Unconsolidated Entities

3 Months Ended

Mar. 31, 2023

Equity Method Investments And Joint Ventures [Abstract]

NOTE 4. UNCONSOLIDATED ENTITIES

Summary of Investments

We have investments in entities through a variety of ventures. We co-invest in entities that own multiple properties with partners and investors and we provide asset management and property management services to these entities, which we refer to as co-investment ventures. These entities may be consolidated or unconsolidated depending on the structure, our partner’s participation and other rights and our level of control of the entity. This note details our investments in unconsolidated co-investment ventures, which are related parties and accounted for using the equity method of accounting. See Note 7 for more detail regarding our consolidated investments that are not wholly owned.

We also have investments in other ventures, generally with one partner, which we account for using the equity method. We refer to our investments in both unconsolidated co-investment ventures and other ventures, collectively, as unconsolidated entities.

The following table summarizes our investments in and advances to unconsolidated entities (in thousands):


	March 31,		December 31,
	2023		2022
Unconsolidated co-investment ventures	$	8,055,322	$	8,073,927
Other ventures (1)		1,624,775		1,624,971
Total	$	9,680,097	$	9,698,898

(1)

Included in other ventures is our $174.9 million and $162.6 million investment in early and growth-stage companies that are focused on emerging technologies at March 31, 2023 and December 31, 2022, respectively.

Unconsolidated Co-Investment Ventures

The following table summarizes the Strategic Capital Revenues we recognized in the Consolidated Statements of Income related to our unconsolidated co-investment ventures (in thousands):


	Three Months Ended March 31,
	2023		2022
Recurring fees	$	113,557	$	113,237
Transactional fees		15,080		17,229
Promote revenue		320		-
Total strategic capital revenues from unconsolidated co-investment ventures (1)	$	128,957	$	130,466

(1)

These amounts exclude strategic capital revenues from other ventures.

The following table summarizes the key property information, financial position and operating information of our unconsolidated co-investment ventures on a U.S. GAAP basis (not our proportionate share) and the amounts we recognized in the Consolidated Financial Statements related to these ventures (dollars and square feet in millions):


	U.S.						Other Americas (1)						Europe						Asia						Total
At:	Mar 31, 2023			Dec 31, 2022			Mar 31, 2023			Dec 31, 2022			Mar 31, 2023			Dec 31, 2022			Mar 31, 2023			Dec 31, 2022			Mar 31, 2023			Dec 31, 2022
Key property information:
Ventures		1			1			2			2			2			2			3			3			8			8
Operating properties		740			739			260			260			992			989			220			217			2,212			2,205
Square feet		123			123			60			60			220			219			90			89			493			491

Financial position:
Total assets ($)		12,609			12,617			3,760			3,744			22,957			22,502			9,844			9,964			49,170			48,827
Third-party debt ($)		3,468			3,468			919			919			5,426			5,315			3,827			3,811			13,640			13,513
Total liabilities ($)		4,179			4,143			983			1,011			7,502			7,292			4,259			4,279			16,923			16,725

Our investment balance ($) (2)		2,371			2,398			1,041			1,070			3,850			3,786			793			820			8,055			8,074
Our weighted average ownership (3)		26.2	%		26.2	%		40.6	%		41.0	%		31.0	%		31.0	%		15.2	%		15.2	%		27.4	%		27.4	%

	U.S.						Other Americas (1)						Europe						Asia						Total
Operating Information:	Mar 31, 2023			Mar 31, 2022			Mar 31, 2023			Mar 31, 2022			Mar 31, 2023			Mar 31, 2022			Mar 31, 2023			Mar 31, 2022			Mar 31, 2023			Mar 31, 2022
For the three months ended:
Total revenues ($)		324			286			103			89			414			356			165			169			1,006			900
Net earnings ($)		101			72			43			33			69			104			27			34			240			243

Our earnings from unconsolidated co-investment ventures, net ($)		27			19			16			12			21			31			4			6			68			68

(1)

Prologis Brazil Logistics Venture (“PBLV”) and our other Brazilian joint ventures are combined as one venture for the purpose of this table.

(2)

Prologis’ investment balance is presented at our adjusted basis. The difference between our ownership interest of a venture’s equity and our investment balance at March 31, 2023 and December 31, 2022, results principally from four types of transactions: (i) deferred gains from the contribution of property to a venture prior to January 1, 2018; (ii) recording additional costs associated with our investment in the venture; (iii) receivables, principally for fees and promotes ($146.4 million and $193.7 million, respectively); and (iv) customer security deposits retained subsequent to property contributions to Nippon Prologis REIT, Inc.

(3)

Represents our weighted average ownership interest in all unconsolidated co-investment ventures based on each entity’s contribution of total assets before depreciation, net of other liabilities.

Equity Commitments Related to Certain Unconsolidated Co-Investment Ventures

At March 31, 2023, our outstanding equity commitments were $285.8 million, primarily for Prologis China Logistics Venture. The equity commitments expire from 2023 to 2028 if they have not been previously called. Typically, equity commitments are used for future development and acquisitions in the unconsolidated co-investment ventures.