Good day, and welcome to the Alexandria Real Estate Equities First Quarter 2021 Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Paula Schwartz with 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. And now, I would like to turn the call over to Joel Marcus, Executive Chairman and Founder. Please go ahead, Joel.

Thank you, Paula, and welcome, everybody to our first quarter call. And with me today are Dean Shigenaga, Steve Richardson and Peter Moglia. And we want to wish everybody a safe and a healthy go forward year. We want to welcome all to this first quarter call as well and recognize and thank the entire Alexandria family team for the operationally excellent and truly stellar first quarter earnings report by all metrics and measures. We collectively continue to operate at an outstandingly high level into this second year of the COVID-19 pandemic. And as I’m often fond of quoting Jim Collins of “Good to Great” theme, commented on Alexandria’s feature in our Annual Report. Alexandria has achieved the three outputs that define a great company: Superior results, and we believe the first quarter is emblematic of that; distinctive impact, and we believe that our social responsibility programs have truly made a difference; and lasting endurance. And with respect to lasting endurance, we sit here at literally several decades after we were founded in 1994. And I’ll talk more about that in a moment. We’re particularly proud of the six pillars of our highly impactful and longstanding social responsibility efforts, accelerating groundbreaking medical research to advance lifesaving treatments and cures; harnessing the entire agrifood ecosystem to combat hunger, improve nutrition, and support human health at its most fundamental level; thirdly, bolstering the resilience of our military, our veterans and their families; fourth, conquering the opioid epidemic and revolutionizing addiction treatment; the fifth pillar that we’ve spent a tremendous amount of time in over the last year and for a good part of the last decade, educationally empowering underserved students to achieve long-term success, and reach their potential as important principled leaders in the community; and then, finally, building a model for…

Thank you, Joel, and welcome everybody as well. As we presented during the last quarterly call, 2020 represented an exceptional year of high-quality growth for Alexandria, as we increased the asset base by 27% to nearly 50 million square feet. Now, the first quarter of 2021, a truly blowout quarter by all metrics, has clearly signaled the continuation of this exceptional growth trajectory and definitively affirms Alexandria’s leadership role in the now core life science asset class, and it’s highly valued status within the broad life science ecosystem. The Company’s 27-year commitment to operational excellence at every level fuels the following outperformance highlights for Q1. Accounts receivable, we’ve collected 99.4% of our April AR billings as of today. And again, Alexandria’s labs are essential infrastructure and have been operational from day one of the pandemic. Some detail on leasing outperformance. During Q1, we leased approximately 1,677,000 square feet, which notably represents the second highest quarterly leasing activity during the past five years, an amazing statistic considering the broader turmoil in the office market. Peter will touch on this in more detail, but the current and near-term development pipeline continues to deliver value in a de-risked manner as we are at 76% leased and negotiating, even while adding 1 million square feet of new starts during this quarter. The core in particular is exceptionally strong. We continue to highlight and bring everyone’s attention to the embedded growth and value within the core operating platform, comprised now of nearly 34 million square feet with cash increases this quarter of 17.4% and GAAP increases of 36.2%. On occupancy, also very, very solid with 94.5% which has grown in excess of 2 million square feet this quarter, compared to Q4 through our strategic acquisition activity. And we want to continue to bring to everyone’s…

Thanks, Steve. I’m going to update you all on our development pipeline, comment on construction cost escalations and discuss a couple of life science sales. We continue to work at a very productive pace, delivering 376,645 square feet during the quarter, including the full delivery of 9804 Medical Center Drive in Rockville, Maryland to a high-quality cell therapy company at an 8% cash yield, which was 80 basis points above our initial disclosure. The project’s outperformance was the direct result of our best-in-class team who were able to drive down overall cost savings through a combination of adept schedule management, alternative construction techniques, and highly effective coordination with the tenants. In addition, we fully delivered the 100,086 square-foot, 1165 Eastlake Avenue East building in Seattle to Adaptive Biotechnologies, a cutting-edge public immune medicine company on the front lines of fighting COVID-19. This building is highly unique as it sits on the edge of Lake Union offering expansive views of the lake’s clean end in downtown Seattle. Leasing activity on our pipeline continues to be robust with approximately 789,000 square feet leased during the quarter and another approximately 450,000 square feet in executed LOIs. Highlights include completing the lease-up of 3115 Merryfield Row, well in advance of its 2022 delivery date. Incremental progress at Alexandria Center for Life Long Island City, which is approaching being half leased and committed and a surge of activity in both, SD Tech and our newly acquired 201 Brookline asset in the Fenway area of Boston. At SD Tech, we executed LOIs increasing its lease negotiating status by 37% as tenants affirm the attractiveness of our transformation of this historical midsized tech campus into a highly amenitized science and technology mega campus. As impressive as that is, the response by the market to our Fenway transaction…

Peter, thanks. Dean Shigenaga here. And good afternoon, everyone. I just want to kick off with a huge congratulations to our entire team for just a spectacular quarter of exceptional execution. The first quarter of 2021, when you compare it to the fourth quarter, reflects one of the strongest operating and financial results in the Company’s history, with our unique and differentiated life science real estate platform really at the core of this very strong growth. Our highly experienced team, trusted partnership to the life science industry and high-quality campuses and key centers of innovation continues to generate significant growth and value. Now, I want to kick off with allocation and sources of capital. We continue to remain very-disciplined with the allocation of capital in the projects that have and will generate significant long-term cash flows and tremendous value for our company and shareholders. Now, let me take a moment to highlight again the exceptional execution by our team. During the first quarter, we strategically increased our current and future pipeline of development and redevelopment opportunities with $1.9 billion in acquisitions. These value creation-related acquisitions also included in-place cash flows that contributed to a very strong NOI growth in the quarter. Importantly, though, through these acquisitions, we added a number of very high-quality current and future development and redevelopment projects to our pipeline. Another key driver of strong NOI growth in the first quarter was the delivery and completion of development and redevelopment projects, aggregating 376,000 rentable square feet that were 100% leased. And on average, these were delivered mid-quarter. As of March 31st, we had 4 million rentable square feet of some of the best laboratory space under construction that was highly leased negotiating at 76%. And this included 1 million rentable square feet of projects that were added…

So, operator, if we could go to question-and-answer, please?

[Operator Instructions] Our first question will come from Manny Korchman with Citi.

Hey. Good afternoon, everyone. Maybe this is for Steve or -- maybe this one will go to Steve. As you speak to your tenants about the markets that they’re looking at, it looks like you’re going out of your sort of core cluster markets, spending close to buy but out of those core clusters. Is that tenant-driven or is that just where the opportunity for this Company now lies?

Yes. Well, this is Joel. So, maybe let me address that in a macro way. I don’t think you could say we’re going after our core cluster markets. The core cluster market you’re referring to, maybe Fenway, is really, if you look at the Greater Boston market, Cambridge has been the hallmark, but there have been a set of inner suburbs, if you will, that are somewhat -- have somewhat adjacency to the Cambridge area that have been attractive. Seaport’s been there for quite a while and many others have had life science activities. So, I think, it’s part of just growth overall. And we’re very selective about where we go and how we do it. And Fenway was a natural. I think I said last quarter, we’ve been eyeing Fenway for more than a decade as it is kind of a connection from -- to Longwood, where we’ve had activity and certainly one of the core markets, core cluster markets at Cambridge. But, I don’t think -- I wouldn’t characterize it out of the core market by any means. I don’t know, Steve, if you want to comment on that.

Yes. I would add to that. Manny, it’s Steve here. It is an expansion, incremental expansion of the core clusters. So, it’s not new markets or new clusters. I would absolutely characterize it as expansion of existing core clusters.

And Dean, I know you mentioned that you can give more detail on dispositions in the coming quarters. But, should we expect those to be similar to what you’ve done this quarter with a large JV sale, or do you think you’ll actually exit some assets outright?

Manny, it’s Dean here. The bulk of the dispositions that are targeted for the remainder of ‘21 are focused on -- bulk of the dollars are focused on partial interest sales. So, these will be high-value, low-cap rate, extremely attractive cost of capital transactions. It’s possible we have some amount over the next year or two of outright sales as well. But, stay tuned on that.

Yes. And I would say, let me add a footnote to what Dean said. I think, Manny, you saw us make a move to sale of the Stripe and Pinterest buildings, which we developed early on in -- starting in 2014 circa in San Francisco opportunistically and made a sale of those entire buildings. And there are some assets that we are eyeing for that. So, it could well be a combination.

Our next question will come from James Feldman with Bank of America. Please go ahead.

I guess, my first question, can you just talk about market rent growth? I mean, I know the condition is very tight. You guys are talking about very strong fundamentals. But, what have you seen across the markets year-to-date?

Yes. I think, I’ll ask Steve to comment. But I think it's fair to say that across almost all the markets, maybe New York City would be the exception. We've seen, as I say, exceptional demand for Alexandria owned and operated first in class assets and I think that's really cut across all markets. But Steve, you could give some macro color?

Yes, I do want to underline that it has been across all the markets, certainly, Research Triangle in Maryland, we've seen nice growth there as well as Seattle, San Diego, Cambridge, San Francisco. And I guess, Jamie, when you look at our re-leasing and renewal stats, this quarter, it's 17% plus cash and 36% GAAP. In the last four quarters, 2020 in entirety, was in that range as well. I think that really speaks for itself as you see rent growth overtime here on these Class A assets.

So can you quantify how much you think rents are up today over a year ago? I know you have lease spreads with the actual market rents? I guess I'm curious based on the rising construction costs and pricing power, just how it's holding up?

I would broadly say that lease rates are exceeding the anticipated construction costs increases. So it's all positive.

I can just give anecdotally our analysis showed that just quarter-over-quarter, so 4Q to 1Q, market rents were up over 3.5% just for the quarter. So you can annualize that you know double digits.

And then can you talk about the business plan at Watertown mall and why focus on that sub-market versus some of the other Boston sub-markets?

So the answer is we won't talk about that specifically. But we've been in Watertown for maybe as much as 20 years. We've felt that was an attractive adjacent sub-market to the Cambridge market. Life Science has always enjoyed going there. We clearly made a big move with the Arsenal on the Charles and that campus and what we're doing to redevelop and develop that. The Watertown mall is kind of an adjacency. And what you're looking at is kind of a mega campus in Watertown. We're seeing some great R&D continuing to favor that market. I think if you look at that versus some of the sub-markets in and around the Greater Boston Market where transport is really, really difficult, I think Watertown is one which is, I think, easier to both ingress and egress and that's been a real attractive thing as well. But as far as this specific asset, I don't think we want to comment.

And then finally, you guys have commented on constrained supply in '21 and '22. I think you were talking mostly about new construction. Can you just talk about conversions and what you think will be competitive in '21, '22 and even into '23 as you look across the major markets?

Yes. I mean, Steve can comment on a macro way. We just haven't -- there's a lot of smoke but not a lot of fire and we have some anecdotal evidence of even some that have been attempted that have really kind of totally failed. And they're not an attractive alternative for first in class companies that are looking for high quality space. We just haven't seen this tsunami of conversions that people are talking about. But Steve, you could comment broadly.

Look, you can put a flyer out. You can send out blast e-mails and say your office building is going to accommodate lab users. But until you go ahead and actually start making investments in the base building infrastructure and advancing that, tenants are not going to be attracted to that type of offering and that type of entity with a one-off building. Again, they're in kind of isolated locations. They're not always in the core life science clusters. So as Joel said, I think there's a lot of talk out there but we don't see a lot of action. Inevitably, there will be a handful of 50,000 to 100,000 square foot offerings but nothing that really competes with the million plus square foot mega campus that's fully amenitized with brand new or newly redeveloped Class A product that we're offering. We monitor every market very closely.

I'd like to add, purpose-built, which is what we have trumps a conversion every day of the week. When conversions generally are going to require compromise to the tenant's plans, there are areas in the building where the structure is not going to work for heavy equipment, the plumbing or the shafts won't be available because there's another tenant in the way. I mean, it is just a very challenging thing. We've done it ourselves a number of times. We know the challenges we've been able to overcome them and provide great product. But at the end of the day, purpose built will always be much more attractive than an office conversion.

Our next question will come from Sheila McGrath with Evercore ISI.

I was wondering if you could give us a little bit more detail on the One Investors Way transaction in the Route 128 submarket. Just what kind of yield that should be since you brought the tenant with you and just the plans for that expansion as well.

So I think the -- Dean, correct me if I'm wrong, I think yields will likely come out in future subs. I'm not sure we want to quote anything at this point. But I think, Sheila, Moderna has turned out to be one of those monumental companies, and vaccines were really almost nonexistent or a sideshow in their business plan for the last decade. But it's pretty clear that we own the adjacent location where it is mission critical manufacturing for the vaccine. And as you can imagine, they're looking at lots of opportunities to expand that because the vaccine is not a one or two and done. This is likely to be like the flu, where you're going to have to get boosters on a fairly regular basis. So this is really part of their strategic plan to be able to supply both the United States and part of the world with much needed vaccines now and into the future. And it's going to be iterating, because the variants are going to cause changes in what the vaccine needs to do. And so we felt that as the go to landlord for Moderna, this was in both of our interests to make happen. So I hope that's helpful as just kind of a framework. But you can expect yields to come out, I guess, either next quarter or shortly thereafter.

And I was wondering if you could comment on two markets. Research Triangle Park following Apple's announcement. Just remind us what your holdings are there and how proximate you will be to Apple's expansion, number one. And then number two, just you haven't touched on New York City in a while. Just wondering if you could update us on life science demand and that third building that you have.

So let me maybe take those in reverse and maybe speak to New York City. So as everybody knows, many on this call either live or work in New York and have seen, over the last year, what's happened there, still a somewhat tough place to be. Security is still an issue. Unfortunately, crime rates and shootings have gone up, really skyrocketed in enormous fashion. So we're very focused on the security of our campus. Our campuses is almost full, although, we're creating some additional space in the existing two buildings and moving a number of tenants around to accommodate growth. And we're also filling up Long Island City, which is kind of a nice relief valve. We're in discussions with the city on the North Tower. We are going to break ground here over the past many months. But clearly, because of what's going on there and the change in the macro environment, we didn't go forward instantly. We had to rejigger kind of what we're thinking about but we're in discussions with the city to see how best we can move that forward. I think you have to remember, New York, growing a cluster is like having a baby for 25 years, and it's painful, right? And we're just finishing the first decade. And literally, New York, when we came and launched our first building there in 2010 and then into 2011 and beyond, literally no life science research was done there, world class academic work, world class clinical work, one incubator up on the Columbia campus. Pfizer had a headquarters there. But by enlarge, no research. Since then, we've made enormous strides. We've gotten venture capital off the ground there. A lot of companies have started. But we don't see big companies. They're reluctant and haven't really…

Yes, the Apple footprint, I think, will be transformative for the park for sure. And we do have one of our campuses in the Kit Creek area with a number of buildings that are in close proximity there. So we think that will help continue to really invigorate the campus going forward, as Joel has been outlining, and in particular, really help these specific assets. So we're very enthusiastic about their presence there.

Our next question will come from Richard Anderson with SMBC.

Joel, you mentioned your frustration with the corporate tax sort of narrative going on and impact on repatriation. Were you seeing any tangible evidence of kind of the onshoring of the supply chain and impacts positively to your tenants that could actually reverse course if this were to happen? I'm wondering if it's more of a storyline as opposed to something concretely underway at this point.

Well, no, I think it's been dramatic and not just in the biopharma industry and the medical technology industry. There was pretty dramatic tax reform in 2017 where multinationals previously charged with full US corporate tax rates and they kept much of the cash overseas, it's called the GILTI tax. They kind of opened that up, lowered that dramatically. And you saw a lot of companies, including a lot of big pharma and companies like Apple, Facebook, Google, others, Microsoft, other big techs bringing back large amounts of capital to invest in this country. So we had a couple of years of really positive repatriation not only of capital but reinvestment in the United States, which was really positive. I think COVID then shone a very bright, or shined a very bright light on the medical supply chains where, as I said, 70% of medical supply chain, many of it intermediates to create pharmaceutical products, et cetera, even just normal plastic gloves and all the stuff that we call PPE, 70% of that was sourced overseas, and we were seeing dramatic movement of that back to the United States. It's not just pills and stuff like that, it was very broad. And I think to reverse that or even to put out the word that you're going to start to shift that, I think, is one of the worst things you could do in the middle of a -- or midway in the pandemic. I'm not sure what inning we're in. We'd have to ask Fauci or some of those folks based on what they see. But I think it's fair to say I was in a Zoom call with a company just getting off the ground here in the United States. And the first thing they did was set up operations and IP in Ireland, which has a 12.5% tax rate where we're going to be going to, I don't know whether it will be 28% or something like that. China is at 25% and most of the world is sub-28%. There's only a handful that are above that. So that's not a good place to be if you want to create jobs and want to really jolt this economy forward, given the damage that we've suffered over the past year from the pandemic. So I don't know. I have pretty strong feelings. And I think many people who are in corporate America believe that there are better ways to do that than become anti competitive. And I think the administration's comments about, well, they're going to try to arrange a kind of a global tax kind of arrangement where everybody is charging the same rate, it's done through what's called the Organization for Economic Cooperation and Development, a global minimum tax. Well, okay, that's a total joke. There's no one that's going to sign on to that. So yes, bad news.

So it sounds like it was having a tangible impact on your business, clearly, it was happening. But you were seeing…

Yes, it's way broader than biopharma, I mean…

Second question I have is absent from today's presentation was Jenna and which, no offense to her, kind of makes me feel like things are getting better because she wasn't giving her [up team]. But I do have a question for the team there and maybe she's around. The vaccine success is wonderful. You mentioned this is not -- there's more to come, treating it more like a flu. But I wonder if the shift will turn maybe more to therapies as opposed to vaccines in a sense that if we feel like we can be treated for it, and even if we -- if it is an annual event, we know there's a thorough flu out there to take care of it beyond remdesivir. I'm just wondering if you can comment on that at all.

So if by popular opinion, we'll bring Jenna back next quarter maybe, but we decided not to do that just because vaccines are kind of at the forefront, the country is making, I think, good progress. We'll see how that goes. But you are seeing India has hit an all time high. And if you look at pictures of what's going on there, it literally breaks your heart. We've got some severe outbreaks throughout the United States. Michigan, which has been one of the toughest shutdown states, so go figure that out, is having some tough time. So we're still, I don't know, we may be in the fifth inning, something like that. I don't want to be Dr. Fauci here, but we got a long way to go here and it's going to be with us. This just doesn't go away. It comes back in various forms. But I think when it comes to your question on therapies, I think if people rely on therapies like flu therapies or other kinds of therapies for COVID, I think that's a huge mistake. And we'll, next quarter, address that. I'll ask Jenna to specifically address it. But what I think is the challenge is if you get COVID, there is a cohort of patients. Right now, people, if you ask Scott Gottlieb and others, right now, it's maybe 10%, 15%, don't know if that number is too low or too high, but my guess is it could be right about right and could be higher, who are experiencing the long haul symptoms. If you ever look at some of the articles on COVID, COVID attacks almost every system in the body. And it's something that you would not want to get and just get over because you don't know what the long haul results are to the brain, to the immune system, to all the systems of the body. So I don't think the therapy is the answer. I think it's immunization and hopefully, herd immunity, although, there's a cohort of people here in the United States who simply won't take the vaccine, which there maybe medical reasons, there maybe religious reasons. But I think it is hard to understand the assumption of the risk for one's self and others if you don't have those issues, not to take the vaccine. So long winded answer. I hope that's helpful.

Our next question will come from Michael Carroll with RBC Capital Markets.

I wanted to touch on the repatriation of the drug supply chain real quick again. I know it's important, I guess, for the industry and the country. I mean, does that drive the demand in cluster markets at all? I mean, does it impact your business materially one way or another?

Well, I think it's incrementally. I was talking more macro because to bring back supply chains for intermediates for pharmaceutical products so we don't have to rely on India or China or Ireland or other places, that's critical. That's national security, it seems to me. And yes, there's been certainly impact to the demand, especially in the manufacturing, in the next gen manufacturing. I think people are not going to put cell therapy, gene therapy and a range of next gen manufacturing, which are so tied to R&D in the biopharma industry overseas unless tax rates absolutely force them to do that, which would be stupidest policy I ever heard. So yes, the impact has been clearly in a positive fashion and we hope that doesn't get reversed.

And then just, I guess, last question for me. Can you talk a little bit about, I guess, the mentioned in the earlier prepared remarks about the model to help combat homelessness in Seattle. I mean, how far along is this process? And I guess, what type of time line do you have in mind or when you'll be able to provide us more details on what that plan is and how it's going?

So it's still in the early feasibility stage. I think understanding homelessness, much like drug addiction, is hard. If you imagine the homeless population, it's highly stratified. There are those that are down on their luck, have financial issues. There's a large cohort that have serious addiction issues. There's a large cohort that have serious mental illness, et cetera. So it's not just saying, okay, let's just find housing. That's a solution that many jurisdictions are pursuing but it doesn't help. It's like detoxing somebody who's addicted to opioids and then putting them back on the street, that doesn't work more than 28 days. So we're trying to adopt this or adapt, I should say, not adopt, the [115] model, the continuum of care, the complete care, data driven but with deep research, and so we're in the feasibility stage. So I'm not sure I can give you yet. Maybe over the next quarter or so, I'll be able to give you more details. But we think it's an imperative that we attack this problem, and I think we may have a model that will help a lot of people here. But it's no easy thing. It isn't like putting up a few simple apartments. It's way, way more complicated than that.

Our next question will come from Dave Rogers with Baird.

On the leasing front, I wanted to ask a question about, you had two really good quarters of leasing and a number of quarters come together. Curious if you're seeing any slowdown, like there was some backlog maybe that had built up through COVID and that may get metering out a little bit more. Is that more a function of what you're offering in development? Just curious on kind of the pace of leasing into the second quarter? And then maybe the flip side, what's missing from the leasing pipeline, if anything, in terms of kind of your core tenant base?

I'm not sure I fully understand the first part of the question.

I think earlier, you made the comment about demand and some of the slowdown that was related to just not being able to build, for a little while, and there was a little…

I don't think we said that. Are you -- who said that?

Just in terms of new -- anyway. I guess, the question was, it seemed in leasing going from kind of the first quarter into the second quarter. Any evidence of a slowdown or any evidence that there had been a backlog from COVID that might be dissipating at any point?

No. I think our comments should address that pretty directly, Dave. No, we don't see any of that.

And then not essentially related to SPAC, but is there anything in your own guidance at Alexandria that would be dependent upon that getting done?

No.

Our next question will come from Daniel Ismail with Green Street Advisors.

Joel, I appreciate all the comments relating to ESG. There are a variety of taxes or fines on greenhouse gas emissions proposed or in discussions across your markets. It seems like lab buildings are generally lumped in with office buildings in these proposed or enacted regulations despite the difference in use and potential energy intensity. Is that a fair characterization? And then does this come up in tenant discussions about the potential for, say, higher taxes or fines on building greenhouse gas emissions?

I think it has not, at the moment, doesn't seem to be a significant issue for tenants at this moment, although, they're looking for obviously very green and environmentally positive sustainable buildings, both inside and outside. And I think we've kind of been a leader here in the US and maybe even worldwide in the whole fit well or healthy environments inside. But Dean, do you want to comment because you're closest to that?

So Danny, I agree with what Joel highlighted. Our tenants haven't focused on your specific question but they have focused on really environmentally friendly, sustainable real estate solutions. If you look across their business, if you take just a sample of our top 20 tenants as an example and look at their ESG initiatives, sustainability is a high priority across their entire business, real estate being a very small component. They actually touch on real estate a little bit on a few of the top 20 tenants. And as Joel highlighted, carbon neutral, energy neutral buildings, et cetera, just beyond lead today is super important. Most of these biopharma companies today have set carbon neutrality goals that are well inside the broad 2050 type of target dates that some have put out there. And so I think overall, it's super important. I think for us, when we think about building green and sustainable buildings, it plays not only strategically important to our business but plays right into the strategies of our tenants as well. So I think it works well. And I think you pointed the obvious challenge that all companies are facing today is how do you read carbon neutrality today at a pace that needs to be faster than maybe possible at the moment, given technologies and solutions that are available. But if we don't put our best foot forward to be impactful here, we won't get anywhere close to some of the deadlines in different jurisdictions. But they're all different so it's hard to comment on broadly across the portfolio.

And then just last one for Peter, on the cap rate on the South San Francisco trade. How would you compare that cap rate across market cap rates, or how would you compare market cap rates across San Diego, south San Francisco and Cambridge? Are cap rates heading to parity in these markets or are there still decent spreads across these markets?

Actually, I think your comment on heading to parity, that's actually -- when you started asking your question, I was like the geographic differences that used to be obvious are being blurred. Once you get down to 4% caps, I would not be surprised -- obviously, 4% cap is being achieved in Cambridge. I would not be surprised to see it go below 4% in Cambridge at some point soon. A high quality asset in San Diego was probably at 5%, low 5% cap two years ago, and I would expect that to be a low 4% cap today. So things are starting to -- or the difference, the geographic difference that cap rates had before are really starting to narrow. And it's probably obvious that there's so many people out there looking for exposure to Life Science that the geography doesn't matter as much as it does to get the exposure to Life Science.

This concludes our question-and-answer session. I would like to turn the conference back over to Joel Marcus for any closing remarks.

I'd just say thank you, everybody, and please stay safe. We'll talk to you next quarter. Thanks, everybody.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.