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Unconsolidated Entities (Tables)
 12 Months Ended
Dec. 31, 2017
Schedule Of Equity Method Investments [Line Items]  
Summary of Investments in and Advances to our Unconsolidated Entities

The following table summarizes our investments in and advances to our unconsolidated entities at December 31 (in thousands):

 

 

 

2017

 

 

2016

 

Unconsolidated co-investment ventures

 

$

5,274,702

 

 

$

4,057,524

 

Other ventures

 

 

221,748

 

 

 

172,905

 

Total

 

$

5,496,450

 

 

$

4,230,429

 

 
Information About Investments in Co-investment Ventures by Property Funds

The following table summarizes our investments in the individual co-investment ventures at December 31 (dollars in thousands):

 

 

 

Ownership

Percentage

 

 

Investment in

and Advances to

 

Co-Investment Venture

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Prologis Targeted U.S. Logistics Fund, L.P. (“USLF”) (1)

 

 

28.2

%

 

 

14.9

%

 

$

1,383,021

 

 

$

434,818

 

FIBRA Prologis (2) (3)

 

 

46.3

%

 

 

45.9

%

 

 

533,941

 

 

 

547,744

 

Prologis European Logistics Partners Sàrl (“PELP”) (4)

 

 

50.0

%

 

 

50.0

%

 

 

1,766,075

 

 

 

1,623,707

 

Prologis European Logistics Fund ("PELF") (5)

 

 

26.3

%

 

 

31.2

%

 

 

1,017,361

 

 

 

344,200

 

Prologis UK Logistics Venture ("UKLV") (4) (6)

 

 

15.0

%

 

N/A

 

 

 

29,382

 

 

 

-

 

Prologis Targeted Europe Logistics Fund, FCP-FIS (“PTELF”) (5)

 

N/A

 

 

 

23.5

%

 

 

-

 

 

 

310,118

 

Europe Logistics Venture 1, FCP-FIS (“ELV”) (7)

 

N/A

 

 

 

15.0

%

 

 

-

 

 

 

48,289

 

Nippon Prologis REIT, Inc. (“NPR”) (8) (9)

 

 

15.1

%

 

 

15.1

%

 

 

406,568

 

 

 

348,570

 

Prologis China Logistics Venture I, LP and II, LP

     ("Prologis China Logistics Venture") (4)

 

 

15.0

%

 

 

15.0

%

 

 

116,890

 

 

 

102,778

 

Brazil joint ventures (10)

 

 

10.0

%

 

various

 

 

 

21,464

 

 

 

297,300

 

Total

 

 

 

 

 

 

 

 

 

$

5,274,702

 

 

$

4,057,524

 

 

(1)

In July 2017, we contributed operating properties to USLF. We received cash proceeds and additional units, which increased our ownership interest and USLF assumed secured debt.

 

(2)

At December 31, 2017, we owned 295.5 million units of FIBRA Prologis that had a closing price of Ps 34.01 ($1.72) per unit on the Mexican Stock Exchange.

 

(3)

We have granted FIBRA Prologis a right of first refusal with respect to stabilized properties that we plan to sell in Mexico.

 

(4)

We have one partner in each of these co-investment ventures.

 

(5)

In October, the assets and related liabilities of PTELF were contributed to Prologis European Properties Fund II (“PEPF II”) in exchange for units, and PEPF II was renamed PELF. In connection with the transaction, we exchanged our units in PTELF for new units in PELF resulting in our ownership interest decreasing to 25.6%, however, our economic investment did not substantially change. As the contribution resulted in the exchange of our investment in PTELF for an equity investment in PELF, we carried over our investment in PTELF to PELF at the historical cost and no gain was recognized.

 

(6)

In February 2017, we formed UKLV, an unconsolidated co-investment venture in which we have a 15.0% ownership interest. UKLV will acquire land, develop buildings and operate and hold logistics real estate assets in the U.K. Upon formation, we, along with our venture partner, committed £380.0 million ($477.5 million), of which our share was £57.0 million ($71.6 million).

 

(7)

In January 2017, we sold our investment in ELV to our venture partner for $84.3 million and ELV contributed its properties to PTELF in exchange for equity interests.

 

(8)

At December 31, 2017, we owned 0.3 million units of NPR that had a closing price of ¥238,300 ($2,117) per share on the Tokyo Stock Exchange. At December 31, 2017 and 2016, we had receivables from NPR of $106.2 million and $96.9 million, respectively, related to customer security deposits that originated through a leasing company owned by us that pertain to properties owned by NPR. We have a corresponding payable to NPR’s customers in Other Liabilities. These amounts are repaid to us as the leases turn over.

 

(9)

For any properties we develop and plan to sell in Japan, we have committed to offer those properties to NPR.

 

(10)

In March 2017, we acquired all our partner’s interest in the Prologis Brazil Logistics Partners Fund I, L.P. (“Brazil Fund”). In August 2017, we acquired our partner’s interest in certain joint ventures in Brazil. See Note 4 for more information on this acquisition. The remaining investment balance includes nine properties aggregating 2.8 million square feet held with various partners.

 
Summary of Amounts Recognized in Consolidated Statements of Income Related to Co-Investment Ventures

 

The following table summarizes the amounts we recognized in the Consolidated Statements of Income related to the unconsolidated co-investment ventures for the years ended December 31 (in thousands):

 

 

 

2017

 

 

2016

 

 

2015

 

Strategic capital revenues from unconsolidated co-investment ventures, net:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

174,586

 

 

$

37,911

 

 

$

36,964

 

Other Americas

 

 

28,493

 

 

 

22,799

 

 

 

22,735

 

Europe

 

 

106,768

 

 

 

186,113

 

 

 

112,626

 

Asia

 

 

61,410

 

 

 

54,352

 

 

 

42,750

 

Total (1)

 

$

371,257

 

 

$

301,175

 

 

$

215,075

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from unconsolidated co-investment ventures, net:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

32,989

 

 

$

10,441

 

 

$

7,124

 

Other Americas

 

 

26,200

 

 

 

27,155

 

 

 

28,842

 

Europe

 

 

145,792

 

 

 

137,652

 

 

 

106,656

 

Asia

 

 

29,187

 

 

 

16,629

 

 

 

12,780

 

Total

 

$

234,168

 

 

$

191,877

 

 

$

155,402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

We earned promote revenue (third-party share) of $127.5 million, $88.5 million and $29.5 million in 2017, 2016 and 2015, respectively. Promote revenue is based on the venture’s cumulative returns to investors over a certain time-period, generally three years.

Summary of Remaining Equity Commitments

The following table summarizes the remaining equity commitments at December 31, 2017 (in millions):

 

 

 

Equity Commitments

 

 

Expiration Date

for Remaining Commitments

 

 

Prologis

 

 

Venture Partners

 

 

Total

 

 

 

Prologis Targeted U.S. Logistics Fund

 

$

-

 

 

$

73

 

 

$

73

 

 

2019

Prologis European Logistics Fund (1)

 

 

-

 

 

 

1,061

 

 

 

1,061

 

 

2018 – 2019

Prologis UK Logistics Venture (2)

 

 

27

 

 

 

151

 

 

 

178

 

 

2021

Prologis China Logistics Venture

 

 

294

 

 

 

1,665

 

 

 

1,959

 

 

2020 – 2024

Total

 

$

321

 

 

$

2,950

 

 

$

3,271

 

 

 

 

(1)

During 2017, the remaining equity commitments of PTELF were transferred to PELF when the assets and related liabilities of PTELF were contributed to PEPF II, and PEPF II was renamed PELF. Equity commitments are denominated in euro and reported in U.S. dollars based on an exchange rate of $1.20 U.S. dollars to the euro.

 

(2)

Equity commitments are denominated in British pounds sterling and reported in U.S. dollars based on an exchange rate of $1.35 U.S. dollars to the British pound sterling.
Unconsolidated Co-Investment Ventures [Member]  
Schedule Of Equity Method Investments [Line Items]  
Summary of Investments in and Advances to our Unconsolidated Entities

The following table summarizes the financial position and operating information of our unconsolidated co-investment ventures (not our proportionate share), at December 31 and for the years ended December 31 as presented at our adjusted basis derived from the ventures’ U.S. GAAP information (dollars and square feet in millions):

 

 

U.S.

 

 

Other Americas

 

 

Europe

 

 

Asia

 

 

Total

 

 

2017

 

 

2016

 

 

2015

 

 

2017

 

 

2016

 

 

2015

 

 

2017

 

 

2016

 

 

2015

 

 

2017

 

 

2016

 

 

2015

 

 

2017

 

 

2016

 

 

2015

 

Financial Position:

 

Ventures

 

1

 

 

 

1

 

 

 

1

 

 

 

2

 

 

 

2

 

 

 

2

 

 

 

3

 

 

 

4

 

 

 

4

 

 

 

2

 

 

 

2

 

 

 

2

 

 

 

8

 

 

 

9

 

 

 

9

 

Operating properties

 

552

 

 

 

369

 

 

 

391

 

 

 

205

 

 

 

213

 

 

 

205

 

 

 

707

 

 

 

700

 

 

 

688

 

 

 

95

 

 

 

85

 

 

 

66

 

 

 

1,559

 

 

 

1,367

 

 

 

1,350

 

Square feet

 

88

 

 

 

50

 

 

 

50

 

 

 

37

 

 

 

42

 

 

 

39

 

 

 

166

 

 

 

163

 

 

 

159

 

 

 

41

 

 

 

36

 

 

 

29

 

 

 

332

 

 

 

291

 

 

 

277

 

Total assets ($)

 

7,062

 

 

 

4,238

 

 

 

4,408

 

 

 

2,118

 

 

 

2,793

 

 

 

2,482

 

 

 

13,586

 

 

 

10,853

 

 

 

11,343

 

 

 

6,133

 

 

 

5,173

 

 

 

4,320

 

 

 

28,899

 

 

 

23,057

 

 

 

22,553

 

Third-party debt ($)

 

2,313

 

 

 

1,414

 

 

 

1,433

 

 

 

756

 

 

 

739

 

 

 

657

 

 

 

2,682

 

 

 

2,446

 

 

 

2,640

 

 

 

2,328

 

 

 

1,947

 

 

 

1,520

 

 

 

8,079

 

 

 

6,546

 

 

 

6,250

 

Total liabilities ($)

 

2,520

 

 

 

1,540

 

 

 

1,550

 

 

 

782

 

 

 

814

 

 

 

708

 

 

 

3,655

 

 

 

3,283

 

 

 

3,584

 

 

 

2,685

 

 

 

2,239

 

 

 

1,751

 

 

 

9,642

 

 

 

7,876

 

 

 

7,593

 

Investment balance ($) (1)

 

1,383

 

 

 

435

 

 

 

690

 

 

 

555

 

 

 

845

 

 

 

786

 

 

 

2,813

 

 

 

2,327

 

 

 

2,707

 

 

 

524

 

 

 

451

 

 

 

402

 

 

 

5,275

 

 

 

4,058

 

 

 

4,585

 

Wtd avg ownership (2)

 

28.2

%

 

 

14.9

%

 

 

22.5

%

 

 

43.4

%

 

 

43.9

%

 

 

43.8

%

 

 

32.8

%

 

 

35.1

%

 

 

38.9

%

 

 

15.1

%

 

 

15.1

%

 

 

15.0

%

 

 

28.8

%

 

 

27.9

%

 

 

31.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Information:

 

Revenues ($)

 

533

 

 

 

395

 

 

 

382

 

 

 

245

 

 

 

242

 

 

 

228

 

 

 

1,030

 

 

 

964

 

 

 

947

 

 

 

372

 

 

 

342

 

 

 

275

 

 

 

2,180

 

 

 

1,943

 

 

 

1,832

 

Net earnings ($)

 

139

 

 

 

57

 

 

 

35

 

 

 

71

 

 

 

71

 

 

 

78

 

 

 

406

 

 

 

333

 

 

 

261

 

 

 

182

 

 

 

101

 

 

 

77

 

 

 

798

 

 

 

562

 

 

 

451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

The difference between our ownership interest of a venture’s equity and our investment balance at December 31, 2017, 2016 and 2015, results principally from three types of transactions: (i) deferring a portion of the gains we recognize from a contribution of a property to a venture ($667.3 million, $469.9 million and $430.7 million, respectively); (ii) recording additional costs associated with our investment in the venture ($94.2 million, $124.1 million and $122.1 million, respectively); and (iii) advances to a venture ($210.0 million, $166.1 million and $189.7 million, respectively).

 

(2)

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