8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 22, 2014

PROLOGIS, INC.

PROLOGIS, L.P.

(Exact name of registrant as specified in charter)

Maryland (Prologis, Inc.) Delaware (Prologis, L.P.)	001-13545 (Prologis, Inc.) 001-14245 (Prologis, L.P.)	94-3281941 (Prologis, Inc.) 94-3285362 (Prologis, L.P.)
(State or other jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

Pier 1, Bay 1, San Francisco, California	94111
(Address of Principal Executive Offices)	(Zip Code)

Registrants’ Telephone Number, including Area Code: (415) 394-9000

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition (Prologis, Inc.) and

Item 7.01. Regulation FD Disclosure (Prologis, Inc. and Prologis, L.P.).

On July 22, 2014, Prologis, Inc., the general partner of Prologis, L.P., issued a press release announcing second quarter 2014 financial results. A copy of the press release as well as supplemental information is furnished with this report as Exhibit 99.1, and is incorporated herein by reference.

The information in this report and the exhibits attached hereto is being furnished, not filed, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and pursuant to Items 2.02 and 7.01 of Form 8-K will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits

Exhibit No.	Description
99.1	Press release, dated July 22, 2014, and supplemental information.

1

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.

	PROLOGIS, INC.
July 22, 2014	By:	/s/ Thomas S. Olinger
	Name:	Thomas S. Olinger
	Title:	Chief Financial Officer
	PROLOGIS, L.P.,
July 22, 2014	By:	Prologis, Inc., its general partner
	By:	/s/ Thomas S. Olinger
	Name:	Thomas S. Olinger
	Title:	Chief Financial Officer

2

EX-99.1

Exhibit 99.1

Exhibit 99.1

Supplemental Financial Information

Second Quarter 2014

Prologis

Unaudited

Table of Contents Second Quarter 2014

Overview

Press Release 1

Highlights

Company Profile 4

Company Performance 5

Operating Performance 7

Guidance 8

Financial Information

Consolidated Balance Sheets 9

Pro-rata Balance Sheet Information 10

Consolidated Statements of Operations 11

Reconciliation of Net Earnings (Loss) to FFO 12

Pro-rata Operating Information and Reconciliation to FFO 13

EBITDA Reconciliation 14

Strategic Capital

Summary and Financial Highlights 15

Operating and Balance Sheet Information 16

Operations Overview Operating Metrics 17 Operating Portfolio 19

Customer Information 22

Capital Deployment

Overview 23

Value Creation from Development Stabilization 24

Development Starts 25

Development Portfolio 26

Third Party Building Acquisitions and Equity Invested in

Co-Investment Ventures 27 Dispositions and Contributions 28

Land Portfolio 29

Capitalization Overview 31

Debt Summary 32

Debt Covenants and Other Metrics 33

Net Asset Value

Components 34

Notes and Definitions (A) 36

Prologis Kunshan Lujia Logistics Center Jiangsu, China

Prologis Park Centro Industrial Juárez

Ciudad Juárez, Mexico

Prologis Park Castel San Giovanni

Castel San Giovanni, Italy

(A) Terms used throughout document are defined in the Notes and Definitions Prologis © 2014

Prologis, Inc. Announces Second Quarter 2014 Earnings Results

- GAAP Same-Store Net Operating Income Increased 3.8 percent -

- Stabilized $371.3 Million of Development, Estimated Margin of 22.5 Percent -

- Recognized $25 Million Net Promote for Prologis Targeted U.S. Logistics Fund -

- Raising Earnings and Capital Deployment Guidance -

SAN FRANCISCO (July 22, 2014) – – Prologis, Inc. (NYSE: PLD), the global leader in industrial real estate, today reported results for the second quarter 2014.

Core funds from operations (Core FFO) per fully diluted share was $0.48 for the second quarter compared to $0.41 for the same period in 2013.

“We’re pleased to report a very strong quarter of financial and operating performance,” said Hamid R. Moghadam, chairman and CEO, Prologis. “Our results reflect high occupancy levels with strong growth in rental rates, above average development margins, and increased earnings from our Strategic Capital business.”

STRONG OPERATING PERFORMANCE

Prologis ended the quarter with 94.6 percent occupancy in the operating portfolio, up 90 basis points over the same period in 2013. The company leased 29.0 million square feet (2.7 million square meters) in its combined operating and development portfolios in the second quarter.

Tenant retention in the quarter was 84.8 percent. GAAP rental rates on leases signed in the quarter increased 6.6 percent from prior rents compared to an increase of 4.0

percent in the same period in 2013.

During the second quarter, GAAP same-store net operating income (NOI) increased 3.8 percent, and 5.3 percent on an adjusted cash basis, compared to 0.7 percent and

(0.4) percent, respectively, in the same period in 2013. The increase was principally driven by higher average occupancy and increasing rental rates.

CAPITAL DEPLOYMENT ACTIVITY ACCELERATES

New investments during the second quarter totaled $850.4 million ($765.2 million Prologis’ share).

Development Starts & Pipeline

During the quarter, Prologis started $438.7 million ($409.8 million Prologis’ share) of new development projects, with an estimated weighted average yield upon

stabilization of 7.1 percent and an estimated development margin of 18.8 percent.

The company stabilized $371.3 million ($320.9 million Prologis’ share) in development projects, with an estimated development margin of 22.5 percent and $83.4 million

($82.2 million Prologis’ share) of estimated value creation.

At quarter end, Prologis’ global development pipeline had a total expected investment of $2.4 billion ($2.1 billion Prologis’ share). The pipeline had an estimated weighted average yield at stabilization of 7.2 percent, a development margin of 21.2 percent, and an estimated $452.8 million of Prologis’ share of value creation upon stabilization.

Acquisitions

The company acquired $137.0 million ($80.7 million Prologis’ share) of buildings, principally in Europe and the United States. The weighted average stabilized capitalization rate on building acquisitions was 6.3 percent.

Prologis invested $274.7 million in its North American Industrial Fund, increasing its ownership in the venture to 42 percent from 23 percent.

Dispositions & Contributions

Prologis completed $603.7 million ($499.6 million Prologis’ share) of contributions, third-party building, land and other non-strategic real estate dispositions. The contributions and building dispositions had a weighted average stabilized

capitalization rate of 6.6 percent.

STREAMLINED STRATEGIC CAPITAL BUSINESS SUPPORTS GROWTH

As previously announced the company successfully completed its initial public offering of FIBRA Prologis and listing on the Mexican Stock Exchange. FIBRA Prologis’ $1.6 billion portfolio is comprised of properties previously owned by former Prologis MX Fund LP, the majority of Prologis México Fondo Logístico, and Prologis.

During the second quarter, Prologis raised $777.6 million of third-party equity for its ventures, including: $618.9 million for FIBRA Prologis; $133.5 million for Prologis Targeted U.S. Logistics Fund; and $25.2 million for Prologis Targeted Europe Logistics

Prologis © 2014 1

Fund. Subsequent to quarter end, the company secured a $500 million increase in committed third-party equity to its Prologis China Logistics Venture. The company recognized a net promote of $25.1 million for Prologis Targeted U.S. Logistics Fund.

At quarter end, Prologis had $28.7 billion ($9.4 billion Prologis’ share) in combined assets under management in 11 major co-investment ventures.

CAPITAL MARKETS ACTIVITY IMPROVES LIQUIDITY

During the second quarter, Prologis completed $3.6 billion of capital markets activity. Notable new financing for Prologis and the co-investment ventures included:

$1.1 billion in Eurobond issuances with a blended interest rate of 3.0 percent and weighted average term of 10 years; · $1.1 billion across two term facilities denominated in euro and yen; and a

$500 million increase in the company’s global credit lines, expanding the total capacity to $3.0 billion.

“Favorable credit conditions in this low interest rate environment are providing numerous opportunities for us to lock in lower, long-term rates,” said Thomas S. Olinger, chief financial officer, Prologis. “We significantly improved liquidity and further increased our U.S. net equity exposure to 85 percent.”

NET EARNINGS

Net earnings per fully diluted share was $0.13 for the second quarter compared to a net loss per share of less than $0.01 for the same period in 2013.

EARNINGS GUIDANCE INCREASED FOR 2014

Prologis increased the midpoint and narrowed its full-year 2014 Core FFO guidance range to $1.82 to $1.86 per diluted share from $1.76 to $1.82 per diluted share. The company also expects to recognize net earnings, for GAAP purposes, of $0.20 to $0.24 per share.

“Given faster than expected rental growth and deployment, as well as lower interest costs from our refinancing activity, we are raising our full-year Core FFO range,” said Olinger.

The Core FFO and earnings guidance reflected above excludes any potential future gains (losses) recognized from real estate transactions or early extinguishment of debt. In reconciling from net earnings to Core FFO, Prologis makes certain adjustments, including but not limited to real estate depreciation and amortization

expense, gains (losses) recognized from real estate transactions and early extinguishment of debt or redemption of preferred stock, impairment charges, deferred taxes, and unrealized gains or losses on foreign currency or derivative activity.

The difference between the company’s Core FFO and net earnings guidance for 2014 predominantly relates to real estate depreciation and recognized gains or losses on real estate transactions and early extinguishment of debt.

WEBCAST & CONFERENCE CALL INFORMATION

The company will host a webcast/conference call to discuss quarterly results, current market conditions and future outlook today, July 22, at 12:00 p.m. U.S. Eastern Time. Interested parties are encouraged to access the live webcast by clicking the microphone icon located near the top of the opening page of the Prologis Investor Relations website (http://ir.prologis.com). Interested parties also can participate via conference call by dialing +1 877-256-7020 (from the U.S. and Canada toll free) or +1 973-409-9692 (from all other countries) and entering conference code 48765449.

A telephonic replay will be available from July 23 through August 23 at +1 855-859-2056 (from the U.S. and Canada) or +1 404-537-3406 (from all other countries), and entering conference code 48765449. The webcast replay will be posted when available in the “Events & Presentations” section of Investor Relations on the Prologis website.

ABOUT PROLOGIS

Prologis, Inc., is the leading owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia. As of June 30, 2014, Prologis owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 571 million square feet (53 million square meters) in 21 countries. The company leases modern distribution facilities to more than 4,700 customers, including manufacturers, retailers, transportation companies, third-party logistics

providers and other enterprises.

The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which Prologis operates, management’s beliefs and assumptions made by management. Such statements involve

Prologis © 2014 2

uncertainties that could significantly impact Prologis’ financial results. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, development activity and changes in sales or contribution volume of properties, disposition activity, general conditions in the geographic areas where we operate, our debt and financial position, our ability to form new co-investment ventures and the availability of capital in existing or new co-investment ventures — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust (“REIT”) status and tax structuring, (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments in our co-investment ventures and funds, including our ability to establish new co-investment ventures and funds, (viii) risks of doing business internationally, including currency risks, (ix) environmental uncertainties, including risks of natural disasters, and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by Prologis under the heading “Risk Factors.” Prologis undertakes no duty to update any forward-looking statements appearing in this document.

MEDIA CONTACTS

Tracy Ward, Tel: +1 415 733 9565, tward@prologis.com, San Francisco Atle Erlingsson, Tel: +1 415 733 9495, aerlingsson@prologis.com, San Francisco

Prologis © 2014 3

Highlights Company Profile Second Quarter 2014

Prologis is the leading owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia. As of June 30, 2014, Prologis owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects totaling 571 million square feet (53 million square meters) in 21 countries. These properties are leased to more than 4,700 customers, including third-party logistics providers, transportation companies, retailers, manufacturers and other enterprises.

AMERICAS (4 countries)

EUROPE (14 countries)

ASIA (3 countries)

TOTAL

Number of operating portfolio buildings

2,180

631

72

2,883

Operating Portfolio (msf) 355 147 31 533 Development Portfolio (msf) 15 4 9

28

Other (msf) (A)

6

3

1

10

Total (msf)

376

154 41 571 Development portfolio TEI (millions) $1,140

$441

$

856

$2,437

Land (acres)

6,961

2,887

200

10,048

Land book value (millions)

$980

$620

$153 $1,753

(A) Generally represents properties in which Prologis has an ownership interest but does not manage (6 msf) and other properties owned by Prologis (4 msf), which includes value added properties (4 msf). Prologis © 2014 4

Highlights

Company Performance

Second Quarter 2014

Three months ended June 30, Six months ended June 30,

(dollars in thousands, except per share data) 2014 2013 2014 2013

Revenues $ 460,089 $ 410,693 $ 894,771 $ 890,664 Net earnings (loss) attributable to common stockholders 72,715 (1,517) 77,381 263,899 Core FFO 244,275 203,337 461,830 391,274 Core AFFO 199,662 142,229 371,015 288,290 Adjusted EBITDA 374,039 336,352 728,132 680,981 Value creation from development stabilization - Prologis share 82,218 14,895 132,725 82,307 Common stock dividends paid 166,639 141,083 333,328 271,836

Per common share - diluted:

Net earnings attributable to common stockholders $ 0.13 $ 0.00 $ 0.15 $ 0.55 Core FFO 0.48 0.41 0.91 0.82 Dividends per share 0.33 0.28 0.66 0.56

Core FFO and Value Creation from Development Adjusted EBITDA

Stabilization (in millions) (in millions)

$500 $500

$400 $372 $400 $355 $367 $354 $374

$340 $336

$326

$300 $268 $300

$218

$200 $200

$100 $100

$- $-

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Core FFO

Value Creation from Development Stabilization - Prologis Share

Prologis © 2014 5

(in millions)

Core FFO

$900 $814 $813

$594 $600 $462

$300

$-

2011 2012 2013 YTD 2014

Value Creation from Development Stabilizations (A)

$450 $372

$300 $150 $-

$14 $148

2011 2012 2013

$133 YTD 2014

Highlights

Company Performance

Second Quarter 2014

Adjusted EBITDA

$1,600

$1,514

$1,485

$1,384

$1,200

$800 $728

$400

$-

2011 2012 2013 YTD 2014

Net Promote (B) $32 $25 $24

$15 $16

$8

$- $- $-

2011 2012 2013 YTD 2014

(A) Prologis share.

(B) Net promote includes actual promote earned from third party investors during the period, net of related expenses. Prologis © 2014 6

Highlights

Operating Performance – Owned and Managed

Second Quarter 2014

Occupancy Weighted Average Customer Retention

100% 90% 86.8

84.6 84.6 84.8

80.8

95.1 94.6

94.5

95% 93.7 93.9 94.3 94.2 94.2 80%

93.3 93.4

90% 70%

85% 60%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Period End Average

Net Effective Rent Change (GAAP) Same Store NOI Change Over Prior Year

6% 5.3

8%

7.0

6.6 5%

6.1 4.1

5.9 3.8

4% 3.0

3.0

3% 2.7

4.0

4% 1.8

2% 1.4

1% 0.7

0%

0% -1% -0.4

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

NOI- GAAP NOI- Adjusted Cash

Prologis © 2014 7

Highlights

Guidance

(dollars in millions, except per share) Second Quarter 2014

2014 Guidance

Low High

Net earnings (A) $0.20 $0.24

Core FFO (A) $1.82 $1.86

Operations

Year-end occupancy 95.2% 95.8%

Same store NOI - GAAP increase 3.25% 3.75%

Capital Deployment

Development starts (85% Prologis share) $2,000 $2,300

Building acquisitions (45% Prologis share) $1,300 $1,600

Building and land dispositions (90% Prologis share) $1,300 $1,600

Building contributions (55% Prologis share) $1,600 $1,800

Strategic Capital

Strategic capital income $220 $225

Strategic capital expenses $100 $105

Other Assumptions

General & administrative expenses $238 $243

Annualized second quarter 2014 dividend $1.32

Euro exchange rate ($/€) 1.35

Yen exchange rate (¥/$) 105

(A) The difference between Core FFO and Net Earnings predominately relates to real estate depreciation and gains or losses on real estate transactions and early extinguishment of debt.

Prologis © 2014 8

Financial Information

Consolidated Balance Sheets

Second Quarter 2014

(in thousands)

June 30, 2014

March 31, 2014

December 31, 2013

Assets:

Investments in real estate assets: Operating properties $ 16,629,000 $ 17,948,473 $ 17,801,064 Development portfolio 1,119,075 1,051,716 1,021,017 Land 1,579,737 1,544,242 1,516,166 Other real estate investments 454,111

494,359

486,230

19,781,923

21,038,790 20,824,477 Less accumulated depreciation 2,648,866 2,698,043 2,568,998

Net investments in properties

17,133,057

18,340,747

18,255,479

Investments in and advances to unconsolidated entities

5,575,423

4,687,922

4,430,239

Notes receivable backed by real estate and other assets

-

191,703

192,042

Net investments in real estate

22,708,480

23,220,372

22,877,760

Cash and cash equivalents

267,427

188,886

491,129 Accounts receivable 123,961 114,880 128,196 Other assets 1,031,694 1,131,010 1,075,222 Total assets $ 24,131,562 $ 24,655,148 $ 24,572,307 Liabilities and Equity: Liabilities: Debt $ 8,529,453 $ 8,870,635 $ 9,011,216 Accounts payable, accrued expenses, and other liabilities 1,325,259 1,291,270 1,384,638 Total liabilities 9,854,712 10,161,905 10,395,854 Equity: Stockholders’ equity: Preferred stock 78,235 100,000 100,000 Common stock 4,998 4,997 4,988 Additional paid-in capital 18,062,370 18,005,321 17,974,452 Accumulated other comprehensive loss (385,248) (444,594) (435,675) Distributions in excess of net earnings (4,188,611) (4,094,689) (3,932,664) Total stockholders’ equity 13,571,744 13,571,035 13,711,101 Noncontrolling interests 657,411 874,576 417,086 Noncontrolling interests—limited partnership unitholders 47,695 47,632 48,266 Total equity 14,276,850 14,493,243 14,176,453 Total liabilities and equity $ 24,131,562 $ 24,655,148 $ 24,572,307 Prologis © 2014 9

Financial Information Pro-rata Balance Sheet Information Second Quarter 2014 (in thousands) Plus Prologis Investors’ Share of Less Non Share of Prologis Prologis Total Total Owned Controlling Unconsolidated Consolidated Share Unconsolidated Consolidated and Managed Pro-rata Balance Sheet Information as of Interest Co-Investment Ventures Ventures June 30, 2014 Ventures Assets: Investments in real estate assets: Gross operating properties $ 16,629,000 $ (507,043) $ 8,487,804 $ 24,609,761 $ 17,010,833 $ 507,043 $ 42,127,637 Other real estate 3,152,923 (17,875) 119,862 3,254,910 314,412 17,875 3,587,197 Accumulated depreciation (2,648,866) 11,148 (668,897) (3,306,615) (1,255,866) (11,148) (4,573,629) Net investments in properties 17,133,057 (513,770) 7,938,769 24,558,056 16,069,379 513,770 41,141,205

Investments in unconsolidated co-investment ventures

5,400,293

(80,154)

(5,320,139)

-

-

80,154

80,154

Investments in other unconsolidated ventures

175,130

(2,868)

-

172,262

-

2,868

175,130

Other assets

1,423,082

(154,438)

363,050

1,631,694

1,054,931 154,438 2,841,063 Total assets $ 24,131,562 $ (751,230) $ 2,981,680 $ 26,362,012 $ 17,124,310 $ 751,230 $ 44,237,552 Liabilities and Equity: Liabilities: Debt $ 8,529,453 $ (8,751) $ 2,375,562 $ 10,896,264 $ 5,469,657 $ 8,751 $ 16,374,672 Other liabilities 1,325,259 (37,373) 606,118 1,894,004 1,077,391 37,373 3,008,768 Total liabilities 9,854,712 (46,124)

2,981,680 12,790,268 6,547,048 46,124 19,383,440 Equity: Stockholders’ / partners’ equity 13,571,744 - - 13,571,744 10,577,262 705,106 24,854,112 Noncontrolling interests 705,106 (705,106) - - - - - Total equity 14,276,850 (705,106) - 13,571,744 10,577,262 705,106 24,854,112 Total liabilities and equity $ 24,131,562 $ (751,230) $ 2,981,680 $

26,362,012

$

17,124,310

$

751,230

$ 44,237,552

Prologis © 2014 10

Financial Information

Consolidated Statements of Operations

(in thousands, except per share amounts) Second Quarter 2014

Three Months Ended Six Months Ended

June 30, June 30,

Revenues:

Rental income

Strategic capital income

Development management and other income

Total revenues

Expenses:

Rental expenses

Strategic capital expenses

General and administrative expenses

Depreciation and amortization

Other expenses

Total expenses

Operating income

Other income (expense):

Earnings from unconsolidated entities, net

Interest expense

Gains on acquisitions and dispositions of investments in real estate, net

Foreign currency and derivative gains (losses), related amortization and interest and other income (expenses), net

Losses on early extinguishment of debt, net

Total other income (expense)

Earnings (loss) before income taxes

Income tax expense (benefit) - current and deferred

Earnings (loss) from continuing operations

Discontinued operations:

Income attributable to disposed properties and assets held for sale

Net gains on dispositions, including taxes

Total discontinued operations

Consolidated net earnings (loss)

Net loss (earnings) attributable to noncontrolling interests

Net earnings attributable to controlling interests

Preferred stock dividends

Loss on preferred stock redemption

Net earnings (loss) attributable to common stockholders

Weighted average common shares outstanding - Diluted

Net earnings per share attributable to common stockholders - Diluted

2014

$ 381,273

76,334

2,482

460,089

109,576

27,837

60,375

161,577

5,450

364,815

95,274

21,151

(80,184)

169,583

15,246

(77,558)

48,238

143,512

(8,918)

152,430

-

-

-

152,430

(71,250)

81,180

(1,948)

(6,517)

$ 72,715

516,619

$ 0.13

2013

$ 363,956

43,608

3,129

410,693

109,837

25,006

54,909

155,656

6,771

352,179

58,514

8,421

(92,214)

61,035

(3,252)

(32,608)

(58,618)

(104)

20,488

(20,592)

2,140

13,467

15,607

(4,985)

7,284

2,299

(3,816)

-

$ (1,517)

487,925

$ 0.00

2014

$ 769,513

121,644

3,614

894,771

220,093

52,000

123,578

321,857

10,503

728,031

166,740

50,897

(165,707)

186,638

1,112

(77,285)

(4,345)

162,395

(2,038)

164,433

-

-

-

164,433

(76,452)

87,981

(4,083)

(6,517)

$ 77,381

504,560

$ 0.15

2013

$ 808,100

77,243

5,321

890,664

240,191

44,915

111,106

327,776

11,124

735,112

155,552

33,189

(206,854)

399,880

9,259

(49,959)

185,515

341,067

72,354

268,713

3,933

19,301

23,234

291,947

(4,819)

287,128

(14,121)

(9,108)

$ 263,899

480,009

$ 0.55

Prologis © 2014 11

Financial Information Reconciliations of Net Earnings (Loss) to FFO Second Quarter 2014 (in thousands) Three Months Ended Six Months Ended June 30, June 30, 2014 2013 2014 2013 Reconciliation of net earnings (loss) to FFO Net earnings (loss) attributable to common stockholders $ 72,715 $ (1,517) $ 77,381 $ 263,899 Add (deduct) NAREIT defined adjustments: Real estate related depreciation and amortization 155,842 149,920 310,337 315,791 Net gains on non-FFO acquisitions and dispositions

(140,042) (4,701) (149,587) (102,012) Reconciling items related to noncontrolling interests 59,945 (719) 53,744 (3,660) Our share of reconciling items included in earnings from unconsolidated co-investment ventures 49,737 37,250 91,453 51,881 Our share of reconciling items included in earnings from other unconsolidated ventures 1,734 681 3,084 11,533 Subtotal-NAREIT defined FFO 199,931 180,914 386,412 537,432 Add (deduct) our defined adjustments: Unrealized foreign currency and derivative losses (gains) and related amortization, net (10,035) 8,133 18,075 7,495 Deferred income tax benefit (21,446) (4,350) (20,415) (2,216) Our share of reconciling items included in earnings from unconsolidated co-investment ventures (4,089) 17,541 (3,860) 17,327 FFO, as defined by Prologis 164,361 202,238 380,212 560,038 Adjustments to arrive at Core FFO: Net gains on acquisitions and dispositions of investments in real estate, net of expenses (23,245) (33,806) (28,903) (226,222) Losses on early extinguishment of debt and redemption of preferred stock, net 84,075 32,608 83,802 59,067 Our share of reconciling items from unconsolidated entities less third party share of consolidated entities 19,084 2,297 26,719 (1,609) Core FFO $ 244,275 $ 203,337 $ 461,830 $ 391,274 Adjustments to arrive at Core Adjusted FFO (“Core AFFO”), including our share of unconsolidated entities less third party share of consolidated entities: Straight-lined rents and amortization of lease intangibles (6,483) (4,906) (15,059) (12,790) Property improvements (15,899) (19,318) (27,041) (33,606) Tenant improvements (20,707) (27,353) (40,779) (47,741) Leasing commissions (12,376) (19,224) (27,936) (32,624) Amortization of management contracts 1,092 1,393 2,397 3,008 Amortization of debt premiums, net, and financing costs (1,259) (3,839) (3,528) (10,841)

Cash received (paid) on net investment hedges

(2,729)

(1,073)

(7,855)

4,311

Stock compensation expense

13,748

13,212

28,986

27,299

Core AFFO

$ 199,662

$

142,229

$

371,015

$

288,290

Common stock dividends

$ 166,639 $ 141,083 $

333,328

$

271,836

Prologis © 2014 12

Financial Information

Pro-rata Operating Information and Reconciliation to FFO

(in thousands) Second Quarter 2014

Plus Prologis

Less Non Share of Investors’ Share of Total

Prologis Prologis

Controlling Unconsolidated Owned and

Consolidated Total Share

Interest Co-Investment Unconsolidated Consolidated Managed

Ventures Ventures Ventures

Pro-rata Operating Information for

Three Months Ended June 30, 2014

Revenues:

Rental income

Strategic capital income

Development management and other income

Total revenues

Expenses:

Rental expenses

Strategic capital expenses

General and administrative expenses

Depreciation and amortization

Other expenses

Total expenses

Operating income

Earnings from unconsolidated co-investment ventures, net

Earnings from other unconsolidated joint ventures, net

Interest expense

Gains on acquisitions and dispositions of investments in real estate, net

Foreign currency and derivative gains (losses), related amortization

and other income (expenses), net

Losses on early extinguishment of debt, net

Income tax expense (benefit)

Consolidated net earnings

Net earnings attributable to noncontrolling interests

Preferred stock dividends

Loss on preferred stock redemption

Net earnings (loss) attributable to common stockholders

Add (deduct) adjustments to arrive at FFO, as defined by Prologis:

Real estate related depreciation and amortization

Net gains on non-FFO acquisitions and dispositions

Unrealized foreign currency and derivative losses (gains) and related amortization, net

Deferred income tax expense (benefit)

Reconciling items related to noncontrolling interests

Our share of reconciling items included in earnings from

unconsolidated co-investment ventures

Our share of reconciling items included in earnings from other unconsolidated ventures

FFO, as defined by Prologis

Adjustments to arrive at Core FFO:

Net gains on acquisitions and dispositions of

investments in real estate, net of expenses

Losses on early extinguishment of debt and redemption of preferred stock, net

Our share of reconciling items from unconsolidated entities

less third party share of consolidated entities

Core FFO

$ 381,273 $ (17,127) $ 159,623 $ 523,769 $ 341,060 $ 17,127 $ 881,956

76,334 - 602 76,936 602 - 77,538

2,482 73 (40) 2,515 (71) (73) 2,371

460,089 (17,054) 160,185 603,220 341,591 17,054 961,865

109,576 (3,745) 36,995 142,826 80,998 3,745 227,569

27,837 - - 27,837 - - 27,837

60,375 (1,092) 9,880 69,163 22,271 1,092 92,526

161,577 (6,565) 53,745 208,757 117,419 6,565 332,741

5,450 (52) 20,806 26,204 26,210 52 52,466

364,815 (11,454) 121,426 474,787 246,898 11,454 733,139

95,274 (5,600) 38,759 128,433 94,693 5,600 228,726

21,054 (887) (20,167) - - 887 887

97 - - 97 - - 97

(80,184) 1,450 (22,052) (100,786) (52,564) (1,450) (154,800)

169,583 (54,962) 4,050 118,671 10,312 54,962 183,945

15,246 239 703 16,188 1,257 (239) 17,206

(77,558) (213) (648) (78,419) (1,177) 213 (79,383)

8,918 (11,277) (645) (3,004) (309) 11,277 7,964

152,430 (71,250) - 81,180 52,212 71,250 204,642

(71,250) 71,250 - - - - -

(1,948) - - (1,948) - - (1,948)

(6,517) - - (6,517) - - (6,517)

72,715 - - 72,715 52,212 71,250 196,177

155,842 (6,565) 53,745 203,022 117,419 6,565 327,006

(140,042) 54,977 (4,008) (89,073) (10,071) (54,977) (154,121)

(10,035) 9 (146) (10,172) (574) (9) (10,755)

(21,446) 11,524 (3,943) (13,865) (6,153) (11,524) (31,542)

59,945 (59,945) - - - - -

45,648 - (45,648) - - - -

1,734 - - 1,734 - - 1,734

164,361 - - 164,361 152,833 11,305 328,499

(23,245) (4) 18,227 (5,022) 22,601 4 17,583

84,075 213 648 84,936 1,176 (213) 85,899

19,084 (209) (18,875) - - - -

$ 244,275 $ - $ - $ 244,275 $ 176,610 $ 11,096 $ 431,981

Prologis © 2014 13

Financial Information

EBITDA Reconciliation

(in thousands) Second Quarter 2014

Three Months Ended Six Months Ended

June 30, June 30,

Reconciliation of net earnings (loss) to Adjusted EBITDA

Net earnings (loss) attributable to common stockholders

Net gains on acquisitions and dispositions of investments in real estate, net

Depreciation and amortization

Interest expense

Losses on early extinguishment of debt

Current and deferred income tax expense (benefit), net

Pro forma adjustments

Net earnings attributable to noncontrolling interest

Preferred stock dividends and loss on preferred stock redemption

Unrealized foreign currency and derivative losses (gains) and related amortization, net

Stock compensation expense

Acquisition expenses

Adjusted EBITDA, consolidated

Our share of reconciling items from unconsolidated entities less third party share of consolidated entities:

Net gains on dispositions of investments in real estate, net

Depreciation and amortization

Interest expense

Losses on early extinguishment of debt

Current income tax expense

Unrealized losses (gains), derivative losses (gains) and deferred income tax expense (benefit), net

Acquisition expenses

Adjusted EBITDA

2014 2013 2014 2013

$ 72,715 $ (1,517) $ 77,381 $ 263,899

(169,583) (74,502) (186,638) (419,181)

161,577 155,656 321,857 327,776

80,184 92,214 165,707 206,854

77,558 32,608 77,285 49,959

(8,918) 20,488 (2,038) 72,354

(4,467) 6,202 (3,975) (15,802)

- (7,284) - 4,819

8,465 3,816 10,600 23,229

(10,035) 8,133 18,075 7,495

13,748 16,212 28,986 30,299

1,703 - 2,203 -

222,947 252,026 509,443 551,701

50,912 (1,394) 42,106 (8,284)

48,193 41,282 93,778 69,560

20,940 23,640 38,491 45,205

861 340 221 529

4,447 2,917 9,895 4,943

7,444 17,541 7,673 17,327

18,295 - 26,525 -

$ 374,039 $ 336,352 $ 728,132 $ 680,981

Prologis © 2014 14

Accounting Next Promote

Co-Investment Ventures (A) Type Established Method Region Ow nership Structure Opportunity

Americas:

Prologis U.S. Logistics Venture Core 2014 Consolidated US 55.0% Open end Q4 2016 (B)

Prologis Targeted U.S. Logistics Fund Core 2004 Unconsolidated US 25.8% Open end Q2 2017 (B)

Prologis North American Industrial Fund Core 2006 Unconsolidated US 41.9% Open end Q1 2015 (B)

FIBRA Prologis Core 2014 Unconsolidated Mexico 45.0% Public, Mexican Exchange Q2 2015 (C)

Prologis Brazil Logistics Partners Fund I (D) Development 2010 Unconsolidated Brazil various Closed end Q4 2017

Europe:

Prologis Targeted Europe Logistics Fund Core 2007 Unconsolidated Europe 43.4% Open end Q3 2016 (B)

Prologis European Properties Fund II Core 2007 Unconsolidated Europe 31.5% Open end Q3 2016 (B)

Europe Logistics Venture 1 Core 2011 Unconsolidated Europe 15.0% Open end Q4 2015 (B)

Prologis European Logistics Partners Core 2013 Unconsolidated Europe 50.0% Open end Q4 2015 (B)

Asia:

Nippon Prologis REIT Core 2013 Unconsolidated Japan 15.1% Public, Tokyo Exchange n/a

Prologis China Logistics Venture Core/Development 2011 Unconsolidated China 15.0% Closed end Q1 2018

Unconsolidated Co-Investment Ventures (E): Prologis Share

Second Qtr GBV of Second Qtr Annualized Net Tangible Prologis

(in thousands) Sq Ft NOI Operating Bldgs Debt NOI Pro forma Debt Other Assets Investment

Prologis Targeted U.S. Logistics Fund 48,618 $ 61,615 $ 4,490,377 $ 1,616,016 $ 15,872 $ 63,488 $ 416,286 $ 4,339 $ 759,579

Prologis North American Industrial Fund 45,902 42,035 2,838,968 1,110,653 17,608 70,432 465,252 10,509 474,838

FIBRA Prologis (F) 29,753 29,990 1,607,636 607,808 13,490 53,960 273,392 84,489 580,941

Brazil Fund and joint ventures 4,689 11,917 445,546 - 1,550 6,200 - 17,960 252,013

Americas 128,962 145,557 9,382,527 3,334,477 48,520 194,080 1,154,930 117,297 2,067,371

Prologis Targeted Europe Logistics Fund 14,208 26,275 1,866,436 466,120 11,393 45,572 202,109 25,641 503,768

Prologis European Properties Fund II 63,635 87,839 5,780,230 2,008,609 27,622 110,488 631,908 23,969 577,611

Europe Logistics Venture I 5,073 8,739 444,959 - 1,311 5,244 - 4,127 65,374

Prologis European Logistics Partners 54,886 73,771 4,181,098 229,037 36,886 147,544 114,519 18,345 1,822,642

Europe 137,802 196,624 12,272,723 2,703,766 77,212 308,848 948,536 72,082 2,969,395

Nippon Prologis REIT (F) 18,508 48,388 3,548,040 1,559,871 7,312 29,248 235,697 15,393 319,599

Prologis China Logistics Venture 5,045 5,279 295,347 247,105 792 3,168 37,066 12,577 43,928

Asia 23,553 53,667 3,843,387 1,806,976 8,104 32,416 272,763 27,970 363,527

Total 290,317 $ 395,848 $ 25,498,637 $ 7,845,219 $ 133,836 $ 535,344 $ 2,376,229 $ 217,349 $ 5,400,293

(A) The information presented excludes the co-investment ventures Prologis DFS Fund I and Prologis Mexico Fondo Logistico, due to the investment size of these ventures. (B) Promote opportunity is every three years.

(C) Promote opportunity is every year.

(D) We have a 50% ownership interest in and consolidate an entity that in turn has an ownership interest in various entities that are accounted for on the equity method (“Brazil Fund”). We also have other Brazil joint ventures that we account for using the equity method. Prologis share in these Brazil entities is reflected at our effective economic ownership.

(E) Values represent Prologis’ adjusted basis and may not be comparable to values reflected in the entities’ stand alone financial statements calculated on a different basis.

(F) Throughout this document, we use the most recent public information for this co-investment venture. If the co-investment venture acquires properties during the period that is reported, we estimate the entire quarter of NOI based on the results of the properties while owned by Prologis.

Strategic Capital

Summary and Financial Highlights

Second Quarter 2014

Prologis © 2014

15

Strategic Capital

Operating and Balance Sheet Information

Second Quarter 2014

(dollars in thousands)

Americas

Europe

Asia

Total

FFO and Net Earnings (Loss) of the Unconsolidated Co-Investment Ventures, Aggregated (A)(B)

For the Three Months Ended June 30, 2014

Rental income

$ 178,692

$ 252,260

$

69,731

$

500,683

Rental expenses

(46,442)

(55,496)

(16,055)

(117,993)

Net operating income from properties

132,250

196,764

53,676

382,690

Other income (expense), net

2,012

(161)

(5,424)

(3,573)

General and administrative expenses

(11,708)

(11,996)

(8,447)

(32,151)

Interest expense

(39,953)

(27,939)

(6,724)

(74,616)

Current income tax expense

(1,168)

(9,411)

(471)

(11,050)

Core FFO

81,433

147,257

32,610

261,300

Acquisition expenses, gains(losses) on dispositions of investments in real estate and early extinguishment of debt, net

(37,161)

(5,420)

(71)

(42,652)

FFO, as defined by Prologis

44,272

141,837

32,539

218,648

Real estate related depreciation and amortization

(68,290)

(86,165)

(16,709)

(171,164)

Foreign currency exchange and derivative gains (losses), net

19

(151)

852

720

Gains (losses) on dispositions of investments in real estate, net

14,093

(14)

-

14,079

Deferred tax benefit (expense), net

162

10,117

(183)

10,096

Net earnings (loss)

$ (9,744)

$ 65,624

$

16,499

$

72,379

Prologis’ Share of Core FFO and Net Earnings (Loss) of the Unconsolidated Co-Investment Ventures (A)

For the Three Months Ended June 30, 2014

Core FFO, from unconsolidated co-investment ventures, net

$ 22,165

$ 58,544

$

4,868

$

85,577

Fees earned by Prologis

47,230

19,453

9,410

76,093

Total Core FFO recognized by Prologis, net

$ 69,395

$ 77,997

$

14,278

$

161,670

Prologis’ share of the unconsolidated co-investment ventures’ net earnings (loss)

$ (8,526)

$ 26,742

$

2,838

$

21,054

Fees earned by Prologis

47,230

19,453

9,410

76,093

Total earnings recognized by Prologis, net

$ 38,704

$ 46,195

$

12,248

$

97,147

Condensed Balance Sheet of the Unconsolidated Co-Investment Ventures, Aggregated (A)(B)

As of June 30, 2014

Operating industrial properties, before depreciation

$ 9,382,528

$ 12,272,723

$

3,843,386

$

25,498,637

Accumulated depreciation

(916,975)

(923,216)

(84,572)

(1,924,763)

Properties under development and land

254,861

12,459

166,954

434,274

Other assets

729,615

873,940

343,922

1,947,477

Total assets

$ 9,450,029

$ 12,235,906

$

4,269,690

$

25,955,625

Third party debt

3,334,477

2,703,766

1,806,976

7,845,219

Other liabilities

249,688

1,191,891

241,930

1,683,509

Total liabilities

$ 3,584,165

$ 3,895,657

$

2,048,906

$

9,528,728

Weighted average ownership

27.7%

38.7%

15.0%

30.7%

(A) Includes the unconsolidated co-investment ventures listed on the previous page.

(B) Represents the entire entity, not our proportionate share. Prologis © 2014 16

Operations Overview

Operating Metrics – Owned and Managed

Second Quarter 2014

Period Ending Occupancy by Division

100%

96.4

96.7

96.3

94.2

95.5

95.2

95.4

95.1

95.6

95.1

94.5

94.6

95%

93.7

93.1

93.1

93.6

93.7

93.9

92.3

92.6

90%

85%

Q2 13 Q3 13

Q4 13

Q1 14

Q2 14

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Q2 13

Q3 13

Q4 13

Q1 14

Q2 14

Americas

Europe

Asia

Total

Leasing Activity

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Square feet of leases signed:

Operating portfolio:

Renewals

24,148

23,355

27,422

23,307

20,108

New leases

9,713

7,483

11,551

8,292

8,908

Total operating portfolio

33,861

30,838

38,973

31,599

29,016

Properties under development

2,389

5,253

4,763

2,130

2,352

Total square feet of leases signed

36,250

36,091

43,736

33,729

31,368

Average term of leases signed (months)

49

59

44

40

45

Net effective rent change (GAAP)

4.0%

6.1%

5.9%

7.0%

6.6%

Prologis © 2014 17

Operations Overview

Operating Metrics – Owned and Managed

Second Quarter 2014

(in thousands, except for percentages and per square foot)

Capital Expenditures Incurred

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Property improvements $ 25,046 $ 35,668 $ 44,020 $ 19,347 $ 25,690

Tenant improvements 34,915 32,213 36,116 27,208 28,570

Leasing commissions 26,827 17,992 26,450 20,378 19,143

Total turnover costs 61,742 50,205 62,566 47,586 47,713

Total capital expenditures $ 86,788 $ 85,873 $ 106,586 $ 66,933 $ 73,403

Trailing four quarters - % of gross NOI 14.8% 14.9% 14.5% 14.4% 13.5%

Weighted average ownership percent 75.9% 79.1% 73.3% 69.9% 66.7%

Prologis share $ 65,895 $ 67,949 $ 78,153 $ 46,774 $ 48,982

Same Store Information

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Square feet of population 508,242 494,941 489,808 505,644 496,858

Average occupancy 93.3% 93.5% 94.3% 94.1% 94.2%

Percentage change:

Rental income 1.4% 1.9% 0.8% 1.5% 3.1%

Rental expenses 3.5% 3.2% (4.2%) (2.1%) 1.3%

NOI - GAAP 0.7% 1.4% 2.7% 3.0% 3.8%

NOI - Adjusted Cash (0.4%) 1.8% 3.0% 4.1% 5.3%

Average occupancy 1.9% 0.9% 0.7% 1.3% 1.1%

Turnover Costs: per Square Foot ($) and per Value of Lease (%)

$ 1.80 9.0 10%

7.8 8.2 8.1

$ 1.60 6.9 $1.57 8%

$1.48

$ 1.41 $1.41 6%

$ 1.40

4%

$ 1.20

2%

$ 1.00 0%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Property Improvements per Square Foot

$ 0.08

$ 0.08

$0.07

$ 0.06 $0.06 $ 0.06 $0.06 $ 0.06

$ 0.06

$ 0.05 $ 0.05

$0.04

$ 0.04

$ 0.02

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

$ per square foot trailing four quarters

Prologis © 2014 18

Operations Overview

Operating Portfolio – Square Feet, Occupied and Leased

(square feet in thousands)

Second Quarter 2014

# of Buildings Square Feet Occupied % Leased %

Owned and Owned and Prologis Share % of Owned and Prologis Owned and Prologis

Managed Managed Sq Ft (%) Total Managed Share Managed Share

Global Markets

U.S.

Atlanta 118 15,358 12,629 82.2 3.7 90.7 91.8 90.7 91.8

Baltimore/Washington 69 8,206 5,687 69.3 1.7 99.2 98.9 99.2 98.9

Central Valley 24 9,986 8,595 86.1 2.5 96.6 98.4 96.6 98.4

Central & Eastern PA 30 14,925 10,627 71.2 3.1 98.5 98.3 98.5 98.3

Chicago 208 35,019 28,034 80.1 8.2 93.1 94.7 93.1 94.7

Dallas/Ft. Worth 159 24,827 20,521 82.7 6.0 94.5 94.4 94.7 94.4

Houston 93 11,355 8,103 71.4 2.4 98.1 98.4 98.4 98.8

New Jersey/New York City 139 21,118 15,621 74.0 4.6 96.2 96.0 96.5 96.2

San Francisco Bay Area 233 19,085 15,827 82.9 4.6 94.9 94.4 95.0 94.5

Seattle 79 10,598 5,169 48.8 1.5 94.9 95.8 95.0 95.8

South Florida 91 10,637 7,509 70.6 2.2 95.1 93.9 95.1 93.9

Southern California 304 58,069 46,899 80.8 13.7 96.3 96.3 96.7 96.7

Canada 19 6,384 5,399 84.6 1.6 98.3 98.0 98.3 98.0

Mexico

Guadalajara 27 5,876 2,828 48.1 0.8 97.8 97.9 97.8 97.9

Mexico City 49 10,894 5,383 49.4 1.6 95.8 96.2 95.8 96.2

Monterrey 22 3,413 1,535 45.0 0.4 90.7 90.7 92.3 92.3

Brazil 13 4,689 644 13.7 0.2 97.8 96.0 97.8 96.0

Americas total 1,677 270,439 201,010 74 .3 58 .8 95 .5 95 .7 95 .7 95 .8

Belgium 12 2,497 1,255 50.3 0.4 96.3 92.7 96.3 92.7

Czech Republic 30 7,066 3,253 46.0 1.0 92.1 92.3 93.8 94.1

France 130 31,661 14,078 44.5 4.1 91.4 89.8 92.4 90.6

Germany 94 20,140 7,813 38.8 2.3 96.7 96.3 96.7 96.3

Italy 27 8,378 4,630 55.3 1.3 86.1 78.9 86.1 78.9

Netherlands 64 13,743 5,339 38.8 1.6 94.9 95.0 94.9 95.0

Poland 99 21,609 9,373 43.4 2.7 90.2 89.1 90.8 89.7

Spain 26 7,125 3,483 48.9 1.0 86.8 88.6 86.8 88.6

United Kingdom 87 19,992 8,495 42.5 2.5 96.7 94.6 96.7 94.6

Europe total 569 132,211 57,719 43 .7 16 .9 92 .7 91.0 93 .2 91.4

China 31 7,239 2,951 40.8 0.9 96.3 95.2 96.3 95.2

Japan 36 23,008 7,297 31.7 2.1 95.2 91.3 95.4 91.3

Singapore 5 941 941 100.0 0.3 100.0 100.0 100.0 100.0

Asia total 72 31,188 11,189 35 .9 3 .3 95 .6 93 .0 95 .7 93 .1

Total global markets 2,318 433,838 269,918 62 .2 79 .0 94 .7 94 .6 94 .9 94 .8

Regional markets (A )

Columbus 27 8,244 6,760 82.0 2.0 92.9 91.4 93.8 92.4

Denver 27 4,491 3,960 88.2 1.1 99.1 99.0 100.0 100.0

Orlando 34 4,178 3,404 81.5 1.0 95.4 94.4 95.6 94.6

San Antonio 50 5,606 4,533 80.9 1.3 97.9 98.5 99.4 99.3

Nashville 38 6,230 5,472 87.8 1.6 99.2 99.1 99.2 99.1

Remaining other regional (15 markets) 319 58,170 37,108 63.8 10.9 94.3 94.0 94.9 94.5

Regional markets total 495 86,919 61,237 70 .5 17 .9 95 .1 94 .8 95 .7 95 .4

Other markets (11 markets) 70 12,429 10,465 84 .2 3 .1 90 .8 92 .1 90 .8 92 .1

Total operating portfolio - owned and managed 2,883 533,186 341,620 64 .1 100 .0 94 .6 94 .5 94 .9 94 .8

(A) Selected and ordered by Prologis share of Gross Book Value ($). Prologis © 2014 19

Operations Overview

Operating Portfolio – NOI and Gross Book Value

(dollars in thousands)

Second Quarter 2014

Second Quarter NOI Gross Book Value

Owned and Prologis Share ( A ) % of Owned and Prologis Share % of

Managed ( $) ( %) Total Managed ( $) ( %) Total

Global Markets

U.S.

Atlanta $ 9,924 $ 7,951 80.1 2.2 $ 690,914 $ 534,847 77.4 2.2

Baltimore/Washington 12,179 8,567 70.3 2.3 696,225 471,357 67.7 1.9

Central Valley 9,126 8,100 88.8 2.2 552,374 471,954 85.4 1.9

Central & Eastern PA 15,150 10,405 68.7 2.8 910,923 633,966 69.6 2.6

Chicago 25,581 19,507 76.3 5.3 2,112,235 1,631,381 77.2 6.7

Dallas/Ft. Worth 18,479 14,345 77.6 3.9 1,244,897 966,548 77.6 3.9

Houston 12,172 8,013 65.8 2.2 721,325 436,837 60.6 1.8

New Jersey/New York City 28,505 19,893 69.8 5.4 1,870,061 1,244,368 66.5 5.1

San Francisco Bay Area 28,851 22,935 79.5 6.3 1,956,347 1,617,569 82.7 6.6

Seattle 13,097 6,374 48.7 1.7 1,005,722 494,462 49.2 2.0

South Florida 14,188 9,598 67.6 2.6 1,057,923 780,749 73.8 3.2

Southern California 63,740 51,173 80.3 13.9 5,202,488 4,152,577 79.8 16.9

Canada 8,182 6,871 84.0 1.9 604,079 508,559 84.2 2.1

Mexico -

Guadalajara 6,817 4,214 61.8 1.1 306,421 149,049 48.6 0.6

Mexico City 11,108 6,237 56.1 1.7 709,194 357,013 50.3 1.5

Monterrey 3,623 1,011 27.9 0.3 193,349 86,968 45.0 0.4

Brazil 11,917 1,550 13.0 0.4 445,546 53,284 12.0 0.2

Americas total 292,639 206,744 70.6 56.2 20,280,023 14,591,488 72.0 59.6

Belgium 3,985 1,973 49.5 0.5 200,848 101,327 50.4 0.4

Czech Republic 8,434 3,886 46.1 1.0 525,911 231,460 44.0 0.9

France 40,663 17,151 42.2 4.7 2,611,174 1,121,418 42.9 4.6

Germany 31,313 11,987 38.3 3.3 1,847,852 702,827 38.0 2.9

Italy 8,501 4,257 50.1 1.2 533,465 293,580 55.0 1.2

Netherlands 22,035 8,675 39.4 2.4 1,264,121 495,189 39.2 2.0

Poland 20,779 8,857 42.6 2.4 1,479,067 604,465 40.9 2.5

Spain 8,885 4,514 50.8 1.2 577,442 289,553 50.1 1.2

United Kingdom 44,341 18,796 42.4 5.1 2,735,510 1,142,069 41.7 4.6

Europe total 188,936 80,096 42.4 21.8 11,775,390 4,981,888 42.3 20.3

China 6,267 1,780 28.4 0.5 368,704 117,659 31.9 0.5

Japan 56,187 15,110 26.9 4.1 4,213,507 1,201,576 28.5 4.9

Singapore 2,438 2,438 100.0 0.7 146,726 146,726 100.0 0.6

Asia total 64,892 19,328 29.8 5.3 4,728,937 1,465,961 31.0 6.0

-

Total global market s 546,467 306,168 56.0 83.3 36,784,350 21,039,337 57.2 85.9

Regional markets ( B ) -

Columbus 4,486 3,480 77.6 1.0 311,676 246,839 79.2 1.0

Denver 4,646 4,149 89.3 1.1 268,626 239,289 89.1 1.0

Orlando 3,882 2,983 76.8 0.8 282,633 224,122 79.3 0.9

San Antonio 5,189 4,232 81.6 1.2 261,436 204,690 78.3 0.8

Nashville 3,912 3,351 85.7 0.9 220,654 192,084 87.1 0.8

Remaining other regional (15 markets) 54,350 33,432 61.5 9.1 3,121,475 1,839,334 58.9 7.5

Regional markets total 76,465 51,627 67.5 14.1 4,466,500 2,946,358 66.0 12.0

Other markets (11 markets) 11,576 9,666 83.5 2.6 670,634 517,542 77.2 2.1

Total operating portfolio - owned and managed $ 634,50 8 $367,461 57.9 100.0 $41,921,484 $24,503,237 58.5 100.0

(A) Prologis’ share of NOI for the properties that were contributed to the co-investment ventures includes 100% of the NOI until the contribution date and then Prologis’ share subsequent to the contribution.

(B) Selected and ordered by Prologis share of Gross Book Value ($). Prologis © 2014 20

Operations Overview

Operating Portfolio – Summary by Division

Second Quarter 2014

(square feet and dollars in thousands)

# o f B uildings

Square F eet

Occupied %

Leased %

Owned and

Owned and

P ro lo gis Share

% o f

Owned and

P ro lo gis

Owned and

P rologis

M anaged

M anaged

Sq F t

%

T o tal

M anaged

Share

M anaged

Share

Consolidated

Americas

1,377

226,365

219,776

97.1

64.3

95.7

95.7

95.9

95.9

Europe

49

11,382

11,382

100.0

3.3

77.0

77.0

78.2

78.2

Asia

26

7,635

7,635

100.0

2.3

91.1

91.1

91.1

91.1

Total operating portfolio—consolidated

1,452

245,382

238,793

97.3

69.9

94.7

94.7

94.9

94.9

Unconsolidated

Americas

803

128,372

45,627

35.5

13.4

94.9

94.8

95.2

95.1

Europe

582

135,879

53,646

39.5

15.7

93.9

93.6

94.4

94.1

Asia

46

23,553

3,554

15.1

1.0

97.1

97.1

97.2

97.2

Total operating portfolio—unconsolidated

1,431

287,804

102,827

35.7

30.1

94.6

94.3

95.0

94.7

Total

Americas

2,180

354,737

265,403

74.8

77.7

95.4

95.5

95.6

95.7

Europe

631

147,261

65,028

44.2

19.0

92.6

90.7

93.2

91.3

Asia

72

31,188

11,189

35.9

3.3

95.6

93.0

95.7

93.1

Total operating portfolio—owned and managed

2,883

533,186

341,620

64.1

100.0

94.6

94.5

94.9

94.8

Value added properties—consolidated

5

1,049

1,049

100.0

28.7

28.7

28.7

28.7

Value added properties—unconsolidated

12

2,513

891

35.5

39.6

37.8

44.8

45.0

Total owned and managed

2,900

536,748

343,560

64.0

94.3

94.2

94.6

94.5

Seco nd Quarter N OI

Gro ss B o o k Value

Owned and

P ro lo gis Share (A )

% o f

Owned and

P ro lo gis Share

% o f

M anaged

$

%

T o tal

M anaged

$

%

Total

Consolidated

Americas

$216,847

$209,078

96.4

56.8

$14,934,816

$14,427,773

96.6

58.9

Europe

11,252

11,252

100.0

3.1

757,174

757,174

100.0

3.1

Asia

11,224

11,224

100.0

3.1

885,550

885,550

100.0

3.6

Total operating portfolio—consolidated

$239,323

$231,554

96.8

63.0

$16,577,540

$16,070,497

96.9

65.6

Unconsolidated

Americas

$145,450

$50,591

34.8

13.8

$9,351,056

$3,114,257

33.3

12.7

Europe

196,067

77,212

39.4

21.0

12,149,501

4,738,072

39.0

19.3

Asia

53,668

8,104

15.1

2.2

3,843,387

580,411

15.1

2.4

Total operating portfolio—unconsolidated

$395,185

$135,907

34.4

37.0

$25,343,944

$8,432,740

33.3

34.4

Total

Americas

$362,297

$259,669

71.7

70.6

$24,285,872

$17,542,030

72.2

71.6

Europe

207,319

88,464

42.7

24.1

12,906,675

5,495,246

42.6

22.4

Asia

64,892

19,328

29.8

5.3

4,728,937

1,465,961

31.0

6.0

Total operating portfolio—owned and managed

$634,508

$367,461

57.9

100.0

$41,921,484

$24,503,237

58.5

100.0

Value added properties—consolidated

137

137

100.0

51,460

51,460

100.0

Value added properties—unconsolidated

663

224

33.8

154,693

55,064

35.6

Total owned and managed

$635,308

$367,822

57.9

$42,127,637

$24,609,761

58.4

(A) Prologis’ share of NOI for the properties that were contributed to the co-investment ventures includes 100% of the NOI until the contribution date and then Prologis’ share subsequent to the contribution. Prologis © 2014 21

Operations Overview

Customer Information – Owned and Managed

(square feet and dollars in thousands) Second Quarter 2014

Top Customers Lease Expirations - Operating Portfolio - Ow ned and Managed

% of Annual Total Occupied Annual Base Rent

Year

Base Rent Square Feet Sq Ft $ % of Total Occupied Sq Ft $

1 DHL 2.1 10,959 Month to month 11,069 $ 48,705 1.6 $ 4.40

2 CEVA Logistics 1.4 6,899 2014 24,665 139,570 4.6 5.66

3 Kuehne + Nagel 1.3 6,017 2015 96,076 546,992 18.2 5.69

4 Geodis 1.2 6,053 2016 95,873 544,654 18.2 5.68

5 Amazon.com 1.0 4,659 2017 83,516 485,132 16.1 5.81

6 Wal-Mart Stores 1.0 4,904 2018 59,600 359,188 11.9 6.03

7 Home Depot 0.8 4,177 Thereafter 133,847 882,240 29.4 6.59

8 FedEx Corporation 0.8 2,333 Total 504,646 $ 3,006,481 100.0 $ 5.96

9 United States Government 0.7 1,482

10 Hitachi 0.7 2,062 Lease Expirations - Operating Portfolio - Prologis Share

Top 10 Customers 11.0 49,545 Occupied Annual Base Rent

Year

11 Tesco 0.6 2,508 Sq Ft $ % of Total Occupied Sq Ft $

12 DB Schenker 0.6 3,074 Month to month 7,945 $ 31,118 1.8 $ 3.92

13 PepsiCo 0.6 4,076 2014 15,855 83,401 4.6 5.26

14 ND Logistics 0.6 3,032 2015 61,405 324,900 18.3 5.29

15 Panasonic 0.6 1,678 2016 61,247 318,328 17.9 5.20

16 Panalpina 0.5 2,159 2017 53,286 286,152 16.1 5.37

17 Ingram Micro 0.5 3,023 2018 37,094 213,702 12.0 5.76

18 La Poste 0.5 1,619 Thereafter 86,152 520,202 29.3 6.04

19 Bayerische Motoren Werke AG (BMW) 0.5 2,273 Total 322,984 $ 1,777,803 100.0 $ 5.50

20 UPS 0.4 2,314

21 Nippon Express Group 0.4 1,328 Lease Expirations by Division - Operating Portfolio - Ow ned and Managed

22 LG 0.4 2,540 Division 2014 2015 2016 2017 2018 Thereafter Total

23 Schneider Electric 0.4 1,698 Americas 58.4% 59.8% 58.7% 60.0% 67.5% 55.0% 59.2%

24 Con-Way (Menlo Worldw ide Logistics) 0.4 2,700 Europe 28.8 31.9 28.9 30.1 27.2 32.9 30.6

25 UTi 0.4 2,287 Asia 12.8 8.3 12.4 9.9 5.3 12.1 10.2

Top 25 Customers 18.4 85,854 Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Prologis © 2014

22

Capital Deployment

Overview – Owned and Managed

Second Quarter 2014

(in millions)

Development Starts (TEI)

Development Stabilizations

$2,000

$1,771

$2,000

$1,553

$1,600

$1,600

$1,401

$1,200

$1,017

$1,200

$800

$800

$772

$611

$635

$400

$400

$280

$-

$-

2011

2012

2013

YTD 2014

2011

2012

2013

YTD 2014

Value Creation

$26

$184

$426

$142

Building Acquisitions

Land Portfolio

$2,500

$1,200

$1,053

$2,040

$2,000

$1,894

$1,753

$1,585

$800

$1,500

$544

$508

$1,000

$400

$311

$500

$-

$-

2011

2012

2013

YTD 2014

12/31/2011

12/31/2012

12/31/2013

6/30/14

Americas Europe Asia

Prologis © 2014 23

Capital Deployment

Value Creation from Development Stabilization

Second Quarter 2014

(in thousands, except percent)

Q2 2014

YTD 2014

TEI

TEI

Leased % at Owned and

Prologis

Prologis

Leased % at Owned and

Prologis

Prologis

Square Feet

Start

Managed

Share ($)

Share (%)

Square Feet

Start

Managed

Share ($)

Share (%)

Americas

U.S.

Central

936

0.0

$ 47,782

$ 47,782

100.0

2,876

67.5

$ 122,050

$ 122,050

100.0

East

79

100.0

9,198

9,198

100.0

290

100.0

30,136

30,136

100.0

Northw est

-

-

-

-

-

-

-

-

-

-

Southw est

1,613

20.2

100,523

100,523

100.0

1,613

20.2

100,523

100,523

100.0

Canada

-

-

-

-

-

-

-

-

-

-

Mexico

-

-

-

-

-

754

0.0

45,156

36,686

81.2

Brazil

356

0.0

31,637

7,909

25.0

665

0.0

61,431

22,806

37.1

Americas total

2,984

13.6

189,140

165,412

87.5

6,198

41.2

359,296

312,201

86.9

Europe

Northern

-

-

-

-

-

120

100.0

9,590

3,048

31.8

Southern

490

55.2

54,251

38,305

70.6

1,192

81.6

70,750

54,804

77.5

Central

238

0.0

14,922

14,922

100.0

614

61.2

39,466

39,466

100.0

United Kingdom

171

100.0

21,184

21,184

100.0

336

100.0

39,787

39,787

100.0

Europe total

899

49.1

90,357

74,411

82.4

2,262

79.8

159,593

137,105

85.9

Asia

Japan

619

27.0

79,145

79,145

100.0

619

27.0

79,145

79,145

100.0

China

208

0.0

12,616

1,892

15.0

660

68.4

37,321

5,598

15.0

Singapore

-

-

-

-

-

-

-

-

-

-

Asia total

827

20.2

91,761

81,037

88.3

1,279

48.4

116,466

84,743

72.8

Total

4,710

21.5

$ 371,258

$ 320,860

86.4

9,739

51.1

$ 635,355

$ 534,049

84.1

Weighted average estimated stabilized yield

7.7%

7.3%

Pro forma NOI

$49,210

$26,943

Weighted average estimated cap rate at stabilization

6.3%

5.9%

Estimated value creation

$141,982

$83,368

Estimated development margin

22.2%

22.5%

Prologis share of estimated value creation ($)

$82,218

$132,725

Prologis share of estimated value creation (%)

98.6%

93.5%

Prologis © 2014 24

Capital Deployment

Development Starts

Second Quarter 2014

(in thousands, except percent)

Q2 2014

YTD 2014

TEI

TEI

Leased % at Owned and Prologis

Prologis

Leased % at Owned and Prologis

Prologis

Square Feet

Start

Managed

Share ($)

Share (%)

Square Feet

Start

Managed

Share ($)

Share (%)

Americas

U.S.

Central

548

11.4

$

30,513

$ 30,513

100.0

1,187

5.2

$

62,826

$ 62,826

100.0

East

1,154

0.0

69,290

69,290

100.0

1,319

0.0

85,824

85,824

100.0

Northw est

600

0.0

37,802

37,802

100.0

707

15.1

50,333

50,333

100.0

Southw est

-

-

-

-

-

-

-

-

-

-

Canada

-

-

-

-

-

-

-

-

-

-

Mexico

501

100.0

31,300

31,300

100.0

501

100.0

31,300

31,300

100.0

Brazil

-

-

-

-

-

-

-

-

-

-

Americas total

2,803

20.1

168,905

168,905

100.0

3,714

18.0

230,283

230,283

100.0

Europe

Northern

78

0.0

7,228

2,274

31.5

78

0.0

7,228

2,274

31.5

Southern

-

-

-

-

-

-

-

-

-

-

Central

658

26.9

45,397

45,397

100.0

1,265

23.6

83,580

83,580

100.0

United Kingdom

139

0.0

35,590

35,590

100.0

363

61.7

70,916

70,916

100.0

Europe total

875

20.2

88,215

83,261

94.4

1,706

30.6

161,724

156,770

96.9

Asia

Japan

1,051

0.0

153,446

153,446

100.0

1,051

0.0

153,446

153,446

100.0

China

520

80.2

28,085

4,213

15.0

1,196

34.9

65,371

9,806

15.0

Singapore

-

-

-

-

-

-

-

-

-

-

Asia total

1,571

26.5

181,531

157,659

86.8

2,247

18.6

218,817

163,252

74.6

Total

5,249

22.0

$

438,651

$ 409,825

93.4

7,667

21.0

$

610,824

$ 550,305

90.1

Weighted average estimated stabilized yield

7.1%

7.3%

Pro forma NOI

$31,299

$44,518

Weighted average estimated cap rate at stabilization

59%.

60%.

Estimated value creation

$82,474

$120,643

Estimated development margin

18.8%

19.8%

Prologis share of estimated value creation ($)

$78,580

$108,854

Prologis share of estimated value creation (%)

95.3%

90.2%

% BTS (based on Prologis share)

10.3%

17.6%

Prologis © 2014 25

Capital Deployment

Development Portfolio

Second Quarter 2014

(in thousands, except percent)

Under Development

2014

2015 and Thereafter

Pre-Stabilized Developments

Expected Completion

Expected Completion

Total Development Portfolio

T E I

T E I

T E I

T E I

Leased Owned and Prologis

Owned and Prologis

Owned and Prologis

Leased Owned and Prologis

Prologis

Sq Ft

%

Managed

Share

Sq Ft

Managed

Share

Sq Ft Managed

Share

Sq Ft

%

Managed

Share ($) Share (%)

Americas

U.S.

Central

767

100.0

$28,477

$28,477

3,123

$

146,330

$146,330

-

$ -

$ -

3,890

70.8

$174,807

$174,807

100.0

East

1,947

47.3

207,600

207,600

1,041

106,796

103,507

1,435

95,219

95,219

4,423

36.6

409,615

406,326

99.2

Northw est

241

64.4

16,835

16,835

717

49,676

49,676

392

23,648

23,648

1,350

38.5

90,159

90,159

100.0

Southw est

427

0.0

27,103

27,103

954

69,170

69,170

-

-

-

1,381

3.2

96,273

96,273

100.0

Canada

-

-

-

-

910

101,097

101,097

-

-

-

910

0.0

101,097

101,097

100.0

Mexico

619

0.0

40,995

40,995

570

36,115

36,115

501

31,301

31,301

1,690

29.7

108,411

108,411

100.0

Brazil

889

37.8

91,476

30,801

651

68,220

17,055

-

-

-

1,540

21.8

159,696

47,856

30.0

Americas total

4,890

44.6

412,486

351,811

7,966

577,404

522,950

2,328

150,168

150,168

15,184

38.0

1,140,058

1,024,929

89.9

Europe

Northern

-

-

-

-

242

26,614

21,660

-

-

-

242

0.0

26,614

21,660

81.4

Southern

-

-

-

-

262

19,079

9,539

348

28,559

28,559

610

100.0

47,638

38,098

80.0

Central

-

-

-

-

839

53,876

53,876

577

38,044

38,044

1,416

52.1

91,920

91,920

100.0

United Kingdom

225

0.0

25,557

25,557

449

77,561

77,561

1,218

171,437

171,437

1,892

64.4

274,555

274,555

100.0

Europe total

225

0.0

25,557

25,557

1,792

177,130

162,636

2,143

238,040

238,040

4,160

61.7

440,727

426,233

96.7

Asia

Japan

747

17.3

90,922

90,922

396

48,433

48,433

2,842

415,817

415,817

3,985

23.6

555,172

555,172

100.0

China

560

10.7

28,147

9,041

-

-

-

4,577

271,095

40,664

5,137

9.3

299,242

49,705

16.6

Singapore

-

-

-

-

17

2,014

2,014

-

-

-

17

100.0

2,014

2,014

100.0

Asia total

1,307

14.5

119,069

99,963

413

50,447

50,447

7,419

686,912

456,481

9,139

15.7

856,428

606,891

70.9

Total

6,422

36.9

$557,112

$477,331

10,171

$

804,981

$736,033

11,890

$1,075,120

$844,689

28,483

34.3

$2,437,213

$2,058,053

84.4

Cost to complete

$ 49,523

$ 47,113

$

288,830

$ 270,003

$ 644,324 $

504,761

$

982,677

$ 821,877

Percent build to suit (based on Prologis share)

6.0%

20.5%

34.0%

22.7%

Weighted average estimated stabilized yield

Americas

7.6%

7.0%

7.2%

7.3%

Europe

8.5%

8.3%

7.1%

7.7%

Asia

6.9%

6.8%

7.0%

7.0%

Total

7.5%

7.3%

7.0%

7.2%

Pro forma NOI

$

176,190

Weighted average estimated cap rate at stabilization

6.0%

Estimated value creation

$

516,617

Estimated development margin

21.2%

Prologis share of estimated value creation

$

452,767

Prologis share of estimated value creation

87.6%

Prologis © 2014 26

Capital Deployment

Third Party Building Acquisitions and Equity Invested in Co-Investment Ventures

Second Quarter 2014

(square feet and dollars in thousands)

Q2 2014

YTD 2014

Owned and

Prologis Share of

Prologis Share of

Owned and

Prologis Share of

Prologis Share of

Prologis Share

Square Feet

Managed

Acquisition

Acquisition

Managed

Acquisition

Acquisition

of Square Feet

Feet

of Square Feet

Acquisition Cost

Cost ($)

Cost (%)

Acquisition Cost

Cost ($)

Cost (%)

Third Party Building Acquisitions

Americas

Prologis w holly ow ned

556

556

$

44,821

$

44,821

100.0

556

556

$

44,821

$

44,821

100.0

Prologis Targeted U.S. Logistics Fund

374

97

29,375

7,567

25.8

833

216

57,366

14,790

25.8

Total Americas

930

653

74,196

52,388

70.6

1,389

772

102,187

59,611

58.3

Europe

Prologis Targeted Europe Logistics Fund

202

88

46,420

20,128

43.4

202

88

46,420

20,128

43.4

Prologis European Properties Fund II

-

-

-

-

-

1,151

366

84,510

26,857

31.8

Prologis European Logistics Partners

592

296

16,377

8,188

50.0

3,688

1,844

274,412

137,206

50.0

Total Europe

794

384

62,797

28,316

45.1

5,041

2,298

405,342

184,191

45.4

Asia

-

-

-

-

-

-

-

-

-

-

Total Third Party Building Acquisitions

1,724

1,037

$

136,993

$

80,704

58.9

6,430

3,070

$

507,529

$

243,802

48.0

Weighted average stabilized cap rate

6.3%

6.8%

Q2 2014

YTD 2014

Ow nership

Ow nership

Before

After

Total Equity Invested

Before

After

Total Equity Invested

Equity Invested in Co-Investment Ventures

Prologis North American Industrial Fund

23.1%

41.9%

$

274,666

23.1%

41.9%

$

274,666

Total Equity Invested in Co-Investment Ventures

$

274,666

$

274,666

Prologis © 2014 27

Capital Deployment

Dispositions and Contributions

Second Quarter 2014

(square feet and dollars in thousands)

Q2 2014 YTD 2014

Prologis Owned and Prologis Share of Prologis Owned and Prologis Share of

Square Prologis Share Square Prologis Share

Share of Managed Total Proceeds Share of Managed Total Proceeds

Feet of Proceeds ($) Feet of Proceeds ($)

Square Feet Proceeds (%) (A) Square Feet Proceeds (%) (A)

Third Party Building Dispositions

Americas

Prologis wholly owned 6,962 6,962 $ 328,430 $ 328,430 100.0 7,677 7,677 $ 363,477 $ 363,477 100.0

Prologis AMS (B) 748 288 64,501 24,868 38.6 748 288 64,501 24,868 38.6

Prologis Targeted U.S. Logistics Fund 688 177 49,228 12,681 25.8 708 182 52,316 13,478 25.8

Prologis North American Industrial Fund 461 193 23,120 9,685 41.9 599 225 29,420 11,138 37.9

Total Americas 8,859 7,620 465,279 375,664 80.7 9,732 8,372 509,714 412,961 81.0

Europe

Prologis Targeted Europe Logistics Fund 33 14 4,155 1,802 43.4 33 14 4,155 1,802 43.4

Prologis European Logistics Partners - - - - - 594 297 56,925 28,462 50.0

Total Europe 33 14 4,155 1,802 43.4 627 311 61,080 30,264 49.5

Asia

Prologis wholly owned 383 383 50,263 50,263 100.0 383 383 50,263 50,263 100.0

Total Asia 383 383 50,263 50,263 100.0 383 383 50,263 50,263 100.0

Total Third Party Building Dispositions 9,275 8,017 $ 519,697 $ 427,729 82.3 10,742 9,066 $ 621,057 $ 493,488 79.5

Building Contributions to Co-Investment Ventures

Americas (C)

Prologis U.S. Logistics Venture (B) - - $ - $ - - 12,797 12,797 $ 1,008,310 $ 453,366 45.0

Total Americas - - - - - 12,797 12,797 1,008,310 453,366 45.0

Europe

Prologis Targeted Europe Logistics Fund 167 167 26,257 14,872 56.6 167 167 26,257 14,872 56.6

Total Europe 167 167 26,257 14,872 56.6 167 167 26,257 14,872 56.6

Asia

Total Asia - - - - - - - - - -

Total Contributions to Co-Investment Ventures 167 167 $ 26,257 $ 14,872 56.6 12,964 12,964 $ 1,034,567 $ 468,238 45.3

Total Building Dispositions and Contributions 9,442 8,184 $ 545,954 $ 442,601 81.1 23,706 22,030 $ 1,655,624 $ 961,726 58.1

Land dispositions 11,212 10,482 93.5 60,374 59,644 98.8

Other real estate dispositions 46,513 46,513 100.0 46,513 46,513 100.0

Grand Total Dispositions and Contributions $ 603,679 $ 499,596 82.8 $ 1,762,511 $ 1,067,883 60.6

Weighted average stabilized cap rate on building dispositions and contributions 6.6% 6.4%

(A) For contributions, this amount reflects net cash proceeds to Prologis (net of units received for partial consideration).

(B) This is a consolidated co-investment venture.

(C) In June 2014, we completed the initial public offering for FIBRA Prologis, a Mexican real estate investment trust, on the Mexican Stock Exchange. We received equity units of FIBRA Prologis in exchange

for our investment in 177 properties aggregating 29.7 million square feet. The portfolio of properties were purchased by FIBRA Prologis from us and two of our co-investment ventures (Mexico Fondo

Logistico, a consolidated venture, and Prologis Mexico Industrial Fund, an unconsolidated venture). Our ownership in FIBRA Prologis is approximately 45%.

Prologis © 2014 28

Capital Deployment

Land Portfolio – Owned and Managed

Second Quarter 2014

(square feet and dollars in thousands)

Land by Market

Acres

Current Book Value

Prologis Share

Prologis Share

%of

Owned and

Estimat ed Build

Owned and

Managed

Acres

( %)

Out ( sq f t )

Managed

( $

)

( %)

Tot al

Global markets

U.S.

Atlanta

608

608

100.0

8,476

$ 28,435

$

28,435

100.0

1.7

Baltimore/Washington

39

39

100.0

400

1,567

1,567

100.0

0.1

Central Valley

1,144

1,144

100.0

20,560

47,297

47,297

100.0

2.9

Central & Eastern PA

332

332

100.0

4,361

36,988

36,988

100.0

2.3

Chicago

510

510

100.0

9,479

36,815

36,815

100.0

2.2

Dallas/Ft. Worth

426

426

100.0

7,583

28,220

28,220

100.0

1.7

Houston

70

70

100.0

1,112

8,374

8,374

100.0

0.5

New Jersey/New York City

183

183

100.0

2,673

81,484

81,484

100.0

5.0

South Florida

316

316

100.0

5,629

155,091

155,091

100.0

9.4

Southern California

697

697

100.0

13,909

135,668

135,668

100.0

8.3

Canada

179

179

100.0

3,435

55,316

55,316

100.0

3.4

Mexico

Guadalajara

50

50

100.0

1066,

12,485

12,485

100.0

0.8

Mexico City

142

142

100.0

2,740

64,475

64,475

100.0

3.9

Monterrey

156

156

100.0

2,869

33,020

33,020

100.0

2.0

Brazil

573

217

37.9

9,452

127,542

50,256

39.4

3.1

Americas total

5,425

5,069

93 .4

93,744

852,777

775,491

90 .9

47 .3

Belgium

27

27

100.0

526

10,657

10,657

100.0

0.7

Czech Republic

258

258

100.0

4,303

57,962

57,962

100.0

3.5

France

449

449

100.0

8,360

79,178

79,178

100.0

4.8

Germany

58

58

100.0

1,197

15,204

15,204

100.0

0.9

Italy

107

107

100.0

2,451

33,719

33,719

100.0

2.1

Netherlands

56

56

100.0

1,538

53,311

53,311

100.0

3.3

Poland

665

665

100.0

12,922

82,676

82,676

100.0

5.0

Spain

100

100

100.0

2,021

17,438

17,438

100.0

1.1

United Kingdom

636

636

100.0

9,944

194,277

194,277

100.0

11.9

Europe total

2,356

2,356

100 .0

43,262

544,422

544,422

100 .0

33 .3

China

148

38

25.7

4,397

54,527

15,616

28.6

1.0

Japan

52

52

100.0

2,163

98,265

98,265

100.0

6.0

Asia total

200

90

45.0

6,560

152,792

113,881

74.5

7.0

Tot al glob al market s

7,981

7,515

94 .2

143,566

1,549,991

1,433,794

92 .5

87 .6

Regional markets ( A )

Hungary

335

335

100.0

5,604

38,948

38,948

100.0

2.4

Central Florida

122

122

100.0

1,768

25,932

25,932

100.0

1.6

Juarez

148

148

100.0

2,759

15,209

15,209

100.0

1.0

Slovakia

78

78

100.0

1,708

14,674

14,674

100.0

0.9

Reynosa

196

196

100.0

3,460

12,221

12,221

100.0

0.7

Remaining other regional (10 markets)

504

504

100.0

8,525

36,645

36,645

100.0

2.2

Total regional markets

1,383

1,383

100 .0

23 ,824

143 ,629

143 ,629

100 .0

88.

Tot al other markets (7 markets)

684

684

100 .0

11,332

59,438

59,438

100 .0

3 .6

Tot al land port fo lio—owned and managed

10,048

9,582

95 .4

178,722

$

1,753,058

$

1,636,861

93 .4

100 .0

Original Cost Basis

$

2,609,476

$

2,499,784

(A) Ordered by our share of current book value. Prologis © 2014 29

Capital Deployment

Land Portfolio – Summary and Roll Forward

Second Quarter 2014

(dollars in thousands)

Acres

Current Book Value

Owned and Prologis

% of

Owned and

Prologis

% of

Land Portfolio Summary

Managed

Share

Total

Managed

Share

Total

Americas

U.S.

Central

1,322

1,322

13.8

$ 87,959

$

87,959

5.4

East

2,015

2,015

21.0

360,924

360,924

21.9

Northwest

1,336

1,336

13.9

58,566

58,566

3.6

Southwest

810

810

8.5

146,723

146,723

9.0

Canada

179

179

1.9

55,316

55,316

3.4

Mexico

726

726

7.6

143,132

143,132

8.7

Brazil

573

217

2.3

127,542

50,256

3.1

Total Americas

6,961

6,605

69.0

980,162

902,876

55.1

Europe

Central

1,426

1,426

14.9

201,552

201,552

12.3

Northern

169

169

1.8

93,940

93,940

5.7

Southern

656

656

6.8

130,335

130,335

8.0

United Kingdom

636

636

6.6

194,277

194,277

11.9

Total Europe

2,887

2,887

30.1

620,104

620,104

37.9

Asia

China

148

38

0.4

54,527

15,616

1.0

Japan

52

52

0.5

98,265

98,265

6.0

Total Asia

200

90

0.9

152,792

113,881

7.0

Total land portfolio — owned and managed

10,048

9,582

100.0

$ 1,753,058

$ 1,636,861

100.0

Estimated Build Out (in TEI)

$ 10,800,000

Land Roll Forward — Owned and Managed

Americas

Europe

Asia

Total

As of March 31, 2014

$ 971,765

$ 591,346

$

118,848

$

1,681,959

Acquisitions

8,195

57,718

19,684

85,597

Dispositions

(2,382)

(4,053)

-

(6,435)

Development starts

(34,923)

(28,320)

(28,301)

(91,544)

Infrastructure costs

32,767

2,943

1,529

37,239

Reclasses

-

-

39,347

39,347

Effect of changes in foreign exchange rates and other

4,740

470

1,685

6,895

As of June 30, 2014

$ 980,162

$ 620,104

$

152,792

$

1,753,058

Prologis © 2014 30

Capitalization

Overview

Second Quarter 2014

Assets Under Management

(in millions)

$31,664

$51,594

$51,594

$20,768

$60,000

Investment Capacity

$3,098

$50,000

Asia

13.0%

Investors’ share

$40,000

AUM Strategic

of ventures

Europe

Capital $28,676

$16,832

26.1%

$30,000

Prologis share

of ventures

Debt

Other

$8,746

Total

$10,896

2.1%

Enterprise

$20,000

Value

Yen

Euro

Direct owned

$31,644

2.4%

10.5%

and other

Equity

Americas

$22,918

$20,768

60.9%

$10,000

U.S. Dollar

85%

$-

Total Enterprise Value

Assets Under Management Total AUM by Division

Net Equity

Unencumbered Assets-Prologis Share

(in billions)

CIP and Other

Land $2.8 $0.5

Operating

Properties

$18.1

Secured & Unsecured Debt-Prologis Share

Secured

27%

Unsecured

73%

Fixed vs. Floating Debt-Prologis Share

Floating

8%

Fixed

92%

Debt Metrics (A)

2014

2014

Second Quarter

First Quarter

Debt as % of gross real estate assets

37.5%

37.1%

Secured debt as % of gross real estate assets

10.4%

10.7%

Unencumbered gross real estate assets to unsecured debt

267.7%

270.0%

Fixed charge coverage ratio

3.02x

2.85x

Fixed charge coverage ratio, including development gains

3.35x

3.24x

Debt/Adjusted EBITDA

7.35x

7.20x

Debt/Adjusted EBITDA, including development gains

6.61x

6.34x

Debt/Adjusted EBITDA (adjusted for development)

6.16x

6.04x

Investment Ratings at June 30, 2014 (B)

Moody’s

Baa1 (Outlook Stable)

Standard & Poor’s

BBB+ (Outlook Stable)

(A) These calculations are included in the Notes and Definitions section, and are not calculated in accordance with the applicable SEC rules.

(B) A securities rating is not a recommendation to buy, sell or hold securities and is subject to revision or withdrawal at any time by the rating organization.

Prologis © 2014 31

Capitalization

Debt Summary

(dollars in millions) Second Quarter 2014

P ro lo gis

Unsecured P ro lo gis Share

C redit Other Secured T o tal Wtd. A vg.

Senio r Exchangeable C o nso lidated Unco nso lidated % o f D ebt

F acilities D ebt M o rtgage T o tal C o nso lidated T o tal D ebt Interest

D ebt D ebt Entities D ebt Entities D ebt ( $ ) M aturing

M aturity (A ) (A ) D ebt D ebt R ate (B )

2014 $ - $ - $ - $1 $22 $23 $2 $25 $74 $99 $45 0.4 3.2%

2015 - 460 - 1 123 584 4 588 1,081 1,669 924 8.5 4.0%

2016 - - - 1 325 326 4 330 1,530 1,860 886 8.2 4.9%

2017 438 - - 1 226 665 1 666 533 1,199 881 8.1 5.1%

2018 667 - 39 1 110 817 2 819 1,504 2,323 1,259 11.6 4.7%

2019 694 - - 205 285 1,184 2 1,186 617 1,803 1,346 12.3 4.2%

2020 382 - - 1 6 389 2 391 942 1,333 655 6.0 5.3%

2021 500 - - 404 6 910 2 912 768 1,680 1,075 9.9 2.7%

2022 956 - - - 7 963 3 966 608 1,574 1,138 10.5 3.1%

2023 850 - - - 7 857 1 858 137 995 879 8.1 4.2%

Thereafter 1,639 - - 10 130 1,779 4 1,783 - 1,783 1,781 16.4 3.6%

Subto tal 6 ,12 6 4 6 0 3 9 6 2 5 1,2 4 7 8 ,4 9 7 2 7 8 ,5 2 4 7 ,7 9 4 16 ,3 18 10 ,8 6 9 10 0 . 0

Unamortized net premiums (discounts) (7) (13) - - 25 5 - 5 51 56 27

Subto tal 6 ,119 4 4 7 3 9 6 2 5 1,2 7 2 8 ,5 0 2 2 7 8 ,5 2 9 7 ,8 4 5 16 ,3 7 4 $ 10 ,8 9 6 4 . 1%

Third party share of debt - - - - - - (9) (9) (5,469) (5,478)

P ro lo gis share o f debt $ 6 ,119 $ 4 4 7 $ 3 9 $ 6 2 5 $ 1,2 7 2 $ 8 ,5 0 2 $ 18 $ 8 ,5 2 0 $ 2 ,3 7 6 $ 10 ,8 9 6

P ro lo gis share o f debt by lo cal currency (C )

Dollars $3,444 $447 $0 $16 $1,242 $5,149 $14 $5,163 $1,286 $6,449

Euro 2,575 - - 205 15 2,795 4 2,799 605 3,404

GBP - - - - - - - - 236 236

Yen 100 - 39 404 15 558 - 558 236 794

Other - - - - - - - - 13 13

P ro lo gis share o f debt $ 6 ,119 $ 4 4 7 $ 3 9 $ 6 2 5 $ 1,2 7 2 $ 8 ,5 0 2 $ 18 $ 8 ,5 2 0 $ 2 ,3 7 6 $ 10 ,8 9 6

Weighted average GAAP interest rate (D) 4.0% 3.3% 1.1% 1.4% 5.8% 4.0% 3.9% 4.0% 3.7% 4.1%

Weighted average remaining maturity in years 7.4 0.7 3.9 6.5 4.0 6.4 9.5 6.4 4.1 5.9

Prologis Share Wtd Avg

Near Term Maturities of Debt Interest Rate Liquidity

Q3 2014 $7 5.6% Aggregate lender commitments- credit facilities $2,976

Q4 2014 38 2.8% Less:

Q1 2015 466 3.3% Borrow ings outstanding 39

Q2 2015 198 4.5% Outstanding letters of credit 49

Total next 12 months $709 3.6% Current availability- credit facilities $2,888

Multi-currency term loan net availability 478

Unrestricted cash 267

Total liquidity $3,633

(A) The maturity date for the global senior credit facility and multi-currency term loan is reflected at the extended maturity date.

(B) Interest rate is based on the effective rate (which includes the amortization of related premiums and discounts) assuming the net premiums (discounts) associated with the respective debt were included in the

maturities by year.

(C) We hedge the net assets of certain international subsidiaries using foreign currency forward contracts (net investment hedges) to offset economic exposure by locking in a forward exchange rates. As of June

30, 2014 we had contracts with a notional amount of €847.6 million ($1,137.0 million) and ¥24.1 billion ($250 million), scheduled to mature in 2014, 2017, and 2018.

(D) Interest rate is based on the effective rate and weighted based on borrowings outstanding. Prologis © 2014 32

Capitalization

Debt Covenants and Other Metrics

(dollars in thousands)

Second Quarter 2014

Covenants as of June 30, 2014 (A)

Indenture (B) Global Line

Covenant Actual Covenant Actual

Leverage ratio <60% 31.7% <60% 31.0%

Fixed charge coverage ratio >1.5x 3.30x >1.5x 3.62x

Secured debt leverage ratio <40% 4.7% < 40% 4.7%

Unencumbered asset to unsecured debt ratio >150% 250.0% N/A N/A

Unencumbered debt service coverage ratio N/A N/A >150% 521.0%

Encumbrances as of June 30, 2014

Unencumbered Encumbered Total

Consolidated operating properties $ 13,460,210 $ 3,168,790 $ 16,629,000

Consolidated development portfolio and land 2,681,913 16,899 2,698,812

Consolidated other investments in real estate 437,866 16,245 454,111

Total consolidated 16,579,989 3,201,934 19,781,923

Less: third party share of investments in real estate 488,888 36,030 524,918

Total consolidated - Prologis share 16,091,101 3,165,904 19,257,005

Unconsolidated operating properties - Prologis’ share 5,142,539 3,345,265 8,487,804

Unconsolidated development portfolio and land - Prologis’ share 113,413 6,449 119,862

Gross real estate assets - Prologis share $ 21,347,053 $ 6,517,618 $ 27,864,671

Secured and Unsecured Debt as of June 30, 2014

Unsecured Secured

Debt Mortgage Debt Total

Prologis debt $ 7,250,347 $ 1,246,647 $ 8,496,994

Consolidated entities debt (1,000) 27,799 26,799

Our share of unconsolidated entities debt 724,929 1,629,457 2,354,386

Total debt - at par 7,974,276 2,903,903 10,878,179

Less: third party share of consolidated debt - (8,751) (8,751)

Total Prologis share of debt - at par 7,974,276 2,895,152 10,869,428

Premium (discount) - consolidated (19,201) 24,861 5,660

Less: third party share of consolidated debt discount (premium) - - -

Our share of premium (discount) - unconsolidated - 21,176 21,176

Total Prologis share of debt, net of premium (discount) $ 7,955,075 $ 2,941,189 $ 10,896,264

(A) These calculations are made in accordance with the respective debt agreements, may be different than other covenants or metrics presented and are not calculated in accordance with the applicable SEC

rules. Please refer to the respective agreements for full financial covenant descriptions and calculation methods.

(B) These covenants are calculated in accordance with the Indenture dated June 8, 2011 and its supplemental indentures, including the Fifth Supplemental Indenture dated August 15, 2013. Prologis © 2014 33

Net Asset Value

Components

Second Quarter 2014

(in thousands, except for percentages and per square foot)

Operating

Second Quarter

Second Quarter

Annualized

Gross Book

GBV per

Adjusted Cash

Adjusted Cash

Adjusted Cash

Percent

Square Feet

Value

Sq Ft

NOI (Actual)

NOI (Pro Forma)

NOI

Occupied

CONSOLIDATED OPERATING PORT FOLIO (Prologis Share)

Properties generating net operating income

Americas

213,671

$

14,023,306

$

66

$

218,778

$

218,778

$

875,112

97.6%

Europe

10,340

695,698

67

12,289

12,289

49,156

82.1%

Asia

7,285

802,133

110

10,767

10,767

43,068

90.7%

Pro forma adjustment for mid-quarter acquisitions/development completions

2,519

10,076

Sub-total

231,296

15,521,137

67

241,834

244,353

977,412

96.7%

Properties generating net operating loss

Americas

6,105

404,467

66

(2,261)

29.3%

Europe

1,042

61,476

59

(290)

26.4%

Asia

350

83,417

238

(16)

100.0%

Sub-total

7,497

549,360

73

(2,567)

32.2%

Prologis share of consolidated operating portfolio

238,793

$ 16,07 0,49 7

$ 67

$ 239,267

$ 244,353

$

977,412

94.7 %

UNCONSOLIDATED OPERATING PORT FOLIO (Prologis Share)

Prologis interest in unconsolidated operating portfolio

Americas

45,627

$

3,114,257

$

68

$

39,663

$

39,663

$

158,652

94.8%

Europe

53,646

4,738,072

88

79,694

79,694

318,776

93.6%

Asia

3,554

580,411

163

8,101

8,101

32,404

97.1%

Pro forma adjustment for mid-quarter acquisitions/development completions

189

756

Pro forma adjustment for FIBRA

9,742

38,968

Prologis share of unconsolidated operating portfolio

102,827

$

8,432,74 0

$

82

$

127,458

$

137,389

$

549,556

94.3%

Total operating portfolio

341,620

$24,503,237

$

72

$

366,725

$

381,742

$

1,526,968

94.5 %

Development

Investment

Annualized Pro

Percent

Square Feet

Balance

TEI

TEI per Sq Ft

Forma NOI

Occupied

CONSOLIDATED (Prologis Share)

Prestabilized

Americas

4,001

$

271,380

$

321,010

$

80

$

22,214

17.3%

Europe

225

20,327

25,557

114

2,171

0.0%

Asia

878

91,365

96,592

110

6,409

14.7%

16 . 1%

Properties under development

Americas

9,601

348,887

654,922

68

43,894

Europe

3,595

213,134

388,863

108

29,563

Asia

3,254

173,982

466,263

143

29,862

Prologis share of consolidated development portfolio

21,554

$

1,119,075

$ 1,953,207

$

91

$

134,113

UNCONSOLIDATED (Prologis Share)

Prologis interest in unconsolidated development portfolio

Americas

474

$

38,889

$

48,997

$

103

$

4,935

Europe

156

5,616

11,813

76

972

Asia

751

18,093

44,036

59

3,503

Prologis share of unconsolidated development portfolio

1,381

$

62,59 8

$

104,846

$

76

$

9,410

Total development portfolio

22,9 35

$

1,181,673

$ 2,058,053

$

90

$

143,523

Prologis share of estimated value creation (see Capital Deployment—Development Portfolio)

452,76 7

Total development portfolio, including estimated value creation

$

1,634,440

Prologis © 2014 34

Net Asset Value

Components - Continued

(in thousands)

Second Quarter 2014

Balance Sheet and Other Items

As of June 30, 2014

CONSOLIDATED

Other assets

Cash and cash equivalents $ 267,427

Restricted cash 9,150

Deposits, prepaid assets and other tangible assets 610,923

Other real estate investments 454,111

Prologis’ share of value added operating properties 106,524

Accounts receivable 123,961

Prologis receivable from unconsolidated co-investment ventures 181,431

Investments in and advances to other unconsolidated joint ventures 175,130

Less: third party share of other assets (154,438)

Total other assets - Prologis share $ 1,774,219

Other liabilities

Accounts payable and other current liabilities 615,849

Deferred income taxes 115,694

Value added tax and other tax liabilities 96,462

Tenant security deposits 184,001

Other liabilities 313,253

Less: third party share of other liabilities (37,373)

Total liabilities and noncontrolling interests - Prologis share $ 1,287,886

UNCONSOLIDATED

Prologis share of net assets (liabilities) $ 217,349

Land

Investment Balance

Prologis share of original land basis $ 2,499,784

Current book value of land $ 1,579,737

Less: third party share of the current book value of land -

Prologis share of book value of land in unconsolidated entities 57,124

Total $ 1,636,861

Strategic Capital / Development Management

Second Quarter Annualized

Strategic Capital

Strategic capital income (A) $ 45,004 $ $ 180,016

Strategic capital expenses (A) (22,874) (91,496)

Pro forma NOI adjustment to FIBRA for a full quarter 1,089 4,356

Strategic capital income, net of expenses, from consolidated Co-Investment Ventures 1,364 5,456

Strategic capital NOI $ 24,583 $ 98,332

Promotes earned in last 12 months, net of expenses $ 31,460

Development management income $ 2,482 $ 9,928

Debt (at par) and Preferred Stock

As of June 30, 2014

Prologis debt $ 8,496,994

Consolidated entities debt 26,799

Less: third party share of consolidated debt (8,751)

Prologis share of unconsolidated debt 2,354,386

Subtotal debt 10,869,428

Preferred stock 78,235

Total debt and preferred stock $ 10,947,663

Outstanding shares of common stock 499,816

(A) Excludes revenue and expenses related to the promotes earned during the second quarter of 2014.

Prologis © 2014 35

Notes and Definitions

Notes and Definitions

Second Quarter 2014

Please refer to our annual and quarterly financial statements filed with the Securities and Exchange Commission on Forms 10-K and 10-Q and other public reports for further information about us and our business. Certain amounts from previous periods presented in the Supplemental Information have been reclassified to conform to the current presentation.

Acquisition cost, as presented for building acquisitions, represents the economic cost and not necessarily what is capitalized. It includes the initial purchase price; the effects of marking assumed debt to market; if applicable, all due diligence and lease intangibles; and estimated acquisition capital expenditures including leasing costs to achieve stabilization.

Adjusted EBITDA. We use Adjusted EBITDA to measure both our operating performance and liquidity. We calculate Adjusted EBITDA beginning with consolidated net earnings (loss) and removing the effect of interest, income taxes, depreciation and amortization, impairment charges, third party acquisition expenses related to the acquisition of real estate, gains or losses from the acquisition or disposition of investments in real estate, gains or losses on early extinguishment of debt and derivative contracts (including cash charges), similar adjustments we make to our FFO measures (see definition below), and other non-cash charges or gains (such as stock based compensation amortization and unrealized gains or losses on foreign currency and derivative activity and related amortization). We make adjustments to reflect our economic ownership in each entity, whether consolidated or unconsolidated.

We consider Adjusted EBITDA to provide investors relevant and useful information because it permits investors to view income from operations on an unleveraged basis before the effects of income tax, non-cash depreciation and amortization expense and other items (including stock-based compensation amortization and certain unrealized gains and losses), gains or losses from the acquisition or disposition of investments in real estate, items that affect comparability, and other significant non-cash items. We also include a pro forma adjustment in Adjusted EBITDA to reflect a full period of NOI on the operating properties we acquire, stabilize or dispose of during the quarter assuming the transaction occurred at the beginning of the quarter. By excluding interest expense, Adjusted EBITDA allows investors to measure our operating performance independent of our capital structure and indebtedness and, therefore, allows for a more meaningful comparison of our operating performance to that of other companies, both in the real estate industry and in other industries. Gains and losses on the early extinguishment of debt generally include the costs of repurchasing debt securities. While not infrequent or unusual in nature, these items result from market fluctuations that can have inconsistent effects on our results of operations. The economics underlying these items reflect market and financing conditions in the short-term but can obscure our performance and the value of our long-term investment decisions and strategies.

We believe that Adjusted EBITDA helps investors to analyze our ability to meet interest payment obligations and to make quarterly preferred share dividends. We believe that investors should consider Adjusted EBITDA in conjunction with net earnings (the primary measure of our performance) and the other required Generally Accepted Accounting Principles (“GAAP”) measures of our performance and liquidity, to improve their understanding of our operating results and liquidity, and to make more meaningful comparisons of our performance against other companies. By using Adjusted EBITDA, an investor is assessing the earnings generated by our operations but not taking into account the eliminated expenses or gains incurred in connection with such operations. As a result, Adjusted EBITDA has limitations as an analytical tool and should be used in conjunction with our required GAAP presentations. Adjusted EBITDA does not reflect our historical cash expenditures or future cash requirements for working capital, capital expenditures, distribution requirements or contractual commitments. Adjusted EBITDA, also does not reflect the cash required to make interest and principal payments on our outstanding debt.

While EBITDA is a relevant and widely used measure of operating performance, it does not represent net income or cash flow from operations as defined by GAAP and it should not be considered as an alternative to those indicators in evaluating operating performance or liquidity. Further, our computation of Adjusted EBITDA may not be comparable to EBITDA reported by other companies. We compensate for the limitations of Adjusted EBITDA by providing investors with

financial statements prepared according to GAAP, along with this detailed discussion of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to consolidated net earnings (loss), a GAAP measurement.

Adjusted Cash NOI (Actual). A reconciliation of our rental income and rental expenses included in our Statement of Operations to adjusted cash NOI for the consolidated operating portfolio for purposes of the Net Asset Value calculation is as follows (in thousands):

Rental income . $ 381,273 Rental expenses . (109,576) NOI. 271,697 Net termination fees and adjustments (a). (1,118) Less: actual NOI for development portfolio and other . (11,260) Less: properties contributed or sold (b) . (14,383) Less: third party share of NOI . (13,382)

Adjusted NOI for consolidated operating portfolio owned at June 30, 2014 231,554 Straight-lined rents (c) . (10,580) Free rent (c) . 11,821 Amortization of lease intangibles (c). 6,776 Less: third party share . (304)

Second Quarter Adjusted Cash NOI (Actual) $ 239,267

(a) Net termination fees generally represent the gross fee negotiated at the time a customer is allowed to terminate its lease agreement offset by that customer’s rent leveling asset or liability, if any, that has been previously recognized. Removing the net termination fees from rental income allows for the calculation of Adjusted Cash NOI (Pro forma) to include only rental income that is indicative of the property’s recurring operating performance.

(b) The actual NOI for properties that were contributed or sold during the three-month period is removed.

(c) Straight-lined rents, free rent amount, and amortization of lease intangibles (above and below market leases) are removed from rental income for the Operating Portfolio to allow for the calculation of a cash yield.

Adjusted Cash NOI (Pro forma) consists of Adjusted Cash NOI (Actual) for the properties generating net operating income in our Operating Portfolio adjusted to reflect NOI for a full quarter for operating properties that were acquired or stabilized during the quarter. Adjusted Cash NOI (Pro forma) for the properties in our Development Portfolio is based on current Total Expected Investment and an estimated stabilized yield.

Assets Under Management (“AUM”) represents the estimated value of the real estate we own or manage through both our consolidated and unconsolidated entities. We calculate AUM by adding the third party investors’ share of the estimated fair value of the assets in the co-investment ventures to our share of total market capitalization (calculated using the market price of our equity plus our share of total debt).

Prologis © 2014 37

Calculation of Per Share Amounts is as follows (in thousands, except per share amounts):

Three Months Ended Six Months Ended

June 30, June 30,

2014 2013 2014 2013

Net earnings (loss)

Net earnings (loss) $ 72,715 $ (1,517) $ 77,381 $ 263,899

Noncontrolling interest attributable to exchangeable partnership units 264 (75) 302 1,599

Gains, net of expenses, associated with exchangeable debt assumed

converted (7,498) - - -

Adjusted net earnings (loss) - Diluted $ 65,481 $ (1,592) $ 77,683 $ 265,498

Weighted average common shares outstanding - Basic 499,112 486,032 498,919 473,892

Incremental weighted average effect on exchange of limited partnership

units 1,964 1,893 1,964 3,039

Incremental weighted average effect of stock awards 3,664 - 3,677 3,078

Incremental weighted average effect on exchangeable debt assumed

converted 11,879 - - -

Weighted average common shares outstanding - Diluted 516,619 487,925 504,560 480,009

Net earnings per share - Basic $ 0.15 $ 0.00 $ 0.16 $ 0.56

Net earnings per share - Diluted $ 0.13 $ 0.00 $ 0.15 $ 0.55

Core FFO

Core FFO $ 244,275 $ 203,337 $ 461,830 $ 391,274

Noncontrolling interest attributable to exchangeable limited partnership

units 35 (19) 57 1,599

Interest expense on exchangeable debt assumed converted 4,246 4,235 8,492 8,470

Core FFO - Diluted $ 248,556 $ 207,553 $ 470,379 $ 401,343

Weighted average common shares outstanding - Basic 499,112 486,032 498,919 473,892

Incremental weighted average effect on exchange of limited partnership

units 1,964 2,093 1,964 3,039

Incremental weighted average effect of stock awards 3,664 3,339 3,677 3,078

Incremental weighted average effect on exchangeable debt assumed

converted 11,879 11,879 11,879 11,879

Weighted average common shares outstanding - Diluted 516,619 503,343 516,439 491,888

Core FFO per share - Diluted $ 0.48 $ 0.41 $ 0.91 $ 0.82

Debt Metrics. See below for the detailed calculations for the respective period (dollars in

thousands):

Three Months Ended

June 30 Mar. 31

2014 2014

Debt as a % of gross real estate assets:

Total Prologis share of debt - at par $ 10,869,428 $10,596,789

Less: consolidated cash and cash equivalents - Prologis share (225,598) (173,461)

Less: unconsolidated entities cash - Prologis share (192,006) (120,272)

Total Prologis share of debt, net of adjustments $ 10,451,824 $10,303,056

Gross real estate assets - Prologis share $ 27,864,671 $27,746,095

Debt as a % of gross real estate assets 37.5% 37.1%

Secured debt as a % of gross real estate assets:

Prologis share of secured debt - at par $ 2,895,152 $2,974,434

Gross real estate assets - Prologis share $ 27,864,671 $27,746,095

Secured debt as a % of gross real estate assets 10.4% 10.7%

Notes and Definitions

(continued)

Second Quarter 2014

Unencumbered gross real estate assets to unsecured debt:

Unencumbered gross real estate assets - Prologis share $ 21,347,053 $ 20,579,879

Prologis share of unsecured debt - at par $ 7,974,276 $ 7,622,355

Unencumbered gross real estate assets to unsecured debt 267.7% 270.0%

Fixed Charge Coverage ratio:

Adjusted EBITDA $ 374,039 $ 354,093

Pro forma adjustment for mid-quarter activity and NOI from disposed

properties 4,467 (492)

Adjusted EBITDA, including NOI from disposed properties $ 378,506 $ 353,601

Adjusted EBITDA, including NOI from disposed properties, annualized (a) $ 1,440,016 $ 1,429,497

Add: Prologis share of gains on dispositions of development properties for

the twelve months ended 158,998 194,865

Adjusted EBITDA, including NOI from disposed properties and gains on

dispositions, annualized $ 1,599,014 $ 1,624,362

Interest expense $ 80,184 $ 85,523

Amortization and write-off of deferred loan costs (3,152) (3,467)

Amortization of debt premium (discount), net 4,113 5,835

Capitalized interest 15,731 14,573

Preferred stock dividends 1,948 2,135

Third party share of fixed charges from consolidated entities (1,450) (2,354)

Our share of fixed charges from unconsolidated entities 22,000 22,930

Total fixed charges $ 119,374 $ 125,175

Total fixed charges, annualized $ 477,496 $ 500,700

Fixed charge coverage ratio 3.02x 2.85x

Fixed charge coverage ratio, including development gains 3.35x 3.24x

Debt to Adjusted EBITDA:

Total Prologis share of debt, net of adjustments $ 10,451,824 $ 10,303,056

Adjusted EBITDA-annualized (a) $ 1,422,148 $ 1,431,465

Add: Prologis share of gains on dispositions of development properties for

the twelve months ended 158,998 194,865

Adjusted EBITDA-annualized (a), including gains on dispositions $ 1,581,146 $ 1,626,330

Debt to Adjusted EBITDA ratio 7.35x 7.20x

Debt to Adjusted EBITDA ratio, including development gains 6.61x 6.34x

Debt to Adjusted EBITDA (adjusted for development):

Total Prologis share of debt, net of adjustments $ 10,451,824 $ 10,303,056

Add: costs to complete - Prologis share 821,887 750,108

Less: current book value of land - Prologis share (1,636,861) (1,591,411)

$ 9,636,850 $ 9,461,753

Adjusted EBITDA-annualized (a) $ 1,422,148 $ 1,431,465

Add: annualized proforma NOI development portfolio - Prologis share 143,523 135,009

1,565,671 1,566,474

Debt to Adjusted EBITDA (adjusted for development) ratio 6.16x 6.04x

(a) Actual promote revenue and related expenses for the quarter, if any, are removed from the

EBITDA amount for the quarter before annualizing, then the actual promote revenue and related

expenses for the previous twelve months are added to the annualized number. For the three

months ended June 30, 2014 and March 31, 2014, actual promote revenue, net of related

expenses, for the previous twelve months was $31.5 million and $15.1 million, respectively.

Prologis © 2014 38

Notes and Definitions

(continued)

Second Quarter 2014

Development Margin is calculated on developed properties as the estimated value at Stabilization minus estimated total investment, before closing costs, the impact of any deferred rents, taxes or third party promotes net of deferred amounts on contributions, divided by the estimated total investment.

Development Portfolio includes industrial properties that are under development and properties that are developed but have not met Stabilization.

Discontinued Operations. In April 2014, the FASB issued a standard updating the accounting and disclosure regarding discontinued operations. Early adoption on a prospective basis is allowed, therefore, we have adopted this standard as of January 1, 2014. As a result, none of our property dispositions in 2014 met the criteria to be classified as discontinued operations. The operations of the properties that were disposed of to third parties during 2013 that met the criteria for discontinued operations, including the aggregate net gains or losses recognized upon their disposition, are presented as discontinued operations in our Consolidated Statements of Operations. The income attributable to these properties was as follows (in thousands):

Three Months Ended Six Months Ended June 30, 2013 June 30, 2013

Rental income. $ 9,424 $ 20,692 Rental expenses . (3,222) (6,961) Depreciation and amortization. (3,755) (9,066) Interest expense . (307) (732)

Income attributable to disposed properties and assets held for sale $ 2,140 $ 3,933

Estimated Build Out (TEI and sq ft)- represents the estimated TEI and finished square feet available for rent upon completion of an industrial building on existing parcels of land.

FFO, as defined by Prologis; Core FFO; Core AFFO (collectively referred to as “FFO”). FFO is a non-GAAP measure that is commonly used in the real estate industry. The most directly comparable GAAP measure to FFO is net earnings. Although the National Association of Real Estate Investment Trusts (“NAREIT”) has published a definition of FFO, modifications to the NAREIT calculation of FFO are common among REITs, as companies seek to provide financial measures that meaningfully reflect their business.

FFO is not meant to represent a comprehensive system of financial reporting and does not present, nor do we intend it to present, a complete picture of our financial condition and operating performance. We believe net earnings computed under GAAP remains the primary measure of performance and that FFO is only meaningful when it is used in conjunction with net earnings computed under GAAP. Further, we believe our consolidated financial statements, prepared in accordance with GAAP, provide the most meaningful picture of our financial condition and our operating performance.

NAREIT’s FFO measure adjusts net earnings computed under GAAP to exclude historical cost depreciation and gains and losses from the sales, along with impairment charges, of previously depreciated properties. We agree that these NAREIT adjustments are useful to investors for the following reasons: (i) historical cost accounting for real estate assets in accordance with GAAP assumes, through depreciation charges, that the value of real estate assets diminishes predictably over time.

NAREIT stated in its White Paper on FFO “since real estate asset values have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.” Consequently, NAREIT’s definition of FFO reflects the fact that

real estate, as an asset class, generally appreciates over time and depreciation charges

required by GAAP do not reflect the underlying economic realities.

(ii) REITs were created as a legal form of organization in order to encourage public ownership of

real estate as an asset class through investment in firms that were in the business of long-

term ownership and management of real estate. The exclusion, in NAREIT’s definition of FFO,

of gains and losses from the sales, along with impairment charges, of previously depreciated

operating real estate assets allows investors and analysts to readily identify the operating

results of the long-term assets that form the core of a REIT’s activity and assists in comparing

those operating results between periods. We include the gains and losses (including

impairment charges) from dispositions of land and development properties, as well as our

proportionate share of the gains and losses (including impairment charges) from dispositions

of development properties recognized by our unconsolidated entities, in our definition of FFO.

Our FFO Measures

At the same time that NAREIT created and defined its FFO measure for the REIT industry, it also

recognized that “management of each of its member companies has the responsibility and

authority to publish financial information that it regards as useful to the financial community.” We

believe stockholders, potential investors and financial analysts who review our operating results are

best served by a defined FFO measure that includes other adjustments to net earnings computed

under GAAP in addition to those included in the NAREIT defined measure of FFO. Our FFO

measures are used by management in analyzing our business and the performance of our

properties and we believe that it is important that stockholders, potential investors and financial

analysts understand the measures management uses.

We use these FFO measures, including by segment and region, to: (i) evaluate our performance

and the performance of our properties in comparison to expected results and results of previous

periods, relative to resource allocation decisions; (ii) evaluate the performance of our management;

(iii) budget and forecast future results to assist in the allocation of resources; (iv) assess our

performance as compared to similar real estate companies and the industry in general; and (v)

evaluate how a specific potential investment will impact our future results. Because we make

decisions with regard to our performance with a long-term outlook, we believe it is appropriate to

remove the effects of short-term items that we do not expect to affect the underlying long-term

performance of the properties. The long-term performance of our properties is principally driven by

rental income. While not infrequent or unusual, these additional items we exclude in calculating

FFO, as defined by Prologis, are subject to significant fluctuations from period to period that cause

both positive and negative short-term effects on our results of operations in inconsistent and

unpredictable directions that are not relevant to our long-term outlook.

We use our FFO measures as supplemental financial measures of operating performance. We do

not use our FFO measures as, nor should they be considered to be, alternatives to net earnings

computed under GAAP, as indicators of our operating performance, as alternatives to cash from

operating activities computed under GAAP or as indicators of our ability to fund our cash needs.

FFO, as defined by Prologis

To arrive at FFO, as defined by Prologis, we adjust the NAREIT defined FFO measure to exclude:

(i) deferred income tax benefits and deferred income tax expenses recognized by our

subsidiaries;

(ii) current income tax expense related to acquired tax liabilities that were recorded as deferred

tax liabilities in an acquisition, to the extent the expense is offset with a deferred income tax

benefit in GAAP earnings that is excluded from our defined FFO measure;

(iii) foreign currency exchange gains and losses resulting from debt transactions between us and

our foreign consolidated subsidiaries and our foreign unconsolidated entities;

(iv) foreign currency exchange gains and losses from the remeasurement (based on current

foreign currency exchange rates) of certain third party debt of our foreign consolidated

subsidiaries and our foreign unconsolidated entities; and

Prologis © 2014 39

Notes and Definitions

(continued)

Second Quarter 2014

(i) mark-to-market adjustments and related amortization of debt discounts associated with derivative financial a instrumen ents.

We calculate FFO, as defined by Prologis for our unconsolidated entities on the same basis as we calculate our FFO, as defined by Prologis.

We believe investors are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in planning and executing our business strategy.

Core FFO

In addition to FFO, as defined by Prologis, we also use Core FFO. To arrive at Core FFO, we adjust FFO, as defined by Prologis, to exclude the following recurring and non-recurring items that we recognized directly or our share of these items recognized by our unconsolidated entities to the extent they are included in FFO, as defined by Prologis:

(i) gains or losses from acquisition, contribution or sale of land or development properties; (ii) income tax expense related to the sale of investments in real estate and third-party acquisition costs related to the acquisition of real estate; (iii) impairment charges recognized related to our investments in real estate generally as a result of our change in intent to contribute or sell these properties; (iv) gains or losses from the early extinguishment of debt; (v) merger, acquisition and other integration expenses; and (vi) expenses related to natural disasters.

We believe it is appropriate to further adjust our FFO, as defined by Prologis for certain recurring items as they were driven by transactional activity and factors relating to the financial and real estate markets, rather than factors specific to the on-going operating performance of our properties or investments. The impairment charges we have recognized were primarily based on valuations of real estate, which had declined due to market conditions, that we no longer expected to hold for long-term investment. Over the last few years, we made it a priority to strengthen our financial position by reducing our debt, our investment in certain low yielding assets and our exposure to foreign currency exchange fluctuations. As a result, we changed our intent to sell or contribute certain of our real estate properties and recorded impairment charges when we did not expect to recover the costs of our investment. Also, we have purchased portions of our debt securities when we believed it was advantageous to do so, which was based on market conditions, and in an effort to lower our borrowing costs and extend our debt maturities. As a result, we have recognized net gains or losses on the early extinguishment of certain debt due to the financial market conditions at that time. In addition, we and our co-investment ventures make acquisitions of real estate and we believe the costs associated with these transactions are transaction based and not part of our core operations.

We analyze our operating performance primarily by the rental income of our real estate and the revenue driven by our strategic capital business, net of operating, administrative and financing expenses. This income stream is not directly impacted by fluctuations in the market value of our investments in real estate or debt securities. As a result, although these items have had a material impact on our operations and are reflected in our financial statements, the removal of the effects of these items allows us to better understand the core operating performance of our properties over the long-term.

We use Core FFO, including by segment and region, to: (i) evaluate our performance and the performance of our properties in comparison to expected results and results of previous periods, relative to resource allocation decisions; (ii) evaluate the performance of our management; (iii) budget and forecast future results to assist in the allocation of resources; (iv) provide guidance to the financial markets to understand our expected operating performance; (v) assess our operating performance as compared to similar real estate companies and the industry in general; and (vi)

evaluate how a specific potential investment will impact our future results. Because we make decisions with regard to our performance with a long-term outlook, we believe it is appropriate to remove the effects of items that we do not expect to affect the underlying long-term performance of the properties we own. As noted above, we believe the long-term performance of our properties is principally driven by rental income. We believe investors are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in planning and executing our business strategy.

Core AFFO

To arrive at Core AFFO, we adjust Core FFO to further exclude our share of; (i) straight-line rents; (ii) amortization of above- and below-market lease intangibles; (iii) recurring capital expenditures; (iv) amortization of management contracts; (v) amortization of debt premiums and discounts, net of amounts capitalized, and; (vi) stock compensation expense.

We believe Core AFFO provides a meaningful indicator of our ability to fund cash needs, including cash distributions to our stockholders.

Limitations on Use of our FFO Measures

While we believe our defined FFO measures are important supplemental measures, neither NAREIT’s nor our measures of FFO should be used alone because they exclude significant economic components of net earnings computed under GAAP and are, therefore, limited as an analytical tool. Accordingly, these are only a few of the many measures we use when analyzing our business. Some of these limitations are: The current income tax expenses and acquisition costs that are excluded from our defined FFO measures represent the taxes and transaction costs that are payable.

Depreciation and amortization of real estate assets are economic costs that are excluded from FFO. FFO is limited, as it does not reflect the cash requirements that may be necessary for future replacements of the real estate assets. Further, the amortization of capital expenditures and leasing costs necessary to maintain the operating performance of industrial properties are not reflected in FFO.

Gains or losses from property acquisitions and dispositions or impairment charges related to expected dispositions represent changes in value of the properties. By excluding these gains and losses, FFO does not capture realized changes in the value of acquired or disposed properties arising from changes in market conditions.

The deferred income tax benefits and expenses that are excluded from our defined FFO measures result from the creation of a deferred income tax asset or liability that may have to be settled at some future point. Our defined FFO measures do not currently reflect any income or expense that may result from such settlement.

The foreign currency exchange gains and losses that are excluded from our defined FFO measures are generally recognized based on movements in foreign currency exchange rates through a specific point in time. The ultimate settlement of our foreign currency-denominated net assets is indefinite as to timing and amount. Our FFO measures are limited in that they do not reflect the current period changes in these net assets that result from periodic foreign currency exchange rate movements.

The gains and losses on extinguishment of debt that we exclude from our Core FFO, may provide a benefit or cost to us as we may be settling our debt at less or more than our future obligation.

The merger, acquisition and other integration expenses and the natural disaster expenses that we exclude from Core FFO are costs that we have incurred.

We compensate for these limitations by using our FFO measures only in conjunction with net earnings computed under GAAP when making our decisions. This information should be read with our complete consolidated financial statements prepared under GAAP. To assist investors in

Prologis © 2014 40

compensating for these limitations, we reconcile our defined FFO measures to our net earnings

computed under GAAP.

Fixed Charge Coverage is defined as Adjusted EBITDA divided by total fixed charges. Fixed

charges consist of net interest expense adjusted for amortization of finance costs and debt

discount (premium), capitalized interest, and preferred stock dividends. We use fixed charge

coverage to measure our liquidity. We believe that fixed charge coverage is relevant and useful to

investors because it allows fixed income investors to measure our ability to make interest payments

on outstanding debt and make distributions/dividends to preferred unitholders/stockholders. Our

computation of fixed charge coverage is not calculated in accordance with applicable SEC rules

and may not be comparable to fixed charge coverage reported by other companies.

General and Administrative Expenses (“G&A”) were as follows (in thousands):

Three Months Ended Six Months Ended

June 30, June 30,

2014 2013 2014 2013

Gross overhead $ 117,935 $ 109,631 $ 235,184 $ 216,467

Less: rental expenses (7,497) (7,140) (15,620) (16,697)

Less: strategic capital expenses (27,837) (25,006) (52,000) (44,915)

Capitalized amounts (22,226) (22,576) (43,986) (43,749)

G&A $ 60,375 $ 54,909 $ 123,578 $ 111,106

We capitalize certain costs directly related to our development and leasing activities. Capitalized

G&A expenses include salaries and related costs as well as other G&A costs. The capitalized

costs were as follows (in thousands):

Three Months Ended Six Months Ended

June 30, June 30,

2014 2013 2014 2013

Development activities $ 17,403 $ 17,662 $ 34,264 $ 32,852

Leasing activities 4,404 4,590 9,122 10,075

Costs related to internally developed software 419 324 600 822

Total capitalized G&A $ 22,226 $ 22,576 $ 43,986 $ 43,749

G&A as a percent of Assets Under Management (in thousands):

Net G&A - midpoint of 2014 guidance range (a) $ 240,500

Add: Strategic capital expenses- midpoint of 2014 guidance range (a) 102,500

Adjusted G&A, using 2014 guidance (a) $ 343,000

Carrying value at period end:

Operating properties $ 42,127,637

Development portfolio - TEI 2,437,213

Land portfolio 1,753,058

Other real estate investments 454,111

Total Assets Under Management $ 46,772,019

G&A as % of Assets Under Management 0.73%

G&A as a percent of Assets Under Management – Prologis Share (in thousands):

Net G&A - midpoint of 2014 guidance range (a) $ 240,500

Less: strategic capital income-midpoint of 2014 guidance range (a) (222,500)

Add: strategic capital expenses- midpoint of 2014 guidance range (a) 102,500

Adjusted G&A, using 2014 guidance (a) $ 120,500

Carrying value at period end:

Operating properties - Prologis share $ 24,609,761

Development portfolio - Prologis share of TEI 2,058,053

Land portfolio - Prologis share 1,636,861

Other real estate investments 454,111

Total Assets Under Management - Prologis share $ 28,758,786

G&A as % of Assets Under Management - Prologis share 0.42%

(a) These amounts represent the midpoint of the 2014 guidance provided in this Supplemental Package.

Interest Expense consisted of the following (in thousands):

Three Months Ended Six Months Ended

June 30, June 30,

2014 2013 2014 2013

Gross interest expense

$ 96,876 $ 115,833 $ 199,339 $ 251,644

Amortization of discount (premium), net

(4,113) (10,676) (9,947) (21,391)

Amortization of deferred loan costs

3,152 4,291 6,619 7,579

Interest expense before capitalization

95,915 109,448 196,011 237,832

Capitalized amounts

(15,731) (17,234) (30,304) (30,978)

Net interest expense

$ 80,184 $ 92,214 $ 165,707 $ 206,854

Investment Capacity is our estimate of the gross real estate, which could be acquired by our co-investment ventures through the use of existing equity commitments from us and our partners plus up to the ventures maximum leverage limits.

Market Classification

Global Markets feature large population centers with high per-capita consumption and are located near major seaports, airports, and ground transportation systems.

Regional Markets benefit from large population centers but typically are not as tied to the global supply chain, but rather serve local consumption and are often less supply constrained. Markets included as regional markets include: Austin, Charlotte, Cincinnati, Columbus, Denver, Hungary, Indianapolis, Juarez, Las Vegas, Louisville, Memphis, Nashville, Orlando, Phoenix, Portland, Reynosa, San Antonio, Slovakia, Sweden and Tijuana.

Other Markets represent a small portion of our portfolio that is located outside global and regional markets. These markets include: Austria, Boston, El Paso, Jacksonville, Kansas City, Norfolk, Reno, Romania, Salt Lake City, Savannah and St Louis.

Net Asset Value (“NAV”). We consider NAV to be a useful supplemental measure of our operating performance because it enables both management and investors to estimate the fair value of our business. The assessment of the fair value of a particular segment of our business is subjective in that it involves estimates and can be calculated using various methods. Therefore, we have presented the financial results and investments related to our business segments that we

Notes and Definitions

(continued)

Second Quarter 2014

Prologis © 2014 41

believe are important in calculating our NAV but have not presented any specific methodology nor provided any guidance on the assumptions or estimates that should be used in the calculation.

The components of NAV do not consider the potential changes in rental and fee income streams or the franchise value associated with our global operating platform, strategic capital platform, or development platform.

Net Effective Rent Change (GAAP) represents the change on operating portfolio properties in net effective rental rates (average rate over the lease term) on new and renewed leases signed during the period as compared with the previous effective rental rates in that same space.

Net Operating Income (“NOI”) represents rental income less rental expenses.

Noncontrolling Interest. The following table includes information for each entity we consolidate and in which we own less than 100% (dollars in thousands):

Ownership Noncontrolling

Percentage Interest Real Estate Debt

Brazil Fund 50.0% 77,838 - -

Prologis U.S. Logistics Venture 55.0% 435,875 1,001,754 -

Other consolidated entities various 143,698 1,020,570 26,804

Limited partners in the Operating Partnership 47,695 - -

Noncontrolling interests $ 705,106 $ 2,022,324 $ 26,804

Operating Portfolio includes stabilized industrial properties in our owned and managed portfolio. A developed property moves into the Operating Portfolio when it meets Stabilization.

Pro-Rata Balance Sheet and Operating Information. The consolidated amounts shown are derived from and prepared on a consistent basis with our consolidated financial statements and are adjusted to remove the amounts attributable to non-controlling interests. The Prologis share of unconsolidated co-investment ventures column was derived on an entity-by-entity basis by applying our ownership percentage to each line item to calculate our share of that line item. For purposes of balance sheet data, we used our ownership percentage at the end of the period and for operating information, we used our average ownership percentage for the period, consistent with how we calculate our share of net earnings (loss) during the period. We used a similar calculation to derive the noncontrolling interests’ share of each line item. In order to present the total owned and managed portfolio, we added our investors’ share of each line item in the unconsolidated co-investment ventures and the noncontrolling interests share of each line item to the Prologis Total Share.

Prologis Share represents our proportionate economic ownership of each entity included in our total owned and managed portfolio.

Rental Income included the following (in thousands):

Three Months Ended Six Months Ended

June 30, June 30,

2014 2013 2014 2013

Rental income $ 290,803 $ 285,759 $ 586,309 $ 626,114

Amortization of lease intangibles (7,280) (8,164) (14,974) (17,949)

Rental expense recoveries 86,812 76,485 174,174 173,373

Straight-lined rents 10,938 9,876 24,004 26,562

$ 381,273 $ 363,956 $ 769,513 $ 808,100

Notes and Definitions

(continued)

Second Quarter 2014

Same Store. We evaluate the operating performance of the operating properties we own and manage using a “Same Store” analysis because the population of properties in this analysis is consistent from period to period, thereby eliminating the effects of changes in the composition of the portfolio on performance measures. We include the properties included in our owned and managed portfolio that were in operation at January 1, 2013 and throughout the full periods in both 2013 and 2014. We have removed all properties that were disposed of to a third party from the population for both periods. We believe the factors that impact rental income, rental expenses and NOI in the Same Store portfolio are generally the same as for the total operating portfolio. In order to derive an appropriate measure of period-to-period operating performance, we remove the effects of foreign currency exchange rate movements by using the current exchange rate to translate from local currency into U.S. dollars, for both periods.

Our same store measures are non-GAAP measures that are commonly used in the real estate industry and are calculated beginning with rental income and rental expenses from the financial statements prepared in accordance with GAAP. It is also common in the real estate industry and expected from the analyst and investor community that these numbers be further adjusted to remove certain non-cash items included in the financial statements prepared in accordance with GAAP to reflect a cash same store number. In order to clearly label these metrics, we call one Same Store NOI- GAAP and one Same Store NOI-Adjusted Cash. As these are non-GAAP measures they have certain limitations as an analytical tool and may vary among real estate companies. As a result, we provide a reconciliation from our financial statements prepared in accordance with GAAP to Same Store NOI-GAAP and then to Same Store NOI-Adjusted Cash with explanations of how these metrics are calculated and adjusted.

The following is a reconciliation of our consolidated rental income, rental expenses and NOI, as included in the Consolidated Statements of Operations, to the respective amounts in our Same Store portfolio analysis (dollars in thousands):

Three Months Ended

June 30,

Change

2014 2013 (%)

Rental Income:

Per the Consolidated Statements of Operations $ 381,273 $ 363,956

Properties not included and other adjustments (a) (43,630) (25,636)

Unconsolidated Co-Investment Ventures 459,293 434,360

Same Store - Rental Income $ 796,936 $ 772,680 3.1%

Rental Expense:

Per the Consolidated Statements of Operations $ 109,576 $ 109,837

Properties not included and other adjustments (b) (8,114) (7,499)

Unconsolidated Co-Investment Ventures 111,052 107,443

Same Store - Rental Expense $ 212,514 $ 209,781 1.3%

NOI-GAAP:

Per the Consolidated Statements of Operations $ 271,697 $ 254,119

Properties not included and other adjustments (35,516) (18,137)

Unconsolidated Co-Investment Ventures 348,241 326,917

Same Store - NOI - GAAP $ 584,422 $ 562,899 3.8%

NOI-Adjusted Cash:

Same store- NOI - GAAP $ 584,422 $ 562,899

Adjustments (c) (1,830) (9,539)

Same Store - NOI- Adjusted Cash $ 582,592 $ 553,360 5.3%

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Notes and Definitions

(continued)

Second Quarter 2014

(a) To calculate Same Store rental income, we exclude the net termination and renegotiation fees to allow us to evaluate the growth or decline in each property’s rental income without regard to items that are not indicative of the property’s recurring operating performance.

(b) To calculate Same Store rental expense, we include an allocation of the property management expenses for our consolidated properties based on the property management fee that is provided for in the individual management agreements under which our wholly owned management companies provide property management services (generally the fee is based on a percentage of revenue). On consolidation, the management fee income and expenses are eliminated and the actual cost of providing property management services is recognized.

(c) In order to derive Same Store- NOI—Adjusted Cash, we adjust Same Store- NOI- GAAP to exclude non-cash items included in our rental income in our GAAP financial statements, including straight line rent adjustments and adjustments related to purchase accounts to reflect leases at fair value at the time of acquisition.

Same Store Average Occupancy represents the average occupied percentage of the Same Store portfolio for the period.

Stabilization is defined when a property that was developed has been completed for one year or is 90% occupied. Upon stabilization, a property is moved into our Operating Portfolio.

Strategic Capital NOI represents strategic capital income less strategic capital expenses.

Tenant Retention is the square footage of all leases rented by existing tenants divided by the square footage of all expiring and rented leases during the reporting period, excluding the square footage of tenants that default or buy-out prior to expiration of their lease, short-term tenants and the square footage of month-to-month leases.

Total Expected Investment (“TEI”) represents total estimated cost of development or expansion, including land, development and leasing costs. TEI is based on current projections and is subject to change. Non-U.S. dollar investments are translated to U.S. dollars using the exchange rate at period end or the date of development start for purposes of calculating development starts in any period.

Turnover Costs represent the costs incurred in connection with the signing of a lease, including leasing commissions and tenant improvements. Tenant improvements include costs to prepare a space for a new tenant and for a lease renewal with the same tenant. It excludes costs to prepare a space that is being leased for the first time (i.e. in a new development property).

Value-Added Acquisitions are properties we acquire for which we believe the discount in pricing attributed to the operating challenges could provide greater returns post-stabilization than the returns of stabilized properties that are not Value-Added Acquisitions. Value Added Acquisitions must have one or more of the following characteristics: (i) existing vacancy in excess of 20%; (ii) short term lease roll-over, typically during the first two years of ownership; (iii) significant capital improvement requirements in excess of 10% of the purchase price and must be invested within the first two years of ownership.

Value-Added Conversions represent the repurposing of industrial properties to a higher and better use, including office, residential, retail, research and development, data center, self storage or manufacturing with the intent to ultimately sell the property once repositioned. Activities required to prepare the property for conversion to a higher and better use may include such activities as re-zoning, re-designing, re-constructing, and re-tenanting. The economic gain on sales of value added conversions represents the amount by which the sales proceeds exceed our original cost in dollars and percentages.

Value Creation represents the value that we will create through our development and leasing activities. We calculate value creation by estimating the NOI that the property will generate at

Stabilization and applying an estimated stabilized capitalization rate applicable to that property. The value creation is calculated as the amount by which the estimated value exceeds our total expected investment and does not include any fees or promotes we may earn.

Weighted Average Estimated Stabilized Yield is calculated as NOI assuming stabilized occupancy divided by Acquisition Cost or TEI, as applicable.

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