Alexandria Real Estate Equities Q4 2024: Discrepancies in Disposition Guidance, Asset Sales, and Tenant Retention

These are the key contradictions discussed in Alexandria Real Estate Equities' latest 2024Q4 earnings call, specifically including: Disposition Guidance and Capital Allocation, Asset Sales and Yields, Lease Renewals and Tenant Retention, Development Activity, Asset Recycling and Supply Picture, and Development Yields:



Strong Financial Performance Amidst Challenges:
- Alexandria reported almost 6% FFO per share growth in Q4, despite a tough macro environment.
- Growth was driven by a solid leasing performance and a capital recycling program that focused on future mega campuses and non-core asset exits.

Life Science Industry Optimism:
- The company expressed optimism for a bullish market in the life science industry in 2025.
- This is attributed to the new administration's focus on cracking down on PBMs, potential IRA provisions reform, and expected interest rate reductions.

Diversified Development Pipeline:
- Alexandria's development pipeline is almost 90% leased or under signed LOIs for 2027 and beyond.
- Diversified demand from leasing across sectors, with biotech being slower due to macroeconomic conditions, is expected to improve with Fed easing.

California Wildfire Impact and Resilience:
- The company's operations were affected by California wildfires in January, but teams showed resilience.
- Despite severe wind warnings, local utilities and authorities were criticized for inadequate preparation.

Brand Strength and Market Positioning:
- Alexandria emphasizes its preeminent brand, superior product, and industry leadership as critical components of its success.
- The company has successfully navigated multiple market cycles, further solidifying its position as a leader in the industry.