Investments in Real Estate (Tables)

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Schedule of Real Estate Properties

A summary of our data center portfolio as of December 31, 2018 and 2017 is as follows:

	Data Centers
	As of December 31, 2018						As of December 31, 2017
Region	Operating			Held for Sale	Unconsolidated Joint Ventures	Total	Operating			Held for Sale	Unconsolidated Joint Ventures	Total
United States	131			—	14	145	131	(2	)	7	14	152
Europe	38			—	—	38	38			—	—	38
Latin America	16	(1	)	—		16	—			—	—	—
Asia	3			—	4	7	3			—	4	7
Australia	5			—	—	5	5			—	—	5
Canada	3			—	—	3	3	(2	)	—	—	3
Total	196			—	18	214	180			7	18	205

(1) Includes 16 data centers acquired as part of the Ascenty Acquisition, eight of which are under construction.

(2) Includes 15 data centers acquired as part of the merger with DuPont Fabros Technology, Inc., of which 14 are located in the United States and one is located in Canada.

A summary of our investments in properties as of December 31, 2018 and 2017 is as follows:

	As of December 31, 2018
	(in thousands)
Property Type	Land		Acquired Ground Lease		Buildings and Improvements (1)		Tenant Improvements		Accumulated Depreciation and Amortization			Net Investment in Properties
Internet Gateway Data Centers	$	101,964	$	—	$	2,137,458	$	114,013	$	(885,315	)	$	1,468,120
Data Centers (2)	1,391,585		10,575		14,502,437		460,247		(3,016,646		)	13,348,198
Technology Manufacturing	11,959		—		1,582		76		(100		)	13,517
Technology Office	2,091		—		23,104		—		(18,441		)	6,754
Other	2,165		—		80,629		—		(14,765		)	68,029
	$	1,509,764	$	10,575	$	16,745,210	$	574,336	$	(3,935,267	)	$	14,904,618

	As of December 31, 2017
	(in thousands)
Property Type	Land		Acquired Ground Lease		Buildings and Improvements (1)		Tenant Improvements		Accumulated Depreciation and Amortization			Net Investment in Properties
Internet Gateway Data Centers	$	109,844	$	—	$	1,940,495	$	99,174	$	(778,659	)	$	1,370,854
Data Centers (2)	1,010,306		11,150		13,147,042		453,712		(2,430,984		)	12,191,226
Technology Manufacturing	11,959		—		1,564		76		(31		)	13,568
Technology Office	2,067		—		23,029		—		(16,779		)	8,317
Other	2,165		—		103,275		78		(11,774		)	93,744
	$	1,136,341	$	11,150	$	15,215,405	$	553,040	$	(3,238,227	)	$	13,677,709

(1) Balances include, as of December 31, 2018 and 2017, $1.6 billion and $1.4 billion of direct and accrued costs associated with development in progress, respectively.

(2) Balances include vacant land to support ground-up development.

Schedule of Real Estate Property Acquisitions

A summary of the fair value of the assets and liabilities acquired for total equity of approximately $6.2 billion is as follows (in thousands):

	Fair Value			Weighted Average Remaining Intangible Amortization Life (in months)
Land	$	312,579
Buildings and improvements	3,677,497
Cash and cash equivalents	20,650
Accounts and other receivables	10,978
Acquired above-market leases	162,333			47
Goodwill	2,592,181
Acquired in-place lease value, deferred leasing costs and intangibles:
Tenant relationship value	980,267			220
Acquired in-place lease value	557,128			70
Tenant origination costs	44,990			80
Global revolving credit facility, net (1)	(450,697		)
Unsecured term loans (1)	(250,000		)
Unsecured senior notes, net (2)	(886,831		)
Mortgage loans (1)	(105,000		)
Acquired below-market leases	(185,543		)	137
Accounts payable and other accrued liabilities	(248,259		)
Other working capital, net	(22,640		)
Total equity consideration for DFT merger	$	6,209,633

(1) Debt was paid off in full at closing of the DFT merger.

(2) Approximately $621 million of fair value debt was paid off prior to September 30, 2017. The remainder was paid off in October 2017.

The following table summarizes the provisional amounts for acquired assets and liabilities recorded at their fair values as of the acquisition date (in thousands):

Building and improvements	$	425,000
Goodwill	982,667
Tenant relationship value	375,000
Acquired in-place lease value	120,000
Cash and cash equivalents	116,000
Other assets	30,000
Other liabilities	(40,000		)
Capital lease and other long-term obligations	(50,000		)
Total purchase price	$	1,958,667

We acquired the following real estate during the years ended December 31, 2018 and 2017 (excluding business combinations already discussed in Note 3):

2018 Acquisitions

Property Type	Amount (in millions)(2)
Land Parcels (1)	$	296.1
Data Centers	114.6
	$	410.7

2017 Acquisitions

Property Type	Amount (in millions)(2)
Land Parcels (1)	$	55.3
Data Centers	346.2
Technology Manufacturing	14.3
	$	415.8

(1) Represents currently vacant land which is not included in our operating property count.

(2) Purchase price in U.S. dollars and excludes capitalized closing costs. Each of these acquisitions was accounted for as an asset acquisition pursuant to the adoption of ASU 2017-01 on January 1, 2017.

The table below reflects the purchase price allocation for the above properties acquired in 2018 and 2017 (in thousands):

Property Type	Land		Buildings and Improvements		Tenant Improvements		Above-Market Leases		In-Place Leases		Below-Market Leases			Acquisition Date Fair Value
2018
Land Parcels	$	296,071	$	—	$	—	$	—	$	—	$	—		$	296,071
Data Centers	60,633		54,008		—		—		—		—			114,641
Total	$	356,704	$	54,008	$	—	$	—	$	—	$	—		$	410,712
2017
Land Parcels	$	55,229	$	—	$	—	$	—	$	—	$	—		$	55,229
Data Centers	20,431		275,374		1,506		21,043		28,656		(811		)	346,199
Technology Manufacturing	11,950		1,539		76		—		1,455		(684		)	14,336
Total	$	87,610	$	276,913	$	1,582	$	21,043	$	30,111	$	(1,495	)	$	415,764
Weighted average remaining intangible amortization life (in months)							65		81		80

Schedule of Purchase Price Allocation

The table below reflects the purchase price allocation for the above properties acquired in 2018 and 2017 (in thousands):

Property Type	Land		Buildings and Improvements		Tenant Improvements		Above-Market Leases		In-Place Leases		Below-Market Leases			Acquisition Date Fair Value
2018
Land Parcels	$	296,071	$	—	$	—	$	—	$	—	$	—		$	296,071
Data Centers	60,633		54,008		—		—		—		—			114,641
Total	$	356,704	$	54,008	$	—	$	—	$	—	$	—		$	410,712
2017
Land Parcels	$	55,229	$	—	$	—	$	—	$	—	$	—		$	55,229
Data Centers	20,431		275,374		1,506		21,043		28,656		(811		)	346,199
Technology Manufacturing	11,950		1,539		76		—		1,455		(684		)	14,336
Total	$	87,610	$	276,913	$	1,582	$	21,043	$	30,111	$	(1,495	)	$	415,764
Weighted average remaining intangible amortization life (in months)							65		81		80

Schedule of Dispositions

We sold the following real estate properties during the years ended December 31, 2018 and 2017:

2018 Dispositions

Location	Metro Area	Date Sold	Gross Proceeds (in millions)		Gain (loss) on sale (in millions)
200 Quannapowitt Parkway	Boston	Jan 25, 2018	$	15.0	$	(0.4	)
34551 Ardenwood Boulevard	Silicon Valley	Feb 9, 2018	73.3		25.3
3065 Gold Camp Drive	Sacramento	Mar 14, 2018	14.2		5.4
11085 Sun Center Drive	Sacramento	Mar 14, 2018	36.8		9.1
Austin Portfolio	Austin	Apr 19, 2018	47.6		12.0
2010 East Centennial Circle	Phoenix	May 22, 2018	5.5		(0.5		)
1125 Energy Park Drive	Minneapolis	May 31, 2018	7.0		2.8
360 Spear Street	San Francisco	Sep 21, 2018	92.3		26.7
			$	291.7	$	80.4

2017 Dispositions

Location	Metro Area	Date Sold	Gross Proceeds (in millions)		Gain on Sale (in millions)
8025 North Interstate 35	Austin	August 10, 2017	$	20.2	$	9.6
44874 Moran Road (1)	Northern Virginia	October 6, 2017	34.0		15.6
1 Solutions Parkway	St. Louis	November 28, 2017	37.1		14.7
			$	91.3	$	39.9

(1) The property was held in a consolidated joint venture in which the Company owned a 75% interest. The Company recognized a gain on the sale of approximately $11.7 million, net of noncontrolling interests.