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Segment Reporting | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Segment Reporting Disclosure | SEGMENT INFORMATION We are a life science real estate investment trust focused on developing, redeveloping, and operating properties that provide space for lease to tenants primarily in the life science industry. Our properties are leased predominantly through triple-net lease agreements and share key characteristics, including generic and reusable improvements, consistent lease structures, and business strategy. All properties are located within North America, predominantly in the U.S., and operate within a comparable regulatory environment. Our foreign operations, located in Canada, represent approximately 1% of our total revenues and total assets. Operating segments In 2024, our Chief Operating Decision Maker (“CODM”), represented by our Executive Chairman and our Chief Executive Officer, revised their review approach from evaluating operating results at the individual property level to evaluating operating results at the geographic market level to assess performance and allocate resources. This change reflects the growth and evolving structure of our organization, as well as targeted initiatives implemented to streamline our business processes and enhance operational efficiencies. We note that the recent accounting standard update on segment reporting, which became effective for us on January 1, 2024, had no impact on the reassessment of our operating segments, as it does not change the principles for determining operating segments or aggregation under ASC 280. Instead, our change was driven by organizational developments, as described below. As a result, beginning in 2024, our operating segments aligned with our markets, including Greater Boston, San Francisco Bay Area, San Diego, and Seattle, among others. The transition from a property-level to a market-level review of operating results was driven by the following key factors: •Organizational growth and complexity. As our portfolio expanded, regular reviews of individual property-level operating results became increasingly granular and operationally inefficient for the CODM. Shifting to a market-level review allowed for a more strategic focus on key performance drivers and resource allocation priorities. •Streamlining business processes and enhancing efficiencies. We have implemented significant organizational initiatives to improve efficiency and reduce costs. These initiatives included upgrading systems, improving processes, integrating smarter technology, and optimizing workflows to enhance operating effectiveness. •Personnel-related changes. Reallocation and consolidation of roles and responsibilities, reduction in headcount, including retirement of certain executives, and elimination of redundancies across the company. As a result of these measures, starting in 2024, regular market performance updates are now provided directly to the CODM. These updates include each market’s net operating income (“NOI”), which serves as the profit or loss measure used by the CODM for performance assessment and resource allocation. NOI provides useful information regarding performance of each market as it reflects income and expenses incurred in connection with real estate operations in each market. This metric enables the CODM to evaluate the profitability and performance of each market on a consistent and comparable basis, supporting decisions on capital resource allocation, including in connection with development, redevelopment, acquisition, and disposition activities in each market. Evaluation of economic similarity and aggregation of operating segments In accordance with the segment reporting accounting standard, we evaluated the economic similarity of our operating segments. Seven of our nine operating segments exhibit consistent long-term economic characteristics, including similar historical long- term NOI margins, which are also expected to remain similar in the future. Additionally, these markets share similar operational characteristics, including nature of services provided (i.e., leasing, operating, developing, and redeveloping life science properties), tenant base (i.e., a variety of tenants involved in the life science industry), methods of operation (i.e., consistent lease structures, property management practices, and business strategies), nature of the regulatory environment (consistent across North America, where all of our operating segments are located). Given these shared economic characteristics, we have aggregated our seven operating segments into one reportable segment for segment reporting purposes. Two of our operating segments did not meet the aggregation criteria, and individually did not meet the quantitative thresholds to qualify as reportable segments. Therefore, these operating segments are included in the “all other” category in the tables below. The following table presents the reportable segment profit or loss measure — net operating income.
| Year Ended December 31,
(in thousands) | 2024 |  | 2023 |  | 2022
Reportable segment revenues: |  |  |  |  |
Revenues from external customers | $2,897,524 |  | $2,685,027 |  | $2,443,865
Other income | 30,028 |  | 21,408 |  | 10,214
Reportable segment total revenues | 2,927,552 |  | 2,706,435 |  | 2,454,079
Reportable segment total rental operating expenses | (831,258) |  | (763,700) |  | (695,226)
Reportable segment net operating income (reportable segment profit or loss) | $2,096,294 |  | $1,942,735 |  | $1,758,853
Significant expenses included in the reportable segment profit or loss measure (i.e., net operating income) are represented by the reportable segment total rental operating expenses and are disclosed in the table above. These expenses primarily include property taxes, utilities, repairs and maintenance, engineering, janitorial personnel, and other costs. Presented below are reconciliations of the reportable segment total revenues to the consolidated revenues, the reportable segment total rental operating expenses to consolidated rental operations, the reportable segment NOI to the consolidated net income, and the reportable segment investments in real estate assets to the consolidated investments in real estate assets:
| Year Ended December 31,
(in thousands) | 2024 |  | 2023 |  | 2022
Reconciliation of reportable segment revenues to consolidated total revenues: |  |  |  |  |
Reportable segment total revenues | $2,927,552 |  | $2,706,435 |  | $2,454,079
All other revenues | 188,842 |  | 179,264 |  | 134,883
Consolidated revenues | $3,116,394 |  | $2,885,699 |  | $2,588,962
Reconciliation of reportable segment total rental operating expenses to consolidated rental operations: |  |  |  |  |
Reportable segment total rental operating expenses | $(831,258) |  | $(763,700) |  | $(695,226)
All other rental operating expenses | (78,007) |  | (95,480) |  | (87,927)
Consolidated rental operations | $(909,265) |  | $(859,180) |  | $(783,153)
Reconciliation of reportable segment net operating income to consolidated net income: |  |  |  |  |
Reportable segment net operating income (reportable segment profit or loss) | $2,096,294 |  | $1,942,735 |  | $1,758,853
All other revenues | 188,842 |  | 179,264 |  | 134,883
All other rental operating expenses | (78,007) |  | (95,480) |  | (87,927)
Other items not allocated to segments: |  |  |  |  |
General and administrative | (168,359) |  | (199,354) |  | (177,278)
Interest expense | (185,838) |  | (74,204) |  | (94,203)
Depreciation and amortization | (1,202,380) |  | (1,093,473) |  | (1,002,146)
Impairment of real estate | (223,068) |  | (461,114) |  | (64,969)
Loss on early extinguishment of debt | — |  | — |  | (3,317)
Equity in earnings of unconsolidated real estate joint ventures | 7,059 |  | 980 |  | 645
Investment loss | (53,122) |  | (195,397) |  | (331,758)
Gain on sale of real estate | 129,312 |  | 277,037 |  | 537,918
Consolidated net income | $510,733 |  | $280,994 |  | $670,701
| As of December 31,
(in thousands) | 2024 |  | 2023
Reconciliation of reportable segment assets to consolidated investments in real estate assets |  |  |
Reportable segment investments in real estate | $30,393,144 |  | $29,810,981
All other investments in real estate | 1,716,895 |  | 1,822,530
Consolidated investments in real estate | $32,110,039 |  | $31,633,511

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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