| Real Estate |
Investments in real estate properties are presented at cost, and
consisted of the following (square feet and dollars in
thousands):
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Square Feet / Acres (1) |
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No. of Buildings (1) |
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Investment Balance |
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September 30,
2014 |
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December 31,
2013 |
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September 30,
2014 |
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December 31,
2013 |
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September 30,
2014 |
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December 31,
2013 |
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Industrial operating properties:
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Improved land
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-- |
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-- |
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-- |
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-- |
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$ |
3,641,571 |
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$ |
4,074,647 |
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Buildings and improvements
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241,104 |
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267,097 |
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1,415 |
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1,610 |
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12,514,097 |
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13,726,417 |
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Development portfolio, including land costs:
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Pre-stabilized
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5,105 |
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4,491 |
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15 |
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11 |
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391,055 |
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204,022 |
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Properties under development
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21,158 |
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18,587 |
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51 |
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46 |
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925,415 |
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816,995 |
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Land
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9,226 |
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9,747 |
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-- |
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-- |
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1,533,590 |
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1,516,166 |
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Other real estate investments (2)
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-- |
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-- |
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-- |
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-- |
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460,854 |
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486,230 |
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Total investments in real estate properties
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19,466,582 |
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20,824,477 |
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Less accumulated depreciation
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2,695,745 |
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2,568,998 |
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Net investments in real estate properties
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$ |
16,770,837 |
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$ |
18,255,479 |
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| (1) |
Items indicated by ‘--‘
are not applicable. |
| (2) |
Included in other real estate
investments are: (i) certain non-industrial real estate;
(ii) our corporate office buildings; (iii) land parcels
that are ground leased to third parties; (iv) certain
infrastructure costs related to projects we are developing on
behalf of others; (v) costs related to future development
projects, including purchase options on land; and (vi) earnest
money deposits associated with potential acquisitions. |
At September 30, 2014, we owned real estate assets in the
Americas (Canada, Mexico and the United States), Europe
(Austria, Belgium, the Czech Republic, France, Germany, Hungary,
Italy, the Netherlands, Poland, Romania, Slovakia, Spain, Sweden
and the United Kingdom) and Asia (China, Japan and Singapore).
Real estate acquisition activity for the nine months ended
September 30, was as follows (square feet and dollars in
thousands):
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2014 |
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2013 |
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Acquisitions of properties from unconsolidated co-investment
ventures
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Number of properties
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— |
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32 |
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Square feet
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— |
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9,958 |
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Real estate acquisition value
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$ |
— |
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$ |
731,644 |
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Net gains
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$ |
— |
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$ |
35,886 |
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Building acquisitions from third parties
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Number of properties
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8 |
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4 |
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Square feet
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1,004 |
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1,134 |
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Real estate acquisition value
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$ |
78,314 |
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$ |
48,922 |
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Dispositions
Real estate disposition activity for the nine months ended
September 30, was as follows (square feet and dollars in
thousands):
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2014 |
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2013 |
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Continuing Operations
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Contributions to co-investment ventures
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Number of properties
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115 |
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221 |
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Square feet
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22,806 |
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62,213 |
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Net proceeds
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$ |
1,627,424 |
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$ |
5,205,322 |
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Net gains on contributions
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$ |
156,746 |
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$ |
407,788 |
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Dispositions to third parties
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Number of properties
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106 |
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— |
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Square feet
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14,663 |
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— |
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Net proceeds (1)
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$ |
955,240 |
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$ |
84,518 |
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Net gains on dispositions (1)
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$ |
180,949 |
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$ |
2,280 |
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Discontinued Operations
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Number of properties
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— |
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39 |
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Square feet
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— |
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4,802 |
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Net proceeds from dispositions
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$ |
— |
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$ |
297,465 |
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Net gains from dispositions, including taxes
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$ |
— |
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$ |
59,598 |
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| (1) |
Dispositions to third parties include
land sales. |
In June 2014, we launched the initial public offering for FIBRA
Prologis (“FIBRA”), a Mexican real estate investment
trust, on the Mexican Stock Exchange. In connection with the
offering, FIBRA purchased 177 properties aggregating
29.7 million square feet (12.6 million square feet from our
wholly-owned portfolio, 7.6 million square feet from our
consolidated co-investment venture Mexico Fondo Logistico
(“AFORES”) and 9.5 million square feet from our
unconsolidated co-investment venture Prologis Mexico Industrial
Fund). We received 287.3 million equity units of FIBRA (priced
at Ps 27.00 ($2.09)) in exchange for our combined investments and
have a 45% ownership interest that we account for under the equity
method. The closing price of the equity units on the Mexican Stock
Exchange was Ps 28.10 ($2.08) per unit on September 30, 2014.
Based on this transaction, we recognized a gain on disposition of
investments in real estate of $52.5 million; current tax expense of
$32.4 million; deferred tax benefit of $55.5 million; and earnings
attributable to noncontrolling interest of $61.0 million, which
represented the third party investors’ portion of this
transaction.
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