10-Q 1 pld-10q_20190331.htm 10-Q pld-10q_20190331.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 March 31, 2019

 

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 every Interactive Data File required to be submitted 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 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:

 

Prologis, Inc.:

 

 

 

 

 

Large accelerated filer   

 

Accelerated filer   

Non-accelerated filer   

Smaller reporting company   

Emerging growth company    

 

Prologis, L.P.:

 

 

 

 

 

Large accelerated filer   

 

Accelerated filer   

Non-accelerated filer   

Smaller reporting company   

Emerging growth 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 April 18, 2019, was approximately 630,793,000.

 

 

 

 


 

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2019, 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 March 31, 2019, the Parent owned 96.99% common general partnership interest in the OP and 100% of the preferred units in the OP. The remaining 3.01% 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 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 – March 31, 2019 and December 31, 2018

 

1

 

 

 

 

Consolidated Statements of Income – Three Months Ended March 31, 2019 and 2018

 

2

 

 

 

 

Consolidated Statements of Comprehensive Income – Three Months Ended March 31, 2019 and 2018

 

3

 

 

 

 

Consolidated Statements of Equity – Three Months Ended March 31, 2019 and 2018

 

4

 

 

 

 

Consolidated Statements of Cash Flows – Three Months Ended March 31, 2019 and 2018

 

5

 

 

 

            Prologis, L.P.:

 

 

 

 

 

 

Consolidated Balance Sheets – March 31, 2019 and December 31, 2018

 

6

 

 

 

 

Consolidated Statements of Income – Three Months Ended March 31, 2019 and 2018

 

7

 

 

 

 

Consolidated Statements of Comprehensive Income – Three Months Ended March 31, 2019 and 2018

 

8

 

 

 

 

Consolidated Statements of Capital – Three Months Ended March 31, 2019 and 2018

 

9

 

 

 

 

Consolidated Statements of Cash Flows – Three Months Ended March 31, 2019 and 2018

 

10

 

 

 

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

 

 

 

 

 

 

Notes to the Consolidated Financial Statements

 

11

 

 

 

 

Note 1. General

 

11

 

 

 

 

Note 2. DCT Transaction

 

12

 

 

 

 

Note 3. Real Estate

 

13

 

 

 

 

Note 4. Unconsolidated Entities

 

15

 

 

 

 

Note 5. Assets Held for Sale or Contribution

 

16

 

 

 

 

Note 6. Debt

 

17

 

 

 

 

Note 7. Noncontrolling Interests

 

19

 

 

 

 

Note 8. Long-Term Compensation

 

19

 

 

 

 

Note 9. Earnings Per Common Share or Unit

 

20

 

 

 

 

Note 10. Financial Instruments and Fair Value Measurements

 

22

 

 

 

 

Note 11. Business Segments

 

25

 

 

 

 

Note 12. Supplemental Cash Flow Information

 

27

 

 

 

 

Reports of Independent Registered Public Accounting Firm

 

28

 

 

 

Item 2.

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

 

30

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

47

 

 

 

Item 4.

Controls and Procedures

 

48

 

PART II.

 

Other Information

 

 

 

 

 

Item 1.

Legal Proceedings

 

49

 

 

 

Item 1A.

Risk Factors

 

49

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

49

 

 

 

Item 3.

Defaults Upon Senior Securities

 

49

 

 

 

Item 4.

Mine Safety Disclosures

 

49

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

March 31, 2019

 

 

December 31,

 

 

(Unaudited)

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

Investments in real estate properties

$

34,395,698

 

 

$

34,586,987

 

Less accumulated depreciation

 

4,868,611

 

 

 

4,656,680

 

Net investments in real estate properties

 

29,527,087

 

 

 

29,930,307

 

Investments in and advances to unconsolidated entities

 

5,613,060

 

 

 

5,745,294

 

Assets held for sale or contribution

 

899,976

 

 

 

622,288

 

Net investments in real estate

 

36,040,123

 

 

 

36,297,889

 

 

 

 

 

 

 

 

 

Lease right-of-use assets

 

383,704

 

 

 

-

 

Cash and cash equivalents

 

251,030

 

 

 

343,856

 

Other assets

 

1,717,255

 

 

 

1,775,919

 

Total assets

$

38,392,112

 

 

$

38,417,664

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Debt

$

10,706,139

 

 

$

11,089,815

 

Lease liabilities

 

392,341

 

 

 

-

 

Accounts payable and accrued expenses

 

695,761

 

 

 

760,515

 

Other liabilities

 

773,810

 

 

 

766,446

 

Total liabilities

 

12,568,051

 

 

 

12,616,776

 

 

 

 

 

 

 

 

 

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 March 31, 2019 and

          December 31, 2018

 

68,948

 

 

 

68,948

 

Common stock; $0.01 par value; 630,743 shares and 629,616 shares issued and outstanding at

     March 31, 2019 and December 31, 2018, respectively

 

6,307

 

 

 

6,296

 

Additional paid-in capital

 

25,654,449

 

 

 

25,685,987

 

Accumulated other comprehensive loss

 

(1,029,206

)

 

 

(1,084,671

)

Distributions in excess of net earnings

 

(2,366,015

)

 

 

(2,378,467

)

Total Prologis, Inc. stockholders’ equity

 

22,334,483

 

 

 

22,298,093

 

Noncontrolling interests

 

3,489,578

 

 

 

3,502,795

 

Total equity

 

25,824,061

 

 

 

25,800,888

 

Total liabilities and equity

$

38,392,112

 

 

$

38,417,664

 

 

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

 

 

 

March 31,

 

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

Rental

 

$

696,807

 

 

$

555,943

 

Strategic capital

 

 

73,805

 

 

 

132,961

 

Development management and other

 

 

1,440

 

 

 

4,752

 

Total revenues

 

 

772,052

 

 

 

693,656

 

Expenses:

 

 

 

 

 

 

 

 

Rental

 

 

188,068

 

 

 

142,941

 

Strategic capital

 

 

38,058

 

 

 

43,860

 

General and administrative

 

 

69,701

 

 

 

62,428

 

Depreciation and amortization

 

 

284,009

 

 

 

204,081

 

Other

 

 

3,834

 

 

 

3,239

 

Total expenses

 

 

583,670

 

 

 

456,549

 

 

 

 

 

 

 

 

 

 

Operating income before gains on real estate transactions, net

 

 

188,382

 

 

 

237,107

 

Gains on real estate transactions, net

 

 

188,208

 

 

 

195,111

 

Operating income

 

 

376,590

 

 

 

432,218

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Earnings from unconsolidated entities, net

 

 

56,666

 

 

 

62,656

 

Interest expense

 

 

(60,507

)

 

 

(47,245

)

Interest and other income, net

 

 

7,910

 

 

 

1,976

 

Foreign currency and derivative gains (losses), net

 

 

8,734

 

 

 

(41,094

)

Losses on early extinguishment of debt, net

 

 

(2,116

)

 

 

-

 

Total other income (expense)

 

 

10,687

 

 

 

(23,707

)

Earnings before income taxes

 

 

387,277

 

 

 

408,511

 

Total income tax expense

 

 

13,512

 

 

 

16,552

 

Consolidated net earnings

 

 

373,765

 

 

 

391,959

 

Less net earnings attributable to noncontrolling interests

 

 

25,219

 

 

 

24,581

 

Net earnings attributable to controlling interests

 

 

348,546

 

 

 

367,378

 

Less preferred stock dividends

 

 

1,499

 

 

 

1,476

 

Net earnings attributable to common stockholders

 

$

347,047

 

 

$

365,902

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding – Basic

 

 

629,676

 

 

 

532,185

 

Weighted average common shares outstanding – Diluted

 

 

654,359

 

 

 

554,123

 

 

 

 

 

 

 

 

 

 

Net earnings per share attributable to common stockholders – Basic

 

$

0.55

 

 

$

0.69

 

 

 

 

 

 

 

 

 

 

Net earnings per share attributable to common stockholders – Diluted

 

$

0.55

 

 

$

0.68

 

 

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

 

 

 

March 31,

 

 

 

2019

 

 

2018

 

Consolidated net earnings

 

$

373,765

 

 

$

391,959

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

Foreign currency translation gains, net

 

 

60,080

 

 

 

4,770

 

Unrealized losses on derivative contracts, net

 

 

(2,633

)

 

 

(6,287

)

Comprehensive income

 

 

431,212

 

 

 

390,442

 

Net earnings attributable to noncontrolling interests

 

 

(25,219

)

 

 

(24,581

)

Other comprehensive income attributable to noncontrolling interests

 

 

(1,982

)

 

 

(168

)

Comprehensive income attributable to common stockholders

 

$

404,011

 

 

$

365,693

 

 

 

 

 

 

 

 

 

 

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


3

 


 

PROLOGIS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

Three Months Ended March 31, 2019 and 2018

(Unaudited)

(In thousands)

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

Accumulated

 

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number

 

 

 

 

 

 

Additional

 

 

Other

 

 

in Excess of

 

 

Non-

 

 

 

 

 

 

Preferred

 

 

of

 

 

Par

 

 

Paid-in

 

 

Comprehensive

 

 

Net

 

 

controlling

 

 

 

 

 

 

Stock

 

 

Shares

 

 

Value

 

 

Capital

 

 

Income (Loss)

 

 

Earnings

 

 

Interests

 

 

Total

 

Balance at January 1, 2019

$

68,948

 

 

 

629,616

 

 

$

6,296

 

 

$

25,685,987

 

 

$

(1,084,671

)

 

$

(2,378,467

)

 

$

3,502,795

 

 

$

25,800,888

 

Consolidated net earnings

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

348,546

 

 

 

25,219

 

 

 

373,765

 

Effect of equity compensation

     plans

 

-

 

 

 

764

 

 

 

7

 

 

 

(1,198

)

 

 

-

 

 

 

-

 

 

 

23,220

 

 

 

22,029

 

Capital contributions

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6,538

 

 

 

6,538

 

Redemption of noncontrolling

     interests

 

-

 

 

 

363

 

 

 

4

 

 

 

2,980

 

 

 

-

 

 

 

-

 

 

 

(43,207

)

 

 

(40,223

)

Contribution to Brazil venture

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(12,630

)

 

 

(12,630

)

Foreign currency translation

     gains, net

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

58,019

 

 

 

-

 

 

 

2,061

 

 

 

60,080

 

Unrealized losses on

     derivative contracts, net

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,554

)

 

 

-

 

 

 

(79

)

 

 

(2,633

)

Reallocation of equity

 

-

 

 

 

-

 

 

 

-

 

 

 

(33,304

)

 

 

-

 

 

 

-

 

 

 

33,304

 

 

 

-

 

Dividends ($0.53 per common

     share) and other

 

-

 

 

 

-

 

 

 

-

 

 

 

(16

)

 

 

-

 

 

 

(336,094

)

 

 

(47,643

)

 

 

(383,753

)

Balance at March 31, 2019

$

68,948

 

 

 

630,743

 

 

$

6,307

 

 

$

25,654,449

 

 

$

(1,029,206

)

 

$

(2,366,015

)

 

$

3,489,578

 

 

$

25,824,061

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

Accumulated

 

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number

 

 

 

 

 

 

Additional

 

 

Other

 

 

in Excess of

 

 

Non-

 

 

 

 

 

 

Preferred

 

 

of

 

 

Par

 

 

Paid-in

 

 

Comprehensive

 

 

Net

 

 

controlling

 

 

 

 

 

 

Stock

 

 

Shares

 

 

Value

 

 

Capital

 

 

Income (Loss)

 

 

Earnings

 

 

Interests

 

 

Total

 

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

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

367,378

 

 

 

24,581

 

 

 

391,959

 

Effect of equity compensation

     plans

 

-

 

 

 

921

 

 

 

9

 

 

 

(5,357

)

 

 

-

 

 

 

-

 

 

 

11,405

 

 

 

6,057

 

Capital contributions

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

850

 

 

 

850

 

Redemption of noncontrolling

     interests

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,131

)

 

 

-

 

 

 

-

 

 

 

(14,645

)

 

 

(15,776

)

Foreign currency translation

    gains, net

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,420

 

 

 

-

 

 

 

350

 

 

 

4,770

 

Unrealized losses on derivative

     contracts, net

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(6,105

)

 

 

-

 

 

 

(182

)

 

 

(6,287

)

Reallocation of equity

 

-

 

 

 

-

 

 

 

-

 

 

 

(52,505

)

 

 

-

 

 

 

-

 

 

 

52,505

 

 

 

-

 

Dividends ($0.48 per common

     share) and other

 

-

 

 

 

-

 

 

 

-

 

 

 

(105

)

 

 

-

 

 

 

(257,687

)

 

 

(41,402

)

 

 

(299,194

)

Balance at March 31, 2018

$

68,948

 

 

 

533,107

 

 

$

5,331

 

 

$

19,303,909

 

 

$

(903,343

)

 

$

(2,794,770

)

 

$

3,108,045

 

 

$

18,788,120

 

 

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

4

 


 

PROLOGIS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2019

 

 

2018

 

Operating activities:

 

 

 

 

 

 

 

 

Consolidated net earnings

 

$

373,765

 

 

$

391,959

 

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

 

 

 

 

 

 

 

 

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

 

 

(27,912

)

 

 

(15,060

)

Equity-based compensation awards

 

 

31,758

 

 

 

19,996

 

Depreciation and amortization

 

 

284,009

 

 

 

204,081

 

Earnings from unconsolidated entities, net

 

 

(56,666

)

 

 

(62,656

)

Operating distributions from unconsolidated entities

 

 

96,401

 

 

 

85,229

 

Decrease (increase) in operating receivables from unconsolidated entities

 

 

49,488

 

 

 

(67,223

)

Amortization of debt discounts, net and debt issuance costs

 

 

4,162

 

 

 

3,014

 

Gains on real estate transactions, net

 

 

(188,208

)

 

 

(195,111

)

Unrealized foreign currency and derivative losses (gains), net

 

 

(7,158

)

 

 

34,145

 

Losses on early extinguishment of debt, net

 

 

2,116

 

 

 

-

 

Deferred income tax expense (benefit)

 

 

793

 

 

 

(2,064

)

Increase in accounts receivable, lease right-of-use assets and other assets

 

 

(13,470

)

 

 

(2,705

)

Decrease in accounts payable and accrued expenses, lease liabilities and other liabilities

 

 

(54,164

)

 

 

(44,364

)

Net cash provided by operating activities

 

 

494,914

 

 

 

349,241

 

Investing activities:

 

 

 

 

 

 

 

 

Real estate development

 

 

(368,596

)

 

 

(365,837

)

Real estate acquisitions

 

 

(274,528

)

 

 

(112,621

)

Tenant improvements and lease commissions on previously leased space

 

 

(40,338

)

 

 

(28,027

)

Property improvements

 

 

(13,612

)

 

 

(10,456

)

Proceeds from dispositions and contributions of real estate properties

 

 

595,496

 

 

 

579,429

 

Investments in and advances to unconsolidated entities

 

 

(75,559

)

 

 

(52,131

)

Return of investment from unconsolidated entities

 

 

355,539

 

 

 

111,211

 

Proceeds from repayment of notes receivable backed by real estate

 

 

-

 

 

 

34,260

 

Proceeds from the settlement of net investment hedges

 

 

9,761

 

 

 

-

 

Payments on the settlement of net investment hedges

 

 

(28,524

)

 

 

(3,966

)

Net cash provided by investing activities

 

 

159,639

 

 

 

151,862

 

Financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

2,482

 

 

 

1,233

 

Dividends paid on common and preferred stock

 

 

(336,094

)

 

 

(257,687

)

Noncontrolling interests contributions

 

 

6,538

 

 

 

850

 

Noncontrolling interests distributions

 

 

(47,643

)

 

 

(41,402

)

Settlement of noncontrolling interests

 

 

(40,223

)

 

 

(15,776

)

Tax paid for shares withheld

 

 

(21,094

)

 

 

(26,479

)

Debt issuance costs paid

 

 

(14,692

)

 

 

(1,002

)

Net proceeds from (payments on) credit facilities

 

 

(24,565

)

 

 

12,138

 

Repurchase of and payments on debt

 

 

(1,418,438

)

 

 

(696,011

)

Proceeds from the issuance of debt

 

 

1,145,095

 

 

 

528,167

 

Net cash used in financing activities

 

 

(748,634

)

 

 

(495,969

)

 

 

 

 

 

 

 

 

 

Effect of foreign currency exchange rate changes on cash

 

 

1,255

 

 

 

5,919

 

Net increase (decrease) in cash and cash equivalents

 

 

(92,826

)

 

 

11,053

 

Cash and cash equivalents, beginning of period

 

 

343,856

 

 

 

447,046

 

Cash and cash equivalents, end of period

 

$

251,030

 

 

$

458,099

 

 

See Note 12 for information on noncash investing and financing activities and other information.

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

 

 

5

 


 

PROLOGIS, L.P.

CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

 

 

 

 

 

March 31, 2019

 

 

December 31,

 

 

(Unaudited)

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

Investments in real estate properties

$

34,395,698

 

 

$

34,586,987

 

Less accumulated depreciation

 

4,868,611

 

 

 

4,656,680

 

Net investments in real estate properties

 

29,527,087

 

 

 

29,930,307

 

Investments in and advances to unconsolidated entities

 

5,613,060

 

 

 

5,745,294

 

Assets held for sale or contribution

 

899,976

 

 

 

622,288

 

Net investments in real estate

 

36,040,123

 

 

 

36,297,889

 

 

 

 

 

 

 

 

 

Lease right-of-use assets

 

383,704

 

 

 

-

 

Cash and cash equivalents

 

251,030

 

 

 

343,856

 

Other assets

 

1,717,255

 

 

 

1,775,919

 

Total assets

$

38,392,112

 

 

$

38,417,664

 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITAL

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Debt

$

10,706,139

 

 

$

11,089,815

 

Lease liabilities

 

392,341

 

 

 

-

 

Accounts payable and accrued expenses

 

695,761

 

 

 

760,515

 

Other liabilities

 

773,810

 

 

 

766,446

 

Total liabilities

 

12,568,051

 

 

 

12,616,776

 

 

 

 

 

 

 

 

 

Capital:

 

 

 

 

 

 

 

Partners’ capital:

 

 

 

 

 

 

 

General partner – preferred

 

68,948

 

 

 

68,948

 

General partner – common

 

22,265,535

 

 

 

22,229,145

 

Limited partners – common

 

395,726

 

 

 

371,281

 

Limited partners – Class A common

 

294,331

 

 

 

295,045

 

Total partners’ capital

 

23,024,540

 

 

 

22,964,419

 

Noncontrolling interests