XML 34 R14.htm IDEA: XBRL DOCUMENT
v3.23.1

Investments in Unconsolidated Entities | 3 Months Ended
--- | ---
Mar. 31, 2023
Investments in Unconsolidated Entities. |
Investments in Unconsolidated Entities | 6. Investments in Unconsolidated Entities A summary of the Company’s investments in unconsolidated entities accounted for under the equity method of accounting is shown below (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year | ​ | Metropolitan | ​ | ​ | ​ | ​ | Balance as of | ​ | Balance as of
Entity | ​ | Entity Formed | ​ | Area of Properties | ​ | % Ownership | ​ | ​ | March 31, 2023 | ​ | ​ | December 31, 2022
Digital Core REIT (DCRU) | ​ | 2021 | ​ | U.S. / Toronto / Frankfurt | ​ | 35 | % | ​ | $ | 328,906 | ​ | $ | 328,584
Ownership interest in DCRU operating properties | ​ | 2021 | ​ | U.S. / Toronto / Frankfurt | ​ | Various | ​ | ​ | ​ | 135,789 | ​ | ​ | 136,431
Ascenty | ​ | 2019 | ​ | Brazil / Chile / Mexico | ​ | 51 | % | ​ | ​ | 638,028 | ​ | ​ | 606,141
Mapletree | ​ | 2019 | ​ | Northern Virginia | ​ | 20 | % | ​ | ​ | 156,780 | ​ | ​ | 160,200
Mitsubishi(1) | ​ | Various | ​ | Osaka / Tokyo | ​ | 50 | % | ​ |  | 412,752 | ​ |  | 453,420
Lumen | ​ | 2012 | ​ | Hong Kong | ​ | 50 | % | ​ |  | 69,352 | ​ |  | 68,821
Other | ​ | Various | ​ | U.S. / India / Nigeria | ​ | Various | ​ | ​ |  | 253,969 | ​ |  | 237,829
Total | ​ | ​ | ​ |  | ​ |  | ​ | ​ | $ | 1,995,576 | ​ | $ | 1,991,426
(1) | During the three months ended March 31, 2023, we derecognized all assets, liabilities and 50% noncontrolling interests related to a joint venture that was previously consolidated and recognized an equity method investment of approximately $61.9 million based on the value of our 50% noncontrolling interest in the joint venture. We had concluded that we would consolidate the joint venture during the development phase of the buildings because we had the power to direct activities that most significantly impacted the joint venture’s economic performance, however, upon the building’s completion and commencing the operational phase, we no longer have the power to direct the activities that most significantly impact the joint venture’s economic performance and deconsolidated the joint venture and recognized the investment under the equity method as we still retained significant influence.
​ DCREIT – Digital Core REIT is a standalone real estate investment trust formed 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 the operating properties of DCRU are collectively referred to as the Company’s investment in DCREIT. ​ As of March 31, 2023, the Company held 35% of the outstanding DCRU units and separately owned 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 consisted of 399 million units and 396 million units as of March 31, 2023 and December 31, 2022, respectively. Based on the closing price per unit of $0.445 and $0.55 as of March 31, 2023 and December 31, 2022, respectively, the fair value of the units the Company owned in DCRU was approximately $178 million and $218 million as of March 31, 2023 and December 31, 2022, 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 March 31, 2023 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 three months ended March 31, 2023 and 2022, the Company earned fees pursuant to these contractual agreements of approximately $2.3 million, which is recorded as fee income and other on the condensed consolidated income statement. ​ Ascenty – The Company’s ownership interest 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 $16 million and $18 million as of March 31, 2023 and December 31, 2022, 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. ​ Debt – The debt of our unconsolidated entities generally is non-recourse to us, except for customary exceptions pertaining to matters such as intentional misuse of funds, environmental conditions, and material misrepresentations.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration