Real Estate (Tables)

6 Months Ended

Jun. 30, 2019

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

	Square Feet				Number of Buildings
	June 30,		December 31,		June 30,		December 31,		June 30,		December 31,
	2019		2018		2019		2018		2019		2018
Operating properties:
Buildings and improvements		354,320		354,762		1,879		1,858	$	22,822,198	$	22,587,267
Improved land										8,183,086		8,044,888
Development portfolio, including land costs:
Prestabilized		8,312		8,709		34		30		696,843		828,064
Properties under development		21,859		27,715		59		70		1,262,391		1,314,737
Land ⁽¹⁾										1,156,846		1,192,220
Other real estate investments ⁽²⁾										773,687		619,811
Total investments in real estate properties										34,895,051		34,586,987
Less accumulated depreciation										5,085,219		4,656,680
Net investments in real estate properties									$	29,809,832	$	29,930,307

(1)	At June 30, 2019 and December 31, 2018, our land is comprised of 4,710 and 4,929 acres, respectively.

(2)

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

Summary of Properties Acquired

The following table summarizes our real estate acquisition activity (dollars and square feet in thousands, except for acres of land):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Number of operating properties		1		3		13		3
Square feet of operating properties		36		883		1,003		883
Acres of land		277		429		465		808
Acquisition cost of net investments in real estate properties⁽¹⁾	$	204,935	$	179,358	$	517,187	$	314,299

(1)	Includes the acquisition cost of properties classified in other real estate investments of $137.2 million for the three and six months ended June 30, 2019. We did not acquire any properties classified in other real estate investments during the three and six months ended June 30, 2018.

Number Of Properties Disposed

The following table summarizes our gains on real estate transactions, net (dollars and square feet in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Contributions to unconsolidated entities
Number of properties		8		3		27		11
Square feet		4,173		1,164		12,322		4,242
Net proceeds ^{(1) (2)}	$	742,544	$	125,917	$	1,486,709	$	665,739
Gains on contributions, net ^{(1) (2)}	$	221,552	$	33,527	$	258,690	$	201,253
Dispositions to third parties
Number of properties		-		7		2		18
Square feet		-		4,139		670		5,442
Net proceeds ⁽¹⁾	$	2,516	$	314,141	$	54,540	$	402,122
Gains on dispositions, net ⁽¹⁾	$	2,643	$	60,734	$	18,691	$	88,119

Total gains on contributions and dispositions, net	$	224,195	$	94,261	$	277,381	$	289,372
Gain on partial redemption of investment in an unconsolidated co-investment venture ⁽³⁾		-		-		135,022		-
Total gains on real estate transactions, net	$	224,195	$	94,261	$	412,403	$	289,372

(1)	Includes the contribution and disposition of land parcels.

(2)

In January 2019, we formed Prologis Brazil Logistics Venture (“PBLV”), a Brazilian unconsolidated co-investment venture, with one partner. We contributed an initial portfolio of real estate properties to PBLV consisting of 14 operating properties totaling 6.9 million square feet and 371 acres of land. We received cash proceeds and units for our 20% equity interest.

(3)	See Note 4 for more information on this transaction.

Summary of Minimum Lease Payments Due from Our Customers on Leases

The following table summarizes the minimum lease payments due from our customers on leases with lease periods greater than one year for space in our operating properties, prestabilized and under development properties, leases of land subject to ground leases and assets held for sale or contribution at June 30, 2019 (in thousands):

2019	$	1,025,461
2020		2,011,029
2021		1,745,388
2022		1,424,837
2023		1,135,391
Thereafter		3,652,444
Total	$	10,994,550

Fixed, Future Minimum Rental Payments, Excluding Variable Costs Under Non-Cancelable Operating Leases

The following table summarizes the fixed, future minimum rental payments, excluding variable costs, which are discounted by our incremental borrowing rates to calculate the lease liabilities of our operating leases in which we are the lessee and for which the lease has commenced (in thousands):

	June 30, 2019		December 31, 2018
2019	$	22,898	$	38,769
2020		45,277		38,267
2021		45,697		34,307
2022		38,659		32,312
2023		32,979		30,180
Thereafter		678,569		670,147
Total undiscounted rental payments		864,079	$	843,982
Less imputed interest		460,909
Total lease liabilities	$	403,170