Real Estate Investments

9 Months Ended

Sep. 30, 2024

Real Estate [Abstract]

Real Estate Investments

Real Estate Investments

2023 Real Estate Investment Acquisitions

60 Loomis Land Parcel

In January 2023, the Company acquired a lab land parcel in Cambridge, Massachusetts for $9 million.

Wylie Outpatient Medical Building

In April 2023, the Company acquired the remaining 80% interest in one of the outpatient medical buildings in the Ventures IV unconsolidated joint venture for $4 million (see Note 8). Concurrent with the acquisition, the Company began consolidating the building and recognized a gain upon change of control of $0.2 million, which is recorded in other income (expense), net during the nine months ended September 30, 2023.

Development Activities

The Company’s commitments, which are primarily related to development and redevelopment projects and Company-owned tenant improvements, increased by $27 million to $206 million at September 30, 2024, when compared to December 31, 2023, primarily as a result of (i) additional commitments on projects placed into development and redevelopment during the period and (ii) commitments related to development projects acquired as part of the Merger, partially offset by additional construction spend on projects in development and redevelopment during the first three quarters of 2024.

Casualty-Related Events

During the three and nine months ended September 30, 2024, the Company recognized $2 million and $1 million, respectively, of net casualty-related charges. These casualty-related charges were primarily related to damages as a result of hurricane events during the three months ended September 30, 2024, partially offset by recoveries from proceeds received for water damage at an outpatient medical building during the nine months ended September 30, 2024. Casualty-related charges are recognized in other income (expense), net and equity income (loss) from unconsolidated joint ventures in the Consolidated Statements of Operations.

In October 2024, Hurricane Milton impacted certain of the Company’s CCRCs and outpatient medical buildings in Florida. The Company is currently in process of evaluating the impact of the casualty event to its consolidated financial position, results of operations, and cash flows. Due to the recency of this event, the Company is unable to estimate the magnitude of losses at this time.