Real Estate (Tables)

6 Months Ended

Jun. 30, 2020

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

	Square Feet				Number of Buildings
	Jun 30,		Dec 31,		Jun 30,		Dec 31,		Jun 30,		Dec 31,
	2020 ⁽¹⁾		2019		2020 ⁽¹⁾		2019		2020 ⁽¹⁾		2019
Operating properties:
Buildings and improvements		434,868		354,297		2,248		1,876	$	30,581,443	$	23,067,625
Improved land										11,603,537		8,220,208
Development portfolio, including land costs:
Prestabilized		7,494		9,133		24		28		575,712		784,584
Properties under development		23,280		26,893		61		77		1,485,109		1,084,683
Land ⁽²⁾										1,692,512		1,101,646
Other real estate investments ⁽³⁾										2,640,499		965,668
Total investments in real estate properties										48,578,812		35,224,414
Less accumulated depreciation										5,931,378		5,437,662
Net investments in real estate properties									$	42,647,434	$	29,786,752

(1)	Includes the acquired real estate properties from the Liberty Transaction at June 30, 2020. See Note 2 for more information.

(2)	At June 30, 2020 and December 31, 2019, our land is comprised of 6,006 and 4,411 acres, respectively.

(3)

Included in other real estate investments were: (i) non-strategic real estate assets, including industrial and office, acquired in the Liberty Transaction that we do not intend to operate long-term; (ii) non-logistics real estate; (iii) land parcels that are ground leased to third parties; (iv) our corporate headquarters; (v) earnest money deposits associated with potential acquisitions; (vi) costs related to future development projects, including purchase options on land; and (vii) 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, excluding the Liberty Transaction as discussed in Note 2 (dollars and square feet in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020 ⁽¹⁾		2019
Number of operating properties		1		1		138		13
Square feet		20		36		20,276		1,003
Acres of land		188		277		455		465
Acquisition cost of net investments in real estate	$	147,893	$	204,935	$	2,541,660	$	517,187

(1)

On January 8, 2020, our two U.S. co-investment ventures, Prologis Targeted U.S. Logistics Fund, L.P. (“USLF”) and Prologis U.S. Logistics Venture (“USLV”), acquired the wholly-owned real estate assets of Industrial Property Trust Inc. (“IPT”) for $2.0 billion each in a cash transaction, including transaction costs and the assumption and repayment of debt (the “IPT Transaction”). As USLV is a consolidated co-investment venture, the number of operating properties, square feet and acquisition cost are included in the consolidated acquisition activity. For further discussion on the acquisition by USLF, see Note 4, and by USLV, see Notes 6 and 8.

Summary of Dispositions of Net Investments in Real Estate

The following table summarizes our dispositions of net investments in real estate (dollars and square feet in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Dispositions of development properties and land, net
Contributions to unconsolidated entities
Number of properties		9		5		18		10
Square feet		3,990		3,723		7,514		4,935
Net proceeds	$	340,266	$	679,064	$	894,609	$	803,386
Gains on contributions, net	$	86,416	$	196,941	$	231,161	$	227,774

Dispositions to third parties
Number of properties		-		-		2		2
Square feet		-		-		1,112		670
Net proceeds	$	-	$	-	$	79,220	$	52,024
Gains on dispositions, net	$	-	$	-	$	18,005	$	11,608
Total gains on dispositions of development properties and land, net	$	86,416	$	196,941	$	249,166	$	239,382

Other dispositions of investments in real estate, net
Contributions to unconsolidated entities⁽¹⁾
Number of properties		-		3		-		17
Square feet		-		450		-		7,387
Net proceeds	$	-	$	65,996	$	-	$	685,839
Gains on contributions, net	$	-	$	27,254	$	-	$	37,999

Dispositions to third parties
Number of properties		5		-		23		-
Square feet		1,772		-		4,077		-
Net proceeds	$	193,755	$	-	$	354,312	$	-
Gains on dispositions, net	$	43,939	$	-	$	75,430	$	-
Gains on partial redemption of investment in an unconsolidated co-investment venture⁽²⁾	$	-	$	-	$	-	$	135,022
Total gains on other dispositions of investments in real estate, net	$	43,939	$	27,254	$	75,430	$	173,021

(1)

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 20.0% equity interest.

(2)	In February 2019, we redeemed a portion of our investment in a European unconsolidated co-investment venture.