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Biotech / Medical : Trickle Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: keokalani'nui who wrote (969)	12/21/2001 1:19:07 PM
From: tuck	Respond to of 1784

Wilder, As I mentioned, ARE's premium is more than justified by its growth rate relative to other REITs. Its PEG ratio is actually lower than average. You seem to be right about demand in Seattle being high. It makes up less than 10% of ARE's square footage leased, yet the rents received from Corixa and Dendreon (Fred Hutchinson Ctr. seems to have a somewhat better deal, I think it's an older property) are among the highest, and put them in the ARE's top 10 in that regard. If AMGN does consolidate IMNX operations elsewhere, that could lower the rents a bit, I suppose. Perhaps ARE would be in there trying to scoop up the empty space. Anyhow, there are only 3 ARE facilities up there. They have 19 here and in DC, but the DC facilities are generally twice the size of the SD facilities, so DC is their biggest market by far. They also have some presence in the Bay Area and Southeast (chiefly Research Triangle in North Carolina, home of Paradigm Genetics, a company that looks cheap, but I can't fathom the business). Oddly, they are HQ'd in Pasadena. Whatever, ARE's price movements probably have a significant beta to trickle companies, so it's just good darn portfolio management! Or so my textbooks said. Cheers, Tuck

To: keokalani'nui who wrote (969)	12/26/2001 2:26:19 PM
From: tuck	Read Replies (1) \| Respond to of 1784

Wilder, ARE seems to form a LLC every time it makes an investment in one of its customers. sec.gov I noticed one of them popped up when I looked for insider transactions for Paradigm Genetics: ARE-108 Alexander Road, LLC. However, SI's insider trading link appears to be off by a numeral, calling it "ARE-104 Alex Rd, LLC". In any case, this entity sold some 25,000 odd shares of PDGM a few weeks ago. Vague mention of this little venture arm is made in the notes to the financial statements in the 10-K under "investments." If they do well with it, this shadowy ARE arm could provide some upside to earnings. Not to mention clues to the perceived potential (by whoever runs these things) of the companies in which they have a stake. Cheers, Tuck