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Alexandria (ARE) Expedites Delivery of Moderna's New HQ
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Amid the booming demand for life-science assets, Alexandria Real Estate Equities, Inc. (ARE - Free Report) recently announced that it has expedited the delivery of 325 Binney Street, a 462,100 rentable square feet (RSF) Class A+ property presently under construction, to Moderna (MRNA - Free Report) .
Strategically located on the Alexandria Center® at One Kendall Square mega campus in Cambridge, Moderna’s new global headquarters and core R&D operations center is expected to be handed over in November 2023.
Moreover, Alexandria is likely to deliver the mission-critical development project under budget. This will contribute significantly to its incremental annual net operating income (NOI) beginning from the fourth quarter of 2023, which is encouraging.
The state-of-the-art facility integrates leading-edge laboratory and non-scientific space with engaging gathering spaces to foster collaboration and disruptive innovation. Given this favorable setup, Moderna’s research pipeline of mRNA medicines that leverage its paradigm-shifting mRNA technology to address a wide range of diseases, including COVID-19, is likely to play a key role in supporting the company’s growth.
Per Hunter L. Kass, co-president and regional market director – Greater Boston of Alexandria Real Estate Equities, Inc., “Moderna is an exceptional example of a transformative company that has grown with Alexandria over many years, and we are immensely proud to have been able to accelerate delivery of their mission-critical infrastructure at 325 Binney Street.”
Speaking of the sustainability aspect of the ultra-efficient building, 325 Binney Street is aiming for a 92% reduction in fossil fuel use by implementing a geothermal system and 100% renewable electricity to result in an estimated 97% emissions reduction. It is also targeting LEED Zero Energy, LEED Platinum Core & Shell, Fitwel Life Science and WiredScore Platinum certifications.
Further, the building features several wellness amenities, including walking paths and open outdoor areas, keeping in mind the physical and mental well-being of the workers.
Alongside this announcement, ARE was conferred the Cambridge Chamber of Commerce's 2023 Visionary Award for developing this highly sustainable and inspiring facility for Moderna. The prestigious award is given to innovators from the business, institutional and non-profit communities that are bringing about a change and making extraordinary positive impact on people's lives in Cambridge and beyond.
Alexandria owns Class A/A+ properties in North America's AAA innovation cluster locations, with significant market presence in Greater Boston, San Francisco Bay Area, New York City, San Diego, Seattle, Maryland and the Research Triangle. The advantageous locations of its properties are driving demand, resulting in high occupancy levels.
Moreover, ARE is making concerted efforts to acquire, develop and redevelop new Class A/A+ properties in AAA locations to enhance its operating platform. From the beginning of 2023 through Jul 24, the company completed acquisitions with development/redevelopment opportunities worth $235.4 million. Also, in the six months ended Jun 30, 2023, the company placed into service development and redevelopment projects totaling 840,587 RSF across multiple submarkets, which resulted in $81 million of incremental annual NOI.
As of Jun 30, 2023, its highly leased value-creation pipeline is expected to generate future annual incremental NOI of around $605 million through the second quarter of 2026.
With a solid balance sheet position and ample financial flexibility, ARE seems well-positioned to capitalize on long-term growth opportunities.
Nonetheless, persistent macroeconomic uncertainty and high interest rates pose near-term concerns.
Shares of this Zacks Rank #3 (Hold) company have lost 16.9% in the past three months compared with the industry’s decline of 14.1%.
The Zacks Consensus Estimate for Welltower’s 2023 funds from operations (FFO) per share has been raised marginally over the past month to $3.55.
The Zacks Consensus Estimate for Americold Realty Trust’s ongoing year’s FFO per share has been raised marginally over the past month to $1.26.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Alexandria (ARE) Expedites Delivery of Moderna's New HQ
Amid the booming demand for life-science assets, Alexandria Real Estate Equities, Inc. (ARE - Free Report) recently announced that it has expedited the delivery of 325 Binney Street, a 462,100 rentable square feet (RSF) Class A+ property presently under construction, to Moderna (MRNA - Free Report) .
Strategically located on the Alexandria Center® at One Kendall Square mega campus in Cambridge, Moderna’s new global headquarters and core R&D operations center is expected to be handed over in November 2023.
Moreover, Alexandria is likely to deliver the mission-critical development project under budget. This will contribute significantly to its incremental annual net operating income (NOI) beginning from the fourth quarter of 2023, which is encouraging.
The state-of-the-art facility integrates leading-edge laboratory and non-scientific space with engaging gathering spaces to foster collaboration and disruptive innovation. Given this favorable setup, Moderna’s research pipeline of mRNA medicines that leverage its paradigm-shifting mRNA technology to address a wide range of diseases, including COVID-19, is likely to play a key role in supporting the company’s growth.
Per Hunter L. Kass, co-president and regional market director – Greater Boston of Alexandria Real Estate Equities, Inc., “Moderna is an exceptional example of a transformative company that has grown with Alexandria over many years, and we are immensely proud to have been able to accelerate delivery of their mission-critical infrastructure at 325 Binney Street.”
Speaking of the sustainability aspect of the ultra-efficient building, 325 Binney Street is aiming for a 92% reduction in fossil fuel use by implementing a geothermal system and 100% renewable electricity to result in an estimated 97% emissions reduction. It is also targeting LEED Zero Energy, LEED Platinum Core & Shell, Fitwel Life Science and WiredScore Platinum certifications.
Further, the building features several wellness amenities, including walking paths and open outdoor areas, keeping in mind the physical and mental well-being of the workers.
Alongside this announcement, ARE was conferred the Cambridge Chamber of Commerce's 2023 Visionary Award for developing this highly sustainable and inspiring facility for Moderna. The prestigious award is given to innovators from the business, institutional and non-profit communities that are bringing about a change and making extraordinary positive impact on people's lives in Cambridge and beyond.
Alexandria owns Class A/A+ properties in North America's AAA innovation cluster locations, with significant market presence in Greater Boston, San Francisco Bay Area, New York City, San Diego, Seattle, Maryland and the Research Triangle. The advantageous locations of its properties are driving demand, resulting in high occupancy levels.
Moreover, ARE is making concerted efforts to acquire, develop and redevelop new Class A/A+ properties in AAA locations to enhance its operating platform. From the beginning of 2023 through Jul 24, the company completed acquisitions with development/redevelopment opportunities worth $235.4 million. Also, in the six months ended Jun 30, 2023, the company placed into service development and redevelopment projects totaling 840,587 RSF across multiple submarkets, which resulted in $81 million of incremental annual NOI.
As of Jun 30, 2023, its highly leased value-creation pipeline is expected to generate future annual incremental NOI of around $605 million through the second quarter of 2026.
With a solid balance sheet position and ample financial flexibility, ARE seems well-positioned to capitalize on long-term growth opportunities.
Nonetheless, persistent macroeconomic uncertainty and high interest rates pose near-term concerns.
Shares of this Zacks Rank #3 (Hold) company have lost 16.9% in the past three months compared with the industry’s decline of 14.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the real estate investment trust sector are Welltower (WELL - Free Report) and Americold Realty Trust (COLD - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s 2023 funds from operations (FFO) per share has been raised marginally over the past month to $3.55.
The Zacks Consensus Estimate for Americold Realty Trust’s ongoing year’s FFO per share has been raised marginally over the past month to $1.26.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.