Investments in Properties

9 Months Ended

Sep. 30, 2023

Investments in Properties

Investments in Properties

2. Investments in Properties

A summary of our investments in properties is below (in thousands):

Property Type	As of September 30, 2023		As of December 31, 2022
Land	$	1,064,058	$	1,061,408
Acquired ground lease		87		6,006
Buildings and improvements		23,998,641		24,287,103
Tenant improvements		824,244		781,540
		25,887,030		26,136,057
Accumulated depreciation and amortization		(7,489,193)		(7,268,981)
Investments in operating properties, net		18,397,837		18,867,076
Construction in progress and space held for development		5,020,464		4,789,134
Land held for future development		179,959		118,452
Investments in properties, net	$	23,598,260	$	23,774,662

Asset Dispositions

On July 13, 2023, we formed a joint venture with GI Partners, and GI Partners acquired a 65% interest in two stabilized hyperscale data center buildings in the Chicago metro area that we contributed. We received approximately $0.7 billion of gross proceeds from the contribution of our data centers to the joint venture and the associated financing, and retained a 35% interest in the joint venture. As a result of transferring control, we derecognized the data centers and recognized a gain on disposition of approximately $238 million. We have also granted GI Partners an option to purchase an interest in the third facility on the same hyperscale data center campus in Chicago. In addition, GI Partners has a call option to increase their ownership interest in the joint venture from 65% to 80%. The call option must be delivered by written notice to the Company no later than January 9, 2024. We continue to manage the day-to-day operations of the assets.

On July 25, 2023, we formed a joint venture with TPG Real Estate, and TPG Real Estate acquired an 80% interest in three stabilized hyperscale data center buildings in Northern Virginia that we contributed. We received approximately $1.3 billion of gross proceeds from the contribution of our data centers to the joint venture and the associated financing, and retained a 20% interest in the joint venture. As a result of transferring control, we derecognized the data centers and recognized a gain on disposition of approximately $577 million. We will continue to manage the day‐to‐day operations of the assets.