NOTE 3. UNCONSOLIDATED ENTITIES

Summary of Investments

We have investments in entities through a variety of ventures. We co-invest in entities that own multiple properties with partners and investors and we provide asset and property management services to these entities, which we refer to as co-investment ventures. These entities may be consolidated or unconsolidated, depending on the structure, our partner’s participation and other rights and our level of control of the entity. This note details our investments in unconsolidated co-investment ventures, which are accounted for using the equity method of accounting. See Note 6 for more detail regarding our consolidated investments that are not wholly owned.

We also have other ventures, generally with one partner and that we do not manage, which we account for using the equity method. We refer to our investments in all entities accounted for using the equity method, both unconsolidated co-investment ventures and other ventures, collectively, as unconsolidated entities.

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

	March 31,		December 31,
	2018		2017
Unconsolidated co-investment ventures	$	5,468,405	$	5,274,702
Other ventures		207,594		221,748
Total	$	5,675,999	$	5,496,450

Unconsolidated Co-Investment Ventures

The following table summarizes the Strategic Capital Revenues we recognized in the Consolidated Statements of Income related to our unconsolidated co-investment ventures (in thousands):

	Three Months Ended March 31,
	2018		2017
Recurring fees	$	54,644	$	44,195
Transactional fees		15,624		8,593
Promote revenues		62,544		3,146
Total strategic capital revenues from unconsolidated co-investment ventures, net	$	132,812	$	55,934

The following table summarizes the key property information, financial position and operating information of our unconsolidated co-investment ventures (not our proportionate share) and the amounts we recognized in the Consolidated Financial Statements related to our unconsolidated co-investment ventures (dollars and square feet in millions):

	U.S.						Other Americas						Europe						Asia						Total
As of:	Mar 31, 2018			Dec 31, 2017			Mar 31, 2018			Dec 31, 2017			Mar 31, 2018			Dec 31, 2017			Mar 31, 2018			Dec 31, 2017			Mar 31, 2018			Dec 31, 2017
Key Property Information
Ventures		1			1			2			2			3			3			2			2			8			8
Operating properties		552			552			205			205			691			707			100			95			1,548			1,559
Square feet		88			88			37			37			163			166			43			41			331			332

Financial Position
Unconsolidated Co-Investment Ventures:
Total assets ($)		7,009			7,062			2,102			2,118			13,941			13,586			6,749			6,133			29,801			28,899
Third-party debt ($)		2,278			2,313			744			756			2,746			2,682			2,607			2,328			8,375			8,079
Total liabilities ($)		2,479			2,520			773			782			3,884			3,655			2,989			2,685			10,125			9,642

Our investment balance ($) (1)		1,372			1,383			555			555			2,898			2,813			643			524			5,468			5,275
Our weighted average ownership (2)		28.1	%		28.2	%		43.4	%		43.4	%		32.8	%		32.8	%		15.1	%		15.1	%		28.6	%		28.8	%

	U.S.						Other Americas						Europe						Asia						Total
For the three months ended:	Mar 31, 2018			Mar 31, 2017			Mar 31, 2018			Mar 31, 2017			Mar 31, 2018			Mar 31, 2017			Mar 31, 2018			Mar 31, 2017			Mar 31, 2018			Mar 31, 2017
Operating Information
Unconsolidated Co-Investment Ventures:
Total revenues ($)		168			104			53			64			288			244			108			88			617			500
Net earnings ($)		13			36			14			17			93			73			42			24			162			150

Our earnings from unconsolidated co-investment ventures, net ($)		5			5			6			6			37			30			7			4			55			45

(1)

Prologis’ investment balance is presented at our adjusted basis derived from the ventures’ U.S. GAAP information. The difference between our ownership interest of a venture’s equity and our investment balance at March 31, 2018 and December 31, 2017, results principally from three types of transactions: (i) deferred gains from the contribution of property to a venture prior to January 1, 2018 ($656.9 million and $667.3 million, respectively); (ii) recording additional costs associated with our investment in the venture ($98.0 million and $94.2 million, respectively); and (iii) advances to a venture ($304.0 million and $210.0 million, respectively). For deferred gains from partial sales recorded prior to the adoption the new revenue recognition standard, we will continue to recognize these gains over the lives of the underlying real estate properties or at the time of disposition to a third party.

(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.

Equity Commitments Related to Certain Unconsolidated Co-Investment Ventures

The following table summarizes the remaining equity commitments at March 31, 2018 (in millions):

	Equity Commitments						Expiration Date
	Prologis		Venture Partners		Total
Prologis Targeted U.S. Logistics Fund	$	-	$	563	$	563	2019
Prologis European Logistics Fund (1)		-		1,245		1,245	2018 – 2019
Prologis UK Logistics Venture (2)		23		132		155	2021
Prologis China Logistics Venture		294		1,665		1,959	2020 – 2024
Total	$	317	$	3,605	$	3,922

(1)	Equity commitments are denominated in euro and reported in U.S. dollars based on an exchange rate of $1.23 U.S. dollars to the euro.

(2)	Equity commitments are denominated in British pounds sterling and reported in U.S. dollars based on an exchange rate of $1.41 U.S. dollars to the British pound sterling.