Unconsolidated Entities

6 Months Ended

Jun. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

NOTE 3. 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 6 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 generally 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):


	June 30,		December 31,
	2024		2023
Unconsolidated co-investment ventures	$	8,593,658	$	8,379,265
Other ventures		1,171,212		1,164,705
Total	$	9,764,870	$	9,543,970

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 June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Recurring fees	$	114,779	$	113,338	$	227,921	$	226,895
Transactional fees		13,170		13,522		25,414		28,602
Promote revenue (1)		23,857		669,352		24,119		669,672
Total strategic capital revenues from unconsolidated co-investment ventures (2)	$	151,806	$	796,212	$	277,454	$	925,169

(1)

Includes promote revenue earned from unconsolidated co-investment ventures principally in Mexico during the three and six months ended June 30, 2024, and in the U.S. and Mexico during the three and six months ended June 30, 2023.

(2)

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:	Jun 30, 2024			Dec 31, 2023			Jun 30, 2024			Dec 31, 2023			Jun 30, 2024			Dec 31, 2023			Jun 30, 2024			Dec 31, 2023			Jun 30, 2024			Dec 31, 2023
Key property information:
Ventures		1			1			2			2			2			2			4			4			9			9
Operating properties		736			745			276			275			1,016			1,007			233			228			2,261			2,255
Square feet		125			126			65			65			225			223			97			94			512			508
								-
Financial position:
Total assets ($)		12,277			11,884			4,565			4,106			23,328			23,504			9,536			10,226			49,706			49,720
Third-party debt ($)		4,902			4,185			913			915			5,788			5,804			3,681			3,983			15,284			14,887
Total liabilities ($)		5,630			4,930			1,042			997			7,814			7,849			4,084			4,429			18,570			18,205

Our investment balance ($) (2)		2,469			2,257			1,200			1,152			4,154			4,126			771			844			8,594			8,379
Our weighted average ownership (3)		29.0	%		27.3	%		37.1	%		39.3	%		32.3	%		31.9	%		15.2	%		15.2	%		28.7	%		28.1	%

	U.S.						Other Americas (1)						Europe						Asia						Total
Operating Information:	Jun 30, 2024			Jun 30, 2023			Jun 30, 2024			Jun 30, 2023			Jun 30, 2024			Jun 30, 2023			Jun 30, 2024			Jun 30, 2023			Jun 30, 2024			Jun 30, 2023
For the three months ended:
Total revenues ($)		362			329			120			102			430			412			153			162			1,065			1,005
Net earnings ($)		131			75			56			47			91			91			9			1			287			214

Our earnings from unconsolidated co-investment ventures, net ($)		40			20			18			15			31			30			2			1			91			66

For the six months ended:
Total revenues ($)		715			653			240			205			892			826			313			327			2,160			2,011
Net earnings ($)		219			176			109			90			163			160			37			28			528			454

Our earnings from unconsolidated co-investment ventures, net ($)		66			47			36			31			55			51			7			5			164			134

(1)

Prologis Brazil Logistics Venture 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 June 30, 2024 and December 31, 2023, 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 ($212.7 million and $199.9 million, respectively); and (iv) customer security deposits retained subsequent to property contributions to Nippon Prologis REIT, Inc. and Prologis Japan Core Logistics Fund.

(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 June 30, 2024, our outstanding equity commitments were $310.1 million, primarily for Prologis China Logistics Venture. The equity commitments expire from 2024 to 2033 if they have not been previously called. Typically, equity commitments are used for future development and acquisitions in the unconsolidated co-investment ventures.