Street Calls of the Week
PASADENA - Alexandria Real Estate Equities, Inc. (NYSE:ARE), a prominent player in the Healthcare REITs industry with a market capitalization of $14.56 billion, announced the opening of Lilly Gateway Labs San Diego at its One Alexandria Square campus in Torrey Pines, according to a press release statement issued Friday. According to InvestingPro analysis, the company maintains a strong financial health rating with particularly robust cash flow metrics.
The new facility represents an expansion of Eli Lilly and Company’s shared innovation hub concept, which aims to support biotechnology companies in medicine development. This marks the fourth Gateway Labs location in the U.S., following three previous sites in South San Francisco and Boston.
The San Diego hub combines Alexandria’s real estate infrastructure and laboratory operations with Lilly’s scientific expertise, mentorship, and venture capital network. The facility opens with a cohort of venture-backed biotech companies working across various therapeutic areas including Alzheimer’s, Parkinson’s, cardiovascular diseases, and oncology.
"We value our nearly two-decade strategic relationship with Lilly," said Hallie E. Kuhn, senior vice president at Alexandria Real Estate Equities.
Located in a LEED Gold certified laboratory facility, the hub features modular laboratory spaces, collaboration areas, microscopy and sequencing tools, operational support, and dedicated security services.
Alexandria has been developing life science real estate in San Diego since 1994. The One Alexandria Square campus includes amenities such as dining options, event spaces, and a walking path. The location provides proximity to research institutions including the Salk Institute, Sanford Burnham Prebys, Scripps Research, and UC San Diego.
As of June 30, Alexandria reported a total market capitalization of $25.7 billion with an asset base in North America that includes 39.7 million RSF of operating properties and 4.4 million RSF of properties under construction. The company offers an attractive dividend yield of 6.27% and has maintained dividend payments for 29 consecutive years. InvestingPro analysis suggests the stock is currently trading below its Fair Value, presenting a potential opportunity for investors. For detailed insights and access to the comprehensive Pro Research Report covering ARE and 1,400+ other stocks, consider subscribing to InvestingPro.
In other recent news, Alexandria Real Estate reported a surprising second-quarter loss for 2025, with earnings per share at -$0.64, missing analyst forecasts of $0.59. Despite this, the company’s revenue of $762 million exceeded expectations. JMP Securities reiterated its Market Outperform rating on Alexandria, noting the company’s Core Funds From Operations (FFO) of $2.33 per share exceeded both JMP’s expectation of $2.21 and the consensus estimate of $2.28. Evercore ISI upgraded Alexandria Real Estate from In Line to Outperform, raising its price target to $104.00 from $91.00, citing declining new supply and improvements in the biotech index. BMO Capital also initiated coverage with an Outperform rating and a price target of $100.00, identifying Alexandria as a premier life science REIT. Evercore ISI had earlier adjusted its price target to $91.00 following Alexandria’s financial results, which slightly exceeded their FFO estimate. These developments reflect a mix of financial performance and analyst confidence in Alexandria’s market position.
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