NOTE 3. 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 we 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 6 for more detail regarding our consolidated investments that are not wholly owned.

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

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

	June 30,		December 31,
	2018		2017
Unconsolidated co-investment ventures	$	5,207,093	$	5,274,702
Other ventures		207,530		221,748
Total	$	5,414,623	$	5,496,450

Unconsolidated Co-Investment Ventures

The following table summarizes the Strategic Capital Revenues we recognized in the Consolidated Statements of Income related to our unconsolidated co-investment ventures (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Recurring fees	$	57,918	$	43,478	$	112,562	$	87,673
Transactional fees		11,828		12,626		27,452		21,219
Promote revenues		5,674		123,946		68,218		127,092
Total strategic capital revenues from unconsolidated co-investment ventures	$	75,420	$	180,050	$	208,232	$	235,984

The following table summarizes the key property information, financial position and operating information of our unconsolidated co-investment ventures (not our proportionate share) and the amounts we recognized in the Consolidated Financial Statements related to our unconsolidated co-investment ventures (dollars and square feet in millions):

	U.S.						Other Americas						Europe						Asia						Total
As of:	Jun 30, 2018			Dec 31, 2017			Jun 30, 2018			Dec 31, 2017			Jun 30, 2018			Dec 31, 2017			Jun 30, 2018			Dec 31, 2017			Jun 30, 2018			Dec 31, 2017
Key property information
Ventures		1			1			2			2			3			3			2			2			8			8
Operating properties		554			552			205			205			653			707			114			95			1,526			1,559
Square feet		88			88			37			37			154			166			48			41			327			332

Financial position
Unconsolidated co-investment ventures:
Total assets ($)		7,188			7,062			2,073			2,118			13,176			13,586			6,694			6,133			29,131			28,899
Third-party debt ($)		2,098			2,313			752			756			2,650			2,682			2,577			2,328			8,077			8,079
Total liabilities ($)		2,307			2,520			788			782			3,689			3,655			2,881			2,685			9,665			9,642

Our investment balance ($) (1)		1,365			1,383			561			555			2,699			2,813			582			524			5,207			5,275
Our weighted average ownership (2)		26.7	%		28.2	%		43.8	%		43.4	%		32.9	%		32.8	%		15.1	%		15.1	%		28.2	%		28.8	%

	U.S.						Other Americas						Europe						Asia						Total
Operating information	Jun 30, 2018			Jun 30, 2017			Jun 30, 2018			Jun 30, 2017			Jun 30, 2018			Jun 30, 2017			Jun 30, 2018			Jun 30, 2017			Jun 30, 2018			Jun 30, 2017
For the three months ended:
Unconsolidated co-investment ventures:
Total revenues ($)		168			105			55			66			272			248			114			89			609			508
Net earnings ($)		24			15			19			22			110			93			6			93			159			223

Our earnings from unconsolidated co-investment ventures, net ($)		7			2			8			10			37			36			2			14			54			62

For the six months ended:
Unconsolidated co-investment ventures:
Total revenues ($)		336			209			108			130			560			492			222			177			1,226			1,008
Net earnings ($)		37			51			33			39			203			166			48			117			321			373

Our earnings from unconsolidated co-investment ventures, net ($)		12			7			14			16			74			66			9			18			109			107

(1)

Prologis’ investment balance is presented at our adjusted basis derived from the ventures’ U.S. GAAP information. The difference between our ownership interest of a venture’s equity and our investment balance at June 30, 2018 and December 31, 2017, results principally from three types of transactions: (i) deferred gains from the contribution of property to a venture prior to January 1, 2018 ($651.8 million and $667.3 million, respectively); (ii) recording additional costs associated with our investment in the venture ($92.4 million and $94.2 million, respectively); and (iii) advances to a venture ($219.9 million and $210.0 million, respectively). For deferred gains from partial sales recorded prior to the adoption the new revenue recognition standard, we will continue to recognize these gains over the lives of the underlying real estate properties or at the time of disposition to a third party.

(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.

Equity Commitments Related to Certain Unconsolidated Co-Investment Ventures

The following table summarizes the remaining equity commitments at June 30, 2018 (in millions):

	Equity Commitments						Expiration Date
	Prologis		Venture Partners		Total
Prologis Targeted U.S. Logistics Fund	$	-	$	178	$	178	2019
Prologis European Logistics Fund (1)		-		1,201		1,201	2018 – 2019
Prologis UK Logistics Venture (2)		18		102		120	2021
Prologis China Logistics Venture		267		1,510		1,777	2020 – 2024
Total	$	285	$	2,991	$	3,276

(1)	Equity commitments are denominated in euro and reported in U.S. dollars based on an exchange rate of $1.17 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 $1.32 U.S. dollars to the British pound sterling.