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Unconsolidated Entities (Tables)
 12 Months Ended
Dec. 31, 2015
Schedule Of Equity Method Investments [Line Items]  
Summary of Investments in and Advances Unconsolidated Entities

The following table summarizes our investments in and advances to our unconsolidated entities at December 31 (in thousands):

 

 

 

2015

 

 

2014

 

Unconsolidated co-investment ventures

 

$

4,585,427

 

 

$

4,665,918

 

Other ventures

 

 

170,193

 

 

 

158,806

 

Totals

 

$

4,755,620

 

 

$

4,824,724

 

 
Information About Investments in Co-investment Ventures by Property Funds

The following table summarizes our investments in the individual co-investment ventures at December 31 (dollars in thousands):

 

 

 

Ownership

Percentage

 

 

Investment in

and Advances to

 

Co-Investment Venture

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Prologis Targeted U.S. Logistics Fund, L.P. (“USLF”) (1)

 

 

22.5

%

 

 

24.3

%

 

$

689,408

 

 

$

712,044

 

FIBRA Prologis (2) (3)

 

 

45.9

%

 

 

45.9

%

 

 

569,800

 

 

 

589,627

 

Prologis Brazil Logistics Partners Fund I, L.P. (“Brazil Fund”) and related

   joint ventures (4)

 

various

 

 

various

 

 

 

216,668

 

 

 

235,496

 

Prologis Targeted Europe Logistics Fund, FCP-FIS  (“PTELF”) (1)

 

 

41.6

%

 

 

43.2

%

 

 

480,401

 

 

 

458,702

 

Prologis European Properties Fund II, FCP-FIS

 

 

31.3

%

 

 

31.1

%

 

 

410,984

 

 

 

488,503

 

Europe Logistics Venture 1, FCP-FIS (“ELV”) (5)

 

 

15.0

%

 

 

15.0

%

 

 

53,960

 

 

 

56,127

 

Prologis European Logistics Partners Sàrl  (5)

 

 

50.0

%

 

 

50.0

%

 

 

1,762,291

 

 

 

1,769,720

 

Nippon Prologis REIT, Inc. (“NPR”) (6) (7)

 

 

15.1

%

 

 

15.1

%

 

 

300,822

 

 

 

303,178

 

Prologis China Logistics Venture I, LP and II, LP

   (Prologis China Logistics Venture) (5)

 

 

15.0

%

 

 

15.0

%

 

 

101,093

 

 

 

52,521

 

Totals

 

 

 

 

 

 

 

 

 

$

4,585,427

 

 

$

4,665,918

 

 

(1)

In December 2015, we submitted redemption requests for a portion of our investment in PTELF and USLF for €185.0 million ($201.4 million at December 31, 2015) and $200.0 million, respectively. We expect the requests to close in the second quarter of 2016 and they will be fulfilled by other investors so our ownership percentage will decrease.

 

(2)

At December 31, 2015, we owned 291.1 million units of FIBRA Prologis that had a closing price of Ps 26.12 ($1.51) per unit on the Mexican Stock Exchange.

 

(3)

We have granted FIBRA Prologis a right of first refusal with respect to stabilized properties that we plan to sell in Mexico.

 

(4)

We have a 50% ownership interest in and consolidate an entity that in turn owns 50% of several entities that we account for on the equity method. Also, we have additional investments in other unconsolidated entities in Brazil that we account for on the equity method with various ownership interests ranging from 5-50%.

 

(5)

We have one partner in each of these co-investment ventures.

 

(6)

At December 31, 2015, we owned 261,310 units of NPR that had a closing price of ¥218,500 ($1,815) per share on the Tokyo Stock Exchange. At December 31, 2015 and 2014, we had receivables from NPR of $85.2 million and $85.9 million, respectively, related to customer security deposits that originated through a leasing company owned by us that pertain to properties owned by NPR. We have a corresponding payable to NPR’s customers in Other Liabilities.

 

(7)

For any properties we develop and plan to sell in Japan, we have committed to offer those properties to NPR.
Earnings and Fee Revenue From Co-Investment Ventures

The following table summarizes the amounts we recognized in the Consolidated Statements of Income as our share of the earnings and fee revenue from unconsolidated co-investment ventures for the years ended December 31 (in thousands):

 

 

 

2015

 

 

2014

 

 

2013

 

Earnings from unconsolidated co-investment ventures, net:

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

35,966

 

 

$

8,596

 

 

$

21,724

 

Europe

 

 

106,656

 

 

 

108,430

 

 

 

63,839

 

Asia

 

 

12,780

 

 

 

14,022

 

 

 

9,091

 

Total earnings from unconsolidated co-investment ventures, net

 

$

155,402

 

 

$

131,048

 

 

$

94,654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Strategic capital revenue and other revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

59,480

 

 

$

94,354

 

 

$

70,642

 

Europe

 

 

112,675

 

 

 

86,487

 

 

 

63,794

 

Asia

 

 

35,453

 

 

 

37,509

 

 

 

42,749

 

Total strategic capital revenue

 

 

207,608

 

 

 

218,350

 

 

 

177,185

 

Development management and other revenue

 

 

7,467

 

 

 

5,424

 

 

 

4,007

 

Total strategic capital revenue and other revenue

 

$

215,075

 

 

$

223,774

 

 

$

181,192

 

 
Summary of Promotes Earned and Recognized in Strategic Capital Revenue and Related Cash Expense

The following table summarizes the promotes earned and recognized in Strategic Capital Revenue and the related cash expense for the years ended December 31 (in thousands):

 

 

 

2015

 

 

2014

 

 

2013

 

Strategic capital revenue

 

 

 

 

 

 

 

 

 

 

 

 

Total promote (1)

 

$

56,637

 

 

$

42,132

 

 

$

7,878

 

Less: Prologis’ share

 

 

27,175

 

 

 

10,852

 

 

 

1,512

 

Net promote recognized (third-party share) in strategic capital revenue

 

$

29,462

 

 

$

31,280

 

 

$

6,366

 

Related cash bonus included in strategic capital expense (2)

 

$

4,700

 

 

$

4,239

 

 

$

1,273

 

 

(1)

We earned promotes from PELP and ELV in 2015 and USLF in 2014, each based on the venture’s cumulative returns to the investors over the last three years. We earned a promote in connection with the conclusion of Prologis SGP Mexico in 2013.

 

(2)

This represents the cash bonus paid, in regards to the promotes earned, pursuant to the terms of the Prologis Promote Plan. See Note 13 for more information about this plan.
Summary of Remaining Equity Commitments

The following table summarizes the remaining equity commitments at December 31, 2015 (in millions):

 

 

 

Equity Commitments

 

 

Expiration Date

for Remaining Commitments

 

 

Prologis

 

 

Venture Partners

 

 

Total

 

 

 

Prologis Targeted U.S. Logistics Fund

 

$

-

 

 

$

277

 

 

$

277

 

 

2016 – 2017

Prologis Targeted Europe Logistics Fund (1)

 

 

-

 

 

 

326

 

 

 

326

 

 

2016 – 2017

Prologis European Properties Fund II (1)

 

 

8

 

 

 

38

 

 

 

46

 

 

2016

Prologis European Logistics Partners Sàrl (2)

 

 

50

 

 

 

50

 

 

 

100

 

 

February 2016

Prologis China Logistics Venture (3)

 

 

172

 

 

 

973

 

 

 

1,145

 

 

2016 and 2017

Total

 

$

230

 

 

$

1,664

 

 

$

1,894

 

 

 

 

(1)

Equity commitments are denominated in euro and reported in U.S. dollars based on an exchange rate of $1.09 U.S. dollars to the euro.

 

(2)

The equity commitments for this venture are expected to fund the future repayment of debt that is denominated in British pounds sterling. The commitments will be called in euros and are reported in U.S. dollars using an exchange rate of $1.48 U.S. dollars to the British pounds sterling.

 

(3)

In January 2016, we reached an agreement with our partner in this venture to increase the equity commitments $882.4 million, of which our share is $132.4 million, to fund future developments in China.

 
Unconsolidated Co-Investment Ventures [Member]  
Schedule Of Equity Method Investments [Line Items]  
Summary of Investments in and Advances Unconsolidated Entities

The following tables summarize these unconsolidated co-investment ventures at December 31 and for the years ended December 31:

 

(dollars and square feet in millions)

 

2015

 

 

2014

 

 

2013

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

Number of ventures

 

 

3

 

 

 

3

 

 

 

4

 

Number of properties owned

 

 

596

 

 

 

590

 

 

 

709

 

Square feet

 

 

89.0

 

 

 

87.1

 

 

 

108.5

 

Total assets

 

$

6,890

 

 

$

7,056

 

 

$

8,004

 

Third-party debt

 

$

2,090

 

 

$

2,273

 

 

$

2,989

 

Total liabilities

 

$

2,258

 

 

$

2,414

 

 

$

3,167

 

Our investment balance (1)

 

$

1,476

 

 

$

1,537

 

 

$

1,194

 

Our weighted average ownership (2)

 

 

29.8

%

 

 

31.0

%

 

 

22.7

%

Europe:

 

 

 

 

 

 

 

 

 

 

 

 

Number of ventures

 

 

4

 

 

 

4

 

 

 

4

 

Number of properties owned

 

 

688

 

 

 

636

 

 

 

571

 

Square feet

 

 

158.3

 

 

 

147.4

 

 

 

132.9

 

Total assets

 

$

11,343

 

 

$

11,440

 

 

$

11,800

 

Third-party debt

 

$

2,640

 

 

$

2,621

 

 

$

2,979

 

Total liabilities

 

$

3,584

 

 

$

3,501

 

 

$

4,095

 

Our investment balance (1)

 

$

2,707

 

 

$

2,773

 

 

$

2,703

 

Our weighted average ownership (2)

 

 

38.9

%

 

 

38.8

%

 

 

39.0

%

Asia:

 

 

 

 

 

 

 

 

 

 

 

 

Number of ventures

 

 

2

 

 

 

2

 

 

 

2

 

Number of properties owned

 

 

66

 

 

 

52

 

 

 

43

 

Square feet

 

 

29.2

 

 

 

26.2

 

 

 

22.9

 

Total assets

 

$

4,320

 

 

$

4,120

 

 

$

4,014

 

Third-party debt

 

$

1,520

 

 

$

1,637

 

 

$

1,697

 

Total liabilities

 

$

1,751

 

 

$

1,734

 

 

$

1,881

 

Our investment balance (1)

 

$

402

 

 

$

356

 

 

$

353

 

Our weighted average ownership (2)

 

 

15.0

%

 

 

15.0

%

 

 

15.0

%

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

Number of ventures

 

 

9

 

 

 

9

 

 

 

10

 

Number of properties owned

 

 

1,350

 

 

 

1,278

 

 

 

1,323

 

Square feet

 

 

276.5

 

 

 

260.7

 

 

 

264.3

 

Total assets

 

$

22,553

 

 

$

22,616

 

 

$

23,818

 

Third-party debt

 

$

6,250

 

 

$

6,531

 

 

$

7,665

 

Total liabilities

 

$

7,593

 

 

$

7,649

 

 

$

9,143

 

Our investment balance (1)

 

$

4,585

 

 

$

4,666

 

 

$

4,250

 

Our weighted average ownership (2)

 

 

31.6

%

 

 

32.0

%

 

 

29.2

%

 

(in millions)

 

2015

 

 

2014 (3)

 

 

2013 (3)

 

Americas:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

610

 

 

$

711

 

 

$

702

 

Net operating income

 

$

465

 

 

$

527

 

 

$

513

 

Net earnings

 

$

113

 

 

$

54

 

 

$

58

 

Europe:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

947

 

 

$

1,001

 

 

$

801

 

Net operating income

 

$

741

 

 

$

787

 

 

$

621

 

Net earnings

 

$

261

 

 

$

268

 

 

$

131

 

Asia:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

275

 

 

$

280

 

 

$

224

 

Net operating income

 

$

212

 

 

$

219

 

 

$

175

 

Net earnings

 

$

77

 

 

$

86

 

 

$

48

 

Totals:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,832

 

 

$

1,992

 

 

$

1,727

 

Net operating income

 

$

1,418

 

 

$

1,533

 

 

$

1,309

 

Net earnings

 

$

451

 

 

$

408

 

 

$

237

 

 

(1)

The difference between our ownership interest of a venture’s equity and our investment balance results principally from three types of transactions: (i) deferring a portion of the gains we recognize from a contribution of a property to a venture ($430.7 million, $322.9 million and $139.6 million at December 31, 2015, 2014 and 2013, respectively); (ii) recording additional costs associated with our investment in the venture; and (iii) advances to a venture.

 

(2)

Represents our weighted average ownership interest in all co-investment ventures based on each entity’s contribution of total assets, before depreciation, net of other liabilities.

 

(3)

We had significant activity with our unconsolidated co-investment ventures in 2014 and 2013 as explained in both Note 3 and Note 4. We formed and invested in FIBRA Prologis in 2014. In connection with this transaction, we concluded our unconsolidated co-investment venture in Mexico. We began consolidating NAIF in 2014. During 2013, we concluded three co-investment ventures and we started two new co-investment ventures.