Debt

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt

NOTE 6. DEBT

All debt is incurred by the OP or its consolidated subsidiaries. The following table summarizes our debt (dollars in thousands):

	June 30, 2023					December 31, 2022
	Weighted Average			Amount		Weighted Average			Amount
	Interest Rate (1)	Years (2)		Outstanding (3)		Interest Rate (1)	Years (2)		Outstanding (3)
Credit facilities	5.4%		3.0	$	629,512	4.2%		2.8	$	1,538,461
Senior notes	2.9%		10.7		25,073,147	2.3%		10.3		19,786,253
Term loans and unsecured     other	2.6%		4.4		2,058,732	2.3%		4.9		2,106,592
Secured mortgage	3.7%		4.0		368,082	3.0%		4.3		444,655
Total	2.9%		10.0	$	28,129,473	2.5%		9.2	$	23,875,961

(1)The weighted average interest rates represent the effective interest rates (including amortization of debt issuance costs and noncash premiums or discounts) at the end of the period for the debt outstanding and include the impact of designated interest rate swaps, which effectively fix the interest rate on certain variable rate debt.

(2)The weighted average years represents the remaining maturity in years on the debt outstanding at period end.

(3)We borrow in the functional currencies of the countries where we invest. Included in the outstanding balances were borrowings denominated in the following currencies:

	June 30, 2023								December 31, 2022
	Weighted Average Interest Rate			Amount Outstanding		% of Total			Weighted Average Interest Rate			Amount Outstanding		% of Total
British pound sterling		2.1	%	$	1,293,757		4.6	%		2.1	%	$	1,228,483		5.1	%
Canadian dollar		4.9	%		830,034		2.9	%		4.5	%		814,491		3.4	%
Euro		2.0	%		9,891,790		35.2	%		1.3	%		7,991,301		33.5	%
Japanese yen		1.0	%		3,034,906		10.8	%		1.0	%		3,308,009		13.9	%
U.S. dollar		4.0	%		13,078,986		46.5	%		3.6	%		10,533,677		44.1	%
Total		2.9	%	$	28,129,473		100.0	%		2.5	%	$	23,875,961		100.0	%

Credit Facilities

The following table summarizes information about our available liquidity at June 30, 2023 (in millions):

Aggregate lender commitments
Credit facilities	$	6,500
Less:
Borrowings outstanding		630
Outstanding letters of credit		37
Current availability		5,833
Cash and cash equivalents		531
Total liquidity	$	6,364

We have a global senior credit facility (the “2022 Global Facility”) with a borrowing capacity of $3.0 billion (subject to currency fluctuations). On April 5, 2023, we amended and restated our other global senior credit facility (the “2021 Global Facility”) as the 2023 Global Facility and upsized its borrowing capacity to $3.0 billion (subject to currency fluctuations). We may draw on both facilities in British pounds sterling, Canadian dollars, euro, Japanese yen, Mexican pesos and U.S. dollars on a revolving basis. The 2022 Global Facility is scheduled to initially mature in June 2026 and the 2023 Global Facility in June 2027; however, we can extend the maturity date for each facility by six months on two occasions, subject to the payment of extension fees. We also have the ability to increase each credit facility to $4.0 billion, subject to currency fluctuations and obtaining additional lender commitments.

We also have a Japanese yen revolver (the “Yen Credit Facility”) with total commitments of ¥55.0 billion ($380.3 million at June 30, 2023). We have the ability to increase the borrowing capacity of the Yen Credit Facility to ¥75.0 billion ($518.5 million at June 30, 2023), subject to obtaining additional lender commitments. The Yen Credit Facility is initially scheduled to mature in July 2024; however, we may extend the maturity date for one year, subject to the payment of extension fees.

We refer to the 2022 Global Facility, the 2023 Global Facility and the Yen Credit Facility, collectively, as our “Credit Facilities.” Pricing for the Credit Facilities, including the spread over the applicable benchmark and the rates applicable to facility fees and letter of credit fees, varies based on the public debt ratings of the OP.

Senior Notes

The following table summarizes the issuances of senior notes during the six months ended June 30, 2023 (principal in thousands):

	Aggregate Principal				Issuance Date Weighted Average
Issuance Date	Borrowing Currency		USD (1)		Interest Rate	Years		Maturity Dates
January	€	1,250,000	$	1,354,125	4.1%		13.8	January 2030 – 2043
March	$	1,200,000	$	1,200,000	4.9%		17.7	June 2033 – 2053
May	€	750,000	$	808,425	4.6%		10.0	May 2033
June	$	2,000,000	$	2,000,000	5.1%		13.2	June 2028 – 2053
Total			$	5,362,550	4.7%		13.9

(1)The exchange rate used to calculate into U.S. dollars was the spot rate at the settlement date.

Long-Term Debt Maturities

Scheduled principal payments due on our debt for the remainder of 2023 and for each year through the period ended December 31, 2027, and thereafter were as follows at June 30, 2023 (in thousands):

	Unsecured
	Credit		Senior			Term Loans			Secured
Maturity	Facilities		Notes			and Other			Mortgage			Total
2023 (1)	$	-	$	-		$	-		$	3,409		$	3,409
2024 (1) (2)		17,285		325,980			-			97,254			440,519
2025 (3)		-		34,570			727,097			163,012			924,679
2026 (2)		563,330		1,308,468			587,746			3,980			2,463,524
2027 (2)		48,897		1,727,445			49,477			4,156			1,829,975
Thereafter		-		22,283,329			697,784			89,135			23,070,248
Subtotal		629,512		25,679,792			2,062,104			360,946			28,732,354
Unamortized premiums (discounts), net		-		(492,085	)		828			8,335			(482,922	)
Unamortized debt issuance costs, net		-		(114,560	)		(4,200	)		(1,199	)		(119,959	)
Total	$	629,512	$	25,073,147		$	2,058,732		$	368,082		$	28,129,473

(1)We expect to repay the amounts maturing in the next twelve months with cash generated from operations, proceeds from dispositions of real estate properties, or as necessary, with additional borrowings.

(2)Included in the 2024, 2026 and 2027 maturities were the Yen Credit Facility, the 2022 Global Facility and 2023 Global Facility, respectively, all of which can be extended for one year beyond the maturity date, subject to the payment of extension fees.

(3)Included in the 2025 maturities was a Canadian term loan ($226.1 million at June 30, 2023) that can be extended until 2027.

Financial Debt Covenants

Our senior notes, term loans and Credit Facilities outstanding at June 30, 2023 were subject to certain financial covenants under their related documents. At June 30, 2023, we were in compliance with all of our financial debt covenants.

Guarantee of Finance Subsidiary Debt

We have finance subsidiaries as part of our operations in Europe (Prologis Euro Finance LLC), Japan (Prologis Yen Finance LLC) and the U.K. (Prologis Sterling Finance LLC) in order to mitigate our foreign currency risk by borrowing in the currencies in which we invest. These entities are 100% indirectly owned by the OP and all unsecured debt issued or to be issued by each entity is or will be fully and unconditionally guaranteed by the OP. There are no restrictions or limits on the OP’s ability to obtain funds from its subsidiaries by dividend or loan. In reliance on Rule 13-01 of Regulation S-X, the separate financial statements of Prologis Euro Finance LLC, Prologis Yen Finance LLC and Prologis Sterling Finance LLC are not provided.