Real Estate

3 Months Ended

Mar. 31, 2024

NOTE 2. REAL ESTATE

Investments in real estate properties consisted of the following (dollars and square feet in thousands):


	Square Feet				Number of Buildings
	Mar 31,		Dec 31,		Mar 31,		Dec 31,		Mar 31,		Dec 31,
	2024		2023		2024		2023		2024		2023
Operating properties:
Buildings and improvements		635,249		630,955		2,974		2,960	$	53,099,926	$	52,626,191
Improved land										22,874,101		22,809,306
Development portfolio, including land costs:
Prestabilized		12,421		13,369		39		45		1,735,328		1,838,805
Properties under development		25,717		26,438		82		85		2,627,424		2,528,650
Land (1)										4,072,212		3,775,553
Other real estate investments (2)										5,018,514		5,088,070
Total investments in real estate properties										89,427,505		88,666,575
Less accumulated depreciation										11,430,899		10,931,485
Net investments in real estate properties									$	77,996,606	$	77,735,090

(1)

At March 31, 2024 and December 31, 2023, our land was comprised of 8,345 and 8,197 acres, respectively.

(2)

Included in other real estate investments were: (i) land parcels we own and lease to third parties; (ii) non-strategic real estate assets that we do not intend to operate long term; (iii) non-industrial real estate assets that we intend to redevelop as industrial properties or other higher use assets; and (iv) energy assets. Energy assets include solar panels, battery storage and mobility solutions.

Acquisitions

The following table summarizes our real estate acquisition activity (dollars and square feet in thousands):


	Three Months Ended March 31,
	2024		2023
Number of operating properties		-		-
Square feet		-		-
Acres of land		243		120
Acquisition cost of net investments in real estate, excluding other real estate investments	$	284,024	$	40,474

Acquisition cost of other real estate investments	$	167	$	6,185

Dispositions

The following table summarizes our dispositions of net investments in real estate which include contributions to unconsolidated co-investment ventures and dispositions to third parties (dollars and square feet in thousands):


	Three Months Ended March 31,
	2024		2023
Dispositions of development properties and land, net (1)
Number of properties		1		-
Square feet		629		-
Net proceeds	$	136,789	$	-
Gains on dispositions of development properties and land, net	$	40,308	$	-

Other dispositions of investments in real estate, net
Number of properties		1		5
Square feet		196		360
Net proceeds	$	147,836	$	57,008
Gains on other dispositions of investments in real estate, net	$	17,534	$	4,047

(1)

The gains we recognize in Gains on Dispositions of Development Properties and Land, Net in the Consolidated Statements of Income are principally driven by the contribution of newly developed properties to our unconsolidated co-investment ventures and occasionally sales to a third party.

Leases

We recognized lease right-of-use assets of $678.0 million and $683.7 million within Other Assets and lease liabilities of $593.8 million and $597.6 million within Other Liabilities, for land and office space leases in which we are the lessee, in the Consolidated Balance Sheets at March 31, 2024 and December 31, 2023, respectively.

Off-Balance Sheet Liabilities

We have issued performance and surety bonds, standby letters of credit and guarantees in connection with certain development and energy projects. At March 31, 2024 and December 31, 2023, we had $581.0 million and $498.5 million, respectively, outstanding under such arrangements.