Investments in real estate (Tables)

6 Months Ended

Jun. 30, 2016

Our consolidated investments in real estate consisted of the following as of June 30, 2016, and December 31, 2015 (in thousands):



	June 30, 2016				December 31, 2015
North America:
Land (related to rental properties)	$	676,359			$	677,649
Buildings and building improvements	6,751,689				6,644,634
Other improvements	336,799				260,605
Rental properties – North America	7,764,847				7,582,888

Development and redevelopment projects (under construction or pre-construction)	1,125,464				917,706
Future value-creation projects – North America	233,696				206,939
Value-creation pipeline – North America	1,359,160				1,124,645

Gross investments in real estate – North America	9,124,007				8,707,533

Gross investments in real estate – Asia	76,561			⁽¹⁾	237,728

Gross investments in real estate	9,200,568				8,945,261
Less: accumulated depreciation	(1,425,960		)		(1,315,339		)
Investments in real estate	$	7,774,608			$	7,629,922


(1)	Refer to “Assets located in Asia” in Note 14 – “Assets Classified as Held for Sale” to these unaudited consolidated financial statements for further information.

Schedule of consolidated joint ventures

The following table aggregates the balance sheet information of our consolidated VIEs as of June 30, 2016 and December 31, 2015 (in thousands):



	June 30, 2016		December 31, 2015
Investments in real estate	$	770,505	$	608,474
Cash and cash equivalents	15,819		2,060
Other assets	40,082		37,633
Total assets	$	826,406	$	648,167

Secured notes payable	$	—	$	—
Other liabilities	58,732		38,666
Total liabilities	58,732		38,666
Alexandria Real Estate Equities, Inc.’s share of equity	432,847		307,220
Noncontrolling interests’ share of equity	334,827		302,281
Total liabilities and equity	$	826,406	$	648,167

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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