Interest rate risk from variable-rate debt and potential fluctuations in equity investments pose risks. The company's investments in privately held entities with uncertain fair values and potential impairment charges are also a concern. Litigation against the company and its subsidiaries exposes them to potential losses. Changes in tenant demand due to AI and automation in life science R&D are also a risk.
Financial Upside
Strong leasing activity, including renewals and new leases, and high occupancy rates are positive indicators. The company's development and redevelopment pipeline projects are expected to generate significant future income. Favorable lease structures, including triple-net leases and rent escalations, contribute to stable cash flows. Significant liquidity and a strong balance sheet provide financial flexibility.
