Note 3. Real Estate

Investments in real estate properties consisted of the following (dollars and square feet in thousands):

	Square Feet/Acres (1)				Number of Buildings (1)
	September 30,		December 31,		September 30,		December 31,		September 30,		December 31,
	2015		2014		2015		2014		2015		2014
Industrial operating properties:
Improved land	- -		- -		- -		- -		$	5,724,586	$	4,227,637
Buildings and improvements		342,762		282,282		1,909		1,607		17,774,600		14,407,815
Development portfolio, including land costs:
Prestabilized		7,321		7,448		24		24		558,208		547,982
Properties under development		22,310		22,844		50		55		1,017,181		925,998
Land		8,500		9,017	- -		- -			1,569,416		1,577,786
Other real estate investments (2)										625,367		502,927
Total investments in real estate properties										27,269,358		22,190,145
Less accumulated depreciation										3,156,445		2,790,781
Net investments in real estate properties									$	24,112,913	$	19,399,364

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

(2)

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

Acquisitions

The following table summarizes our real estate acquisition activity for the nine months ended September 30 (dollars and square feet in thousands):

	2015 (1)		2014
Acquisitions of operating properties from third parties
Number of industrial operating properties		27		8
Square feet		3,651		1,004
Real estate acquisition value	$	305,519	$	78,314

(1)	Excludes the properties acquired in the KTR acquisition, see Note 2 for additional information.

Dispositions

The following table summarizes our real estate disposition activity for the nine months ended September 30 (dollars and square feet in thousands):

	2015		2014
Contributions to unconsolidated co-investment ventures
Number of properties		23		115
Square feet		6,659		22,806
Net proceeds (1)	$	662,645	$	1,627,424
Net gains on contributions (1)	$	111,307	$	156,746
Dispositions to third parties
Number of properties		75		106
Square feet		12,723		14,663
Net proceeds (1)	$	1,347,755	$	955,240
Net gains on dispositions (1)	$	543,981	$	180,949

(1)	Includes land sales.

In June 2014, we launched the initial public offering for FIBRA Prologis, a Mexican REIT. In connection with the offering, FIBRA Prologis 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 Prologis Mexico Fondo Logistico and 9.5 million square feet from our unconsolidated co-investment venture Prologis Mexico Industrial Fund). 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 interests of $61.0 million.