Unconsolidated Entities

3 Months Ended

Mar. 31, 2020

Equity Method Investments And Joint Ventures [Abstract]

NOTE 4. 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 related parties and are accounted for using the equity method of accounting. See Note 8 for more detail regarding our consolidated investments that are not wholly owned.

We also have investments in 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 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):

	March 31,		December 31,
	2020		2019
Unconsolidated co-investment ventures	$	5,910,369	$	5,873,784
Other ventures ⁽¹⁾		924,389		363,587
Total	$	6,834,758	$	6,237,371

(1)	In February 2020, we completed the Liberty Transaction and acquired an equity method investment in eight ventures.

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 March 31,
	2020		2019
Recurring fees	$	74,687	$	62,117
Transactional fees		19,960		11,348
Promote revenue		591		-
Total strategic capital revenues from unconsolidated co-investment ventures ⁽¹⁾	$	95,238	$	73,465

(1)	These amounts exclude strategic capital revenues from other ventures.

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 these ventures (dollars and square feet in millions):

	U.S.						Other Americas						Europe						Asia						Total
As of:	Mar 31, 2020 ⁽¹⁾			Dec 31, 2019			Mar 31, 2020⁽²⁾			Dec 31, 2019			Mar 31, 2020			Dec 31, 2019			Mar 31, 2020			Dec 31, 2019			Mar 31, 2020			Dec 31, 2019
Key property information:
Ventures		1			1			2			2			3			3			3			3			9			9
Operating properties		689			605			214			214			745			731			151			144			1,799			1,694
Square feet		112			99			45			44			178			176			63			59			398			378

Financial position:
Total assets ($)		10,301			8,408			2,871			2,707			14,444			14,677			9,236			8,758			36,852			34,550
Third-party debt ($)		2,925			2,130			770			769			3,148			3,213			3,550			3,296			10,393			9,408
Total liabilities ($)		3,371			2,514			807			801			4,491			4,575			3,992			3,751			12,661			11,641

Our investment balance ($) ⁽³⁾		1,720			1,728			791			658			2,678			2,800			721			688			5,910			5,874
Our weighted average ownership ⁽⁴⁾		24.8	%		27.3	%		40.8	%		39.1	%		30.0	%		30.2	%		15.2	%		15.1	%		25.8	%		27.1	%

	U.S.						Other Americas						Europe						Asia						Total
Operating Information:	Mar 31, 2020 ⁽¹⁾			Mar 31, 2019			Mar 31, 2020⁽²⁾			Mar 31, 2019			Mar 31, 2020			Mar 31, 2019			Mar 31, 2020			Mar 31, 2019			Mar 31, 2020			Mar 31, 2019
For the three months ended:
Total revenues ($)		233			179			68			67			290			271			138			120			729			637
Net earnings ($)		34			29			23			34			78			71			26			37			161			171

Our earnings from unconsolidated co-investment ventures, net ($)		9			9			9			13			25			25			4			6			47			53

(1)	In January 2020, USLF acquired a portfolio of 108 operating properties, aggregating 18.3 million square feet, in the IPT Transaction for cash consideration of $2.0 billion, including transaction costs and the assumption and repayment of debt.

(2)	PBLV and our other Brazilian joint ventures are combined as one venture for the purpose of this table.

(3)

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 March 31, 2020 and December 31, 2019, results principally from four types of transactions: (i) deferred gains from the contribution of property to a venture prior to January 1, 2018; (ii) recording additional costs associated with our investment in the venture; (iii) receivables, principally for fees and promotes ($94.7 million and $152.0 million, respectively); and (iv) customer security deposits retained subsequent to property contributions to Nippon Prologis REIT, Inc.

(4)	Represents our weighted average ownership interest in all unconsolidated 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

At March 31, 2020, our remaining equity commitments were $366.7 million, principally for Prologis China Logistics Venture. The equity commitments expire from 2020 to 2026.