Unconsolidated Entities

9 Months Ended

Sep. 30, 2020

Equity Method Investments And Joint Ventures [Abstract]

NOTE 4. 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 related parties and are accounted for using the equity method of accounting. See Note 8 for more detail regarding our consolidated investments that are not wholly owned.

We also have investments in 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 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):

	September 30,		December 31,
	2020		2019
Unconsolidated co-investment ventures	$	6,393,888	$	5,873,784
Other ventures ⁽¹⁾		917,072		363,587
Total	$	7,310,960	$	6,237,371

(1)	In February 2020, we completed the Liberty Transaction and acquired an equity method investment in eight ventures.

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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Recurring fees	$	80,403	$	67,888	$	231,263	$	195,542
Transactional fees		15,827		14,094		47,879		41,272
Promote revenue ⁽¹⁾		-		148,191		228,421		155,474
Total strategic capital revenues from unconsolidated co-investment ventures ⁽²⁾	$	96,230	$	230,173	$	507,563	$	392,288

(1)	Includes promote revenue earned from our unconsolidated co-investment venture in the U.S. in June 2020 and in Europe in September 2019.

(2)	These amounts exclude strategic capital revenues from other ventures.

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 these ventures (dollars and square feet in millions):

	U.S.						Other Americas⁽²⁾						Europe						Asia						Total
As of:	Sep 30, 2020 ⁽¹⁾			Dec 31, 2019			Sep 30, 2020			Dec 31, 2019			Sep 30, 2020			Dec 31, 2019			Sep 30, 2020			Dec 31, 2019			Sep 30, 2020			Dec 31, 2019
Key property information:
Ventures		1			1			2			2			3			3			3			3			9			9
Operating properties		699			605			225			214			769			731			165			144			1,858			1,694
Square feet		116			99			49			44			185			176			67			59			417			378

Financial position:
Total assets ($)		10,755			8,408			2,862			2,707			15,940			14,677			9,729			8,758			39,286			34,550
Third-party debt ($)		3,344			2,130			776			769			3,772			3,213			3,708			3,296			11,600			9,408
Total liabilities ($)		3,939			2,514			811			801			5,251			4,575			4,183			3,751			14,184			11,641

Our investment balance ($) ⁽³⁾		1,889			1,728			794			658			2,935			2,800			776			688			6,394			5,874
Our weighted average ownership ⁽⁴⁾		26.3	%		27.3	%		41.1	%		39.1	%		30.0	%		30.2	%		15.2	%		15.1	%		26.3	%		27.1	%

	U.S.						Other Americas ⁽²⁾						Europe						Asia						Total
Operating Information:	Sep 30, 2020 ⁽¹⁾			Sep 30, 2019			Sep 30, 2020			Sep 30, 2019			Sep 30, 2020			Sep 30, 2019			Sep 30, 2020			Sep 30, 2019			Sep 30, 2020			Sep 30, 2019
For the three months ended:
Total revenues ($)		237			187			70			66			303			276			148			134			758			663
Net earnings ($)		29			38			23			18			80			70			152			27			284			153

Our earnings from unconsolidated co-investment ventures, net ($)		9			11			8			6			27			22			23			4			67			43

For the nine months ended:
Total revenues ($)		702			546			204			200			874			815			429			378			2,209			1,939
Net earnings ($)		103			90			69			73			230			225			210			89			612			477

Our earnings from unconsolidated co-investment ventures, net ($)		28			27			26			27			75			74			32			14			161			142

(1)	In January 2020, USLF acquired a portfolio of 108 operating properties, aggregating 18.3 million square feet, in the IPT Transaction for cash consideration of $2.0 billion, including transaction costs and the assumption and repayment of debt.

(2)	PBLV and our other Brazilian joint ventures are combined as one venture for the purpose of this table.

(3)

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 September 30, 2020 and December 31, 2019, results principally from four types of transactions: (i) deferred gains from the contribution of property to a venture prior to January 1, 2018; (ii) recording additional costs associated with our investment in the venture; (iii) receivables, principally for fees and promotes ($100.2 million and $152.0 million, respectively); and (iv) customer security deposits retained subsequent to property contributions to Nippon Prologis REIT, Inc.

(4)	Represents our weighted average ownership interest in all unconsolidated 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

At September 30, 2020, our remaining equity commitments were $336.6 million, primarily for Prologis China Logistics Venture. Our equity commitments expire from 2021 to 2028.