4.Unconsolidated Entities

Summary of Investments

We have investments in entities through a variety of ventures. We co-invest in entities that own multiple properties with partners and investors and provide asset and property management services to these entities, which we refer to as co-investment ventures. These entities may be consolidated or unconsolidated, depending on the structure, our partner’s participation and other rights and our level of control of the entity. This note details our investments in unconsolidated co-investment ventures, which are accounted for using the equity method of accounting. See Note 9 for more detail regarding our consolidated investments.

We also have other ventures, generally with one partner and that we do not manage, which we account for on the equity method. We refer to our investments in all entities accounted for under the equity method, both unconsolidated co-investment ventures and other ventures, collectively, as unconsolidated entities.

Our investments in and advances to our unconsolidated entities are summarized below (in thousands):

	March 31,		December 31,
	2015		2014
Unconsolidated co-investment ventures	$	4,381,650	$	4,665,918
Other ventures		178,071		158,806
Totals	$	4,559,721	$	4,824,724

Unconsolidated Co-Investment Ventures

The amounts recognized in Strategic Capital Income and Earnings from Unconsolidated Entities, Net in the Consolidated Statements of Operations depend on the size, operations of the co-investment ventures and fluctuations in foreign currency rates. Our ownership interest in these ventures also impacts the equity in earnings we recognize. The co-investment venture information represents the venture’s information (not our proportionate share) prepared on a GAAP basis. The following tables are summarized information of the unconsolidated co-investment ventures:

	March 31,			December 31,			March 31,
(dollars and square feet in millions)	2015			2014			2014
Americas:
Number of ventures		3			3			4
Number of properties owned		592			590			712
Square feet		87.6			87.1			109.2
Total assets	$	6,889		$	7,063		$	8,074
Third-party debt	$	2,255		$	2,280		$	2,961
Total liabilities	$	2,386		$	2,421		$	3,111
Our investment balance (1)	$	1,502		$	1,537		$	1,225
Our weighted average ownership (3)		31.0	%		31.0	%		23.3	%
Europe:
Number of ventures		4			4			4
Number of properties owned		655			636			585
Square feet		150.2			147.4			136.6
Total assets	$	10,502		$	11,463		$	12,119
Third-party debt	$	2,371		$	2,644		$	2,685
Total liabilities	$	3,218		$	3,524		$	3,819
Our investment balance (1)	$	2,531		$	2,773		$	2,944
Our weighted average ownership (3)		38.7	%		38.8	%		38.9	%
Asia:
Number of ventures		2			2			2
Number of properties owned		53			52			45
Square feet		26.4			26.2			23.3
Total assets	$	4,144		$	4,135		$	4,048
Third-party debt	$	1,671		$	1,652		$	1,738
Total liabilities	$	1,864		$	1,749		$	1,911
Our investment balance (1) (2)	$	349		$	356		$	344
Our weighted average ownership (3)		15.0	%		15.0	%		15.0	%
Total:
Number of ventures		9			9			10
Number of properties owned		1,300			1,278			1,342
Square feet		264.2			260.7			269.1
Total assets	$	21,535		$	22,661		$	24,241
Third-party debt	$	6,297		$	6,576		$	7,384
Total liabilities	$	7,468		$	7,694		$	8,841
Our investment balance (1)	$	4,382		$	4,666		$	4,513
Our weighted average ownership (3)		31.8	%		32.0	%		29.4	%

For the three months ended	March 31,		March 31,
(in thousands)	2015		2014
Americas (4):
Revenues	$	150,014	$	168,236
Net operating income	$	112,083	$	119,235
Net earnings (loss)	$	15,900	$	2,174
Europe:
Revenues	$	234,713	$	246,696
Net operating income	$	180,832	$	196,081
Net earnings (loss)	$	50,959	$	62,667
Asia:
Revenues	$	67,918	$	68,488
Net operating income	$	53,234	$	53,617
Net earnings (loss)	$	23,390	$	21,995
Total:
Revenues	$	452,645	$	483,420
Net operating income	$	346,149	$	368,933
Net earnings (loss)	$	90,249	$	86,836

(1)

The difference between our ownership interest of the venture’s equity and our investment balance results principally from three types of transactions: (i) deferring a portion of the gains we recognize from a contribution of a property to the venture; (ii) recording additional costs associated with our investment in the venture; and (iii) advances to the venture.

(2)

At March 31, 2015 and December 31, 2014, we had receivables from Nippon Prologis REIT, Inc. (“NPR”) of $85.5 million and $85.9 million, respectively, related to customer security deposits that are made through a leasing company owned by Prologis that pertain to properties owned by NPR. There is a corresponding payable to NPR’s customers in Other Liabilities in the Consolidated Balance Sheets.

(3)	Represents our weighted average ownership interest in all co-investment ventures based on each entity’s contribution to total assets, before depreciation, net of other liabilities.

(4)	We formed and invested in FIBRA Prologis, a Mexican REIT, in June 2014. In connection with the transaction, we concluded our unconsolidated co-investment venture in Mexico. As discussed in Note 2, we began consolidating NAIF in October 2014.

Summarized information regarding the amounts we recognized in the Consolidated Statements of Operations as our share of the earnings from our investments in unconsolidated co-investment ventures for the three months ended March 31 was as follows (in thousands):

	2015		2014
Earnings (loss) from unconsolidated co-investment ventures:
Americas	$	4,798	$	(329	)
Europe		21,508		25,495
Asia		3,930		3,665
Total earnings from unconsolidated co-investment ventures, net	$	30,236	$	28,831

Strategic capital and other income:
Americas	$	14,361	$	14,325
Europe		18,393		21,700
Asia		8,549		8,797
Total strategic capital income		41,303		44,822
Development management and other income		1,640		707
Total strategic capital and other income	$	42,943	$	45,529

Equity Commitments Related to Certain Unconsolidated Co-Investment Ventures

Certain co-investment ventures have equity commitments from us and our venture partners. Our venture partners fulfill their equity commitment with cash. We may fulfill our equity commitment through contributions of properties or cash. The venture may obtain financing for the properties and therefore the acquisition price of additional investments that the venture could make may be more than the equity commitment. Depending on market conditions, the investment objectives of the ventures, our liquidity needs and other factors, we may make additional contributions of properties and/or additional cash investments in these ventures through the remaining commitment period. During the first quarter of 2015, we contributed $49.1 million of our commitment to Prologis European Logistics Partners for repayment of third-party debt by the venture. We did not enter into any additional equity commitments in the first quarter of 2015.