Investments in real estate (Tables)

12 Months Ended

Dec. 31, 2023

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

Real estate assets 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.

Real estate assets dispositions

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.

Acquired below-market leases

Real Estate Properties [Line Items]

Schedule of Finite-Lived Intangible Assets

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

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

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

Real Estate Properties [Line Items]

Schedule of Finite-Lived Intangible Assets

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

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

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