NOTE 3. REAL ESTATE

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

	Square Feet and Acres (1)				Number of Buildings (1)
	June 30,		December 31,		June 30,		December 31,		June 30,		December 31,
	2016		2015		2016		2015		2016		2015
Industrial operating properties:
Improved land	- -		- -		- -		- -		$	5,945,476	$	5,874,052
Buildings and improvements		333,647		333,830		1,825		1,872		17,967,859		17,861,693
Development portfolio, including land costs:
Prestabilized		9,429		12,598		22		28		856,407		918,099
Properties under development		16,591		19,630		60		63		914,364		954,804
Land		7,013		7,404	- -		- -			1,322,214		1,359,794
Other real estate investments (2)										550,090		552,926
Total investments in real estate properties										27,556,410		27,521,368
Less accumulated depreciation										3,521,198		3,274,284
Net investments in real estate properties									$	24,035,212	$	24,247,084

(1)	Items indicated by ‘- -‘ are not applicable.

(2)

Included in other real estate investments are: (i) certain non-industrial real estate; (ii) land parcels that are ground leased to third parties; (iii) our corporate office buildings; (iv) earnest money deposits associated with potential acquisitions; (v) infrastructure costs related to projects we are developing on behalf of others; and (vi) costs related to future development projects, including purchase options on land.

Acquisitions

The following table summarizes our real estate acquisition activity for the six months ended June 30 (dollars and square feet in thousands):

	2016		2015
Acquisitions of operating properties from third parties
Number of industrial operating properties		6		10
Square feet		889		1,444
Real estate acquisition value	$	70,045	$	133,610

The table above does not include the properties acquired in the KTR acquisition, as this transaction is explained in Note 2.

Dispositions

The following table summarizes our real estate disposition activity for the six months ended June 30 (dollars and square feet in thousands):

	2016		2015
Contributions to unconsolidated co-investment ventures
Number of properties		10		16
Square feet		4,019		4,566
Net proceeds	$	463,700	$	418,485
Net gains on contributions	$	103,590	$	63,686
Dispositions to third parties
Number of properties		99		50
Square feet		10,565		5,366
Net proceeds (1)	$	889,607	$	736,120
Net gains on dispositions (1)	$	154,462	$	322,811

Total net gains on contributions and dispositions	$	258,052	$	386,497
Gains on redemption of investment in co-investment ventures (2)		86,615		-
Total gains on dispositions of investments in real estate, net	$	344,667	$	386,497

(1)	Includes the disposition of land parcels and our investment in an unconsolidated joint venture.

(2)	See Note 4 for more information about these transactions.