To: E_K_S who wrote (77388 ) 4/17/2025 6:48:17 PM From: E_K_S Respond to RE: Alexandria Real Estate Equities Leaked White House Document Reveals Monster Budget Cut Proposal For Federal Health Agencies The Trump administration could slash roughly one-third of the federal government’s bloated health budget, a leaked White House proposal shows . The proposal, part of President Donald Trump’s broader push to curb government waste, would eliminate billions in annual spending and reign in a sprawling bureaucracy that employs 82,000 workers across 10 regional offices , with average salaries of $100,000 plus generous benefits --------------------------------------------------------------------------- According to Perplexity AI , there would be little to no impact from the proposed cuts detailed above. Top 20 tenants (investment-grade or publicly traded companies) generate 69% of annual rental revenue , with a weighted-average remaining lease term of 8.0 years (excluding ground leases) 2 .No specific percentage of revenue from government grants/agencies is disclosed in their filings, but sector breakdowns show 21% from life science , 17% from technology , and smaller allocations to professional services/finance 2 . 7–10 years before completion 1 . The firm’s “mega campuses” account for 69% of its value-creation pipeline, emphasizing stable, private-sector clients 1 .The leaked proposal targeting health agencies (e.g., FDA/CDC cuts) 6 would likely not directly affect ARE , as their tenant base isn’t heavily reliant on federal health agencies. Indirect risks could arise if broader federal downsizing reduces demand in regions like Alexandria, VA, where the city’s economy partially depends on federal grants 4 . However, ARE’s focus on life science clusters (e.g., Boston, San Francisco) and long-term leases insulates it from short-term federal volatility 1 2 .
