Debt

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Debt

NOTE 5. DEBT

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

	June 30, 2024					December 31, 2023
	Weighted Average			Amount		Weighted Average		Amount
	Interest Rate (1)	Years (2)		Outstanding (3)		Interest Rate (1)	Years (2)	Outstanding (3)
Credit facilities and      commercial paper	3.9%		2.6	$	489,395	5.9%	3.1	$	979,313
Senior notes	3.1%		10.1		27,345,366	2.9%	10.1		25,311,647
Term loans and      unsecured other (4)	2.0%		4.2		1,784,285	2.8%	3.7		2,330,520
Secured mortgage	4.4%		3.9		285,574	3.9%	3.4		379,021
Total	3.1%		9.6	$	29,904,620	3.0%	9.3	$	29,000,501

(1)The weighted average interest rates presented represent the effective interest rates (including amortization of debt issuance costs and noncash premiums or discounts) 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, 2024								December 31, 2023
	Weighted Average Interest Rate			Amount Outstanding		% of Total			Weighted Average Interest Rate			Amount Outstanding		% of Total
British pound sterling		3.1	%	$	1,730,649		5.8	%		2.1	%	$	1,299,628		4.5	%
Canadian dollar		5.1	%		1,112,783		3.7	%		5.0	%		829,886		2.9	%
Chinese renminbi		3.7	%		450,347		1.5	%		3.7	%		241,820		0.8	%
Euro		2.1	%		10,052,239		33.6	%		2.0	%		10,083,601		34.8	%
Japanese yen		1.0	%		2,987,985		10.0	%		1.0	%		3,085,970		10.6	%
U.S. dollar		4.0	%		13,570,617		45.4	%		4.1	%		13,459,596		46.4	%
Total		3.1	%	$	29,904,620		100.0	%		3.0	%	$	29,000,501		100.0	%

(4)In February 2024, we extinguished a $500.0 million U.S. dollar term loan.

In May 2022, Refinitive Benchmark Services (UK) Ltd. ("RBSL"), the administrator of the Canadian Dollar Offered Rate ("CDOR") formally announced that it would cease the calculation and publication of all tenors of CDOR effective June 28, 2024. In June 2024, we modified the interest rates on our Canadian term loan from 2022 ("2022 Canadian Term Loan") and our credit facility agreements that bore interest at the Canadian Dollar Offered Rate ("CDOR") plus a spread over the applicable benchmark to the Canadian Overnight Repo Rate Average ("CORRA"). The modification did not have a material impact on our Consolidated Financial Statements.

Credit Facilities and Commercial Paper

The following table summarizes information about our available liquidity at June 30, 2024 (in millions):

Aggregate lender commitments
Credit facilities	$	6,363
Less:
Credit facility borrowings outstanding		482
Commercial paper borrowings outstanding (1)		7
Outstanding letters of credit		25
Current availability		5,849
Cash and cash equivalents		598
Total liquidity	$	6,447

(1)We are required to maintain available commitments under our credit facilities in an amount at least equal to the commercial paper borrowings outstanding.

Credit Facilities

We have two global senior credit facilities (the “2022 Global Facility” and "2023 Global Facility"), each with a borrowing capacity of $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 a borrowing capacity of ¥58.5 billion ($364.2 million at June 30, 2024). We have the ability to increase the borrowing capacity of the Yen Credit Facility to ¥75.0 billion ($467.0 million at June 30, 2024), subject to obtaining additional lender commitments. The Yen Credit Facility is scheduled to initially 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.

Our Credit Facilities are utilized to support our cash needs for development and acquisition activities on a short-term basis. The maturities of the borrowings under the Credit Facilities generally range from overnight to three months.

Commercial Paper

In March 2024, we established a program under which we may issue, repay and re-issue short-term unsecured commercial paper notes denominated in U.S. dollars. The aggregate principal amount of notes outstanding under the CPP at any time cannot exceed $1.0 billion and the net proceeds of the notes are expected to be used for general corporate purposes. The maturities of the notes generally range from overnight to three months. The notes are issued under customary terms in the commercial paper market and are issued at a discount from par or, alternatively, can be issued at par and bear varying interest rates on a fixed or floating basis. At any point in time, we are required to maintain available commitments under our Credit Facilities in an amount at least equal to the amount of the notes outstanding.

Senior Notes

The following table summarizes the issuances of senior notes during the six months ended June 30, 2024 (principal in thousands):

	Aggregate Principal				Issuance Date Weighted Average
Issuance Date	Borrowing Currency		USD (1)		Interest Rate	Years	Maturity Dates
January	$	1,250,000	$	1,250,000	5.1%	17.3	March 2034 – 2054
February	CN¥	1,500,000	$	211,024	3.5%	3.0	February 2027
March	C$	550,000	$	405,147	4.7%	5.0	March 2029
May	€	550,000	$	592,130	4.0%	10.0	May 2034
May	£	350,000	$	439,147	5.6%	16.0	May 2040
Total			$	2,897,448	4.8%	12.9

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

Term Loans

In the second quarter of 2024, we entered into a Japanese term loan totaling ¥20.0 billion ($129.4 million) with an issuance date weighted average interest rate of 1.5% maturing April 2034.

Long-Term Debt Maturities

Scheduled principal payments due on our debt for the remainder of 2024 and for each year through the period ended December 31, 2028, and thereafter were as follows at June 30, 2024 (in thousands):

	Unsecured
	Credit Facilities and		Senior			Term Loans			Secured
Maturity	Commercial Paper		Notes			and Other			Mortgage			Total
2024 (1)(2)	$	-	$	-		$	101,027		$	4,113		$	105,140
2025 (1)(3)		7,463		31,130			219,418			177,412			435,423
2026 (4)		201,000		1,300,418			669,571			3,980			2,174,969
2027 (5)		280,932		1,916,291			44,415			4,156			2,245,794
2028		-		2,528,926			92,145			3,041			2,624,112
Thereafter		-		22,145,997			661,156			86,094			22,893,247
Subtotal		489,395		27,922,762			1,787,732			278,796			30,478,685
Unamortized premiums (discounts),      net		-		(453,640	)		-			7,556			(446,084	)
Unamortized debt issuance costs, net		-		(123,756	)		(3,447	)		(778	)		(127,981	)
Total	$	489,395	$	27,345,366		$	1,784,285		$	285,574		$	29,904,620

(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 from 2023 ($101.0 million at June 30, 2024) that can be extended until 2026, subject to the prevailing interest rate at the time of extension.

(3)Included in the 2025 maturities was the 2022 Canadian Term Loan ($218.9 million at June 30, 2024) that can be extended until 2027.

(4)Included in the 2026 maturities was the 2022 Global Facility ($201.0 million at June 30, 2024) that can be extended until 2027.

(5)Included in the 2027 maturities were the 2023 Global Facility and Yen Credit Facility ($136.5 million and $144.4 million, respectively, at June 30, 2024) that can be extended until 2028.

Financial Debt Covenants

Our Credit Facilities, senior notes and term loans outstanding at June 30, 2024 were subject to certain financial covenants under their related documents. At June 30, 2024, 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.