Alexandria & Lilly Unite at San Diego's One Alexandria Square

Alexandria Real Estate Equities, Inc. ARE recently announced the opening of Lilly Gateway Labs, powered by Alexandria, at the One Alexandria Square Megacampus in San Diego’s Torrey Pines.

Eli Lilly and Company first established Lilly Gateway Labs in 2019 in the San Francisco Bay Area, functioning as a shared innovation hub intended to support biotechnology companies in the development of life-changing medicines.

Lilly Gateway Labs in San Diego is a partnership between Lily and Alexandria. Alexandria provides top-class real estate infrastructure, facilities and lab operations, and placemaking acumen. Lilly brings scientific expertise, resources, mentorship, and access to capital through its venture network, including Alexandria Venture Investments.

This new San Diego lab builds on the success of Gateway Labs' first three U.S. sites in South San Francisco and Boston. These labs currently support the development of over 50 novel therapeutics and platforms. Gateway Labs San Diego aims to help its resident companies offer transformative treatments for patients around the world.

Alexandria started developing San Diego's life science ecosystem in 1994, with its first property acquired in Torrey Pines. The site of this property now anchors the newest phase of One Alexandria Square and is home to Lilly Gateway Labs. The Megacampus offers new amenities such as a grab-and-go café, a restaurant, an event lawn, meeting venues and a walking path. Its location is close to famous research institutions, giving One Alexandria Square tenants many chances to collaborate.

Lilly Gateway Labs San Diego opens with a group of biotech companies working on Alzheimer's, Parkinson's, cardiovascular and metabolic diseases and oncology. The new site facility features modular lab spaces with nearby collaboration areas, and advanced scientific amenities like microscopy and sequencing. The site also provides first-class operational support, strategic programming, and dedicated building security and concierge services.

Conclusion

Investors eyeing the life science and real estate sectors should take note of Alexandria's strategic move with Eli Lilly. The new opening of Gateway Labs in San Diego signifies a commitment to advancing innovation and supporting the growth of transformative medicines.

Over the past three months, shares of this Zacks Rank #3 (Hold) company have increased 15.4% compared with the industry’s growth of 1.7%.

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are SL Green SLG and Plymouth Industrial REIT PLYM, 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 SLG’s 2025 FFO per share has moved 83 cents northward to $6.21 over the past three months.

The Zacks Consensus Estimate for PLYM’s 2025 FFO per share has moved 2 cents upward to $1.88 over the past two months.

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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This article originally published on Zacks Investment Research (zacks.com).

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