Real Estate

9 Months Ended

Sep. 30, 2023

NOTE 3. REAL ESTATE

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


	Square Feet				Number of Buildings
	Sep 30,		Dec 31,		Sep 30,		Dec 31,		Sep 30,		Dec 31,
	2023		2022		2023		2022		2023		2022
Operating properties:
Buildings and improvements		620,413		597,362		2,933		2,825	$	51,476,222	$	48,650,334
Improved land										22,390,537		20,388,461
Development portfolio, including land costs:
Prestabilized		12,738		4,874		40		15		1,718,732		597,553
Properties under development		25,042		44,011		70		121		2,701,514		3,614,601
Land (1)										3,730,346		3,338,121
Other real estate investments (2)										5,004,234		5,034,326
Total investments in real estate properties										87,021,585		81,623,396
Less accumulated depreciation										10,439,374		9,036,085
Net investments in real estate properties									$	76,582,211	$	72,587,311

(1)

At September 30, 2023 and December 31, 2022, our land was comprised of 8,094 and 7,188 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, primarily acquired from the Duke Transaction, that we do not intend to operate long term; (iii) non-industrial real estate assets that we intend to redevelop into industrial properties; and (iv) costs associated with potential acquisitions and future development projects, including purchase options on land.

Acquisitions

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023 (1)		2022
Number of operating properties		-		9		76		22
Square feet		-		1,952		14,941		3,746
Acres of land		890		590		1,128		1,796
Acquisition cost of net investments in real estate, excluding other real estate investments	$	116,112	$	314,736	$	3,626,672	$	1,562,962

Acquisition cost of other real estate investments	$	37,343	$	33,627	$	77,624	$	636,841

(1)

On June 29, 2023, we acquired a real estate portfolio comprised of 70 operating properties in the U.S., aggregating 13.8 million square feet, for cash consideration of $3.1 billion.

Dispositions

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Dispositions of development properties and land, net (1)
Number of properties		2		7		7		18
Square feet		1,530		1,203		3,652		4,966
Net proceeds	$	272,250	$	168,601	$	738,207	$	846,350
Gains on dispositions of development properties and land, net	$	89,030	$	74,678	$	273,907	$	390,686

Other dispositions of investments in real estate, net (2)
Number of properties		19		-		24		102
Square feet		2,415		-		2,775		8,676
Net proceeds	$	263,567	$	-	$	635,140	$	1,264,280
Gains on other dispositions of investments in real estate, net	$	129,584	$	1,019	$	158,392	$	585,854

(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.

(2)

During the nine months ended September 30, 2023, we sold our ownership interest in an unconsolidated office joint venture.

Leases

We recognized lease right-of-use assets of $677.0 million and $735.4 million within Other Assets and lease liabilities of $587.0 million and $638.8 million within Other Liabilities, for land and office space leases in which we are the lessee, in the Consolidated Balance Sheets at September 30, 2023 and December 31, 2022, respectively.