Debt (Tables)

12 Months Ended

Dec. 31, 2011


	2011				2010
	Weighted Average Interest Rate (1)		Amount Outstanding (1)		Weighted Average Interest Rate		Amount Outstanding
Credit facilities		2.17 %	$	936,796		3.53 %	$	520,141
Senior notes (2)		6.30 %		4,772,607		6.63 %		3,195,724
Exchangeable senior notes (3)		4.82 %		1,315,448		4.90 %		1,521,568
Secured mortgage debt (4)		4.71 %		1,725,773		5.67 %		1,249,729
Secured mortgage debt of consolidated investees (5)		4.54 %		1,468,637		-		-
Other debt of consolidated investees (6)		5.30 %		775,763		-		-
Other debt (7)		2.44 %		387,384		6.48 %		18,867

Totals		5.12 %	$	11,382,408		5.79 %	$	6,506,029

(1)

Included in the balances at December 31, 2011 was debt assumed in connection with the Merger and PEPR Acquisition (see Note 3 for more details). The weighted average interest rate represents the interest rate including amortization of related premiums/discounts. Includes $3.95 billion of principal borrowings denominated in non-U.S. dollars [euro ($2.09 billion), Japanese yen ($1.41 billion), British pound sterling ($0.43 billion) and Singapore dollar ($0.02 billion)].

(2)	Notes are due April 2012 to July 2020 and interest rates range from 3.25% to 9.34%. The balance at December, 31, 2011 includes $1.7 billion of senior notes acquired in the Merger.

(3)	Interest rates range from 3.25% to 5.86% and include the impact of amortization of the non-cash discount related to these notes. The weighted average coupon interest rate was 2.6% as of December 31, 2011 and 2010. See below for more detail on these notes.

(4)

Debt is due April 2012 to May 2025 and interest rates range from 1.37% to 7.58%. The debt is secured by 219 real estate properties with an aggregate undepreciated cost of $4.2 billion at December 31, 2011. The balance at December 31, 2011 includes $205.0 million of secured mortgage debt acquired in the Merger.

(5)	Debt is due February 2012 to November 2022 and interest rates range from 1.73% to 7.20%. This debt was assumed in connection with the Merger and acquisition of PEPR. The debt is secured by 231 real estate properties with an aggregate undepreciated cost of $3.2 billion at December 31, 2011.

(6)

This debt was recorded in connection with the Merger and acquisition of PEPR. As of December 31, 2011, the balance includes $54.6 million on a $60 million credit facility obtained by a consolidated investee that matures September 2012 and is expected to be extended for one year, €427.6 million ($559.1 million at December 31, 2011) of PEPR Eurobonds that mature October 2014 and €123.9 million ($162.1 million at December 31, 2011) of unsecured credit facilities that mature December 2012 and was paid with proceeds from a portfolio disposition in January 2012. Interest rates on these debt agreements range from 2.41% to 5.88%. During 2011, we repurchased €86.0 million ($118.6 million) of PEPR Eurobonds, resulting in a $3.8 million gain, included below.

(7)

The debt includes $18.6 million of assessment bonds and $368.8 million of corporate term loans with varying interest rates from 1.75% to 8.70% and are due September 2012 to September 2033. The assessment bonds are issued by municipalities and guaranteed by us as a means of financing infrastructure and secured by assessments (similar to property taxes) on various underlying real estate properties with an aggregate undepreciated cost of $793.3 million at December 31, 2011.

Extinguishment of debt


	2011		2010		2009
Senior notes and Eurobonds:
Original principal amount	$	118,592	$	1,724,946	$	587,698
Cash purchase price	$	120,935	$	1,874,829	$	545,618
Exchangeable senior notes (1):
Original principal amount	$	136,627	$	1,145,642	$	653,993
Cash purchase price	$	135,243	$	1,092,586	$	454,023
Secured mortgage debt:
Original principal amount	$	175,021	$	134,721	$	227,017
Cash repayment price	$	175,021	$	137,061	$	227,017
Total:
Original principal amount	$	430,240	$	3,005,309	$	1,468,708
Cash purchase / repayment price	$	431,199	$	3,104,476	$	1,226,658
Gain (loss) on early extinguishment of debt, net (2)	$	258	$	(201,486)	$	172,258

(1)	Although the cash purchase price is less than the principal amount outstanding, the repurchase of these notes resulted in a non-cash loss in 2010 due to the write off of the non-cash discount associated with the notes repurchased.

(2)	Represents the difference between the recorded debt (including unamortized related debt issuance costs, premiums and discounts) and the consideration we paid to retire the debt, which may include prepayment penalties and costs.

Credit facilities


	2011		2010		2009
For the years ended December 31:
Weighted average daily interest rate		2.70%		2.47%		1.62%
Weighted average daily borrowings	$	870.9	$	501.1	$	1,641.9
Maximum borrowings outstanding at any month-end	$	2,368.1	$	1,010.2	$	3,285.3
As of December 31:
Aggregate borrowing capacity	$	2,184.6	$	1,601.5	$	2,164.8
Borrowings outstanding	$	934.9	$	520.1	$	736.6
Outstanding letters of credit	$	85.0	$	88.2	$	114.9
Aggregate remaining capacity available	$	1,164.7	$	993.2	$	1,080.4

Interest expense related to senior notes


	2011		2010		2009
Coupon rate	$	24,810	$	37,562	$	55,951
Amortization of discount		32,393		48,128		71,662
Amortization of deferred loan costs		2,071		2,691		3,801

Interest expense	$	59,274	$	88,381	$	131,414

Effective interest rate		4.79%		4.90%		5.55%

Long-term debt maturities


	Prologis
	Unsecured								Secured Mortgage Debt		Total		Consolidated Investees Debt (1)		Total Consolidated Debt (2)
Maturity	Senior Debt		Exchangeable Notes		Credit Facilities		Other Debt		Secured Mortgage Debt		Total		Consolidated Investees Debt (1)		Total Consolidated Debt (2)
2012 (3) (4)	$	76	$	458	$	-	$	162	$	163	$	859	$	361	$	1,220
2013 (4)		376		482		-		1		138		997		599		1,596
2014		374		-		291		1		285		951		1,016		1,967
2015		287		460		644		202		209		1,802		22		1,824
2016		638		-		-		1		174		813		137		950
2017		700		-		-		1		12		713		2		715
2018		900		-		-		1		151		1,052		64		1,116
2019		647		-		-		1		255		903		1		904
2020		690		-		-		1		10		701		1		702
2021		-		-		-		-		172		172		1		173
Thereafter		-		-		-		10		143		153		2		155

Subtotal	$	4,688	$	1,400	$	935	$	381	$	1,712	$	9,116	$	2,206	$	11,322
Unamortized (discounts) premiums, net		84		(85)		2		6		14		21		39		60

Total	$	4,772	$	1,315	$	937	$	387	$	1,726	$	9,137	$	2,245	$	11,382

(1)	Our consolidated investees have $71.1 million available to borrow under credit facilities.

(2)

At June 30, 2011, our consolidated debt was $12.1 billion after the Merger and PEPR Acquisition. Since that time, we have reduced our debt by $0.7 billion primarily from proceeds received from the contribution or sale of properties. As of December 31, 2011, we have $1.2 billion available to borrow under our Credit Facilities.

(3)

We expect to repay the amounts maturing in 2012 with borrowings under our Credit Facilities or with proceeds from the disposition of real estate properties. The maturities in 2012 in our consolidated but not wholly owned subsidiaries include $210.9 million of unsecured credit facilities, of which $162.1 million was repaid in January 2012, and $133.3 million of secured mortgage debt, which we expect to extend, or pay, either by the entity issuing new debt, with proceeds from asset sales, available cash flows, or equity contributions to the funds by us and our fund partners.

(4)

The maturities in 2012 and 2013 represent the aggregate principal amounts of the exchangeable senior notes issued in 2007 and 2008, based on the year in which the holders first have the right to require us to repurchase their notes for cash. The exchangeable senior notes issued in November 2007 are included as 2013 maturities since the holders have the right to require us to repurchase their notes for cash in January 2013. The holders of these notes also have the option to exchange their notes in November 2012, which we may settle in cash or common stock, at our option.

Interest expense


	2011		2010		2009
Gross interest expense	$	500,685	$	435,289	$	382,362
Amortization of discount, net		228		47,136		67,542
Amortization of deferred loan costs		20,476		32,402		17,069

		521,389		514,827		466,973
Capitalized amounts		(52,651)		(53,661)		(94,205)

Net interest expense	$	468,738	$	461,166	$	372,768

- Definition

Tabular disclosure of debt extinguished which may include, amount of gain (loss), the income tax effect and the per share amount of the aggregate gain (loss), net of the related income tax.

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