Real Estate

12 Months Ended

Dec. 31, 2022

NOTE 4. REAL ESTATE

Investments in real estate properties consisted of the following at December 31 (dollars and square feet in thousands):

	Square Feet				Number of Buildings
	2022 ⁽¹⁾		2021		2022 ⁽¹⁾		2021		2022 ⁽¹⁾		2021
Operating properties:
Buildings and improvements		597,362		444,413		2,825		2,310	$	48,650,334	$	32,159,514
Improved land										20,388,461		12,294,246
Development portfolio, including land costs:
Prestabilized		4,874		6,325		15		16		597,553		710,091
Properties under development		44,011		28,638		121		83		3,614,601		2,019,249
Land ⁽²⁾										3,338,121		2,519,590
Other real estate investments ⁽³⁾										5,034,326		3,302,500
Total investments in real estate properties										81,623,396		53,005,190
Less accumulated depreciation										9,036,085		7,668,187
Net investments in real estate properties									$	72,587,311	$	45,337,003

(1)	Includes the acquired real estate properties from the Duke Transaction at December 31, 2022. See Note 3 for more information.

(2)	At December 31, 2022 and 2021, our land was comprised of 7,188 and 6,227 acres, respectively.

(3)

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

At December 31, 2022, we had investments in real estate assets in the U.S. and other Americas (Brazil, Canada and Mexico), Europe (Belgium, the Czech Republic, France, Germany, Hungary, Italy, the Netherlands, Poland, Slovakia, Spain, Sweden and the United Kingdom (“U.K.”)) and Asia (China, Japan and Singapore).

Acquisitions

The following table summarizes our real estate acquisition activity, excluding the Duke Transaction and Liberty Transaction as discussed in Note 3, for the years ended December 31 (dollars and square feet in thousands):

	2022		2021 ⁽¹⁾		2020 ⁽²⁾
Number of operating properties		23		31		150
Square feet		5,169		6,760		21,874
Acres of land		2,218		2,684		830
Acquisition cost of net investments in real estate, excluding other real estate investments	$	1,828,256	$	2,517,644	$	3,054,381

Acquisition cost of other real estate investments	$	641,168	$	525,499	$	206,084

(1)	Included in 2021, is our acquisition of additional ownership interest in certain unconsolidated other ventures that we acquired from our partners and subsequently resulted in the consolidation of the real estate assets.

(2)

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 we consolidate USLV, the number of operating properties, square feet and acquisition cost for the properties acquired by USLV 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 for the years ended December 31 (dollars and square feet in thousands):

	2022		2021		2020
Dispositions of development properties and land, net ⁽¹⁾
Number of properties		21		41		41
Square feet		7,676		16,482		14,482
Net proceeds	$	1,398,585	$	2,629,750	$	1,693,557
Gains on dispositions of development properties and land, net	$	597,745	$	817,017	$	464,942

Other dispositions of investments in real estate, net⁽²⁾
Number of properties		103		97		61
Square feet		8,718		20,806		10,562
Net proceeds	$	1,271,639	$	2,536,622	$	1,264,692
Gains on other dispositions of investments in real estate, net	$	589,391	$	772,570	$	252,195

(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 and occasionally sales to a third party.

(2)	In 2021, we sold our ownership interest in an unconsolidated other venture.