Debt (Tables)

12 Months Ended

Dec. 31, 2013

Our debt consisted of the following as of December 31 (dollars in thousands):


	2013				2012
	Weighted Average Interest Rate (1)		Amount Outstanding (2)		Weighted Average Interest Rate (1)		Amount Outstanding
Credit Facilities		1.2%	$	725,483		1.5%	$	888,966
Senior notes (3)		4.5%		5,357,933		5.6%		5,223,136
Exchangeable senior notes (4)		3.3%		438,481		4.6%		876,884
Secured mortgage debt (5)		5.6%		1,696,597		4.0%		3,625,908
Secured mortgage debt of consolidated entities (6)		4.7%		239,992		4.4%		450,923
Other debt of consolidated entities		-		-		4.8%		67,749
Term loan		1.7%		535,908		1.7%		639,636
Other debt (7)		6.2%		16,822		6.2%		17,592

Totals		4.2%	$	9,011,216		4.4%	$	11,790,794

(1)	The interest rates represent the effective interest rates (including amortization of the non-cash premiums or discount).

(2)	Included in the outstanding balances are borrowings denominated in non-U.S. dollars: euro ($1.5 billion) and Japanese yen ($0.4 billion).

(3)	Notes are due February 2015 to August 2023 and interest rates range from 2.8% to 9.3%.

(4)	The weighted average coupon interest rate was 3.3% and 2.8% as of December 31, 2013 and 2012, respectively. The effective interest rate in 2012 included the impact of the related amortization of the non-cash discount related to these notes.

(5)	Debt is due May 2014 to April 2025 and interest rates range from 0.5% to 7.6%. The debt is secured by 296 real estate properties with an aggregate undepreciated cost of $4.2 billion at December 31, 2013.

(6)	Debt is due December 2014 to December 2027 and interest rates range from 1.9% to 7.2%. The debt is secured by 36 real estate properties with an aggregate undepreciated cost of $0.5 billion at December 31, 2013.

(7)

Balance represents primarily assessment bonds with varying interest rates from 4.5% to 7.9% that are due February 2014 to September 2033. The assessment bonds are issued by municipalities and guaranteed by us as a means of financing infrastructure and secured by assessments (similar to property taxes) on various underlying real estate properties with an aggregate undepreciated cost of $838.4 million at December 31, 2013.

Credit Facilities

Commitments and availability under our Credit Facilities were as follows (dollars in millions):


	2013		2012		2011
For the years ended December 31:
Weighted average daily interest rate		1.7 %		1.6 %		2.7 %
Weighted average daily borrowings	$	789.1	$	815.2	$	870.9
Maximum borrowings outstanding at any month-end	$	1,325.4	$	1,633.9	$	2,368.1
As of December 31:
Aggregate borrowing capacity	$	2,450.9	$	2,118.3	$	2,184.6
Borrowings outstanding	$	725.5	$	888.9	$	934.9
Outstanding letters of credit	$	73.2	$	68.0	$	85.0
Aggregate remaining capacity available	$	1,652.2	$	1,161.4	$	1,164.7

Interest Expense Related to Senior Notes

Interest expense related to the 2007 and 2008 Exchangeable Notes for the years ended December 31 included the following components (dollars in thousands):


	2013		2012		2011
Coupon rate	$	3,655	$	14,312	$	24,810
Amortization of discount		4,169		18,425		32,393
Amortization of deferred loan costs		490		1,280		2,071

Interest expense	$	8,314	$	34,017	$	59,274

Effective interest rate		5.9 %		5.7 %		5.7 %

Long-Term Debt Maturities

Principal payments due on our consolidated debt during each of the years in the ten-year period ending December 31, 2023, and thereafter are as follows (in millions):


	Prologis
	Unsecured								Secured Mortgage Debt		Total		Consolidated Entities’ Debt		Total Consolidated Debt
	Senior		Exchangeable		Credit		Other
Maturity	Debt		Notes		Facilities (1)		Debt (2)
2014(3)	$	25	$	-	$	-	$	537	$	293	$	855	$	11	$	866
2015		175		460		-		1		134		770		9		779
2016		641		-		-		1		456		1,098		126		1,224
2017		438		-		456		1		226		1,121		4		1,125
2018		667		-		269		1		110		1,047		74		1,121
2019		693		-		-		1		285		979		2		981
2020		379		-		-		1		6		386		2		388
2021		500		-		-		-		6		506		2		508
2022		965		-		-		-		7		972		3		975
2023		850		-		-		-		7		857		1		858
Thereafter		-		-		-		10		130		140		5		145

Subtotal	$	5,333	$	460	$	725	$	553	$	1,660	$	8,731	$	239	$	8,970
Unamortized (discounts) premiums, net		25		(22)		-		-		37		40		1		41

Total	$	5,358	$	438	$	725	$	553	$	1,697	$	8,771	$	240	$	9,011

(1)	Included in Credit Facilities is our global senior credit facility which is set to mature in July 2017. We may extend the maturity date by six months, twice, subject to satisfaction of certain conditions and payment of an extension fee.

(2)	Included in other debt is a term loan that can be extended until 2017 (three times each at one year). As discussed above, in January 2014, we extended the maturity of this term loan to February 2015.

(3)	We expect to repay the amounts maturing in 2014 related to our wholly owned debt with cash generated from operations, proceeds from the disposition of wholly owned real estate properties and with borrowings on our Credit Facilities.

Interest Expense

Interest expense from continuing operations included the following components for the years ended December 31 (in thousands):


	2013		2012		2011
Gross interest expense	$	471,923	$	578,518	$	498,518
Amortization of discount (premium), net		(39,015)		(36,687)		228
Amortization of deferred loan costs		14,374		16,781		20,476

Interest expense before capitalization		447,282		558,612		519,222
Capitalized amounts		(67,955)		(53,397)		(52,651)

Net interest expense	$	379,327	$	505,215	$	466,571

Total cash paid for interest, net of amounts capitalized	$	426,528	$	546,627	$	467,400