Segment Reporting
Jun. 30, 2025
tenants primarily in the life science industry. Our properties are leased predominantly through triple-net lease agreements and share
key characteristics, including generic and reusable improvements, consistent lease structures, and business strategy. All properties are
located within North America, predominantly in the U.S., and operate within a comparable regulatory environment.
Operating segments
Our Chief Operating Decision Maker (“CODM”), represented by our Executive Chairman and our Chief Executive Officer,
evaluates operating results at the geographic market level to assess performance and allocate resources. Our operating segments align
with our markets, including Greater Boston, San Francisco Bay Area, San Diego, and Seattle, among others. Regular market
performance updates are provided directly to the CODM. These updates include each market’s net operating income (“NOI”), which
serves as the profit or loss measure used by the CODM for performance assessment and resource allocation. NOI provides useful
information regarding performance of each market as it reflects income and expenses incurred in connection with real estate operations
in each market. This metric enables the CODM to evaluate the profitability and performance of each market on a consistent and
comparable basis, supporting decisions on capital resource allocation, including in connection with development, redevelopment,
acquisition, and disposition activities in each market.
Evaluation of economic similarity and aggregation of operating segments
In accordance with the segment reporting accounting standard, we evaluate the economic similarity of our operating
segments. Seven of our nine operating segments exhibit consistent long-term economic characteristics, including similar historical long-
term NOI margins, which are also expected to remain similar in the future. Additionally, these markets share similar operational
characteristics, including nature of services provided (i.e., leasing, operating, developing, and redeveloping life science properties),
tenant base (i.e., a variety of tenants involved in the life science industry), methods of operation (i.e., consistent lease structures,
property management practices, and business strategies), nature of the regulatory environment (consistent across North America,
where all our operating segments are located). Based on shared economic characteristics, we have aggregated our seven operating
segments into one reportable segment for segment reporting purposes. Two of our operating segments, specifically our New York City
and Canada markets, do not meet the aggregation criteria and individually do not meet the quantitative thresholds to qualify as
reportable segments. Therefore, these operating segments are included in the “all other” category in the tables below.
The following table presents the reportable segment profit or loss measure, net operating income, for the three and six months
ended June 30, 2025 and 2024 (in thousands):
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Reportable segment revenues: | |||||||
Revenues from external customers | $703,457 | $713,949 | $1,402,656 | $1,434,514 | |||
Other income | 10,488 | 5,677 | 17,015 | 11,352 | |||
Reportable segment total revenues | 713,945 | 719,626 | 1,419,671 | 1,445,866 | |||
Reportable segment total rental operating expenses | (212,402) | (199,930) | (424,838) | (391,021) | |||
Reportable segment net operating income (reportable segment profit or loss) | $501,543 | $519,696 | $994,833 | $1,054,845 | |||
Significant expenses included in the reportable segment profit or loss measure (i.e., net operating income) are represented by
the reportable segment total rental operating expenses and are disclosed in the table above. These expenses primarily include property
taxes, utilities, repairs and maintenance, engineering, janitorial, and other costs.
Presented below are reconciliations of the reportable segment total revenues to the consolidated revenues, the reportable
segment total rental operating expenses to consolidated rental operations, the reportable segment NOI to the consolidated net income,
and the reportable segment investments in real estate assets to the consolidated investments in real estate assets (in thousands):
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Reconciliation of reportable segment revenues to consolidated total revenues: | |||||||
Reportable segment total revenues | $713,945 | $719,626 | $1,419,671 | $1,445,866 | |||
All other revenues | 48,095 | 47,108 | 100,527 | 89,976 | |||
Consolidated revenues | $762,040 | $766,734 | $1,520,198 | $1,535,842 | |||
Reconciliation of reportable segment total rental operating expenses to consolidated rental operations: | |||||||
Reportable segment total rental operating expenses | $(212,402) | $(199,930) | $(424,838) | $(391,021) | |||
All other rental operating expenses | (12,031) | (17,324) | (25,990) | (44,547) | |||
Consolidated rental operations | $(224,433) | $(217,254) | $(450,828) | $(435,568) | |||
Reconciliation of reportable segment net operating income to consolidated net income: | |||||||
Reportable segment net operating income (reportable segment profit or loss) | $501,543 | $519,696 | $994,833 | $1,054,845 | |||
All other revenues | 48,095 | 47,108 | 100,527 | 89,976 | |||
All other rental operating expenses | (12,031) | (17,324) | (25,990) | (44,547) | |||
Other items not allocated to segments: | |||||||
General and administrative | (29,128) | (44,629) | (59,803) | (91,684) | |||
Interest expense | (55,296) | (45,789) | (106,172) | (86,629) | |||
Depreciation and amortization | (346,123) | (290,720) | (688,185) | (578,274) | |||
Impairment of real estate | (129,606) | (30,763) | (161,760) | (30,763) | |||
Equity in (losses) earnings of unconsolidated real estate joint ventures | (9,021) | 130 | (9,528) | 285 | |||
Investment loss | (30,622) | (43,660) | (80,614) | (376) | |||
Gain on sale of real estate | — | — | 13,165 | 392 | |||
Consolidated net (loss) income | $(62,189) | $94,049 | $(23,527) | $313,225 | |||
June 30, 2025 | December 31, 2024 | ||
Reconciliation of reportable segment assets to consolidated investments in real estate assets: | |||
Reportable segment investments in real estate | $30,476,127 | $30,393,144 | |
All other investments in real estate | 1,684,473 | 1,716,895 | |
Consolidated investments in real estate | $32,160,600 | $32,110,039 |