3.	Real Estate

Investments in real estate properties are presented at cost, and consisted of the following (square feet and dollars in thousands):


	Square Feet / Acres (1)				No. of Buildings (1)				Investment Balance
	June 30,		December 31,		June 30,		December 31,		June 30,		December 31,
	2014		2013		2014		2013		2014		2013
Industrial operating properties:
Improved land		- -		- -		- -		- -	$	3,825,519	$	4,074,647
Buildings and improvements		246,431		267,097		1,457		1,610		12,803,481		13,726,417
Development portfolio, including land costs:
Pre-stabilized		5,104		4,491		12		11		383,072		204,022
Properties under development		16,450		18,587		47		46		736,003		816,995
Land		9,346		9,747		- -		- -		1,579,737		1,516,166
Other real estate investments (2)		- -		- -		- -		- -		454,111		486,230

Total investments in real estate properties										19,781,923		20,824,477
Less accumulated depreciation										2,648,866		2,568,998

Net investments in real estate properties									$	17,133,057	$	18,255,479

(1)	Items indicated by ‘- -‘ are not applicable.

(2)

Included in other real estate investments are: (i) certain non-industrial real estate; (ii) our corporate office buildings; (iii) certain infrastructure costs related to projects we are developing on behalf of others; (iv) land parcels that are ground leased to third parties; (v) costs related to future development projects, including purchase options on land; and (vi) earnest money deposits associated with potential acquisitions.

At June 30, 2014, we owned real estate assets in the Americas (Canada, Mexico and the United States), Europe (Austria, Belgium, the Czech Republic, France, Germany, Hungary, Italy, the Netherlands, Poland, Romania, Slovakia, Spain, Sweden and the United Kingdom) and Asia (China, Japan and Singapore).

Dispositions

Real estate disposition activity for the six months ended June 30, was as follows (square feet and dollars in thousands):


	2014		2013
Continuing Operations
Contributions to co-investment ventures
Number of properties		110		210
Square feet		20,416		59,911
Net proceeds	$	1,203,815	$	5,047,745
Net gains on contributions	$	59,160	$	393,626
Dispositions to third parties
Number of properties		65		—
Square feet		8,808		—
Net proceeds (1)	$	576,004	$	60,915
Net gains on dispositions (1)	$	127,478	$	6,254
Discontinued Operations
Number of properties		—		20
Square feet		—		1,888
Net proceeds from dispositions	$	—	$	162,703
Net gains from dispositions, including taxes	$	—	$	19,301

(1)	Dispositions to third parties include land sales.

In June 2014, we launched the initial public offering for FIBRA Prologis (“FIBRA”), a Mexican real estate investment trust, on the Mexican Stock Exchange. In connection with the offering, FIBRA purchased 177 properties aggregating 29.7 million square feet (12.6 million square feet from our wholly-owned portfolio, 7.6 million square feet from our consolidated co-investment venture Mexico Fondo Logistico (“AFORES”) and 9.5 million square feet from our unconsolidated co-investment venture Prologis Mexico Industrial Fund). We received 287.3 million equity units of FIBRA (priced at Ps 27.00 ($2.09)) in exchange for our combined investments and have a 45% ownership interest that we account for under the equity method. The closing price of the equity units on the Mexican Stock Exchange was Ps 27.53 ($2.12) per unit on June 30, 2014. Based on this transaction, we recognized a gain on disposition of investments in real estate of $52.5 million; current tax expense of $32.4 million; deferred tax benefit of $55.5 million; and earnings attributable to noncontrolling interest of $61.0 million, which represented the third party investors’ portion of this transaction.