to commence from the second quarter of 2022 through the first quarter of 2025. This represents significant year-over-year growth in net operating income for 2022, 2023, and 2024 from deliveries of development and redevelopment projects over the next 12 quarters. This represents 8 million rentable sq ft that is 77% leased under advanced lease negotiation or subject to an executed LOI. We are pleased to have a super strong and flexible balance sheet with credit ratings that rank in the top 10% of the REIT industry. As of March 31, we had $5.7 billion of liquidity. Our net debt to adjusted EBITDA is forecasted to be 5.1x by the end of the year, representing a slight improvement from 5.2x as of the beginning of 2022. Our fixed charge coverage ratio is expected to be very solid at greater than or equal to 5.1 x. We remain disciplined with our strategy for long-term funding our business with a focus on maximizing bottom line growth, maintaining a strong and flexible balance sheet, and reinvesting capital from real estate dispositions and partial interest sales, and intend to minimize the issuance of common stock. A typical operating property at stabilization of NOI for Alexandria would generally require long-term funding with 35%-40% debt and 60%-65% equity capital. Now, the 60%-65% amount of equity capital is much higher than Alexandria's average common equity issuances over the past 5 years, which has ranged roughly between 40%-45% of our capital plan. The key reason for a lower amount of common stock issuances is due to the significant amount of value we monetize through real estate sales and partial interest sales for reinvestment into our business. Importantly, common stock issuances for 2022 is projected to be lower than the five-year average of 40%-45% of our capital plan due to the continued execution of real estate sales, both 100% outright sales and partial interest sales. Now, as Peter Moglia highlighted, 100 Binney Street achieved a record $1 billion valuation based upon the partial interest sale of 70% of the property. We generated almost 140% profit on this development project that we built a handful of years ago. Truly spectacular value creation and opportunity to reinvest capital back into our business. We also have another advanced negotiation for a sale in approximately $350 million range, plus up to an additional $1.5+ billion in real estate sales and partial interest sales targeted for the remainder of the year. We are very pleased with our very proactive and opportunistic bond offering, consisting of $1.8 billion in 30-year and 12-year unsecured notes with a weighted average rate of 3.28% and a term of 22 years. Now, to put this into perspective, if we had to issue 10-year and 30-year unsecured notes today, the rate would be in the low 4% and mid-4% range respectively. Importantly, we remain on track for continued improvement in our balance sheet and credit profile. Now, realized gains included in FFO from venture investments were $23.1 million in the first quarter and over the last four quarters were $104.4 million or $26.1 million per quarter. Unrealized losses this quarter were $264.4 million, reflecting a decline in fair value of venture investments. Importantly, unrealized gains in our venture investments were $533 million as of March thirty-first. Our team continues with their journey in leadership in ESG. Our next annual ESG report will be released in a couple of months in June. Key ESG leadership highlights since year end include Alexandria ranked number five REIT in Barron's. 685 Gateway located in our South San Francisco submarket, which is on track to achieve zero energy certification, was awarded and recognized for excellence in wood building design by WoodWorks. Alexandria earned the first ever Fitwel Life Science certification at 300 Technology Square, located at the Alexandria Technology Square mega campus in our Cambridge submarket. We received LEED Platinum certification at 9880 Campus Point Drive, which is home to GradLabs, a dynamic proprietary platform purpose built to accelerate the growth of promising life science companies. Our team is executing on the construction of what has been designed to be the most sustainable laboratory building located at 325 Binney Street in Cambridge, Massachusetts. Strong operating and financial results for the first quarter supports our improved outlook for 2022, with EPS diluted ranging from $1.08 to $1.18 and FFO per share as adjusted diluted from a range from $8.33 to $8.43, up 8%+ over 2021 at the midpoint of guidance. We increased GAAP same-property NOI growth by 40 basis points to a range of 5.9%-7.9%. Straight-line rent is up $4 million to a range from $154 million to $164 million. We increased the upper range of guidance by $500 million for real estate sales and partial interest sales to a range from $1.3 billion to $2.6 billion. Please refer to page 6 of our supplemental package for detailed underlying assumptions included in our outlook for the full year of 2022. Thank you, and I'll turn it back to Joel. With that, operator, if we could open it up to questions. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the key. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question will come from Jamie Feldman of Bank of America. Please go ahead. Thank you for taking my question. I guess just the big picture here. You know, there's been a lot of concern on the biotech funding outlook in light of capital markets volatility. It's hurt, you know, it's hurt the CRO stocks, it's hurt the life science stocks. Can you just give us your latest thoughts on, you know, how this might be impacting demand, the funding backdrop, any signs of weakness in areas? Also, just thinking about, you know, leasing timing. Are you seeing any delay in lease decision making? Just how should we be thinking about, you know, reading the tea leaves here? Thank you. Yeah, Jamie, thanks for the question. I think, you know, what I said in the prepared remarks is I think how you should frame the cornerstone and kind of bedrock demand situation. I think you've got haves and have-nots. The have-nots, as I said, are companies, public companies by and large, because most private companies are generally well-financed, and the venture firms have raised, you know, mountains of capital, so they've got pretty long runways. I think people who've gone public and some who went public too soon are caught in a bit of a squeeze with cash burn, either if they're preclinical or somewhat into the clinic at various stages and maybe don't have early readouts of data. For those, I think you can expect they will not be on track to expand. In fact, some will contract and reduce their workforce and maybe their space. We've seen some of that in different markets. But I think it's fair to say that the haves are those companies that are, you know, the big cap companies, big pharma, plus the companies that have reached commercial stage are really very flush with cash, and we see no real change in growth trajectories of those companies, plus many in the private side who've raised massive amounts of cash. I think you're gonna find that operators who have leased to, and I can think of one group in Boston who leased to a variety, thank goodness, not us, of course, lease in new construction, lease to a variety of companies that are in the clinical stage. They're seeing, I can think of this one building. I won't say who the operator is. It's not in Cambridge, it's out in the 'burbs. They're gonna see many of their tenants either sublease or try to give space back. I think it's a tale of two worlds, and luckily we're, I think, extremely well positioned in this. Hello, operator. The next question comes from Sheila McGrath of Evercore. Please go ahead. Yes, good afternoon. I was wondering if you could provide a little bit more detail on the partial sale, where in-place rents might have compared to market and the re-weighted average lease term in that building. Was the pricing set before the shift in interest rates, or just on the timing there? Yep. Peter, do you wanna handle that? Yeah, sure. No, the pricing was set during the heat of everything, the war, interest rate volatility. It is reflective of today's market conditions. I don't have the WALTs memorized, but just looking at the top two leases, it was very likely close to 10 years, probably maybe 9. Definitely a long time before you realize any upside. There is upside there, probably somewhere in the neighborhood of about 27%-28%. The rents were overall below market. Again, I think the price is reflective of the fact that someone's gonna have to live with that return for a while. The credit there was really good, so there's nothing to worry about. It was a very fair price considering the amount of demand that's looking for high quality projects, and that was probably the most high quality project anyone could have found this year. Yeah. I mean, perfect, great, tremendous location in the heart of Cambridge. Brand new construction, more or less. As Peter said, pretty good lease duration with very strong credit. A real iconic, I think, investment. Okay, that's great. Just curious, you know, inflation, everybody's talking about it. Wondering, like when you look at new projects, would you consider most of your leases are with 3% escalators, would you consider having, you know, a minimum with tied to inflation, or that's just not the market? I'll comment and then maybe ask Steve and Peter to comment. Over the history of Alexandria, we've kept kind of two approaches. One has been annual rental escalations, generally 3%, sometimes a little less, sometimes it's more, but average about 3%. During different time periods, we have gone to a minimum and maximum of minimum 3% and max 6% based on the CPI. We are involved in a number of negotiations where those, both of those are being discussed, and you will likely see some of those over time. I don't know, Peter or Steve, if you guys have any other color on that. Yeah, Joel, just to echo that. It's Steve, Sheila. Yeah, that's exactly what we're doing, and we're being very targeted and thoughtful with the particular, you know, segments of the portfolio that we might do that for. You know, we think it's going to be very fair and reasonable and so far it's been understood and well received. Just at the beginning of the process here. Okay, thank you. The next question comes from Manny Korchman of Citi. Please go ahead. Hey, everyone. Peter, maybe one for you, just as you think about which assets you wanna keep, you know, you guys have used The term iconic when referring to 100 Binney. How do you think about keeping iconic assets versus selling iconic assets? You know, especially in a market like that is so supply constrained, you know, part of me wants to say, why not keep the longer term upside there? Part of it is you're getting a 3.5% cap rate. How do you weigh all that? Yeah, I mean, as you said, on the latter part of your comments, I mean, being able to take advantage of market conditions where you can get a sub-4 cap rate and then plug that back into your next iconic asset, you know, at a 6+, it's just hard not to do that. Remember, we are keeping a pretty material part of each of these assets that we're selling. We are also gonna, you know, accrue fees. So there's some operating leverage that we can achieve there. You look at the market, see what you can monetize at the best price. You only make that decision though, if you have opportunities to reinvest that in something that's special. If you look at our development pipeline today, we think it is, you know, full of the next wave of iconic assets. We don't want to get too in love with things that are legacy. We appreciate them. We, again, don't sell them in whole, but there are other frontiers for us to conquer and, you know, such as the Fenway where we believe, you know, there's gonna be an incredible rent growth and appreciation as well. We need to get the, you know, cash to make those accretive investments. We pick carefully, but strategically. Maybe on that deal specifically, how much of it was about managing tenant risk, if at all, with you know, selling BMS and then having the new project with BMS coming in at the same time? I'm sorry, the tenant risk with BMS? Just, was any of it about managing your Bristol Myers exposure, or did that not really factor into the decision? No, not at all. Not at all. Thanks both. Yep. The next question comes from Rich Anderson of SMBC. Please go ahead. Thank you. So on the topic of dispositions, you know, as much as $2.6 billion potentially this year. Last year you had a whole lot of activity at the end of the year. Year before, I think you did about $1 billion. So you're clearly identifying with some opportunities to raise capital in that format. But with rising interest rates and all that talk, do you think 2022 will be more of a ratable sort of level of dispositions across the year? Or do you think it could still be lumped towards the back half of the year? Maybe, you know, in the sense of urgency to get some things done before interest rates perhaps do play a role on cap rates. Yeah. Do you wanna maybe, Rich? Yeah. Rich, maybe it's helpful to look back to last year just to give some context to the late year transactions. You might recall our commentary over the last few quarters. The reason why we had a number of transactions really weighted into December last year had everything to do with specific leases that were you know, significant to the transactions being extended. It was super important to complete that before we went out and got deep in the marketing of the underlying asset for sale. A number of those transactions had that aspect which delayed the transaction for execution till later in the year. It was an important component to the valuation as well. As you can imagine, it was important to get done. This year, we don't have that same issue across the transactions we're looking at today. So I think you'll see it be a little bit more spread out through the year than you did last year by far. You know, we don't have those same challenges this year, Rich. Okay, great. Joel, you mentioned your haves and have-nots comment. The one name that jumped out to me when speaking internally with our biotech team was a name like Novartis, which is, you know, kinda registers as one larger cap name, you know, in your top ten that is, you know, seeing some significant layoffs. I'm curious if you guys have any comment about their situation specifically, as it relates to demand and any examples of larger cap names that, you know, despite your comments, might also be considering some significant levels of employee reduction. Thanks. Yeah. Well, I mean, Novartis is one of the strongest, certainly pharma companies, in the world, and certainly one of the strongest companies in the world. All companies of large size, as you know from your, you know, long history in this industry, go through rationalizations of different groups. I mean, Glaxo is an example. Sold their oncology group at one point, which was a core, seemed to me to be kind of an odd thing to do, and then later on essentially kinda restarted it. Different people are shuffling around different lines of businesses. Whether they be, you know, high value, ethical pharmaceuticals or more, you know, commodity type products. I think I would view that as having nothing to do with the, you know, the industry itself, you know, the state of the industry at this point, but rather a rationalization of that company's own operations. You know, whenever you get a new CEO or a change, a number of these companies kind of, you know, shift focus. That's something else that you're seeing from time to time. I wouldn't read anything into that in particular. Okay. Real quick, Peter, you—I think it was you that said, or maybe it was even Joel, that said development yields are modestly up for you. I assume that's not a comment generally about the industry. Do you have a sense, you know, based on all the things you talked about delays, about how far down development yields have come for your competition, not so much you? Hey, Joel, do you want me to take that? Yep, please. Yeah, Rich, I think just getting back to my comments, our team has done an incredible job in, you know, helping to mitigate costs, escalations and locking things in early. Because of that and because of the rent growth that we've experienced in all of our markets, we've been able to marginally increase our yields, as Joel mentioned. You know, what other people are doing, I'm not sure. They certainly don't have the scale advantage that we have, the relationships that we have, probably not even close to the personnel we have. I'd imagine that they wouldn't be able to do the same thing. Fair enough. Thanks very much. Thanks, Rich. The next question comes from Dave Rodgers of Baird. Please go ahead. Yeah, good afternoon. Just again, with your comments about maybe recession as well as the have-nots, maybe this question is for Peter. Is there anywhere on the life science investment sales spectrum that's being impacted by those types of comments or by interest rates and spreads? I guess I'm just trying to get a better understanding if there's other competitive assets where maybe we're just not seeing enough of a spread between what's trading and any examples you might have off the top of your head. I can tell you, I mean, I was looking at our comp database yesterday, just, you know, seeing what changed from quarter to quarter. There's a lot of things are still trading with the quality of tenancy is completely all over the place, and things are getting 4 cap rates or more, just, you know, certain portfolio that BioMed sold in San Diego, with a lot of cats and dogs, with a sub-5 cap rate. There is a lot of demand for exposure to life science assets. Unfortunately for a number of investors, tenant quality probably hasn't been the focus. But we, you know, rest assured anyone who's looking at our portfolio, our tenants are highly vetted, and that doesn't become a question. It's more about the location and lease duration. Tenant quality is usually, you know, assumed to be great 'cause it is. Thanks for that. Then maybe just one follow-up question. I don't know if this is for Dean or maybe Steve, but looks like Apple and Alphabet joined the top tenant list. I don't know if that was a function of acquisitions or perhaps sales or just new leases there, but they had some shorter duration. I was curious if those were added and if those were kind of intermediate term redevelopment opportunities or just kind of good standalone investments. Yeah, this is Joel. Yes. The answer is yes and yes. Thank you. Yep. The next question comes from Michael Carroll of RBC Capital Markets. Please go ahead. Yeah, thanks. Just real quick back onto the have-nots. I think, Joel, you were mentioning that there might be some have-nots that have to give back space in the suburban markets of Boston. I mean, how much of that could come back to the market? Is it big enough to alter any of these markets where you could see vacancy rates kind of uptick, or is it just more of a one-off type thing? We haven't seen any sign that it's a material impact. You know, we'll monitor that quarter to quarter. I think right now it's pretty building and location specific, and obviously tenant specific. We haven't seen anything that I would say material as an overall trend, you know, at this time. Okay. Related to the have-nots, I mean, I think in your prepared remarks, you said it's basically companies that went public too quickly. I mean, what about the small, the midcap private companies that you kind of indicated? Did they raise enough equity or capital so they're really not an issue, or is it more muddled than that, it's kind of depending on the company that we're talking about? Certainly not all companies I would put in went public too early. I would probably put those on preclinical. If you've not even entered the clinic and you're going public, probably that's too early. I mean, it's obviously case specific, depends on what, you know, the technology is, what the opportunity is, what your shareholder base is, from the private side and so forth. By and large, there's a host of those that were preclinical that just went too early, maybe grew too fast and realized they still got the clinical ahead of them. Those that went public in the clinic, I think that's generally been a good game plan, but then didn't realize that after nine years, I mean, I've been saying that for a while, a nine-year bull market in the sector just doesn't, you know, continue unabated. So it tends to rationalize itself. As I said, 5 x the capital volume was being raised and kind of went into the industry, which is a lot. On the private side, as I say, many, I mean, again, it's very case specific, but many of the companies who have, you know, blue chip founder groups or investor groups who've raised large pools of money, have good runways. Generally, a lot of those are not gonna suffer maybe some of the challenges that may face a host of the public companies in the have-not sector, if you will. Okay, great. Just last one for me. Steve, you kind of highlighted in your prepared remarks that there's no projects under construction that will be delivered in 2024, at least as of now. I mean, when would a developer actually need to break ground or go vertical to achieve the 2024 delivery date? Do they have another, what, six+ months or so? Is that kind of fair to say? Hey, Michael, it's Steve. I think it's within that window. You know, the key is whether someone's going to actually start doing that and going vertical to deliver in that timeframe. What we've really done is drill down to the capital behind these operators. Obviously, the operators are gonna be, you know, positive and bullish, but we just haven't seen that from the capital sources actually committing capital as of today. Great. Thank you. The next question comes from Daniel Ismail of Green Street Advisors. Please go ahead. Great. Thank you. Maybe going back to 100 Binney Street, and the cap rate compression in Cambridge. I'm curious if you're seeing a similar level of price appreciation across markets or, are any markets accelerating or, you know, maybe moving slower, than that clip you guys are seeing in Cambridge? Well, yeah. I'll ask maybe Peter and Steve. I would say on your end, I think you guys need to revisit our NAV. I think you guys are off. In any case, I think it's when you look at Binney. Binney is in the heart of the Kendall Square and Cambridge epicenter. So the cap rate there is not real surprising for relatively new construction, high credit, you know, quality and just an iconic location and building. I think you can see across most of our markets, cap rates have held, I think, very strong and continued to be, you know, very positive in our favor. I'd ask Steve and Peter to comment more detailed. Yeah. This is Peter. You know, all the markets that were there, I guess, said another way, none of the markets we're in would have a cap rate that would have anything greater than a 5 handle on it, which is, as you know, remarkably different from a couple of years ago when, you know, people were thinking certain markets had, you know, 6% or 7%. Some of those markets now are in the 4s or 5s. I would generally just say, you know, as Joel mentioned, Cambridge is a special place. There are gonna be few submarkets where you probably go below 4 to the mid-3s like we just did. You know, who knows? I mean, there's certainly a lot of money chasing these assets and the competition for high-quality assets when the investors are thinking, "Hey, there's great rent growth here. I'll pay the price for it today." You know, who knows? We could certainly see breaking through 4 in other markets. In general, cap rates for lab are, you know, like industrial, like logistics, storage or apartments. I mean, it's just a hot industry. There's a lot of money out there to be invested, and they wanna bet on winners, and winners are expensive. Maybe to that last point, I'm curious across those property sectors you mentioned, we've been noticing cap rates go either at or below borrowing costs. I'm curious if that's a similar dynamic you're noticing across life science as well. I assume 100 Binney is, I believe it's unencumbered, but you know, I would assume that the debt would be close to that cash cap rate or it's not a smidge below. Well, you bring up a good point that actually we don't really talk about too much. I mean, yeah, our large partial interest sales are done with partners that are not buying with leverage. You know, they're putting this money to work and not looking to lever it up. They're accepting these, you know, these returns. You know, frankly, we don't go into the secured market and buy anything on a levered basis, so kind of hard for me to comment, but I would imagine just seeing where rates are today, that negative leverage is probably the only leverage available if you wanna buy a really high-quality asset. Great. Maybe just last one for me. On the Mercer Mega Block, can you remind us if the plan was always to bring in a partner, and if so, why not retain the entirety of that development for ARE? Yeah, Peter, you could cover. Sure. We have a strategic partner in a couple nearby assets that made a lot of sense for them to participate with us. I can't really go into the details. It'll become apparent later on. This is a partner we're in multiple markets with. They have a lot of trust in us. They're a great source of capital that's very attractive compared to common, and they were highly interested in getting involved. You know, we're keeping the majority share there, but it's also a good opportunity for us to finance something up front rather than after the fact to keep the capital flowing to other projects as well. Yeah. I would also say we've seen great activity with credit tenants in that for that location. Got it. Appreciate the color. Thanks, everyone. Yep. The next question is a follow-up from Jamie Feldman of Bank of America. Please go ahead. Thank you. I appreciate your color on the construction pipeline, you know, breaking out 2023, 2024, and beyond. Would you say that your appetite for speculative has changed at all in the last, you know, six months or so, or even the last three months, just given there seems to be a growing pipeline and maybe more questions on the demand side? Well, I think, Jamie, somebody mentioned, I don't know, or if not, we haven't really done speculative development since before the 2008, 2009 crisis, when we were first under contract in New York. We were building two towers. We stopped one after Lehman collapsed, but we built the east tower, and then luckily, we secured Eli Lilly as our anchor tenant there. But we haven't generally built specs since then. When we tend to put up, if we go vertical, we generally always have either a signed lease, signed LOI, or we have, as a case of one project I can think of, a series of companies who have told us they need growth at this point, and we've decided to go forward and working through the mechanics of documenting that. We wouldn't just put up steel on the hope that they will come, not because of the current market, but we just haven't done that as a matter of policy in the company for you know, literally more than a decade. Okay. That's helpful. If you think about your investment activity in the quarter, the, you know, the projects you bought or even some of the more covered land plays, is it safe to assume there's also tenant interest in those projects? Or, you know, the, or the stuff you've been buying really is kind of a future land bank without a tenant in mind. Generally, we like to, I can think of a number of situations, say, in San Diego or other markets, where specifically the Bay Area, the peninsula, where we have specific tenant interests. Remember, Peter, Steve, and Dean have all mentioned, we've got now more than 1,000 innovative tenants. So the amount of information and the amount of requirements really come to us in a way that, you know, there's nobody else that could marshal that kind of a resource, and that gives us the confidence to make some moves where we know that we, you know, will be successful. There've been a recent. We're not gonna confirm or deny anything, but a recent San Francisco peninsula report on something on a project we're doing there and that we have signed an LOI. I mean, that's a good example, and again, I won't confirm or deny, but that's an example of if that was true, where it makes sense to do what we did, and that's kinda how we operate. Okay. I was gonna ask a follow-up to my original question on this call, which was, you started talking about the haves and have-nots. Is there a way to handicap the percentage of the portfolio NOI that even is what you would consider more at risk by tenants? When you say more at risk, what do you mean? Well, you had talked about, you know, tenants that either, you know, maybe they may run out of capital to fund their pipeline, just, you know, not as well capitalized and so, you know, may end up needing some sort of recapitalization or running out of capital. Now, we diligence tenants before we sign leases or even letters of intent, and we monitor them, oftentimes, usually quarterly, but, you know, sometimes monthly. If you look at on page 17 of the supplement, you know, we give you a breakdown of our tenants. Half of our tenants are investment-grade or large cap. We've got about 7% of the portfolio which is private. We feel very good about the vast majority of those companies 'cause they generally well-funded, and they've got a pathway for additional funding. We've got, you know, in our public biotech, the vast majority of those, again, are, you know, well-funded with cash runways that go out oftentimes, you know, beyond leases, and if not, certainly multiple years or are waiting for readouts, oftentimes for phase III. We feel pretty good about where we are, and if there's anybody that, you know, runs into a problem, you know, we kind of know about it. I mean, a good example might be Nektar, which had a clinical failures in our Mission Bay portfolio. We have watched them for quite a while. We're very close to them. They're gonna, I think, sublease their office space, which is with Kilroy. They've got a chunk of space with us, you know, that project is partnered, but we already have demand for backfilling that space should they, you know, decide to give it up. They said they're gonna keep a big chunk of their lab space, so I wouldn't expect them to give the majority of that up. I mean, that might be an example of something you're referring to. We're already well ahead of the curve there and could backfill that space probably at much higher rates. Okay. They're on that lease till what? 2030, I believe. Yeah. I don't have it in front of me, but, you know, it's a long-term lease. You know, the truth of the matter is, in some cases, and I would never, you know, say that with specifics to Nektar, but sometimes you might hope a company would decide to give up a lease, because you could backfill it, at a much higher rate. Some of that you'll see happen, I'm sure, in, you know. I mean, Mission Bay, still, the vacancy rate there is, you know, literally zero at this point, you know, for built-out lab space. The demand is significant, and there's a high credit quality in that sub-market that has a huge pent-up demand for space. I'll tell you that. Okay. All right, great. Thank you. You bet. Our last question comes from Anthony Paolone of JPMorgan. Please go ahead. Yeah, thanks. I just wanna make sure I understand with the, you know, again, this have/have-not discussion. Looking at your mark-to-market of the overall portfolio, I think it was pretty flat from what you mentioned last quarter, I think 31% and now about 30%. Are market rents still going up, or have market rents, you know, kinda just holding steady at this point, and what is the outlook for the rest of the year? Yeah. Steve, you could comment on that. Yeah. Hey, Tony, it's Steve here. Yeah, I don't know that drilling down on one specific quarter, you know, really tells a trend there. You are right, you know, it's generally flat, but it's flat from an exceptional perspective. I mean, maintaining a 30% mark-to-market, I think is extremely healthy. Look, again, as I said before, you know, we are still in very low single digit vacancies in these core markets, particularly for Alexandria's portfolio. As you see with our occupancy, we continue to see healthy demand, so our expectation is, you know, we will continue to see pricing power in the market. Okay, great. Just last one for me. You closed on your Texas investment in the foray there. Can you tell us where you went? Yeah. Let me comment maybe on your first question first and then your second question next. I think, you know, if somebody owns assets, I think the assets, and we've seen this in other cycles, that, you know, are gonna be the most at risk will be, you know, buildings in non-cluster environments, you know, one-off buildings in suburbs and so forth that are not, you know, really high quality buildings or in the best of locations. I think those are the ones that, you know, may end up getting the, you know, probably the poorest quality tenants and the ones that may have a struggle there. Luckily, we don't have much of that at all in our entire portfolio. With respect to Texas, we're still under series of transactions, so I'm unable legally to comment on that, but do hope that at the next call. I said that last call, but we're still in a pending transaction. Hopefully we'll be able to give you color on the next call, Tony. Okay. Got it. Thank you. You're welcome. Thank you. concludes our question and answer session. I would like to turn the conference back over to Joel Marcus for any closing remarks. Simply to say thank you, everybody. Be safe and God bless. The conference is now concluded. Thank you for attending today's presentation, and you may now disconnect.