Investments in Real Estate

12 Months Ended

Dec. 31, 2019

Investments in Real Estate.

Investments in Real Estate

5. Investments in Real Estate

A summary of our investments in properties as of December 31, 2019 and 2018 is as follows:

	As of December 31, 2019
	(in thousands)
									Accumulated
			Acquired						Depreciation		Net Investments				Land Held		Net
			Ground		Buildings and		Tenant		and		in Operating		Construction in		For Future		Investment
Property Type	Land		Lease		Improvements		Improvements		Amortization		Properties		Progress		Development		in Properties
Internet Gateway Data Centers	$	99,653	$	—	$	2,133,198	$	126,264	$	(995,202)	$	1,363,913	$	85,605	$	—	$	1,449,518
Data Centers (1)		659,184		10,725		13,046,742		494,052		(3,481,542)		10,729,161		1,543,534		147,597		12,420,292
Technology Manufacturing		11,959		—		1,603		76		(161)		13,477		10		—		13,487
Technology Office		27,807		—		29,071		—		(22,188)		34,690		59,229		—		93,919
Other		6,227		—		239,270		761		(37,076)		209,182		44,177		—		253,359
	$	804,830	$	10,725	$	15,449,884	$	621,153	$	(4,536,169)	$	12,350,423	$	1,732,555	$	147,597	$	14,230,575

	As of December 31, 2018
	(in thousands)
									Accumulated
			Acquired						Depreciation		Net Investments				Land Held		Net
			Ground		Buildings and		Tenant		and		in Operating		Construction in		For Future		Investment
Property Type	Land		Lease		Improvements		Improvements		Amortization		Properties		Progress		Development		in Properties
Internet Gateway Data Centers	$	99,313	$	—	$	2,036,041	$	114,013	$	(885,214)	$	1,364,153	$	42,615	$	—	$	1,406,768
Data Centers (1)		688,494		10,575		12,924,596		460,247		(3,004,365)		11,079,547		1,548,643		157,039		12,785,229
Technology Manufacturing		11,959		—		1,582		76		(100)		13,517		—		—		13,517
Technology Office		58,066		—		26,106		—		(20,015)		64,157		—		—		64,157
Other		1,281		—		622,667		—		(25,573)		598,375		30,670		5,902		634,947
	$	859,113	$	10,575	$	15,610,992	$	574,336	$	(3,935,267)	$	13,119,749	$	1,621,928	$	162,941	$	14,904,618

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

On September 16, 2019, we announced the proposed sale of 10 Powered Base Building® properties, which comprise 12 data centers, in North America to Mapletree Investments Pte Ltd (“Mapletree Investments”) and Mapletree Industrial Trust (“MIT” and together with Mapletree Investments, “Mapletree”), at a purchase consideration of approximately $557.0 million. As of December 31, 2019, these 12 data centers had an aggregate carrying value of $229.9 million within total assets and $2.7 million within total liabilities and are shown as assets held for sale and obligations associated with assets held for sale on the consolidated balance sheet. The 12 data centers are not representative of a significant component of our portfolio, nor does the potential sales represent a significant shift in our strategy. Subsequent to year-end, we closed on the sale of the 12 data centers in January 2020, for a gain of approximately $303.3 million. We will provide transitional property management services for one year from the closing date at a customary market rate.

Acquisitions

We acquired the following real estate during the years ended December 31, 2019 and 2018 (excluding business combinations already discussed in Note 3):

2019 Acquisitions

	Amount
Property Type	(in millions) (2)
Land parcels (1)	$	47.7
Technology office (3)		28.0
	$	75.7

2018 Acquisitions

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

(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.

(3) Property to be redeveloped.

The table below reflects the purchase price allocation for the above properties acquired in 2019 and 2018 (in thousands):

							Above-				Below-		Acquisition
			Buildings and		Tenant		Market		In-Place		Market		Date Fair
Property Type	Land		Improvements		Improvements		Leases		Leases		Leases		Value
2019
Land Parcels	$	47,712	$	—	$	—	$	—	$	—	$	—	$	47,712
Technology office		24,315		3,039		—		—		638		—		27,992
Total	$	72,027	$	3,039	$	—	$	—	$	638	$	—	$	75,704
2018
Land Parcels	$	296,071	$	—	$	—	$	—	$	—	$	—	$	296,071
Data Centers		60,633		54,008		—		—		—		—		114,641
Total	$	356,704	$	54,008	$	—	$	—	$	—	$	—	$	410,712

Dispositions

We sold the following real estate properties during the years ended December 31, 2019 and 2018:

2019 Dispositions

				Fair Value		Gain on contribution
Location / Portfolio	Metro Area	Date Sold		(in millions)		(in millions)
Mapletree portfolio (1)	Northern Virginia		Nov 1, 2019	$	996.6	$	266.0

(1) Consists of three data centers that were contributed to a joint venture (see note 6).

2018 Dispositions

					Gross Proceeds		Gain on Sale
Location	Metro Area		Date Sold		(in millions)		(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