Unconsolidated Investees (Tables)

6 Months Ended

Jun. 30, 2011

Unconsolidated Investees Tables [Abstract]

Our investments in and advances to unconsolidated investees, which we account for under the equity method, are summarized by type of investee as follows (in thousands):

	June 30,		December 31,
	2011		2010
Unconsolidated property funds	$	2,606,689	$	1,890,016
Other unconsolidated investees		405,455		134,645
Totals	$	3,012,144	$	2,024,661

Earnings on investments in the property funds

Summarized information regarding our investments in the unconsolidated property funds is as follows (in thousands):

		Three Months Ended				Six Months Ended
		June 30,				June 30,
	2011		2010		2011		2010
Earnings (loss) from unconsolidated property funds:
Americas	$	2,004	$	(5,385)	$	4,626	$	(8,199)
Europe		5,680		5,134		14,772		13,663
Asia		960		207		1,169		386
Total earnings from unconsolidated property funds, net	$	8,644	$	(44)	$	20,567	$	5,850

Private capital revenue:
Americas	$	13,573	$	14,712	$	26,114	$	29,088
Europe		13,806		12,372		27,131		25,267
Asia		2,343		187		2,536		376
Total private capital revenue		29,722		27,271		55,781		54,731
Development management and other income - Europe		4,042		-		5,943		-
Total	$	33,764	$	27,271	$	61,724	$	54,731

Investment in property funds, investment in and advances to

Information about our investments in the unconsolidated property funds is as follows (dollars in thousands):

	Weighted Average Ownership Percentage				Investment in and Advances to
	June 30,		December 31,		June 30,		December 31,
Unconsolidated property funds by region	2011		2010		2011 (1)		2010
Americas (2)	29.2	%	28.5	%	$	1,588,381	$	936,369
Europe (3)	31.3	%	31.3	%		720,933		936,931
Asia (4)	19.6	%	20.0	%		297,375		16,716
Totals	28.5	%	29.8	%	$	2,606,689	$	1,890,016

(1) Investments at June 30, 2011 include those acquired in connection with the Merger, offset by PEPR, which was an unconsolidated property fund and is now reflected on a consolidated basis (see Note 2 for more details).

(2) We acquired investments in three property funds through the Merger. In addition, we recognized an impairment associated with our investment in one property fund as discussed below.

(3) We acquired investments in two property funds through the Merger, offset by the consolidation of PEPR.

(4) We acquired investments in a property fund in each of China and Japan through the Merger.

Summary of remaining equity commitments

The following table is a summary of remaining equity commitments as of June 30, 2011(in millions):

		Equity commitments		Expiration date for remaining commitments

Prologis Targeted U.S. Logistics Fund				December 2013
	Prologis	$	-
	Fund Partners	$	177.0
Prologis Brazil Logistics Partners Fund 1 (1)				December 2013
	Prologis	$	96.2
	Fund Partner	$	288.6
Prologis SGP Mexico (2)				(2)
	Prologis	$	24.6
	Fund Partner	$	98.1
Europe Logistics Venture 1 (3)				February 2014
	Prologis	$	101.5
	Fund Partner	$	580.1
Prologis China Logistics Venture 1				March 2015
	Prologis	$	73.8
	Fund Partner	$	418.2
Total
	Prologis	$	296.1
	Fund Partners	$	1,562.0

(1) Equity commitments are denominated in Brazilian real and our share represents our indirect ownership of 25%.

(2) We expect the property fund to use these capital contributions to repay outstanding debt during 2011.

(3) Equity commitments are denominated in euro.

Summarized financial information of the property fund entities

Summarized financial information of the unconsolidated property funds (for the entire entity, not our proportionate share) and our investment in such funds is presented below (dollars in millions):

2011(1)			Americas			Europe			Asia			Total
For the three months ended June 30, 2011:
	Revenues	$	195.1		$	169.4		$	15.1		$	379.6
	Net earnings (loss)	$	(15.4)		$	17.3		$	3.5		$	5.4
For the six months ended June 30, 2011:
	Revenues	$	368.4		$	359.8		$	18.1		$	746.3
	Net earnings (loss)	$	(29.9)		$	37.8		$	4.6		$	12.5
As of June 30, 2011:
	Total assets	$	11,545.5		$	6,274.4		$	3,187.5		$	21,007.4
	Amounts due to (from) us (2)	$	109.9		$	(18.9)		$	18.4		$	109.4
	Third party debt (3)	$	6,023.1		$	2,257.2		$	979.5		$	9,259.8
	Total liabilities and noncontrolling interest	$	6,461.8		$	2,665.9		$	1,107.0		$	10,234.7
	Fund partners’ equity	$	5,083.7		$	3,608.5		$	2,080.5		$	10,772.7
	Our weighted average ownership (4)		29.2	%		31.3	%		19.6	%		28.5	%
	Our investment balance (5)	$	1,588.4		$	720.9		$	297.4		$	2,606.7
	Deferred gains, net of amortization (6)	$	231.8		$	187.7		$	-		$	419.5


2010			Americas			Europe			Asia			Total
For the three months ended June 30, 2010:
	Revenues	$	199.3		$	169.5		$	2.8		$	371.6
	Net earnings (loss)	$	(33.2)		$	6.7		$	1.0		$	(25.5)
For the six months ended June 30, 2010:
	Revenues	$	401.1		$	356.2		$	5.7		$	763.0
	Net earnings (loss) (7)	$	(57.3)		$	23.2		$	1.9		$	(32.2)
As of December 31, 2010:
	Total assets	$	8,082.2		$	8,176.7		$	127.3		$	16,386.2
	Amounts due to (from) us (2)	$	117.3		$	(5.9)		$	0.2		$	111.6
	Third party debt (3)	$	4,196.2		$	3,476.8		$	49.2		$	7,722.2
	Total liabilities and noncontrolling interest	$	4,529.8		$	4,137.6		$	52.9		$	8,720.3
	Fund partners’ equity	$	3,552.4		$	4,039.1		$	74.4		$	7,665.9
	Our weighted average ownership (4)		28.5	%		31.3	%		20.0	%		29.8	%
	Our investment balance (5)	$	936.4		$	936.9		$	16.7		$	1,890.0
	Deferred gains, net of amortization (6)	$	235.1		$	297.1		$	-		$	532.2

(1) Amounts include approximately one month of activity in the three and six months ended June 30, 2011 from the investments acquired through the Merger and approximately two months of activity for PEPR while accounted for on the equity method.

(2) As of both June 30, 2011 and December 31, 2010, we had notes receivable outstanding aggregating $21.4 million from one property fund. We also have a note receivable from another property fund that is secured by real estate and is included in Notes Receivable Backed by Real Estate (see Note 5). The remaining amounts represent current balances from services provided by us to the property funds.

(3) As of June 30, 2011 and December 31, 2010, we had not generally guaranteed the third party debt of the property funds. We have pledged direct owned properties, with an undepreciated cost of $274.4 million, to serve as additional collateral for the secured mortgage loan of one property fund payable to an affiliate of our fund partner.

(4) Represents our weighted average ownership interest in all property funds based on each entity's contribution to total assets, before depreciation, net of other liabilities.

(5) The difference between our ownership interest in the property fund's equity and our investment balance results principally from: (i) deferring a portion of the gains we recognize from a contribution of one of our properties to a property fund (see next footnote); (ii) recording additional costs associated with our investment in the property fund; (iii) advances to the property fund; and (iv) the fair value adjustment we made to our investment in connection with the Merger.

(6) This amount is recorded as a reduction to our investment and represents the gains that were deferred when we contributed a property to a property fund due to our continuing ownership in the property.

(7) In 2010, there were net losses of $11.9 million associated with interest rate contracts that no longer met the requirements for hedge accounting and, therefore, the change in fair value of these contracts was recognized within earnings, along with the gain or loss upon settlement. All derivatives were settled in 2010, therefore, there is no impact in 2011. Also included in net earnings (loss) in the Americas is a loss of $12.4 million for both the three and six months ended June 30, 2010 due to the impairment on an operating building in one of the property funds.

Other unconsolidated investees, investment in and advances to

Our investments in and advances to these entities was as follows (in thousands):
	June 30,		December 31,
	2011		2010
Americas	$	324,703	$	17,508
Europe		50,846		49,857
Asia (1)		29,906		67,280
Total investments in and advances to unconsolidated investees	$	405,455	$	134,645

(1) In April 2011, we acquired the remaining interest in a joint venture that owned one property in Japan. As a result, we marked our ownership interest to fair value, resulting in a gain of $13.5 million and we now report the property on a consolidated basis.