Below-market leases

  
  
3.    INVESTMENTS IN REAL ESTATEOur consolidated investments in real estate, including real estate assets held for sale as described in Note 15 – “Assets classified as held for sale” to our unaudited consolidated financial statements, consisted of the following as of September 30, 2022 and December 31, 2021 (in thousands):  


|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | September 30, 2022 |  | December 31, 2021 |
| Rental properties: |  |  |  |  |
| Land (related to rental properties) |  | $ | 4,156,888  |  |  | $ | 3,782,182  |  |
| Buildings and building improvements |  | 17,857,504  |  |  | 16,312,402  |  |
| Other improvements |  | 2,537,926  |  |  | 2,109,884  |  |
| Rental properties |  | 24,552,318  |  |  | 22,204,468  |  |
| Development and redevelopment projects |  | 8,352,598  |  |  | 6,528,640  |  |
| Gross investments in real estate – North America |  | 32,904,916  |  |  | 28,733,108  |  |
| Less: accumulated depreciation – North America |  | (4,144,019) |  |  | (3,766,758) |  |
| Net investments in real estate – North America |  | 28,760,897  |  |  | 24,966,350  |  |
| Net investments in real estate – Asia |  | 10,848  |  |  | 14,319  |  |
| Investments in real estate |  | $ | 28,771,745  |  |  | $ | 24,980,669  |  |

  
Acquisitions  
Our real estate asset acquisitions during the nine months ended September 30, 2022 consisted of the following (dollars in thousands):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  | Square Footage |  |  |  |
| Market |  | Number of Properties |  | Future Development |  |  |  | Operating With Future Development/Redevelopment |  | Operating |  | Purchase Price |  |
| Greater Boston |  | 2 |  | 202,997  |  |  |  |  | 440,130  |  |  | —  |  |  | $ | 205,792  |  |  |
| San Francisco Bay Area |  | 5 |  | 610,000  |  |  |  |  | 723,953  |  |  | 70,000  |  |  | 564,000  |  |  |
| San Diego |  | 2 |  | 537,000  |  |  |  |  | 8,730  |  |  | —  |  |  | 125,000  |  |  |
| Seattle |  | — |  | 869,000  |  |  |  |  | —  |  |  | —  |  |  | 87,608  |  |  |
| Research Triangle |  | 4 |  | 1,925,000  |  |  |  |  | 69,485  |  |  | —  |  |  | 179,428  |  |  |
| Texas |  | 9 |  | —  |  |  |  |  | 998,099  |  |  | —  |  |  | 400,400  |  |  |
| Other |  | 7 |  | 473,994  |  |  |  |  | 428,097  |  |  | 381,760  |  |  | 278,489  |  |  |
| Three months ended March 31, 2022 |  | 29 |  | 4,617,991  |  |  |  |  | 2,668,494  |  |  | 451,760  |  |  | 1,840,717  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Greater Boston |  | 1 |  | —  |  |  |  |  | 88,591  |  |  | —  |  |  | 140,000  |  |  |
| Other |  | 2 |  | 869,000  |  |  |  |  | 109,557  |  |  | —  |  |  | 140,146  |  |  |
| Three months ended June 30, 2022 |  | 3 |  | 869,000  |  |  |  |  | 198,148  |  |  | —  |  |  | 280,146  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Greater Boston |  | 1 |  | —  |  |  |  |  | 104,500  |  |  | —  |  |  | 170,000  |  |  |
| San Diego |  | 3 |  | 750,000  |  |  |  |  | 226,144  |  |  | —  |  |  | 106,380  |  |  |
| Other |  | 3 |  | 302,000  |  |  |  |  | 108,478  |  |  | —  |  |  | 40,349  |  |  |
| Three months ended September 30, 2022 |  | 7 |  | 1,052,000  |  |  |  |  | 439,122  |  |  | —  |  |  | 316,729  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Nine months ended September 30, 2022 |  | 39 |  | 6,538,991  |  |  |  |  | 3,305,764  |  |  | 451,760  |  |  | $ | 2,437,592  |  | (1) |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |

(1)Represents the aggregate contractual purchase price of our acquisitions, which differs from purchases of real estate in our unaudited consolidated statements of cash flows due to the timing of payment, closing costs, and other acquisition adjustments such as prorations of rents and expenses.  
Based upon our evaluation of each acquisition, we determined that substantially all of the fair value related to each acquisition is concentrated in a single identifiable asset or a group of similar identifiable assets or is associated with a land parcel with no operations. Accordingly, each transaction did not meet the definition of a business and therefore was accounted for as an asset acquisition. In each of these transactions, we allocated the total consideration for each acquisition to the individual assets and liabilities acquired on a relative fair value basis.  
During the nine months ended September 30, 2022, we acquired 39 properties for an aggregate purchase price of $2.4 billion. In connection with our acquisitions, we recorded in-place lease assets aggregating $164.2 million and below-market lease liabilities in which we are the lessor aggregating $96.3 million. As of September 30, 2022, the weighted-average amortization period remaining on our in-place leases and below-market leases acquired during the nine months ended September 30, 2022 was 8.1 years and 17.1 years, respectively, and 11.5 years in total.21
