Alexandria Real Estate Equities, Inc. (NYSE:ARE) Q4 2022 Earnings Call Transcript

Peter Moglia: The year-over-year growth is more just a function of the size of activities undergoing construction today. As you know from our disclosures we have 7.6 million either under construction or near-term starts on average, 72% leased. If you look at the fourth quarter capped interest, which is reflective of the average basis under construction, it was $79.5 million of cap interest for the quarter. it was $73 million in the third quarter, so I’ll call it up about $6 million. It was $68 million in the prior quarter, so up about $5 million quarter-over-quarter. If you were just to continue to project out that $4 million or $5 million increase quarter-to-quarter, you can kind of project out what half of the year would look like.

And just double that from that point forward, you’re now at the bottom end of the range of our guidance. So directionally, it should make sense if you look at it from a run rate perspective. Again, year-over-year, it’s up significantly because the amount of construction activities were actually up year-over-year.

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

Joel Marcus: Thank you, everybody, and we look forward to talking to you on the first quarter call. Be safe, feel well.

Operator: The conference has now concluded. Thank you for attending today’s presentation, and you may now disconnect.