Noncontrolling Interests

6 Months Ended

Jun. 30, 2011

12. Noncontrolling Interests

Operating Partnership

We report noncontrolling interest related to several entities we consolidate but do not own 100% of the common equity. These entities include three real estate partnerships that have issued limited partnership units to third parties. Depending on the specific partnership agreements, these limited partnership units are exchangeable into shares of our common stock, generally at a rate of one share of common stock to one unit or into cash. The Limited Partnership units of two entities that were consolidated pre-merger are exchangeable at the Merger exchange ratio and have been reflected as such in our Consolidated Financial Statements.

In the aggregate, for all our consolidated investees in which we own less than 100% of the equity, we have recorded approximately $6.6 billion of investments in real estate properties and $3.0 billion of debt. PEPR (in which we own 92% of the common equity) represents $4.5 billion of the real estate properties and $2.2 billion of the debt. See further discussion in Note 2 related to PEPR.

REIT

The noncontrolling interest of the REIT includes the noncontrolling interests presented in the Operating Partnership, as well as the common limited partnership units in the Operating Partnership that are not owned by the REIT. As of June 30, 2011, the REIT owned 99.55% of the common partnership units of the Operating Partnership.

The following is a summary of the noncontrolling interest (in thousands):

	June 30,		December 31,
	2011		2010
Partnerships with exchangeable units	$	27,582	$	11,189
Prologis Institutional Alliance Fund II		317,322		-
PEPR		130,336		-
Prologis AMS		85,273		-
Other consolidated entities		94,399		3,943
Operating Partnership noncontrolling interest		654,912		15,132
Limited partners in the Operating Partnership		61,793		-
REIT noncontrolling interest	$	716,705	$	15,132