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Investments in real estate (Notes) | 12 Months Ended
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Dec. 31, 2023
Real Estate [Abstract] |
Investments in real estate, net | Our consolidated investments in real estate, including real estate assets classified as held for sale as described in Note 18 – “Assets classified as held for sale” to our consolidated financial statements, consisted of the following as of December 31, 2023 and 2022 (in thousands):
|  | December 31,
|  | 2023 |  | 2022
Rental properties: |  |  |  |
Land (related to rental properties) |  | $ | 4,385,515 |  |  | $ | 4,284,731 |
Buildings and building improvements |  | 20,320,866 |  |  | 18,605,627 |
Other improvements |  | 3,681,628 |  |  | 2,677,763 |
Rental properties |  | 28,388,009 |  |  | 25,568,121 |
Development and redevelopment projects |  | 8,226,309 |  |  | 8,715,335 |
Gross investments in real estate – North America |  | 36,614,318 |  |  | 34,283,456 |
Less: accumulated depreciation – North America |  | (4,980,807) |  |  | (4,349,780) |
Net investments in real estate – North America |  | 31,633,511 |  |  | 29,933,676 |
Net investments in real estate – Asia |  | — |  |  | 11,764 |
Investments in real estate |  | $ | 31,633,511 |  |  | $ | 29,945,440 |
Acquisitions Our real estate asset acquisitions during the year ended December 31, 2023 consisted of the following (dollars in thousands):
|  |  |  | Square Footage |  |  |
Market |  | Number of Properties |  | Future Development |  | Active Development/Redevelopment |  | Operating With Future Development/Redevelopment |  |  |  | Purchase Price |
Canada |  | 1 |  | — |  |  | — |  |  | 247,743 |  |  |  |  | $ | 100,837 |  |
Other |  | 4 |  | 1,089,349 |  |  | 110,717 |  |  | 185,676 |  |  |  |  | 158,139 |  |
Total |  | 5 |  | 1,089,349 |  |  | 110,717 |  |  | 433,419 |  |  |  |  | $ | 258,976 |  | (1)
(1)Represents the aggregate contractual purchase price of our acquisitions, which differs from purchases of real estate in our consolidated statements of cash flows due to the timing of payment, closing costs, and other acquisition adjustments such as prorations of rents and expenses. Based upon our evaluation of each acquisition, we determined that substantially all of the fair value related to each acquisition was concentrated in a single identifiable asset or a group of similar identifiable assets, or was associated with a land parcel with no operations. Accordingly, each transaction did not meet the definition of a business and therefore was accounted for as an asset acquisition. In each of these transactions, we allocated the total consideration for each acquisition to the individual assets and liabilities acquired on a relative fair value basis. During the year ended December 31, 2023, we acquired five properties for an aggregate purchase price of $259.0 million. In connection with our acquisitions, we recorded in-place lease assets aggregating $15.7 million and below-market lease liabilities in which we are the lessor aggregating $6.0 million. As of December 31, 2023, the weighted-average amortization period remaining on our in-place leases and below-market leases acquired during the year ended December 31, 2023 was 3.3 years and 2.0 years, respectively, and 3.0 years in total. Acquired below-market leases The balances of acquired below-market tenant leases existing as of December 31, 2023 and 2022 and related accumulated amortization, classified in accounts payable, accrued expenses, and other liabilities in our consolidated balance sheets as of December 31, 2023 and 2022, were as follows (in thousands):
|  | December 31,
|  | 2023 |  | 2022
Acquired below-market leases |  | $ | 696,875 |  |  | $ | 730,441 |
Accumulated amortization |  | (374,835) |  |  | (312,785) |
|  | $ | 322,040 |  |  | $ | 417,656 |
For the years ended December 31, 2023, 2022, and 2021, we recognized in rental revenues approximately $96.9 million, $78.0 million, and $57.7 million, respectively, related to the amortization of acquired below-market leases existing as of the end of each respective year. The weighted-average amortization period of the value of acquired below-market leases existing as of December 31, 2023 was approximately 6.3 years, and the estimated annual amortization of the value of acquired below-market leases as of December 31, 2023 is as follows (in thousands):
Year |  | Amount
2024 |  | $ | 86,595 |
2025 |  | 38,796 |
2026 |  | 30,526 |
2027 |  | 29,995 |
2028 |  | 18,000 |
Thereafter |  | 118,128 |
Total |  | $ | 322,040 |
Acquired in-place leases The balances of acquired in-place leases and related accumulated amortization, classified in other assets in our consolidated balance sheets as of December 31, 2023 and 2022, were as follows (in thousands):
|  | December 31,
|  | 2023 |  | 2022
Acquired in-place leases |  | $ | 1,115,259 |  |  | $ | 1,150,690 |
Accumulated amortization |  | (653,646) |  |  | (535,052) |
|  | $ | 461,613 |  |  | $ | 615,638 |
Amortization for these intangible assets, classified in depreciation and amortization expense in our consolidated statements of operations, was approximately $160.6 million, $169.5 million, and $146.6 million for the years ended December 31, 2023, 2022, and 2021, respectively. The weighted-average amortization period of the value of acquired in-place leases was approximately 8.1 years, and the estimated annual amortization of the value of acquired in-place leases as of December 31, 2023 is as follows (in thousands):
Year |  | Amount
2024 |  | $ | 107,883 |
2025 |  | 75,610 |
2026 |  | 58,029 |
2027 |  | 48,279 |
2028 |  | 36,171 |
Thereafter |  | 135,641 |
Total |  | $ | 461,613 |
Sales of real estate assets and impairment charges Our completed dispositions of and sales of partial interests in real estate assets during the year ended December 31, 2023 consisted of the following (dollars in thousands):
|  |  |  |  |  |  |  |  |  |  |  | Gain on Sales of Real Estate |  | Consideration (Below)/Above Book Value(1)
Property |  | Submarket/Market |  | Date of Sale |  | Interest Sold |  | RSF |  | Sales Price |  |
Partial interest sales(2): |  |  |  |  |  |  |  |  |  |  |  |  |  |
15 Necco Street |  | Seaport Innovation District/Greater Boston |  | 4/11/23 |  | 18 | % |  | 345,996 |  |  | $ | 66,108 |  |  | N/A |  | $ | (7,761) |
9625 Towne Centre Drive |  | University Town Center/ San Diego |  | 6/21/23 |  | 20.1 | % |  | 163,648 |  |  | 32,261 |  |  | N/A |  | 15,553 |
|  |  |  |  |  |  |  |  |  | 98,369 |  |  |  |  | $ | 7,792 |
Dispositions of real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
11119 North Torrey Pines Road |  | Torrey Pines/San Diego |  | 5/4/23 |  | 100 | % |  | 72,506 |  |  | 86,000 |  |  | $ | 27,585 |  |  |
225, 231, 266, and 275 Second Avenue and 780 and 790 Memorial Drive |  | Route 128 and Cambridge/Inner Suburbs/Greater Boston |  | 6/13/23 |  | 100 | % |  | 428,663 |  |  | 365,226 |  |  | 187,225 |  |  |
640 Memorial Drive, 100 Beaver Street, and 11025 and 11035 Roselle Street |  | Cambridge and Inner Suburbs and Route 128/Greater Boston and Sorrento Valley/San Diego |  | 12/20/23 |  | 100 | % |  | 361,102 |  |  | 312,244 |  |  | 59,653 |  |  |
380 and 420 E Street |  | Seaport Innovation District/ Greater Boston |  | 12/20/23 |  | 100 | % |  | 195,506 |  |  | 86,969 |  |  | (3) |  |
275 Grove Street |  | Route 128/Greater Boston |  | 6/27/23 |  | 100 | % |  | 509,702 |  |  | 109,349 |  |  | (3) |  |
421 Park Drive |  | Fenway/Greater Boston |  | 9/19/23 |  | (4) |  | (4) |  | 174,412 |  |  | — |  |  |
Other |  |  |  |  |  |  |  |  |  | 81,845 |  |  | 2,574 |  |  |
|  |  |  |  |  |  |  |  |  | 1,216,045 |  |  | $ | 277,037 |  |  |
Total 2023 dispositions |  |  |  |  |  |  |  |  |  | $ | 1,314,414 |  | (5) |  |  |
(1)Related to sales of partial interests in real estate assets for which we retained control and therefore continue to consolidate. We recognized the difference between the consideration received and the book value of partial interests sold in additional paid-in capital, with no gain or loss recognized in earnings. (2)Refer to the “Sales of partial interests” section in Note 4 – “Consolidated and unconsolidated real estate joint ventures” to our consolidated financial statements for additional information. (3)Refer to the “Impairment charges” subsection below for information related to impairment charges recognized in connection with this transaction. (4)Represents the disposition of 268,023 RSF in a 660,034 RSF active development at 421 Park Drive in our Fenway submarket. The proceeds from this transaction will help fund the construction of our remaining 392,011 RSF of the project. The buyer will fund the remaining costs to construct its 268,023 RSF, and as such these costs are not included in our projected construction spending. We will develop and operate the completed project and will earn development fees over the next three years. (5)Represents the aggregate contractual sales price of our dispositions, which differs from proceeds from sales of real estate and contributions from and sales of noncontrolling interests in our consolidated statements of cash flows under “Investing activities” and “Financing activities,” respectively, primarily due to the timing of payment, closing costs, and other sales adjustments such as prorations of rents and expenses. Impairment charges During the year ended December 31, 2023, we recognized impairment charges aggregating $461.1 million classified in impairment of real estate in our consolidated statement of operations, primarily related to non-laboratory properties that are not integral to our mega campus strategy, including: •Impairment charge of $145.4 million recognized to reduce the carrying amount of a three-building office campus aggregating 509,702 RSF at 275 Grove Street in our Route 128 submarket to its estimated fair value less costs to sell, upon meeting the criteria for classification as held for sale. At the time of our acquisition in January 2020, the campus was fully occupied with a weighted-average remaining lease term of 6.1 years. We had intended to convert the campus into laboratory space through redevelopment upon the expiration of the acquired in-place leases. Upon our reevaluation of the project’s financial outlook and its alignment with our mega campus strategy, we decided not to proceed with this project. We completed the sale of this campus in June 2023 for a sales price of $109.3 million, with no gain or loss recognized in earnings. •Impairment charge of $94.8 million recognized to reduce the carrying amounts of one industrial property and one self-storage property in our Seaport Innovation District submarket to their respective estimated fair values less costs to sell, upon meeting the criteria for classification as held for sale. We initially acquired these real estate assets with the intention to entitle the site as a life science campus, demolish the properties upon expiration of the acquired in-place leases, and ultimately develop life science properties. Since acquiring these assets, the macroeconomic environment has changed, and upon our reevaluation of the projects’ financial outlook and their alignment with our mega campus strategy, we decided not to proceed with these projects. Our decision was also based on the location’s current strategic disadvantage for laboratory development within this submarket. We completed the sale of these assets in December 2023 for a sales price of $87.0 million, with no gain or loss recognized in earnings. •Impairment charge of $93.5 million recognized to reduce the carrying amount of an office property aggregating 349,947 RSF in our New York City submarket to its estimated fair value less costs to sell, upon meeting the criteria for classification as held for sale. We initially acquired this real estate asset with the intention to entitle it as a life science property, and, upon expiration of the acquired in-place lease, either demolish the building for development or redevelop the existing building into a life science property. Since acquiring this property, the macroeconomic environment has changed. Upon our reevaluation of the project’s financial outlook and its alignment with our mega campus strategy, we decided not to proceed with this project. We expect to complete the sale of this asset in 2024. •Impairment charge of $36.1 million recognized to reduce the carrying amount of a development land parcel in our Seaport Innovation District submarket to its estimated fair value less costs to sell, upon meeting the criteria for classification as held for sale. We initially acquired this real estate asset with the intention to entitle it as a life science asset and ultimately develop a life science property. Since acquiring this asset, the macroeconomic environment has changed. Upon our reevaluation of the project’s financial outlook and its alignment with our mega campus strategy, we decided not to proceed with this project. We expect to complete the sale of this asset in 2024. •Impairment charge of $29.7 million recognized to reduce the carrying amount of one office property aggregating 143,943 RSF in our Bothell submarket to its estimated fair value less costs to sell, upon meeting the criteria for classification as held for sale. This asset was classified as held for sale upon our evaluation of the alignment of this project with our mega campus strategy and our decision to reallocate substantial near-term capital that the repositioning of this asset would have otherwise required toward our other projects with greater value-creation opportunities. We expect to complete the sale of this asset in 2024. •Impairment charges of $20.8 million recognized to reduce the carrying amounts of three non-laboratory properties classified as held for sale aggregating 230,704 RSF, located in our Greater Boston and Texas markets, to their respective estimated fair values less costs to sell, upon meeting the criteria for classification as held for sale. These assets were classified as held for sale upon our reevaluation of the projects’ financial outlook, their alignment with our mega campus strategy, and our decision to reallocate substantial near-term capital that the development and redevelopment of these assets would have otherwise required toward our other projects with greater value-creation opportunities. We completed the sale of one of these properties in December 2023, with no gain or loss recognized in earnings, and we expect to sell the remaining real estate assets in 2024. •Impairment charge of $17.1 million recognized to fully write down the carrying amount of our one remaining property in Asia. Refer to Note 18 – “Assets classified as held for sale” to our consolidated financial statements for additional information.

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