Alexandria Real Estate Equities

Alexandria’s competitive edge rests on its concentrated mega-campus strategy in the seven deepest U.S. life science clusters, which combine high barriers to entry with tenant switching costs from specialized build-outs and regulatory fit-outs. Reputation and a deep installed base reinforce a virtuous cycle of tenant retention and expansion.

As of June 30, 2025, 53% of annual rental revenue comes from investment-grade or publicly traded large-cap tenants, and the weighted-average remaining lease term is 7.4 years, supporting long-duration cash flows. 97% of leases have annual escalators, and 91% are triple net, with 92% including capital expenditure recapture, structurally lowering landlord capex and sustaining margins.

Risks to the moat include temporary supply in select submarkets and funding cycles in biotech, but wet-lab needs and campus ecosystems are difficult to virtualize.