XML 73 R13.htm IDEA: XBRL DOCUMENT
v3.24.4

Consolidated and unconsolidated real estate joint ventures (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Consolidated and unconsolidated real estate joint ventures | From time to time, we enter into joint venture agreements through which we own a partial interest in real estate entities that own, develop, and operate real estate properties. As of December 31, 2024, our real estate joint ventures held the following properties:
| Property |  | Market |  | Submarket |  | Our Ownership Interest(1)
Consolidated real estate joint ventures(2): |  |  |  |  |  |  |  |
| 50 and 60 Binney Street |  | Greater Boston |  | Cambridge/Inner Suburbs |  |  | 34.0% |
| 75/125 Binney Street |  | Greater Boston |  | Cambridge/Inner Suburbs |  |  | 40.0% |
| 100 and 225 Binney Street and 300 Third Street |  | Greater Boston |  | Cambridge/Inner Suburbs |  |  | 30.0% |
| 99 Coolidge Avenue |  | Greater Boston |  | Cambridge/Inner Suburbs |  |  | 75.0% |
| 15 Necco Street |  | Greater Boston |  | Seaport Innovation District |  |  | 56.7% |
| 285, 299, 307, and 345 Dorchester Avenue |  | Greater Boston |  | Seaport Innovation District |  |  | 60.0% |
| Alexandria Center® for Science and Technology – Mission Bay(3) |  | San Francisco Bay Area |  | Mission Bay |  |  | 25.0% |
| 1450 Owens Street |  | San Francisco Bay Area |  | Mission Bay |  |  | 25.1% | (4)
| 601, 611, 651, 681, 685, and 701 Gateway Boulevard |  | San Francisco Bay Area |  | South San Francisco |  |  | 50.0% |
| 751 Gateway Boulevard |  | San Francisco Bay Area |  | South San Francisco |  |  | 51.0% |
| 211 and 213 East Grand Avenue |  | San Francisco Bay Area |  | South San Francisco |  |  | 30.0% |
| 500 Forbes Boulevard |  | San Francisco Bay Area |  | South San Francisco |  |  | 10.0% |
| Alexandria Center® for Life Science – Millbrae |  | San Francisco Bay Area |  | South San Francisco |  |  | 48.2% |
| 3215 Merryfield Row |  | San Diego |  | Torrey Pines |  |  | 30.0% |
| Campus Point by Alexandria(5) |  | San Diego |  | University Town Center |  |  | 55.0% |
| 5200 Illumina Way |  | San Diego |  | University Town Center |  |  | 51.0% |
| 9625 Towne Centre Drive |  | San Diego |  | University Town Center |  |  | 30.0% |
| SD Tech by Alexandria(6) |  | San Diego |  | Sorrento Mesa |  |  | 50.0% |
| Pacific Technology Park |  | San Diego |  | Sorrento Mesa |  |  | 50.0% |
| Summers Ridge Science Park(7) |  | San Diego |  | Sorrento Mesa |  |  | 30.0% |
| 1201 and 1208 Eastlake Avenue East |  | Seattle |  | Lake Union |  |  | 30.0% |
| 199 East Blaine Street |  | Seattle |  | Lake Union |  |  | 30.0% |
| 400 Dexter Avenue North |  | Seattle |  | Lake Union |  |  | 30.0% |
| 800 Mercer Street |  | Seattle |  | Lake Union |  |  | 60.0% |
Unconsolidated real estate joint ventures(2): |  |  |  |  |  |  |  |
| 1655 and 1725 Third Street |  | San Francisco Bay Area |  | Mission Bay |  |  | 10.0% |
| 1450 Research Boulevard |  | Maryland |  | Rockville |  |  | 73.2% | (8)
| 101 West Dickman Street |  | Maryland |  | Beltsville |  |  | 58.4% | (8)
(1)Refer to the table on the next page that shows the categorization of our joint ventures under the consolidation framework. (2)In addition to the real estate joint ventures listed, various partners hold insignificant noncontrolling interests in three other consolidated real estate joint ventures in North America and we hold an interest in one insignificant unconsolidated real estate joint venture in North America. (3)Includes 409 and 499 Illinois Street, 1500 and 1700 Owens Street, and 455 Mission Bay Boulevard South. (4)During the year ended December 31, 2024, our equity ownership decreased from 40.6% to 25.1% based on continued funding of construction costs by our joint venture partner and a reallocation of equity to our joint venture partner of $30.2 million from us. The noncontrolling interest share of our joint venture partner is anticipated to increase to 75% and ours to decrease to 25% as our partner contributes additional equity to fund the construction of the project. (5)Includes 10210, 10260, 10290, and 10300 Campus Point Drive and 4110, 4135, 4155, 4161, 4165, 4224, and 4242 Campus Point Court. (6)Includes 9605, 9645, 9675, 9725, 9735, 9805, 9808, 9855, and 9868 Scranton Road and 10055, 10065, and 10075 Barnes Canyon Road. (7)Includes 9965, 9975, 9985, and 9995 Summers Ridge Road. (8)Represents a joint venture with a local real estate operator in which our joint venture partner manages the day-to-day activities that significantly affect the economic performance of the joint venture. Our consolidation policy is described under “Consolidation” in Note 2 – “Summary of significant accounting policies” to our consolidated financial statements. Consolidation accounting is highly technical, but its framework is primarily based on the controlling financial interests and benefits of the joint ventures. We generally consolidate a joint venture that is a legal entity that we control (i.e., we have the power to direct the activities of the joint venture that most significantly affect its economic performance) through contractual rights, regardless of our ownership interest, and where we determine that we have benefits through the allocation of earnings or losses and fees paid to us that could be significant to the joint venture (the “VIE model”). We also generally consolidate joint ventures when we have a controlling financial interest through voting rights and where our voting interest is greater than 50% (the “voting model”). Voting interest differs from ownership interest for some joint ventures. We account for joint ventures that do not meet the consolidation criteria under the equity method of accounting by recognizing our share of income and losses. The table below shows the categorization of our real estate joint ventures under the consolidation framework:
Property(1) |  | Consolidation Model |  | Voting Interest |  | Consolidation Analysis |  | Conclusion
50 and 60 Binney Street |  | VIE model |  | Not applicable under VIE model |  |  |  |  | Consolidated
75/125 Binney Street |  |  |  | We have: |
100 and 225 Binney Street and 300 Third Street |  |  |  |  |  |
99 Coolidge Avenue |  | (i) | The power to direct the activities of the joint venture that most significantly affect its economic performance; and
15 Necco Street |  |
285, 299, 307, and 345 Dorchester Avenue |  |
Alexandria Center® for Science and Technology – Mission Bay |  |
1450 Owens Street |  |
601, 611, 651, 681, 685, and 701 Gateway Boulevard |  |
751 Gateway Boulevard |  |  |
211 and 213 East Grand Avenue |  | (ii) | Benefits that can be significant to the joint venture.
500 Forbes Boulevard |  |
Alexandria Center® for Life Science – Millbrae |  |
3215 Merryfield Row |  |
Campus Point by Alexandria |  |
5200 Illumina Way |  | Therefore, we are the primary beneficiary of each VIE.
9625 Towne Centre Drive |
SD Tech by Alexandria |  |
Pacific Technology Park |  |
Summers Ridge Science Park |  |
1201 and 1208 Eastlake Avenue East |  |
199 East Blaine Street |  |
400 Dexter Avenue North |  |
800 Mercer Street |  |
1450 Research Boulevard |  |  | We do not control the joint venture and are therefore not the primary beneficiary. | Equity method of accounting
101 West Dickman Street |
1655 and 1725 Third Street |  | Voting model |  | Does not exceed 50% | Our voting interest is 50% or less. |
(1)In addition to the real estate joint ventures listed, various partners hold insignificant noncontrolling interests in three other consolidated real estate joint ventures in North America and we hold an interest in one insignificant unconsolidated real estate joint venture in North America. Formation of consolidated real estate joint ventures We evaluated each of our real estate joint ventures described below under the consolidation framework outlined above and further detailed in “Consolidation” in Note 2 – “Summary of significant accounting policies” to our consolidated financial statements. For a summary of our completed dispositions of real estate assets during the year ended December 31, 2024, refer to “Sales of real estate assets and impairment charges” in Note 3 – “Investments in real estate” to our consolidated financial statements. 285, 299, 307, and 345 Dorchester Avenue During the three months ended March 31, 2024, we formed real estate joint ventures to develop a Megacampus. We contributed $155.3 million to these real estate joint ventures, and our partner’s share of contributed real estate assets aggregated $103.5 million. As of March 31, 2024, these joint ventures owned four land parcels at 285, 299, 307, and 345 Dorchester Avenue in our Seaport Innovation District submarket, with future development opportunities aggregating 1.0 million SF. We determined that we have control over these real estate joint ventures, and we therefore consolidate the joint ventures. As of December 31, 2024, we have a 60% ownership interest in the real estate joint ventures. 1201 and 1208 Eastlake Avenue East In September 2024, our prior joint venture partner sold its ownership interest in each of 1201 and 1208 Eastlake Avenue East real estate joint ventures to our new joint venture partner, who is also our longstanding tenant at the 1201 and 1208 Eastlake Avenue East properties, occupying 115,839 RSF out of the total 206,134 RSF. Alexandria’s ownership interest in each of 1201 and 1208 Eastlake Avenue East remained unchanged at 30.0%. Upon completion of the sale, we reassessed our consolidation analysis for this joint venture and determined that we retain control, and we therefore continue to consolidate the real estate joint venture. Consolidated VIEs’ balance sheet information We, together with joint venture partners, hold interests in real estate joint ventures that we consolidate in our financial statements. These existing joint ventures provide significant equity capital to fund a portion of our future construction spend, and our joint venture partners may also contribute equity into these entities for financing-related activities. The table below aggregates the balance sheet information of our consolidated VIEs as of December 31, 2024 and 2023 (in thousands):
|  | December 31,
|  | 2024 |  | 2023
Investments in real estate |  | $8,917,718 |  | $8,032,315
Cash and cash equivalents |  | 335,223 |  | 306,475
Other assets |  | 777,033 |  | 728,390
Total assets |  | $10,029,974 |  | $9,067,180
Secured notes payable |  | $149,321 |  | $119,042
Other liabilities |  | 626,460 |  | 608,665
Mandatorily redeemable noncontrolling interest |  | — |  | 35,250
Total liabilities |  | 775,781 |  | 762,957
Redeemable noncontrolling interests |  | 10,360 |  | 6,868
Alexandria Real Estate Equities, Inc.’s share of equity |  | 4,754,386 |  | 4,162,017
Noncontrolling interests’ share of equity |  | 4,489,447 |  | 4,135,338
Total liabilities and equity |  | $10,029,974 |  | $9,067,180
In determining whether to aggregate the balance sheet information of consolidated VIEs, we considered the similarity of each VIE, including the primary purpose of these entities to own, manage, operate, and lease real estate properties owned by the VIEs, and the similar nature of our involvement in each VIE as a managing member. Due to the similarity of the characteristics, we present the balance sheet information of these entities on an aggregated basis. None of our consolidated VIEs’ assets have restrictions that limit their use to settle specific obligations of the VIE. There are no creditors or other partners of our consolidated VIEs that have recourse to our general credit, and our maximum exposure to our consolidated VIEs is limited to our variable interests in each VIE, except for our 99 Coolidge Avenue real estate joint venture in which the VIE’s secured construction loan is guaranteed by us. Refer to Note 10 – “Secured and unsecured senior debt” to our consolidated financial statements for additional information. Unconsolidated real estate joint ventures Our maximum exposure to our unconsolidated VIEs is limited to our investment in each VIE, except for our 1450 Research Boulevard and 101 West Dickman Street unconsolidated real estate joint ventures in which we guarantee up to $6.7 million of the outstanding balance related to each VIE’s secured loan. Our investments in unconsolidated real estate joint ventures, accounted for under the equity method and classified in investments in unconsolidated real estate joint ventures in our consolidated balance sheet s, consisted of the following as of December 31, 2024 and 2023 (in thousands):
|  | December 31,
Property |  | 2024 |  | 2023
1655 and 1725 Third Street |  | $10,574 |  | $11,718
1450 Research Boulevard |  | 9,193 |  | 6,041
101 West Dickman Street |  | 9,749 |  | 9,290
Other |  | 10,357 |  | 10,731
|  | $39,873 |  | $37,780
1401/1413 Research Boulevard We held a 65.0% ownership interest in an unconsolidated real estate joint venture at 1401/1413 Research Boulevard located in our Rockville submarket of Maryland. In October 2024, this unconsolidated real estate joint venture completed the sale of its sole real estate asset, a retail shopping center aggregating 84,837 RSF, and repaid its debt during the three months ended December 31, 2024. We received cash proceeds, net of ou r $18.6 million share of the debt balance, approximating our $3.3 million share of the gain on sale classified in equity in earnings of unconsolidated real estate joint ventures in our consolidated statement of operations. The unconsolidated joint venture is in the process of dissolution, pending completion of regulatory and legal requirements. The following table presents key terms related to our unconsolidated real estate joint ventures’ secured loans as of December 31, 2024 (dollars in thousands):
|  |  |  |  |  |  |  |  |  |  |  | At 100% |  | Our Share
Unconsolidated Joint Venture |  | Maturity Date |  | Stated Rate |  | Interest Rate(1) |  | Aggregate Commitment |  | Debt Balance(2) |
1655 and 1725 Third Street(3) |  |  | 3/10/25 |  |  | 4.50% |  |  | 4.57% |  |  | $600,000 |  | $599,930 |  | 10.0%
101 West Dickman Street |  |  | 11/10/26 |  |  | SOFR + 1.95% | (4) |  | 6.36% |  |  | 26,750 |  | 18,884 |  | 58.4%
1450 Research Boulevard |  |  | 12/10/26 |  |  | SOFR + 1.95% | (4) |  | 6.42% |  |  | 13,000 |  | 8,637 |  | 73.2%
|  |  |  |  |  |  |  |  |  |  |  | $639,750 |  | $627,451 |  |
(1)Includes interest expense and amortization of loan fees. (2)Represents outstanding principal, net of unamortized deferred financing costs, as of December 31, 2024. (3)The unconsolidated real estate joint venture is in the process of refinancing approximately $500 million of this debt with a new secured note payable, which is expected to close in the first quarter of 2025. The remaining debt balance of approximately $100 million will be repaid through contributions from the joint venture partners. We expect to contribute our share of approximately $10 million in the first quarter of 2025. As of December 31, 2024, our investment in this unconsolidated real estate joint venture was $10.6 million. (4)This loan is subject to a fixed SOFR floor of 0.75%.

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/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration