10-Q 1 pld-10q_20170630.htm 10-Q pld-10q_20170630.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2017

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______________ to ______________

 

Commission File Number:  001-13545 (Prologis, Inc.)  001-14245 (Prologis, L.P.)

 

Prologis, Inc.

Prologis, L.P.

(Exact name of registrant as specified in its charter)

 

Maryland (Prologis, Inc.)

Delaware (Prologis, L.P.)

 

94-3281941 (Prologis, Inc.)

94-3285362 (Prologis, L.P.)

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

Pier 1, Bay 1, San Francisco, California

 

94111

(Address or principal executive offices)

 

(Zip Code)

 

(415) 394-9000

(Registrants’ telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing for the past 90 days.

Prologis, Inc.

Yes

No

Prologis, L.P.

Yes

No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website; if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter periods that the registrant was required to submit and post such files).

Prologis, Inc.

Yes

No

Prologis, L.P.

Yes

No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act (check one):

 

Prologis, Inc.:

 

 

 

 

 

Large accelerated filer   

 

Accelerated filer   

Non-accelerated filer   

Smaller reporting company   

Emerging growth company    

 

 

(Do not check if a smaller reporting company)

 

 

 

Prologis, L.P.:

 

 

 

 

 

Large accelerated filer   

 

Accelerated filer   

Non-accelerated filer   

Smaller reporting company   

Emerging growth company    

 

 

(Do not check if a smaller reporting company)

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).

Prologis, Inc.

Yes

No

Prologis, L.P.

Yes

No

 

The number of shares of Prologis, Inc.’s common stock outstanding at July 24, 2017, was approximately 531,863,000.

 

 

 

 


 

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended June 30, 2017, of Prologis, Inc. and Prologis, L.P. Unless stated otherwise or the context otherwise requires, references to “Prologis, Inc.” or the “Parent” mean Prologis, Inc. and its consolidated subsidiaries; and references to “Prologis, L.P.” or the “Operating Partnership” mean Prologis, L.P., and its consolidated subsidiaries. The terms “the Company,” “Prologis,” “we,” “our” or “us” means the Parent and the Operating Partnership collectively.

 

The Parent is a real estate investment trust (“REIT”) and the general partner of the Operating Partnership. At June 30, 2017, the Parent owned an approximate 97.33% common general partnership interest in the Operating Partnership and 100% of the preferred units in the Operating Partnership. The remaining approximate 2.67% common limited partnership interests are owned by nonaffiliated investors and certain current and former directors and officers of the Parent. As the sole general partner of the Operating Partnership, the Parent has complete responsibility and discretion in the day-to-day management and control of the Operating Partnership.

 

We operate the Parent and the Operating Partnership as one enterprise. The management of the Parent consists of the same members as the management of the Operating Partnership. These members are officers of the Parent and employees of the Operating Partnership or one of its subsidiaries. As general partner with control of the Operating Partnership, the Parent consolidates the Operating Partnership for financial reporting purposes. Because the only significant asset of the Parent is its investment in the Operating Partnership, the assets and liabilities of the Parent and the Operating Partnership are the same on their respective financial statements.

We believe combining the quarterly reports on Form 10-Q of the Parent and the Operating Partnership into this single report results in the following benefits:

enhances investors’ understanding of the Parent and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

eliminates duplicative disclosure and provides a more streamlined and readable presentation as a substantial portion of the Company’s disclosure applies to both the Parent and the Operating Partnership; and

creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

 

It is important to understand the few differences between the Parent and the Operating Partnership in the context of how we operate the Company. The Parent does not conduct business itself, other than acting as the sole general partner of the Operating Partnership and issuing public equity from time to time. The Parent itself does not incur any indebtedness, but it guarantees the unsecured debt of the Operating Partnership. The Operating Partnership holds substantially all the assets of the business, directly or indirectly, and holds the ownership interests in the Company’s investment in certain entities. The Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for net proceeds from equity issuances by the Parent, which are contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generates capital required by the business through the Operating Partnership’s operations, incurrence of indebtedness and issuance of partnership units to third parties.

 

The presentation of noncontrolling interests, stockholders’ equity and partners’ capital are the main areas of difference between the consolidated financial statements of the Parent and those of the Operating Partnership. The preferred stock, common stock, additional paid-in capital, accumulated other comprehensive loss and distributions in excess of net earnings of the Parent are presented as stockholders’ equity in the Parent’s consolidated financial statements. These items represent the common and preferred general partnership interests held by the Parent in the Operating Partnership and are presented as general partner’s capital within partners’ capital in the Operating Partnership’s consolidated financial statements. The common limited partnership interests held by the limited partners in the Operating Partnership are presented as noncontrolling interest within equity in the Parent’s consolidated financial statements and as limited partners’ capital within partners’ capital in the Operating Partnership’s consolidated financial statements. The differences in the presentations between stockholders’ equity and partners’ capital result from the differences in the equity and capital issuances at the Parent and Operating Partnership levels.

                

To highlight the differences between the Parent and the Operating Partnership, separate sections in this report, as applicable, individually discuss the Parent and the Operating Partnership, including separate financial statements and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure of the Parent and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of Prologis.

 

 

 


 

PROLOGIS

INDEX

 

 

 

 

 

Page

Number

 

PART I.

 

Financial Information

 

 

 

 

 

Item 1.

Financial Statements

 

1

 

 

 

            Prologis, Inc.:

 

 

 

 

 

 

Consolidated Balance Sheets – June 30, 2017, and December 31, 2016

 

1

 

 

 

 

Consolidated Statements of Income – Three and Six Months Ended June 30, 2017, and 2016

 

2

 

 

 

 

Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2017, and 2016

 

3

 

 

 

 

Consolidated Statement of Equity – Six Months Ended June 30, 2017

 

3

 

 

 

 

Consolidated Statements of Cash Flows – Six Months Ended June 30, 2017, and 2016

 

4

 

 

 

            Prologis, L.P.:

 

 

 

 

 

 

Consolidated Balance Sheets – June 30, 2017, and December 31, 2016

 

5

 

 

 

 

Consolidated Statements of Income – Three and Six Months Ended June 30, 2017, and 2016

 

6

 

 

 

 

Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2017, and 2016

 

7

 

 

 

 

Consolidated Statement of Capital – Six Months Ended June 30, 2017

 

7

 

 

 

 

Consolidated Statements of Cash Flows – Six Months Ended June 30, 2017, and 2016

 

8

 

 

 

            Prologis, Inc. and Prologis, L.P.:

 

 

 

 

 

 

Notes to the Consolidated Financial Statements

 

9

 

 

 

 

Note 1. General

 

9

 

 

 

 

Note 2. Real Estate

 

11

 

 

 

 

Note 3. Unconsolidated Entities

 

12

 

 

 

 

Note 4. Assets Held for Sale or Contribution

 

15

 

 

 

 

Note 5. Debt

 

15

 

 

 

 

Note 6. Noncontrolling Interests

 

17

 

 

 

 

Note 7. Long-Term Compensation

 

18

 

 

 

 

Note 8. Earnings Per Common Share or Unit

 

19

 

 

 

 

Note 9. Financial Instruments and Fair Value Measurements

 

20

 

 

 

 

Note 10. Business Segments

 

24

 

 

 

 

Note 11. Supplemental Cash Flow Information

 

26

 

 

 

 

Reports of Independent Registered Public Accounting Firm

 

27

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

29

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

47

 

 

 

Item 4.

Controls and Procedures

 

48

 

PART II.

 

Other Information

 

 

 

 

 

Item 1.

Legal Proceedings

 

48

 

 

 

Item 1A.

Risk Factors

 

48

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

48

 

 

 

Item 3.

Defaults Upon Senior Securities

 

48

 

 

 

Item 4.

Mine Safety Disclosures

 

48

 

 

 

Item 5.

Other Information

 

49

 

 

 

Item 6.

Exhibits

 

49

 

 

 

 

 

 


 

PART I. FINANCIAL INFORMATION

 

ITEM 1. Financial Statements

 

PROLOGIS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

June 30, 2017

 

 

December 31,

 

 

(Unaudited)

 

 

2016

 

ASSETS

 

 

 

 

 

 

 

Investments in real estate properties

$

27,501,284

 

 

$

27,119,330

 

Less accumulated depreciation

 

4,026,369

 

 

 

3,758,372

 

Net investments in real estate properties

 

23,474,915

 

 

 

23,360,958

 

Investments in and advances to unconsolidated entities

 

4,617,724

 

 

 

4,230,429

 

Assets held for sale or contribution

 

350,987

 

 

 

322,139

 

Notes receivable backed by real estate

 

19,536

 

 

 

32,100

 

Net investments in real estate

 

28,463,162

 

 

 

27,945,626

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

271,354

 

 

 

807,316

 

Other assets

 

1,415,879

 

 

 

1,496,990

 

Total assets

$

30,150,395

 

 

$

30,249,932

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Debt

$

11,081,922

 

 

$

10,608,294

 

Accounts payable and accrued expenses

 

554,775

 

 

 

556,179

 

Other liabilities

 

653,460

 

 

 

627,319

 

Total liabilities

 

12,290,157

 

 

 

11,791,792

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

Prologis, Inc. stockholders’ equity:

 

 

 

 

 

 

 

Series Q preferred stock at stated liquidation preference of $50 per share: $0.01 par value; 1,565 shares

     issued and outstanding and 100,000 preferred shares authorized at June 30, 2017, and

         December 31, 2016

 

78,235

 

 

 

78,235

 

Common stock: $0.01 par value; 531,338 shares and 528,671 shares issued and outstanding at

     June 30, 2017, and December 31, 2016, respectively

 

5,313

 

 

 

5,287

 

Additional paid-in capital

 

19,305,197

 

 

 

19,455,039

 

Accumulated other comprehensive loss

 

(934,196

)

 

 

(937,473

)

Distributions in excess of net earnings

 

(3,607,253

)

 

 

(3,610,007

)

Total Prologis, Inc. stockholders’ equity

 

14,847,296

 

 

 

14,991,081

 

Noncontrolling interests

 

3,012,942

 

 

 

3,467,059

 

Total equity

 

17,860,238

 

 

 

18,458,140

 

Total liabilities and equity

$

30,150,395

 

 

$

30,249,932

 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

 

 

1

 


 

PROLOGIS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share amounts)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

447,960

 

 

$

426,150

 

 

$

887,844

 

 

$

863,254

 

Rental recoveries

 

 

128,417

 

 

 

119,981

 

 

 

255,466

 

 

 

236,993

 

Strategic capital

 

 

180,654

 

 

 

53,535

 

 

 

237,699

 

 

 

104,538

 

Development management and other

 

 

9,152

 

 

 

2,489

 

 

 

14,329

 

 

 

3,670

 

Total revenues

 

 

766,183

 

 

 

602,155

 

 

 

1,395,338

 

 

 

1,208,455

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

 

147,794

 

 

 

140,725

 

 

 

300,450

 

 

 

287,306

 

Strategic capital

 

 

51,986

 

 

 

27,866

 

 

 

83,785

 

 

 

53,159

 

General and administrative

 

 

60,077

 

 

 

56,934

 

 

 

113,694

 

 

 

107,477

 

Depreciation and amortization

 

 

228,145

 

 

 

230,382

 

 

 

454,736

 

 

 

480,382

 

Other

 

 

2,909

 

 

 

3,900

 

 

 

5,515

 

 

 

8,585

 

Total expenses

 

 

490,911

 

 

 

459,807

 

 

 

958,180

 

 

 

936,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

275,272

 

 

 

142,348

 

 

 

437,158

 

 

 

271,546

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from unconsolidated entities, net

 

 

68,596

 

 

 

41,454

 

 

 

117,201

 

 

 

99,765

 

Interest expense

 

 

(75,354

)

 

 

(76,455

)

 

 

(148,266

)

 

 

(157,267

)

Interest and other income, net

 

 

1,892

 

 

 

1,527

 

 

 

4,677

 

 

 

4,118

 

Gains on dispositions of investments in real estate, net

 

 

83,006

 

 

 

200,350

 

 

 

180,331

 

 

 

344,667

 

Foreign currency and derivative losses, net

 

 

(20,055

)

 

 

(10,335

)

 

 

(27,455

)

 

 

(24,546

)

Gains (losses) on early extinguishment of debt, net

 

 

(30,596

)

 

 

2,044

 

 

 

(30,596

)

 

 

992

 

Total other income

 

 

27,489

 

 

 

158,585

 

 

 

95,892

 

 

 

267,729

 

Earnings before income taxes

 

 

302,761

 

 

 

300,933

 

 

 

533,050

 

 

 

539,275

 

Total income tax expense

 

 

14,781

 

 

 

5,142

 

 

 

24,381

 

 

 

20,679

 

Consolidated net earnings

 

 

287,980

 

 

 

295,791

 

 

 

508,669

 

 

 

518,596

 

Less net earnings attributable to noncontrolling interests

 

 

19,363

 

 

 

18,712

 

 

 

35,123

 

 

 

31,787

 

Net earnings attributable to controlling interests

 

 

268,617

 

 

 

277,079

 

 

 

473,546

 

 

 

486,809

 

Less preferred stock dividends

 

 

1,674

 

 

 

1,696

 

 

 

3,348

 

 

 

3,385

 

Net earnings attributable to common stockholders

 

$

266,943

 

 

$

275,383

 

 

$

470,198

 

 

$

483,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – Basic

 

 

530,040

 

 

 

524,842

 

 

 

529,400

 

 

 

524,540

 

Weighted average common shares outstanding – Diluted

 

 

552,114

 

 

 

545,388

 

 

 

550,512

 

 

 

544,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share attributable to common stockholders – Basic

 

$

0.50

 

 

$

0.52

 

 

$

0.89

 

 

$

0.92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share attributable to common stockholders – Diluted

 

$

0.50

 

 

$

0.52

 

 

$

0.88

 

 

$

0.92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per common share

 

$

0.44

 

 

$

0.42

 

 

$

0.88

 

 

$

0.84

 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

 

 

2

 


 

PROLOGIS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Consolidated net earnings

 

$

287,980

 

 

$

295,791

 

 

$

508,669

 

 

$

518,596

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gains (losses), net

 

 

3,162

 

 

 

(23,061

)

 

 

42,829

 

 

 

(21,600

)

Unrealized gains (losses) on derivative contracts, net

 

 

6,735

 

 

 

(5,926

)

 

 

9,366

 

 

 

(21,818

)

Comprehensive income

 

 

297,877

 

 

 

266,804

 

 

 

560,864

 

 

 

475,178

 

Net earnings attributable to noncontrolling interests

 

 

(19,363

)

 

 

(18,712

)

 

 

(35,123

)

 

 

(31,787

)

Other comprehensive income attributable to noncontrolling interests

 

 

(811

)

 

 

(5,192

)

 

 

(48,918

)

 

 

(13,232

)

Comprehensive income attributable to common stockholders

 

$

277,703

 

 

$

242,900

 

 

$

476,823

 

 

$

430,159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

 

 

PROLOGIS, INC.

CONSOLIDATED STATEMENT OF EQUITY

Six Months Ended June 30, 2017

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

Accumulated

 

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number

 

 

 

 

 

 

Additional

 

 

Other

 

 

in Excess of

 

 

Non-

 

 

 

 

 

 

 

Preferred

 

 

of

 

 

Par

 

 

Paid-in

 

 

Comprehensive

 

 

Net

 

 

controlling

 

 

Total

 

 

 

Stock

 

 

Shares

 

 

Value

 

 

Capital

 

 

Loss

 

 

Earnings

 

 

Interests

 

 

Equity

 

Balance at January 1, 2017

 

$

78,235

 

 

 

528,671

 

 

$

5,287

 

 

$

19,455,039

 

 

$

(937,473

)

 

$

(3,610,007

)

 

$

3,467,059

 

 

$

18,458,140

 

Consolidated net earnings

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

473,546

 

 

 

35,123

 

 

 

508,669

 

Effect of equity compensation

     plans

 

 

-

 

 

 

1,714

 

 

 

17

 

 

 

39,879

 

 

 

-

 

 

 

-

 

 

 

18,889

 

 

 

58,785

 

Capital contributions

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

135,857

 

 

 

135,857

 

Settlement of noncontrolling

     interests

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(201,620

)

 

 

-

 

 

 

-

 

 

 

(588,006

)

 

 

(789,626

)

Conversion of noncontrolling

     interests

 

 

-

 

 

 

953

 

 

 

9

 

 

 

28,429

 

 

 

-

 

 

 

-

 

 

 

(28,438

)

 

 

-

 

Foreign currency translation

     gains (losses), net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5,839

)

 

 

-

 

 

 

48,668

 

 

 

42,829

 

Unrealized gains on derivative

     contracts, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

9,116

 

 

 

-

 

 

 

250

 

 

 

9,366

 

Reallocation of equity

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(16,501

)

 

 

-

 

 

 

-

 

 

 

16,501

 

 

 

-

 

Distributions and other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(29

)

 

 

-

 

 

 

(470,792

)

 

 

(92,961

)

 

 

(563,782

)

Balance at June 30, 2017

 

$

78,235

 

 

 

531,338

 

 

$

5,313

 

 

$

19,305,197

 

 

$

(934,196

)

 

$

(3,607,253

)

 

$

3,012,942

 

 

$

17,860,238

 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

 

 

3

 


 

PROLOGIS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2017

 

 

2016

 

Operating activities:

 

 

 

 

 

 

 

 

Consolidated net earnings

 

$

508,669

 

 

$

518,596

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Straight-lined rents and amortization of above and below market leases

 

 

(48,920

)

 

 

(43,113

)

Equity-based compensation awards

 

 

37,604

 

 

 

29,212

 

Depreciation and amortization

 

 

454,736

 

 

 

480,382

 

Earnings from unconsolidated entities, net

 

 

(117,201

)

 

 

(99,765

)

Distributions from unconsolidated entities

 

 

141,256

 

 

 

147,155

 

Net changes in operating receivables from unconsolidated entities

 

 

(117,675

)

 

 

22,896

 

Amortization of debt premiums, net of debt issuance costs

 

 

(4,445

)

 

 

(9,616

)

Gains on dispositions of investments in real estate, net

 

 

(180,331

)

 

 

(344,667

)

Unrealized foreign currency and derivative losses, net

 

 

35,266

 

 

 

23,386

 

Losses (gains) on early extinguishment of debt, net

 

 

30,596

 

 

 

(992

)

Deferred income tax expense (benefit)

 

 

2,268

 

 

 

(4,602

)

Decrease in accounts receivable and other assets

 

 

61,452

 

 

 

14,327

 

Decrease in accounts payable and accrued expenses and other liabilities

 

 

(58,115

)

 

 

(99,539

)

Net cash provided by operating activities

 

 

745,160

 

 

 

633,660

 

Investing activities:

 

 

 

 

 

 

 

 

Real estate development

 

 

(715,294

)

 

 

(775,545

)

Real estate acquisitions

 

 

(202,088

)

 

 

(136,107

)

Tenant improvements and lease commissions on previously leased space

 

 

(75,342

)

 

 

(88,659

)

Nondevelopment capital expenditures

 

 

(37,253

)

 

 

(30,096

)

Proceeds from dispositions and contributions of real estate properties

 

 

836,107

 

 

 

1,284,126

 

Investments in and advances to unconsolidated entities

 

 

(144,894

)

 

 

(145,287

)

Return of investment from unconsolidated entities

 

 

133,677

 

 

 

533,333

 

Proceeds from repayment of notes receivable backed by real estate

 

 

32,100

 

 

 

201,250

 

Proceeds from the settlement of net investment hedges

 

 

7,541

 

 

 

16,768

 

Payments on the settlement of net investment hedges

 

 

(5,058

)

 

 

-

 

Net cash provided by (used in) investing activities

 

 

(170,504

)

 

 

859,783

 

Financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

25,374

 

 

 

10,354

 

Dividends paid on common and preferred stock

 

 

(470,792

)

 

 

(445,343

)

Noncontrolling interests contributions

 

 

135,857

 

 

 

825

 

Noncontrolling interests distributions

 

 

(99,896

)

 

 

(214,263

)

Purchase of noncontrolling interests

 

 

(789,626

)

 

 

(2,979

)

Tax paid for shares withheld

 

 

(18,894

)

 

 

(7,301

)

Debt and equity issuance costs paid

 

 

(6,151

)

 

 

(14,865

)

Net payments on credit facilities

 

 

(33,745

)

 

 

(3,515

)

Repurchase and payments of debt

 

 

(2,002,519

)

 

 

(1,277,311

)

Proceeds from issuance of debt

 

 

2,134,041

 

 

 

517,045

 

Net cash used in financing activities

 

 

(1,126,351

)

 

 

(1,437,353

)

 

 

 

 

 

 

 

 

 

Effect of foreign currency exchange rate changes on cash

 

 

15,733

 

 

 

12,051

 

Net increase (decrease) in cash and cash equivalents

 

 

(535,962

)

 

 

68,141

 

Cash and cash equivalents, beginning of period

 

 

807,316

 

 

 

264,080

 

Cash and cash equivalents, end of period

 

$

271,354

 

 

$

332,221

 

 

See Note 11 for information on noncash investing and financing activities and other information.

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

 

4

 


 

PROLOGIS, L.P.

CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

 

 

 

 

 

June 30, 2017

 

 

December 31,

 

 

(Unaudited)

 

 

2016

 

ASSETS

 

 

 

 

 

 

 

Investments in real estate properties

$

27,501,284

 

 

$

27,119,330

 

Less accumulated depreciation

 

4,026,369

 

 

 

3,758,372

 

Net investments in real estate properties

 

23,474,915

 

 

 

23,360,958

 

Investments in and advances to unconsolidated entities

 

4,617,724

 

 

 

4,230,429

 

Assets held for sale or contribution

 

350,987

 

 

 

322,139

 

Notes receivable backed by real estate

 

19,536

 

 

 

32,100

 

Net investments in real estate

 

28,463,162

 

 

 

27,945,626

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

271,354

 

 

 

807,316

 

Other assets

 

1,415,879

 

 

 

1,496,990

 

Total assets

$

30,150,395

 

 

$

30,249,932

 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITAL

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Debt

$

11,081,922

 

 

$

10,608,294

 

Accounts payable and accrued expenses

 

554,775

 

 

 

556,179

 

Other liabilities

 

653,460

 

 

 

627,319

 

Total liabilities

 

12,290,157

 

 

 

11,791,792

 

 

 

 

 

 

 

 

 

Capital:

 

 

 

 

 

 

 

Partners’ capital:

 

 

 

 

 

 

 

General partner – preferred

 

78,235

 

 

 

78,235

 

General partner – common

 

14,769,061

 

 

 

14,912,846

 

Limited partners – common

 

165,826

 

 

 

150,173

 

Limited partners – Class A common

 

239,764

 

 

 

244,417

 

Total partners’ capital