ARE is undervalued relative to history (trading at ~6.3x FFO vs 18-24x) and has a strong investment-grade balance sheet.

The last name we will talk about today. This is a disliked name. A disliked name. He went through very difficult times . It's "Alexandria Realty". They own many laboratories. They have top-quality laboratories in the country and adjacent office spaces.

They have a strategy of large complexes. As you know, most of the biotechnology industry is concentrated in Cambridge, San Francisco, San Diego, and the Research Triangle. Many of those companies go where the people are, and vice versa.

Therefore, their idea is based on owning these wonderful properties and bringing them together.

It was a great job overall, especially going into the COVID phase and beyond, where there was tremendous growth. Rents continued to rise, but an imbalance occurred between supply and demand.

A lot of what was offered was released to the market. While that surplus was being absorbed, a change in management occurred. There was a lot of disruption at the Food and Drug Administration, the Centers for Disease Control and Prevention, and the National Institutes of Health.

Therefore, many biotechnology companies have become more hesitant to expand and grow. This has harmed the company because their occupancy rates have started to decline. Rental rates have also started to decline.

They are still working on solving the problem of increased supply.

Ironically, this real estate fund had the best balance sheet in the sector, or at least one of the best, with an investment-grade credit rating, and it still maintains it. Ah, very long debt maturities , which is great in a high interest rate environment, so they don't have to refinance at as much higher rates as their peers.

Anyway, let's move on to the deal. We don't want to focus; you don't need to focus too much on any particular stock. It is the strategy and its general principles. You are building an investment portfolio, of course.

Ah, but what we did in the " Value Options Bulletin" was that we sold a $40 put option that expires on October 16. So, this is after 165 days. From this put option, we collected $4.55 per share, or $455 in total credit. The breakeven point is $35.45.

This stock's 52-week low is 39.41, and its 52- week high is 88.24. A few years ago, its price was much higher than $200 . So, that's a return of 12.8% over 165 days, and 28.4% on an annualized basis.

This is a stock that has historically traded at 18 to 24 times net operating income (FFO). Ah, it's trading at around 6.3 times their adjusted net operating income right now .

Ah, so what does this abbreviation mean? Funds generated from operations (FFO). It is a type of profit-sharing equivalent for real estate investment trusts (REITs). Ah, profits, you know, because you have depreciation and things like that.

Therefore, profits for real estate investment companies are not really beneficial. So, think about the FFO; the price-to-FFO ratio is similar to a price-to- earnings ratio.

Ah, so look , a really cheap stock, ah, but you know, another tactic you can use to achieve attractive returns with less risk than just owning the stock directly. Ah, so an investment-grade company, again, we're not talking about companies on the verge of bankruptcy .

We are not talking about unprofitable companies. We are willing to own these shares at the discounted price, and that is what really sets the "Value Options Prospectus " apart from many other option subscriptions out there.