Debt

9 Months Ended

Sep. 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):

	September 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	4.6%		3.6	$	212,748	4.2%	2.8	$	1,538,461
Senior notes	2.9%		10.4		24,741,952	2.3%	10.3		19,786,253
Term loans and unsecured     other	2.8%		3.9		2,253,857	2.3%	4.9		2,106,592
Secured mortgage	3.8%		3.8		369,640	3.0%	4.3		444,655
Total	2.9%		9.8	$	27,578,197	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:

	September 30, 2023								December 31, 2022
	Weighted Average Interest Rate			Amount Outstanding		% of Total			Weighted Average Interest Rate			Amount Outstanding		% of Total
British pound sterling		2.2	%	$	1,274,242		4.6	%		2.1	%	$	1,228,483		5.1	%
Canadian dollar		5.0	%		819,390		3.0	%		4.5	%		814,491		3.4	%
Chinese renminbi		3.7	%		238,553		0.9	%		-			-		-
Euro		2.0	%		9,736,225		35.3	%		1.3	%		7,991,301		33.5	%
Japanese yen		1.0	%		2,925,039		10.6	%		1.0	%		3,308,009		13.9	%
U.S. dollar		3.9	%		12,584,748		45.6	%		3.6	%		10,533,677		44.1	%
Total		2.9	%	$	27,578,197		100.0	%		2.5	%	$	23,875,961		100.0	%

Credit Facilities

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

Aggregate lender commitments
Credit facilities	$	6,370
Less:
Borrowings outstanding		213
Outstanding letters of credit		37
Current availability		6,120
Cash and cash equivalents		741
Total liquidity	$	6,861

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"). On August 25, 2023, we amended and restated the Yen Credit Facility, upsizing its borrowing capacity by ¥3.5 billion for total commitments of ¥58.5 billion ($392.0 million at September 30, 2023). We have the ability to increase the borrowing capacity of the Yen Credit Facility to ¥75.0 billion ($502.6 million at September 30, 2023), subject to obtaining additional lender commitments. The Yen Credit Facility is initially scheduled to mature in August 2027; 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 nine months ended September 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.

Term Loans

In the third quarter of 2023, we entered into Chinese renminbi term loans totaling ¥1.7 billion ($239.4 million) with an issuance date weighted average interest rate of 3.5% maturing between September 2024 to 2026.

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 September 30, 2023 (in thousands):

	Unsecured
	Credit		Senior			Term Loans			Secured
Maturity	Facilities		Notes			and Other			Mortgage			Total
2023 (1)	$	-	$	-		$	-		$	1,684		$	1,684
2024 (1)(2)		-		317,820			100,281			96,121			514,222
2025 (3)		-		33,504			724,404			167,520			925,428
2026 (4)		31,782		1,294,868			708,905			3,980			2,039,535
2027 (5)		180,966		1,707,417			47,916			4,156			1,940,455
Thereafter		-		21,979,912			676,428			89,135			22,745,475
Subtotal		212,748		25,333,521			2,257,934			362,596			28,166,799
Unamortized premiums (discounts), net		-		(477,240	)		710			8,136			(468,394	)
Unamortized debt issuance costs, net		-		(114,329	)		(4,787	)		(1,092	)		(120,208	)
Total	$	212,748	$	24,741,952		$	2,253,857		$	369,640		$	27,578,197

(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 maturities was a Chinese term loan ($100.3 million at September 30, 2023) that can be extended until 2026, subject to the prevailing interest rate at the time of extension.

(3)Included in the 2025 maturities was a Canadian term loan ($223.4 million at September 30, 2023) that can be extended until 2027.

(4)Included in the 2026 maturities was the 2022 Global Facility ($31.8 million at September 30, 2023) that can be extended until 2027.

(5)Included in the 2027 maturities was the 2023 Global Facility ($181.0 million at September 30, 2023) that can be extended until 2028.

Financial Debt Covenants

Our senior notes, term loans and Credit Facilities outstanding at September 30, 2023 were subject to certain financial covenants under their related documents. At September 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.