**Strong Financial Performance**: Alexandria Real Estate Equities reported a 10.9% increase in total revenues and a 12.5% rise in NOI for Q3 2024 compared to Q3 2023. FFO per share diluted as adjusted was $2.37, representing a 4.9% increase year-over-year, aligning with market expectations. These results showcase the company's disciplined execution of its mega campus strategy and its focus on high-quality cash flows, with collections remaining exceptionally high at 99.9%.
**Outlook for Rental Rate Growth**: The company expects solid rental rate growth for the full year 2024, forecasting an increase of 11% to 19% and 5% to 13% on a cash basis. Year-to-date rental rate growth achieved 16.4% on a GAAP basis and 8.9% on cash basis, indicating strong tenant demand and retention with an impressive weighted average lease duration of around 9.7 years.
**Strong Development Pipeline**: Alexandria has a robust development pipeline of approximately 5.5 million rentable square feet that is expected to generate $510 million in incremental net operating income (NOI) over the next 3.5 years. The company delivered 316,000 square feet during Q3, which was fully leased, supporting its growth plans despite a challenging leasing environment for longer-term projects.