10-Q 1 pld-10q_20180630.htm 10-Q pld-10q_20180630.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, 2018

 

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, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer,” “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 19, 2018, was approximately 533,307,000.

 

 

 

 


 

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended June 30, 2018, 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” or the “OP” mean Prologis, L.P., and its consolidated subsidiaries. The terms “the Company,” “Prologis,” “we,” “our” or “us” means the Parent and the OP collectively.

 

The Parent is a real estate investment trust (a “REIT”) and the general partner of the OP. At June 30, 2018, the Parent owned 97.11% common general partnership interest in the OP and 100% of the preferred units in the OP. The remaining 2.89% common limited partnership interests are owned by unaffiliated investors and certain current and former directors and officers of the Parent.

 

We operate the Parent and the OP as one enterprise. The management of the Parent consists of the same members as the management of the OP. These members are officers of the Parent and employees of the OP or one of its subsidiaries. As sole general partner, the Parent has control of the OP through complete responsibility and discretion in the day-to-day management and therefore, consolidates the OP for financial reporting purposes. Because the only significant asset of the Parent is its investment in the OP, the assets and liabilities of the Parent and the OP are the same on their respective financial statements.

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

enhances investors’ understanding of the Parent and the OP 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 OP; 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 OP 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 OP and issuing public equity from time to time. The Parent itself does not incur any indebtedness, but it guarantees the unsecured debt of the OP. The OP holds substantially all the assets of the business, directly or indirectly. The OP 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 OP in exchange for partnership units, the OP generates capital required by the business through the OP’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 OP. The differences in the presentations between stockholders’ equity and partners’ capital result from the differences in the equity and capital issuances in the Parent and in the OP.

                

The preferred stock, common stock, additional paid-in capital, accumulated other comprehensive income (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 OP and are presented as general partner’s capital within partners’ capital in the OP’s consolidated financial statements. The common limited partnership interests held by the limited partners in the OP are presented as noncontrolling interest within equity in the Parent’s consolidated financial statements and as limited partners’ capital within partners’ capital in the OP’s consolidated financial statements.

                

To highlight the differences between the Parent and the OP, separate sections in this report, as applicable, individually discuss the Parent and the OP, including separate financial statements and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure of the Parent and the OP, 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, 2018 and December 31, 2017

 

1

 

 

 

 

Consolidated Statements of Income – Three and Six Months Ended June 30, 2018 and 2017

 

2

 

 

 

 

Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2018 and 2017

 

3

 

 

 

 

Consolidated Statement of Equity – Six Months Ended June 30, 2018

 

3

 

 

 

 

Consolidated Statements of Cash Flows – Six Months Ended June 30, 2018 and 2017

 

4

 

 

 

            Prologis, L.P.:

 

 

 

 

 

 

Consolidated Balance Sheets – June 30, 2018 and December 31, 2017

 

5

 

 

 

 

Consolidated Statements of Income – Three and Six Months Ended June 30, 2018 and 2017

 

6

 

 

 

 

Consolidated Statements of Comprehensive Income – Three and Six Months Ended June 30, 2018 and 2017

 

7

 

 

 

 

Consolidated Statement of Capital – Six Months Ended June 30, 2018

 

7

 

 

 

 

Consolidated Statements of Cash Flows – Six Months Ended June 30, 2018 and 2017

 

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

 

14

 

 

 

 

Note 5. Debt

 

14

 

 

 

 

Note 6. Noncontrolling Interests

 

16

 

 

 

 

Note 7. Long-Term Compensation

 

17

 

 

 

 

Note 8. Earnings Per Common Share or Unit

 

18

 

 

 

 

Note 9. Financial Instruments and Fair Value Measurements

 

19

 

 

 

 

Note 10. Business Segments

 

23

 

 

 

 

Note 11. Supplemental Cash Flow Information

 

25

 

 

 

 

Note 12. Subsequent Events

 

25

 

 

 

 

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

 

46

 

 

 

Item 4.

Controls and Procedures

 

47

 

PART II.

 

Other Information

 

 

 

 

 

Item 1.

Legal Proceedings

 

47

 

 

 

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

 

48

 

 

 

Item 6.

Exhibits

 

48

 

 

 

 

 

 


 

PART I. FINANCIAL INFORMATION

 

ITEM 1. Financial Statements

 

PROLOGIS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

June 30, 2018

 

 

December 31,

 

 

(Unaudited)

 

 

2017

 

ASSETS

 

 

 

 

 

 

 

Investments in real estate properties

$

25,555,343

 

 

$

25,838,644

 

Less accumulated depreciation

 

4,283,877

 

 

 

4,059,348

 

Net investments in real estate properties

 

21,271,466

 

 

 

21,779,296

 

Investments in and advances to unconsolidated entities

 

5,414,623

 

 

 

5,496,450

 

Assets held for sale or contribution

 

892,546

 

 

 

342,060

 

Notes receivable backed by real estate

 

-

 

 

 

34,260

 

Net investments in real estate

 

27,578,635

 

 

 

27,652,066

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

527,830

 

 

 

447,046

 

Other assets

 

1,396,417

 

 

 

1,381,963

 

Total assets

$

29,502,882

 

 

$

29,481,075

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Debt

$

9,427,124

 

 

$

9,412,631

 

Accounts payable and accrued expenses

 

719,679

 

 

 

702,804

 

Other liabilities

 

629,576

 

 

 

659,899

 

Total liabilities

 

10,776,379

 

 

 

10,775,334

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

Prologis, Inc. stockholders’ equity:

 

 

 

 

 

 

 

Series Q preferred stock at stated liquidation preference of $50 per share; $0.01 par value; 1,379 shares

     issued and outstanding and 100,000 preferred shares authorized at June 30, 2018 and

          December 31, 2017, respectively

 

68,948

 

 

 

68,948

 

Common stock; $0.01 par value; 533,303 shares and 532,186 shares issued and outstanding at

     June 30, 2018 and December 31, 2017, respectively

 

5,333

 

 

 

5,322

 

Additional paid-in capital

 

19,322,016

 

 

 

19,363,007

 

Accumulated other comprehensive loss

 

(1,041,486

)

 

 

(901,658

)

Distributions in excess of net earnings

 

(2,716,241

)

 

 

(2,904,461

)

Total Prologis, Inc. stockholders’ equity

 

15,638,570

 

 

 

15,631,158

 

Noncontrolling interests

 

3,087,933

 

 

 

3,074,583

 

Total equity

 

18,726,503

 

 

 

18,705,741

 

Total liabilities and equity

$

29,502,882

 

 

$

29,481,075

 

 

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,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

426,549

 

 

$

447,960

 

 

$

854,450

 

 

$

887,844

 

Rental recoveries

 

 

118,130

 

 

 

128,417

 

 

 

246,172

 

 

 

255,466

 

Strategic capital

 

 

75,697

 

 

 

180,654

 

 

 

208,658

 

 

 

237,699

 

Development management and other

 

 

900

 

 

 

9,152

 

 

 

5,652

 

 

 

14,329

 

Total revenues

 

 

621,276

 

 

 

766,183

 

 

 

1,314,932

 

 

 

1,395,338

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

 

133,329

 

 

 

147,794

 

 

 

276,270

 

 

 

300,450

 

Strategic capital

 

 

34,850

 

 

 

51,986

 

 

 

78,710

 

 

 

83,785

 

General and administrative

 

 

57,615

 

 

 

60,077

 

 

 

120,043

 

 

 

113,694

 

Depreciation and amortization

 

 

203,673

 

 

 

228,145

 

 

 

407,754

 

 

 

454,736

 

Other

 

 

4,515

 

 

 

2,909

 

 

 

7,754

 

 

 

5,515

 

Total expenses

 

 

433,982

 

 

 

490,911

 

 

 

890,531

 

 

 

958,180

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

187,294

 

 

 

275,272

 

 

 

424,401

 

 

 

437,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from unconsolidated entities, net

 

 

62,549

 

 

 

68,596

 

 

 

125,205

 

 

 

117,201

 

Interest expense

 

 

(56,314

)

 

 

(75,354

)

 

 

(102,575

)

 

 

(148,266

)

Interest and other income, net

 

 

5,641

 

 

 

1,892

 

 

 

7,617

 

 

 

4,677

 

Gains on dispositions of investments in real estate, net

 

 

94,261

 

 

 

83,006

 

 

 

289,372

 

 

 

180,331

 

Foreign currency and derivative gains (losses), net

 

 

85,382

 

 

 

(20,055

)

 

 

44,288

 

 

 

(27,455

)

Gains (losses) on early extinguishment of debt, net

 

 

282

 

 

 

(30,596

)

 

 

(702

)

 

 

(30,596

)

Total other income

 

 

191,801

 

 

 

27,489

 

 

 

363,205

 

 

 

95,892

 

Earnings before income taxes

 

 

379,095

 

 

 

302,761

 

 

 

787,606

 

 

 

533,050

 

Total income tax expense

 

 

14,104

 

 

 

14,781

 

 

 

30,656

 

 

 

24,381

 

Consolidated net earnings

 

 

364,991

 

 

 

287,980

 

 

 

756,950

 

 

 

508,669

 

Less net earnings attributable to noncontrolling interests

 

 

28,904

 

 

 

19,363

 

 

 

53,485

 

 

 

35,123

 

Net earnings attributable to controlling interests

 

 

336,087

 

 

 

268,617

 

 

 

703,465

 

 

 

473,546

 

Less preferred stock dividends

 

 

1,476

 

 

 

1,674

 

 

 

2,952

 

 

 

3,348

 

Net earnings attributable to common stockholders

 

$

334,611

 

 

$

266,943

 

 

$

700,513

 

 

$

470,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – Basic

 

 

532,639

 

 

 

530,040

 

 

 

532,427

 

 

 

529,400

 

Weighted average common shares outstanding – Diluted

 

 

554,515

 

 

 

552,114

 

 

 

554,066

 

 

 

550,512

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share attributable to common stockholders – Basic

 

$

0.63

 

 

$

0.50

 

 

$

1.32

 

 

$

0.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share attributable to common stockholders – Diluted

 

$

0.62

 

 

$

0.50

 

 

$

1.30

 

 

$

0.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per common share

 

$

0.48

 

 

$

0.44

 

 

$

0.96

 

 

$

0.88

 

 

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,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Consolidated net earnings

 

$

364,991

 

 

$

287,980

 

 

$

756,950

 

 

$

508,669

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation gains (losses), net

 

 

(147,813

)

 

 

3,162

 

 

 

(143,043

)

 

 

42,829

 

Unrealized gains (losses) on derivative contracts, net

 

 

2,131

 

 

 

6,735

 

 

 

(4,156

)

 

 

9,366

 

Comprehensive income

 

 

219,309

 

 

 

297,877

 

 

 

609,751

 

 

 

560,864

 

Net earnings attributable to noncontrolling interests

 

 

(28,904

)

 

 

(19,363

)

 

 

(53,485

)

 

 

(35,123

)

Other comprehensive loss (income) attributable to noncontrolling interests

 

 

7,539

 

 

 

(811

)

 

 

7,371

 

 

 

(48,918

)

Comprehensive income attributable to common stockholders

 

$

197,944

 

 

$

277,703

 

 

$

563,637

 

 

$

476,823

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

PROLOGIS, INC.

CONSOLIDATED STATEMENT OF EQUITY

Six Months Ended June 30, 2018

(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, 2018

$

68,948

 

 

 

532,186

 

 

$

5,322

 

 

$

19,363,007

 

 

$

(901,658

)

 

$

(2,904,461

)

 

$

3,074,583

 

 

$

18,705,741

 

Consolidated net earnings

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

703,465

 

 

 

53,485

 

 

 

756,950

 

Effect of equity

     compensation plans

 

-

 

 

 

1,117

 

 

 

11

 

 

 

8,835

 

 

 

-

 

 

 

-

 

 

 

24,835

 

 

 

33,681

 

Capital contributions

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

37,974

 

 

 

37,974

 

Redemption of noncontrolling

     interests

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,792

)

 

 

-

 

 

 

-

 

 

 

(20,976

)

 

 

(23,768

)

Foreign currency translation

     losses, net

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(135,793

)

 

 

-

 

 

 

(7,250

)

 

 

(143,043

)

Unrealized losses on derivative

     contracts, net

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,035

)

 

 

-

 

 

 

(121

)

 

 

(4,156

)

Reallocation of equity

 

-

 

 

 

-

 

 

 

-

 

 

 

(46,927

)

 

 

-

 

 

 

-

 

 

 

46,927

 

 

 

-

 

Distributions and other

 

-

 

 

 

-

 

 

 

-

 

 

 

(107

)

 

 

-

 

 

 

(515,245

)

 

 

(121,524

)

 

 

(636,876

)

Balance at June 30, 2018

$

68,948

 

 

 

533,303

 

 

$

5,333

 

 

$

19,322,016

 

 

$

(1,041,486

)

 

$

(2,716,241

)

 

$

3,087,933

 

 

$

18,726,503

 

 

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,

 

 

 

2018

 

 

2017

 

Operating activities:

 

 

 

 

 

 

 

 

Consolidated net earnings

 

$

756,950

 

 

$

508,669

 

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

 

 

 

 

 

 

 

 

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

 

 

(26,369

)

 

 

(48,920

)

Equity-based compensation awards

 

 

39,082

 

 

 

37,604

 

Depreciation and amortization

 

 

407,754

 

 

 

454,736

 

Earnings from unconsolidated entities, net

 

 

(125,205

)

 

 

(117,201

)

Operating distributions from unconsolidated entities

 

 

175,960

 

 

 

141,256

 

Decrease (increase) in operating receivables from unconsolidated entities

 

 

6,589

 

 

 

(117,675

)

Amortization of debt discounts (premiums), net of debt issuance costs

 

 

5,971

 

 

 

(4,445

)

Gains on dispositions of investments in real estate, net

 

 

(289,372

)

 

 

(180,331

)

Unrealized foreign currency and derivative losses (gains), net

 

 

(52,595

)

 

 

35,266

 

Losses on early extinguishment of debt, net

 

 

702

 

 

 

30,596

 

Deferred income tax expense (benefit)

 

 

(1,194

)

 

 

2,268

 

Decrease (increase) in accounts receivable and other assets

 

 

(35,756

)

 

 

61,452

 

Decrease in accounts payable and accrued expenses and other liabilities

 

 

(89,293

)

 

 

(58,115

)

Net cash provided by operating activities

 

 

773,224

 

 

 

745,160

 

Investing activities:

 

 

 

 

 

 

 

 

Real estate development

 

 

(788,604

)

 

 

(715,294

)

Real estate acquisitions

 

 

(289,031

)

 

 

(202,088

)

Tenant improvements and lease commissions on previously leased space

 

 

(59,342

)

 

 

(75,342

)

Property improvements

 

 

(33,289

)

 

 

(37,253

)

Proceeds from dispositions and contributions of real estate properties

 

 

901,808

 

 

 

836,107

 

Investments in and advances to unconsolidated entities

 

 

(83,250

)

 

 

(144,894

)

Return of investment from unconsolidated entities

 

 

134,640

 

 

 

133,677

 

Proceeds from repayment of notes receivable backed by real estate

 

 

34,260

 

 

 

32,100

 

Proceeds from the settlement of net investment hedges

 

 

-

 

 

 

7,541

 

Payments on the settlement of net investment hedges

 

 

(3,966

)

 

 

(5,058

)

Net cash used in investing activities

 

 

(186,774

)

 

 

(170,504

)

Financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

4,322

 

 

 

25,374

 

Dividends paid on common and preferred stock

 

 

(515,245

)

 

 

(470,792

)

Noncontrolling interests contributions

 

 

26,174

 

 

 

135,857

 

Noncontrolling interests distributions

 

 

(121,524

)

 

 

(99,896

)

Settlement of noncontrolling interests

 

 

(23,768

)

 

 

(789,626

)

Tax paid for shares withheld

 

 

(26,694

)

 

 

(18,894

)

Debt issuance costs paid

 

 

(6,386

)

 

 

(6,151

)

Net payments on credit facilities

 

 

(307,086

)

 

 

(33,745

)

Repurchase and payments of debt

 

 

(1,251,830

)

 

 

(2,002,519

)

Proceeds from issuance of debt

 

 

1,721,793

 

 

 

2,134,041

 

Net cash used in financing activities

 

 

(500,244

)

 

 

(1,126,351

)

 

 

 

 

 

 

 

 

 

Effect of foreign currency exchange rate changes on cash

 

 

(5,422

)

 

 

15,733

 

Net increase (decrease) in cash and cash equivalents

 

 

80,784

 

 

 

(535,962

)

Cash and cash equivalents, beginning of period

 

 

447,046

 

 

 

807,316

 

Cash and cash equivalents, end of period

 

$

527,830

 

 

$

271,354

 

 

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, 2018

 

 

December 31,

 

 

(Unaudited)

 

 

2017

 

ASSETS

 

 

 

 

 

 

 

Investments in real estate properties

$

25,555,343

 

 

$

25,838,644

 

Less accumulated depreciation

 

4,283,877

 

 

 

4,059,348

 

Net investments in real estate properties

 

21,271,466

 

 

 

21,779,296

 

Investments in and advances to unconsolidated entities

 

5,414,623

 

 

 

5,496,450

 

Assets held for sale or contribution

 

892,546

 

 

 

342,060

 

Notes receivable backed by real estate

 

-

 

 

 

34,260

 

Net investments in real estate

 

27,578,635

 

 

 

27,652,066

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

527,830

 

 

 

447,046

 

Other assets

 

1,396,417

 

 

 

1,381,963

 

Total assets

$

29,502,882

 

 

$

29,481,075

 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITAL

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Debt

$

9,427,124

 

 

$

9,412,631

 

Accounts payable and accrued expenses

 

719,679

 

 

 

702,804

 

Other liabilities

 

629,576

 

 

 

659,899

 

Total liabilities

 

10,776,379

 

 

 

10,775,334

 

 

 

 

 

 

 

 

 

Capital:

 

 

 

 

 

 

 

Partners’ capital:

 

 

 

 

 

 

 

General partner – preferred

 

68,948

 

 

 

68,948

 

General partner – common

 

15,569,622

 

 

 

15,562,210

 

Limited partners – common

 

218,162

 

 

 

165,401

 

Limited partners – Class A common

 

245,596

 

 

 

248,940

 

Total partners’ capital

 

16,102,328

 

 

 

16,045,499

 

Noncontrolling interests

 

2,624,175

 

 

 

2,660,242

 

Total capital

 

18,726,503

 

 

 

18,705,741

 

Total liabilities and capital

$

29,502,882

 

 

$

29,481,075

 

 

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

 

 

 

5