Real Estate

3 Months Ended

Mar. 31, 2021

NOTE 3. REAL ESTATE

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

	Square Feet				Number of Buildings
	Mar 31,		Dec 31,		Mar 31,		Dec 31,		Mar 31,		Dec 31,
	2021		2020		2021		2020		2021		2020
Operating properties:
Buildings and improvements		441,737		441,336		2,265		2,261	$	31,520,177	$	31,489,943
Improved land										12,025,439		12,017,676
Development portfolio, including land costs:
Prestabilized		5,572		6,076		18		24		480,918		553,266
Properties under development		22,990		22,004		62		61		1,550,798		1,329,345
Land ⁽¹⁾										1,699,738		1,606,358
Other real estate investments ⁽²⁾										3,182,295		3,387,740
Total investments in real estate properties										50,459,365		50,384,328
Less accumulated depreciation										6,823,824		6,539,156
Net investments in real estate properties									$	43,635,541	$	43,845,172

(1)	At March 31, 2021 and December 31, 2020, our land was comprised of 5,113 and 5,304 acres, respectively.

(2)

Included in other real estate investments were: (i) non-strategic real estate assets acquired in the Liberty Transaction that we do not intend to operate long-term; (ii) land parcels we own and lease to third parties; (iii) real estate assets that we intend to redevelop into industrial properties; and (iv) costs associated with potential acquisitions and future development projects, including purchase options on land.

Acquisitions

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 March 31,
	2021		2020 ⁽¹⁾
Number of operating properties		1		137
Square feet		25		20,256
Acres of land		261		267
Acquisition cost of net investments in real estate	$	229,050	$	2,393,767

(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, LLC (“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.

Dispositions

The following table summarizes our dispositions of net investments in real estate which include contributions to unconsolidated co-investment ventures and dispositions to third parties (dollars and square feet in thousands):

	Three Months Ended March 31,
	2021		2020
Dispositions of development properties and land, net ⁽¹⁾
Number of properties		8		11
Square feet		4,287		4,636
Net proceeds	$	769,813	$	633,563
Gains on dispositions of development properties and land, net	$	173,643	$	162,750

Other dispositions of investments in real estate, net
Number of properties		1		18
Square feet		476		2,305
Net proceeds	$	23,342	$	160,557
Gains on other dispositions of investments in real estate, net	$	16,623	$	31,491

(1)	The gains we recognize in Gains on Dispositions of Development Properties and Land, Net are primarily driven by the contribution of newly developed properties to our unconsolidated co-investment ventures.

Leases

We recognized lease right-of-use assets of $462.8 million and $492.8 million within Other Assets and lease liabilities of $458.7 million and $487.0 million within Other Liabilities, for land and office space leases in which we are the lessee, on the Consolidated Balance Sheets at March 31, 2021 and December 31, 2020, respectively.