|
Unconsolidated Entities (Tables)
|
6 Months Ended |
|
Jun. 30, 2012
|
| Unconsolidated Entities [Abstract] |
|
| Summary of Investments |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
June 30, |
|
|
December 31, |
|
| |
|
2012 |
|
|
2011 |
|
|
Unconsolidated co-investment ventures
|
|
$ |
1,943,843 |
|
|
|
|
$ |
2,471,179 |
|
|
Other joint ventures
|
|
|
276,329 |
|
|
|
|
|
386,576 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Totals
|
|
$ |
2,220,172 |
|
|
|
|
$ |
2,857,755 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Earnings on investments in co-investment ventures |
| |
|
|
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|
|
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|
| |
|
Three Months Ended |
|
|
Six Months Ended |
|
| |
|
June 30, |
|
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June 30, |
|
| |
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
Earnings (loss) from unconsolidated co-investment ventures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas (1)
|
|
$ |
(6,749 |
) |
|
$ |
2,004 |
|
|
$ |
(4,466 |
) |
|
$ |
4,626 |
|
|
Europe
|
|
|
7,172 |
|
|
|
5,679 |
|
|
|
15,169 |
|
|
|
14,770 |
|
|
Asia
|
|
|
730 |
|
|
|
960 |
|
|
|
2,208 |
|
|
|
1,169 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total earnings from unconsolidated co-investment ventures, net
|
|
$ |
1,153 |
|
|
$ |
8,643 |
|
|
$ |
12,911 |
|
|
$ |
20,565 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Private capital revenue and other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$ |
16,081 |
|
|
$ |
14,238 |
|
|
$ |
33,604 |
|
|
$ |
27,444 |
|
|
Europe
|
|
|
9,325 |
|
|
|
13,806 |
|
|
|
18,462 |
|
|
|
27,131 |
|
|
Asia
|
|
|
5,088 |
|
|
|
2,343 |
|
|
|
9,842 |
|
|
|
2,536 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total private capital revenue
|
|
|
30,494 |
|
|
|
30,387 |
|
|
|
61,908 |
|
|
|
57,111 |
|
|
Development management and other income
|
|
|
2 |
|
|
|
4,042 |
|
|
|
78 |
|
|
|
5,943 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
30,496 |
|
|
$ |
34,429 |
|
|
$ |
61,986 |
|
|
$ |
63,054 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
| (1) |
During the three and six months ended June 30, 2012, we recorded a $5.0 million loss representing our share of a loss from the early extinguishment of debt in
Prologis North American Industrial Fund III (“Prologis NAIII”). |
|
| Investments in co-investment ventures by region |
| |
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|
Weighted Average Ownership
Percentage |
|
|
Investment in and Advances to |
|
| |
|
June 30, |
|
|
December 31, |
|
|
June 30, |
|
|
December 31, |
|
|
Unconsolidated co-investment ventures by region
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
Americas
|
|
|
24.3 |
% |
|
|
28.2 |
% |
|
$ |
1,119,279 |
|
|
$ |
1,596,295 |
|
|
Europe
|
|
|
30.4 |
% |
|
|
29.9 |
% |
|
|
633,674 |
|
|
|
662,010 |
|
|
Asia
|
|
|
19.3 |
% |
|
|
19.4 |
% |
|
|
190,890 |
|
|
|
212,874 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
|
|
25.7 |
% |
|
|
27.9 |
% |
|
$ |
1,943,843 |
|
|
$ |
2,471,179 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
| Summarized financial information of the co-investment ventures |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
Americas |
|
|
Europe |
|
|
Asia |
|
|
Total |
|
|
For the three months ended June 30, 2012 (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
185.8 |
|
|
$ |
120.9 |
|
|
$ |
35.0 |
|
|
$ |
341.7 |
|
|
Net earnings (loss) (2)
|
|
$ |
(28.0 |
) |
|
$ |
24.3 |
|
|
$ |
(0.9 |
) |
|
$ |
(4.6 |
) |
|
For the six months ended June 30, 2012: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
396.2 |
|
|
$ |
245.9 |
|
|
$ |
69.8 |
|
|
$ |
711.9 |
|
|
Net earnings (loss) (2)
|
|
$ |
(38.1 |
) |
|
$ |
48.0 |
|
|
$ |
4.7 |
|
|
$ |
14.6 |
|
|
As of June 30, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
9,603.7 |
|
|
$ |
5,967.7 |
|
|
$ |
2,080.1 |
|
|
$ |
17,651.5 |
|
|
Amounts due to (from) us (3)
|
|
$ |
6.8 |
|
|
$ |
8.0 |
|
|
$ |
10.0 |
|
|
$ |
24.8 |
|
|
Third party debt (4)
|
|
$ |
3,954.3 |
|
|
$ |
2,114.0 |
|
|
$ |
1,034.4 |
|
|
$ |
7,102.7 |
|
|
Total liabilities
|
|
$ |
4,268.6 |
|
|
$ |
2,638.2 |
|
|
$ |
1,135.9 |
|
|
$ |
8,042.7 |
|
|
Noncontrolling interest
|
|
$ |
0.1 |
|
|
$ |
5.8 |
|
|
$ |
— |
|
|
$ |
5.9 |
|
|
Venture partners’ equity
|
|
$ |
5,335.0 |
|
|
$ |
3,323.7 |
|
|
$ |
944.2 |
|
|
$ |
9,602.9 |
|
|
Our weighted average ownership (5)
|
|
|
24.3 |
% |
|
|
30.4 |
% |
|
|
19.3 |
% |
|
|
25.7 |
% |
|
Our investment balance (6)
|
|
$ |
1,119.3 |
|
|
$ |
633.7 |
|
|
$ |
190.9 |
|
|
$ |
1,943.9 |
|
|
Deferred gains, net of amortization (7)
|
|
$ |
155.0 |
|
|
$ |
181.4 |
|
|
$ |
— |
|
|
$ |
336.4 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
2011
|
|
Americas |
|
|
Europe |
|
|
Asia |
|
|
Total |
|
|
For the three months ended June 30, 2011 (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
195.1 |
|
|
$ |
169.4 |
|
|
$ |
15.1 |
|
|
$ |
379.6 |
|
|
Net earnings (loss)
|
|
$ |
(15.4 |
) |
|
$ |
17.3 |
|
|
$ |
3.5 |
|
|
$ |
5.4 |
|
|
For the six months ended June 30, 2011 (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
368.4 |
|
|
$ |
359.8 |
|
|
$ |
18.1 |
|
|
$ |
746.3 |
|
|
Net earnings (loss)
|
|
$ |
(29.9 |
) |
|
$ |
37.8 |
|
|
$ |
4.6 |
|
|
$ |
12.5 |
|
|
As of December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
12,236.0 |
|
|
$ |
6,211.8 |
|
|
$ |
2,245.1 |
|
|
$ |
20,692.9 |
|
|
Amounts due to (from) us (3)
|
|
$ |
59.5 |
|
|
$ |
8.1 |
|
|
$ |
9.3 |
|
|
$ |
76.9 |
|
|
Third party debt (4)
|
|
$ |
5,952.8 |
|
|
$ |
2,275.8 |
|
|
$ |
1,061.4 |
|
|
$ |
9,290.0 |
|
|
Total liabilities
|
|
$ |
6,386.4 |
|
|
$ |
2,758.9 |
|
|
$ |
1,174.0 |
|
|
$ |
10,319.3 |
|
|
Noncontrolling interest
|
|
$ |
1.7 |
|
|
$ |
6.2 |
|
|
$ |
— |
|
|
$ |
7.9 |
|
|
Venture partners’ equity
|
|
$ |
5,847.9 |
|
|
$ |
3,446.7 |
|
|
$ |
1,071.1 |
|
|
$ |
10,365.7 |
|
|
Our weighted average ownership (5)
|
|
|
28.2 |
% |
|
|
29.9 |
% |
|
|
19.4 |
% |
|
|
27.9 |
% |
|
Our investment balance (6)
|
|
$ |
1,596.3 |
|
|
$ |
662.0 |
|
|
$ |
212.9 |
|
|
$ |
2,471.2 |
|
|
Deferred gains, net of amortization (7)
|
|
$ |
227.6 |
|
|
$ |
191.0 |
|
|
$ |
0.1 |
|
|
$ |
418.7 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
During the first quarter of 2012, we began consolidating two of our North America co-investment ventures whose results are included through the transaction date. During
the three and six months ended June 30, 2011, amounts include approximately two and five months of activity, respectively, for PEPR while accounted for on the equity method and approximately one month of activity from the investments acquired
through the Merger. See Note 2 for more details of these transactions. |
| (2) |
During the second quarter of 2012, Prologis NAIII settled debt before maturity by transferring the secured properties to the lender in lieu of payment and triggered the
write-off of the related derivative balance in other comprehensive income of $25.1 million (Prologis share was $5.0 million). |
| (3) |
At December 31, 2011, we had notes receivable aggregating $41.2 million from Prologis NAIII ($21.4 million) and Prologis SGP Mexico ($19.8 million). In February
2012, Prologis NAIII restructured the loan payable to us and our partner into equity according to our ownership percentages. As of June 30, 2012, we have one note receivable from Prologis SGP Mexico of $19.8 million. The remaining amounts
represent current balances from services provided by us to the co-investment ventures. |
| (4) |
As discussed in Note 2, debt was reduced by $1.4 billion related to the consolidation of two unconsolidated co-investment ventures during the first quarter of 2012. As
of June 30, 2012 and December 31, 2011, we guaranteed $28.0 million of the third party debt of certain unconsolidated ventures. As of December 31, 2011, we had pledged properties included in our Real Estate Operations segment with an
undepreciated cost of approximately $277.0 million, to serve as additional collateral for the secured mortgage loan of NAIF II payable to an affiliate of our venture partner. In connection with the acquisition of our partner’s interest in
February 2012, we repaid this loan, and these assets are no longer pledged. |
| (5) |
Represents our weighted average ownership interest in all co-investment ventures based on each entity’s contribution to total assets, before depreciation, net of
other liabilities. |
| (6) |
The difference between our ownership interest of the venture’s equity and our investment balance results principally from three types of transactions:
(i) deferring a portion of the gains we recognize from a contribution of one of our properties to the venture (see next footnote); (ii) recording additional costs associated with our investment in the venture; and (iii) advances to
the venture. |
| (7) |
This amount is recorded as a reduction to our investment and represents the gains that were deferred when we contributed a property to a venture due to our continuing
ownership in the property. |
|
| Summary of remaining equity commitments |
| |
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|
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|
| |
|
Equity commitments |
|
|
Expiration date for remaining
commitments |
|
Prologis Targeted U.S. Logistics Fund (1)
|
|
|
|
|
|
|
|
Prologis
|
|
$ |
— |
|
|
Open-Ended (1) |
|
Venture Partners
|
|
$ |
137.5 |
|
|
|
| |
|
|
|
|
|
|
|
Prologis SGP Mexico (2)
|
|
|
|
|
|
|
|
Prologis
|
|
$ |
24.6 |
|
|
(2) |
|
Venture Partner
|
|
$ |
98.1 |
|
|
|
| |
|
|
|
|
|
|
|
Europe Logistics Venture 1 (3)
|
|
|
|
|
|
|
|
Prologis
|
|
$ |
75.6 |
|
|
February 2014 |
|
Venture Partner
|
|
$ |
428.7 |
|
|
|
| |
|
|
|
|
|
|
|
Prologis China Logistics Venture 1
|
|
|
|
|
|
|
|
Prologis
|
|
$ |
71.0 |
|
|
March 2015 |
|
Venture Partner
|
|
$ |
402.1 |
|
|
|
| |
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
Prologis
|
|
$ |
171.2 |
|
|
|
|
Venture Partners
|
|
$ |
1,066.4 |
|
|
|
| |
|
|
|
|
|
|
| (1) |
We secured $265.5 million in commitments from third parties in 2012 in order to fund future acquisitions from us and third parties that meet the venture’s
investment strategy, or to pay down existing debt. During the second quarter of 2012, the venture called capital of $128.0 million from these investors to pay down existing debt. The venture called an additional $55.0 million from these investors in
July primarily to pay down existing debt. |
| (2) |
These equity commitments will be called only if needed to pay outstanding debt of the venture. The relevant debt is due in the third quarter of 2012, with an option to
extend until the third quarter of 2013. |
| (3) |
Equity commitments are denominated in euro and reported above in U.S. dollar. During the first quarter of 2012, this co-investment venture acquired two buildings with
proceeds from commitments previously called. In addition, in the first quarter of 2012, the venture called capital of $14.3 million from our partner to cover the acquisition of one property from us. |
|
| Other joint ventures, investment in and advances to by region |
| |
|
|
|
|
|
|
|
|
| |
|
June 30, |
|
|
December 31, |
|
| |
|
2012 |
|
|
2011 |
|
|
Americas (1)
|
|
$ |
196,366 |
|
|
$ |
305,352 |
|
|
Europe
|
|
|
50,237 |
|
|
|
50,474 |
|
|
Asia
|
|
|
29,726 |
|
|
|
30,750 |
|
| |
|
|
|
|
|
|
|
|
|
Total investments in and advances to other joint ventures
|
|
$ |
276,329 |
|
|
$ |
386,576 |
|
| |
|
|
|
|
|
|
|
|
| (1) |
During the second quarter of 2012, we received $95.0 million, which represented a return of capital from one of our joint ventures that held a note receivable that was
repaid in full during the quarter. |
|