Noncontrolling Interests

9 Months Ended

Sep. 30, 2018

NOTE 7. NONCONTROLLING INTERESTS

Prologis, L.P.

We report noncontrolling interests related to several entities we consolidate but of which we do not own 100% of the equity. These entities include two real estate partnerships that have issued limited partnership units to third parties. Depending on the specific partnership agreements, these limited partnership units are redeemable for cash or, at our option, into shares of the Parent’s common stock, generally at a rate of one share of common stock to one unit. We also consolidate certain entities in which we do not own 100% of the equity but the equity of these entities is not exchangeable into our common stock.

Prologis, Inc.

The noncontrolling interests of the Parent include the noncontrolling interests for the OP, as well as the limited partnership units in the OP that are not owned by the Parent.

The following table summarizes our ownership percentages, noncontrolling interests and the consolidated entities’ total assets and liabilities (dollars in thousands):

	Our Ownership Percentage						Noncontrolling Interests				Total Assets				Total Liabilities
	Sep 30, 2018			Dec 31, 2017			Sep 30, 2018		Dec 31, 2017		Sep 30, 2018		Dec 31, 2017		Sep 30, 2018		Dec 31, 2017
Prologis U.S. Logistics Venture		55.0	%		55.0	%	$	2,601,916	$	2,581,629	$	5,990,186	$	6,030,819	$	230,923	$	284,162
Other consolidated entities (1)	various			various				141,492		78,613		856,755		806,138		60,190		30,330
Prologis, L.P.								2,743,408		2,660,242		6,846,941		6,836,957		291,113		314,492
Limited partners in Prologis, L.P. (2) (3)								663,648		414,341		-		-		-		-
Prologis, Inc.							$	3,407,056	$	3,074,583	$	6,846,941	$	6,836,957	$	291,113	$	314,492

(1)

Includes our two partnerships that have issued limited partnership units to third parties, as discussed above, along with various other consolidated entities. The limited partnership units outstanding at September 30, 2018 and December 31, 2017 were exchangeable into cash or, at our option, 0.9 million and 1.0 million shares of the Parent’s common stock.

(2)	We had 8.8 million and 8.9 million Class A Units that were convertible into 8.4 million and 8.5 million limited partnership units of the OP at September 30, 2018 and December 31, 2017, respectively.

(3)

At September 30, 2018 and December 31, 2017, excluding the Class A Units, there were limited partnership units in the OP that were exchangeable into cash or, at our option, 7.3 million and 4.1 million shares of the Parent’s common stock, respectively. There were 3.6 million limited partnership units issued in connection with the DCT Transaction. Also included are the vested OP Long-Term Incentive Plan Units (“LTIP Units”) associated with our long-term compensation plan. See further discussion of LTIP Units in Note 8.