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Investments in Unconsolidated Entities | 12 Months Ended
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Dec. 31, 2022
Investments in Unconsolidated Entities. |
Investments in Unconsolidated Entities | 8. Investments in Unconsolidated Entities As of December 31, 2022 and 2021, our investments in unconsolidated entities accounted for under the equity method presented in our consolidated balance sheets consist of the following (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year | ​ | Metropolitan | ​ | ​ | ​ | ​ | Balance as of | ​ | Balance as of
Entity | ​ | Entity Formed | ​ | Area of Properties | ​ | % Ownership | ​ | ​ | December 31, 2022 | ​ | ​ | December 31, 2021
Digital Core REIT (DCRU) | ​ | 2021 | ​ | U.S. / Canada | ​ | 35 | % | ​ | $ | 328,584 | ​ | $ | 343,317
Ownership interest in DCRU operating properties | ​ | 2021 | ​ | U.S. / Canada / Frankfurt | ​ | 10 | % | ​ | ​ | 136,431 | ​ | ​ | 144,050
Ascenty | ​ | 2019 | ​ | Brazil / Chile / Mexico | ​ | 51 | % | ​ | ​ | 606,141 | ​ | ​ | 553,031
Mapletree | ​ | 2019 | ​ | Northern Virginia | ​ | 20 | % | ​ | ​ | 160,200 | ​ | ​ | 172,465
Mitsubishi | ​ | Various | ​ | Osaka / Tokyo | ​ | 50 | % | ​ |  | 453,420 | ​ |  | 401,509
Lumen | ​ | 2012 | ​ | Hong Kong | ​ | 50 | % | ​ |  | 68,821 | ​ |  | 68,854
Other | ​ | Various | ​ | U.S. / India / Nigeria | ​ | Various | ​ | ​ |  | 237,829 | ​ |  | 124,463
Total | ​ | ​ | ​ |  | ​ |  | ​ | ​ | $ | 1,991,426 | ​ | $ | 1,807,689
​ DCREIT – Digital Core REIT is a standalone real estate investment trust under Singapore law, which is publicly-traded on the Singapore Exchange under the ticker symbol “DCRU”. Digital Core REIT owns 11 operating data center properties. The Company’s ownership interest in the units of DCRU, as well as its ownership interest in certain operating properties of DCRU are collectively referred to as the Company’s investment in DCREIT. ​ As of December 31, 2022, the Company held a 35% interest in the DCRU and separately owns a 10% direct retained interest in the underlying North American operating properties and a 75% direct retained interest in the underlying German operating property. The Company’s 35% interest in DCRU consists of 396 million units and 390 million units as of December 31, 2022 and December 31, 2021, respectively. Based on the closing price per unit of $0.55 and $1.16 as of December 31, 2022 and 2021, the fair value of the units the Company owns in DCRU was approximately $218 million and $453 million as of December 31, 2022 and 2021, respectively. ​ These values do not include the value of the Company’s 10% interest in the North American operating properties and 75% interest in the German operating property of DCRU, because the associated ownership interests are not publicly traded. The Company accounts for its investment in DCREIT as an equity method investment (and not at fair value) based on the significant influence it is able to exert on DCREIT. The Company determined that the decline in fair value of the investment in DCRU as compared to the Company’s book basis as of December 31, 2022 was temporary in nature. ​ Pursuant to contractual agreements with DCRU and its operating properties, the Company will earn fees for asset and property management services as well as fees for aiding in future acquisition, disposition and development activities. Certain of these fees are payable to the Company in the form of additional units in DCRU or in cash. During the years ended December 31, 2022 and 2021, the Company earned fees pursuant to these contractual agreements of approximately $10.6 million and $0.5 million, respectively, which is recorded as fee income and other on the consolidated income statement. Ascenty – The Company’s ownership percentage in Ascenty includes an approximate 2% interest held by one of the Company’s non-controlling interest holders. This 2% interest had a carrying value of approximately $18.0 million and $20.9 million as of December 31, 2022 and December 31, 2021, respectively. Ascenty is a variable interest entity (“VIE”) and the Company’s maximum exposure to loss related to this VIE is limited to our equity investment in the entity. ​ PREI ® – In the third quarter of 2021, the existing unconsolidated partnership between the Company and PGIM Real Estate (the “PGIM Joint Venture”), completed the sale of a portfolio of 10 data centers in North America for $581 million. PGIM Real Estate owned an 80% interest and the Company owned a 20% interest in the partnership. We recognized a gain of approximately $64 million from the sale of the data centers. This gain is reflected in equity in earnings (loss) of unconsolidated entities in our consolidated income statements. In addition, we received a promote in the amount of $19 million related to the partnership exceeding certain investor return thresholds over the life of the partnership, which is included in fee income and other in our consolidated income statements. ​ Summarized Financial Information of Investments in Unconsolidated Entities The subsequent tables provide summarized financial information for all of our investments in unconsolidated entities accounted for using the equity method. Amounts are shown in thousands. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | Net |  | Net
​ | ​ | Total | ​ | Total | ​ | ​ | ​ | ​ | ​ | ​ | Operating | ​ | Income
December 31, 2022 | ​ | Assets | ​ | Liabilities | ​ | Equity | ​ | Revenues | ​ | Income | ​ | (Loss)
Unconsolidated entities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Ascenty | ​ | $ | 2,410,845 | ​ | $ | 1,209,852 | ​ | $ | 1,200,993 | ​ | $ | 254,884 | ​ | $ | 155,847 | ​ | $ | (35,726)
Mitsubishi | ​ | ​ | 1,441,935 | ​ | ​ | 495,394 | ​ | ​ | 946,541 | ​ | ​ | 175,833 | ​ | ​ | 78,859 | ​ | ​ | 24,768
Digital Core REIT | ​ | ​ | 1,602,725 | ​ | ​ | 551,088 | ​ | ​ | 1,051,636 | ​ | ​ | 111,408 | ​ | ​ | 72,937 | ​ | ​ | (19,055)
Lumen | ​ | ​ | 148,323 | ​ | ​ | 10,681 | ​ | ​ | 137,642 | ​ | ​ | 25,572 | ​ | ​ | 15,211 | ​ | ​ | 4,909
Mapletree | ​ |  | 861,290 | ​ |  | 22,289 | ​ |  | 839,001 | ​ |  | 122,775 | ​ |  | 67,003 |  |  | (7,736)
Other | ​ |  | 613,279 | ​ |  | 221,679 | ​ |  | 391,600 | ​ |  | 37,123 | ​ |  | 19,998 |  |  | (5,018)
Total Unconsolidated entities | ​ | $ | 7,078,397 | ​ | $ | 2,510,983 | ​ | $ | 4,567,413 | ​ | $ | 727,595 | ​ | $ | 409,855 |  | $ | (37,858)
Our investment in and share of equity in earnings of unconsolidated entities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 1,991,426 | ​ | ​ | ​ | ​ | ​ | ​ |  | $ | (13,497)
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | Net |  | Net
​ | ​ | Total | ​ | Total | ​ | ​ | ​ | ​ | ​ | ​ | Operating | ​ | Income
December 31, 2021 | ​ | Assets | ​ | Liabilities | ​ | Equity | ​ | Revenues | ​ | Income | ​ | (Loss)
Unconsolidated entities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Ascenty | ​ | $ | 2,079,401 | ​ | $ | 1,046,079 | ​ | $ | 1,033,322 | ​ | $ | 204,696 | ​ | $ | 128,827 | ​ | $ | (41,461)
Mitsubishi | ​ |  | 1,376,763 | ​ | ​ | 537,581 | ​ | ​ | 839,182 | ​ | ​ | 168,203 | ​ | ​ | 88,462 | ​ | ​ | 31,125
Digital Core REIT | ​ | ​ | 1,440,500 | ​ | ​ | 350,000 | ​ | ​ | 1,090,500 | ​ | ​ | 8,184 | ​ | ​ | 5,844 | ​ | ​ | (4,648)
Lumen | ​ | ​ | 148,576 | ​ | ​ | 10,868 | ​ | ​ | 137,708 | ​ | ​ | 25,541 | ​ | ​ | 15,506 | ​ | ​ | 2,718
Mapletree | ​ | ​ | 925,190 | ​ | ​ | 24,865 | ​ | ​ | 900,325 | ​ | ​ | 111,010 | ​ | ​ | 65,701 | ​ | ​ | (9,825)
Other | ​ |  | 440,694 | ​ | ​ | 190,996 | ​ | ​ | 249,698 | ​ | ​ | 59,881 | ​ | ​ | 36,427 | ​ | ​ | 233,298
Total Unconsolidated entities | ​ | $ | 6,411,124 | ​ | $ | 2,160,389 | ​ | $ | 4,250,735 | ​ | $ | 577,515 | ​ | $ | 340,767 |  | $ | 211,207
Our investment in and share of equity in loss of unconsolidated entities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 1,807,689 | ​ | ​ | ​ | ​ | ​ | ​ |  | $ | 62,283
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | Net |  | Net
​ | ​ | Total | ​ | Total | ​ | ​ | ​ | ​ | ​ | ​ | Operating | ​ | Income
December 31, 2020 | ​ | Assets | ​ | Liabilities | ​ | Equity | ​ | Revenues | ​ | Income | ​ | (Loss)
Unconsolidated entities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Ascenty | ​ | $ | 1,862,402 | ​ | $ | 833,801 | ​ | $ | 1,028,601 | ​ | $ | 165,680 | ​ | $ | 105,040 | ​ | $ | (191,161)
Mitsubishi | ​ | ​ | 968,957 | ​ | ​ | 358,749 | ​ | ​ | 610,208 | ​ | ​ | 154,114 | ​ | ​ | 83,113 | ​ | ​ | 43,746
Lumen | ​ | ​ | 181,464 | ​ | ​ | 8,264 | ​ | ​ | 173,200 | ​ | ​ | 25,006 | ​ | ​ | 14,765 | ​ | ​ | 5,581
Mapletree | ​ | ​ | 985,900 | ​ | ​ | 38,140 | ​ | ​ | 947,760 | ​ | ​ | 106,966 | ​ | ​ | 66,062 | ​ | ​ | (11,473)
Other | ​ | ​ | 604,215 | ​ | ​ | 421,349 | ​ | ​ | 182,866 | ​ | ​ | 83,475 | ​ | ​ | 57,674 | ​ | ​ | 18,210
Total Unconsolidated entities | ​ | $ | 4,602,938 | ​ | $ | 1,660,303 | ​ | $ | 2,942,635 | ​ | $ | 535,241 | ​ | $ | 326,654 |  | $ | (135,097)
Our investment in and share of equity in earnings of unconsolidated entities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 1,148,158 | ​ | ​ | ​ | ​ | ​ | ​ |  | $ | (57,629)
​ The amounts reflected in the previous tables on this topic are based on the historical financial information of the respective individual entities and have not been adjusted to show only the portion that is owned by the Company. The debt of our unconsolidated entities generally is non-recourse to us, except for customary exceptions pertaining to such matters as intentional misuse of funds, environmental conditions, and material misrepresentations.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI https://asc.fasb.org/topic&trid=2196965 + Details
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