2. Investments in Properties

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A summary of our Investments in properties, net is below (in thousands):

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Acquisitions

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On June 30, 2026, the Company completed the acquisition of 64% blended partnership interests in the Digital Carver Dulles 9 JV, LLC and Digital Carver Brickyard JV, LLC joint ventures (collectively, the “joint ventures”) (the “June 2026 Acquisition”). Prior to the June 2026 Acquisition, the Company held the remaining 36% blended partnership interests in the joint ventures. The June 2026 Acquisition is being accounted for as an asset acquisition. After closing, each of the joint ventures became a wholly owned subsidiary of the Operating Partnership, which caused the Company to include the net book value of its 36% blended partnership interests as part of the purchase consideration. No gain or loss was recognized on the previously held interests. Additionally, the Company recognized $201 million of promote income, within Fee income and other and $14 million of promote expense within Other operating expenses on the condensed consolidated income statements. Promote income relates to incentive fees based primarily on the investment’s total return over certain financial hurdles related to the third party investor, which were achieved at the closing of the June 2026 Acquisition. Promote expense relates to the Digital Realty 2025 Carried Interest Plan (the “Carried Interest Plan”), which may award up to 50% of the promotes paid by third party investors to employees as cash awards. Prior to the close of the June 2026 Acquisition, no expense was recognized as it was not considered probable due to the uncertainty of achievement of the performance hurdles. As of June 30, 2026, the Company has unrecognized compensation cost of $35 million with a weighted-average service period of two years. Promote expense is expected to be paid on the applicable vesting dates.

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In accordance with ASC 805-50, the transaction was treated as a step-acquisition of assets using a cost-accumulation model. The aggregate costs of the acquisition of approximately $5.2 billion to be allocated was established by combining the historical carrying value of the Company's blended 36% interest ($494 million), the cash and equity paid for the remaining blended 64% interest ($3.5 billion), the company-earned promote ($201 million), direct capitalized transaction costs ($30 million) and the fair value of the assumed debt ($726 million) and other liabilities ($222 million).

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The following table summarizes how the aggregated costs were allocated to the individual tangible and intangible real estate assets based on their relative fair values on the acquisition date (in thousands):

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The fixed and intangible assets will be depreciated over their respective useful lives as follows:

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During the three months ended June 30, 2026, we completed several additional acquisitions, including two land parcels totaling approximately 355 acres in the Atlanta metro area for $21 million, two data centers and associated land in Cyberjaya, Malaysia for $137 million, and a 27-acre site in Marseille, France for $55 million. Prior to acquiring the Marseille site, we leased the property; accordingly, upon acquisition we derecognized finance lease right-of-use assets and finance lease liabilities of $52 million and $54 million, respectively. In April 2026, our Operating Partnership also acquired approximately 1,440 acres of development land at Astra Enterprise Park, located near Kansas City, (the “April 2026 Acquisition”) for total consideration of $482 million, comprised of $377.6 million in cash and 517,475 common units of limited partnership interest in our Operating Partnership with a fair value of $104.0 million.

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Dispositions

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During the quarter, Digital Realty sold a non-core asset in the Atlanta metro area, which was held for sale as of March 31, 2026, for gross proceeds of $25 million. The non-core asset had an aggregate carrying value of approximately $23 million. In May, we contributed two development projects to Digital Realty DC Partners NA Fund (the “Fund”), with an aggregate carrying value of approximately $439 million, for gross proceeds of $447 million and recognized a gain on disposition of approximately $8 million.

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These assets were not representative of a significant component of our portfolio, nor will the dispositions or contributions represent a significant shift in our strategy.