Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

NOTE 5. DEBT

All debt is incurred by the OP or its consolidated subsidiaries. The following table summarizes our debt (dollars in thousands):

	March 31, 2022					December 31, 2021
	Weighted Average			Amount		Weighted Average			Amount
	Interest Rate (1)	Term (2)		Outstanding (3)		Interest Rate (1)	Term (2)		Outstanding (3)
Credit facilities	-		-	$	-	0.8%		1.6	$	491,393
Senior notes	1.6%		11.2		16,341,307	1.7%		11.6		14,981,690
Term loans and unsecured     other	0.5%		3.9		1,751,284	0.5%		4.2		1,825,195
Secured mortgage	3.6%		5.8		275,947	5.1%		4.7		416,776
Total	1.5%		10.4	$	18,368,538	1.6%		10.4	$	17,715,054

(1) The weighted average interest rates presented represent the effective interest rates (including amortization of debt issuance costs and noncash premiums or discounts) at the end of the period for the debt outstanding and include the impact of designated interest rate swaps, which effectively fix the interest rate on certain variable rate debt.

(2) The weighted average term represents the remaining maturity in years on the debt outstanding at period end.

(3) We borrow in the functional currencies of the countries where we invest. Included in the outstanding balances were borrowings denominated in the following currencies:

	March 31, 2022								December 31, 2021
	Weighted Average Interest Rate			Amount Outstanding		% of Total			Weighted Average Interest Rate			Amount Outstanding		% of Total
British pound sterling		2.1	%	$	1,340,388		7.3	%		2.1	%	$	1,376,807		7.8	%
Canadian dollar		2.9	%		287,413		1.6	%		2.7	%		283,773		1.6	%
Euro		1.0	%		8,579,524		46.7	%		1.0	%		7,408,407		41.8	%
Japanese yen		0.9	%		2,721,840		14.8	%		0.9	%		2,878,542		16.2	%
U.S. dollar		2.5	%		5,439,373		29.6	%		2.6	%		5,767,525		32.6	%
Total		1.5	%	$	18,368,538		100.0	%		1.6	%	$	17,715,054		100.0	%

Credit Facilities

We have two global senior credit facilities, the 2019 Global Facility and the 2021 Global Facility. We may draw in British pounds sterling, Canadian dollars, euro, Japanese yen, Mexican pesos and U.S. dollars on a revolving basis up to $3.5 billion under the 2019 Global Facility and $1.0 billion under the 2021 Global Facility (both subject to currency fluctuations). The 2019 Global Facility is scheduled to initially mature in January 2023 and the 2021 Global Facility in April 2024; however, we may extend the maturity date for both facilities by six months on two occasions, subject to the payment of extension fees. We have the ability to increase the 2019 Global Facility to $4.5 billion and the 2021 Global Facility to $2.0 billion, subject to currency fluctuations and obtaining additional lender commitments.

We also have a Japanese yen revolver (the “Yen Credit Facility”) with total commitments of ¥55.0 billion ($451.7 million at March 31, 2022). We have the ability to increase the borrowing capacity of the Yen Credit Facility to ¥75.0 billion ($615.9 million at March 31, 2022), subject to obtaining additional lender commitments. The Yen Credit Facility is initially scheduled to mature in July 2024; however, we may extend the maturity date for one year, subject to the payment of extension fees.

We refer to the 2019 Global Facility, the 2021 Global Facility and the Yen Credit Facility, collectively, as our “Credit Facilities.” Pricing for the Credit Facilities, including the spread over the applicable benchmark and the rates applicable to facility fees and letter of credit fees, varies based on the public debt ratings of the OP.

Liquidity

The following table summarizes information about our available liquidity at March 31, 2022 (in millions):

Aggregate lender commitments
Credit Facilities	$	4,876
Less:
Borrowings outstanding		-
Outstanding letters of credit		26
Current availability	$	4,850
Cash and cash equivalents		1,913
Total liquidity	$	6,763

Senior Notes

The following table summarizes the issuances of senior notes during the three months ended March 31, 2022 (principal in thousands):

	Aggregate Principal				Issuance Date Weighted Average
Issuance Date	Borrowing Currency		USD (1)		Interest Rate (2)	Term (3)		Maturity Dates
January	£	60,000	$	80,932	2.1%		20.0	December 2041
February (4)	€	1,550,000	$	1,768,240	1.0%		8.5	February 2024 – 2034
Total			$	1,849,172	1.1%		9.0

(1) The exchange rate used to calculate into U.S. dollars was the spot rate at the settlement date.

(2) The weighted average interest rate represents the fixed or variable interest rates of the related debt at the issuance date.

(3) The weighted average term represents the remaining maturity in years on the related debt at the issuance date.

(4) Net proceeds from the issuance of these notes were used to finance green projects eligible under our green bond framework, repay or refinance indebtedness and for general corporate purposes.

Long-Term Debt Maturities

Scheduled principal payments due on our debt for the remainder of 2022 and for each year through the period ended December 31, 2026, and thereafter were as follows at March 31, 2022 (in thousands):

	Unsecured
	Senior			Term Loans			Secured
Maturity	Notes			and Other			Mortgage			Total
2022 (1)	$	333,030		$	453,464		$	5,681		$	792,175
2023 (1)		-			136,211			29,193			165,404
2024		333,030			-			6,574			339,604
2025		41,063			-			146,933			187,996
2026		954,929			698,073			3,466			1,656,468
Thereafter		14,766,221			468,119			74,629			15,308,969
Subtotal		16,428,273			1,755,867			266,476			18,450,616
Unamortized premiums (discounts), net		(5,958	)		-			10,288			4,330
Unamortized debt issuance costs, net		(81,008	)		(4,583	)		(817	)		(86,408	)
Total	$	16,341,307		$	1,751,284		$	275,947		$	18,368,538

(1) We expect to repay the amounts maturing in the next twelve months with cash generated from operations, proceeds from dispositions of real estate properties, or as necessary, with additional borrowings.

Financial Debt Covenants

Our senior notes, term loans and Credit Facilities outstanding at March 31, 2022 were subject to certain financial covenants under their related documents. At March 31, 2022, we were in compliance with all of our financial debt covenants.

Guarantee of Finance Subsidiary Debt

We have finance subsidiaries as part of our operations in Europe (Prologis Euro Finance LLC), Japan (Prologis Yen Finance LLC) and the U.K. (Prologis Sterling Finance LLC) in order to mitigate our foreign currency risk by borrowing in the currencies in which we invest. These entities are 100% indirectly owned by the OP and all unsecured debt issued or to be issued by each entity is or will be fully and unconditionally guaranteed by the OP. There are no restrictions or limits on the OP’s ability to obtain funds from its subsidiaries by dividend or loan. In reliance on Rule 13-01 of Regulation S-X, the separate financial statements of Prologis Euro Finance LLC, Prologis Yen Finance LLC and Prologis Sterling Finance LLC are not provided.