Real Estate (Tables)

Investments in real estate properties consisted of the following (dollars and square feet in thousands):

	Square Feet				Number of Buildings
	September 30,		December 31,		September 30,		December 31,		September 30,		December 31,
	2017		2016		2017		2016		2017		2016
Operating properties
Buildings and improvements		298,240		331,210		1,566		1,776	$	16,829,500	$	17,905,914
Improved land										5,826,773		6,037,543
Development portfolio, including land costs:
Prestabilized		7,394		8,256		24		29		441,235		798,233
Properties under development		22,189		19,539		55		60		1,059,764		633,849
Land (1)										1,313,268		1,218,904
Other real estate investments (2)										506,617		524,887
Total investments in real estate properties										25,977,157		27,119,330
Less accumulated depreciation										3,977,667		3,758,372
Net investments in real estate properties									$	21,999,490	$	23,360,958

(1)	Included in our investments in real estate at September 30, 2017, and December 31, 2016, were 5,871 and 5,892 acres of land, respectively.

(2)

Included in other real estate investments are: (i) non-logistics real estate; (ii) land parcels that are ground leased to third parties; (iii) our corporate office buildings; (iv) costs related to future development projects, including purchase options on land; (v) infrastructure costs related to projects we are developing on behalf of others; and (vi) earnest money deposits associated with potential acquisitions.

The following table summarizes our real estate acquisition activity for the three and nine months ended September 30 (dollars and square feet in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Acquisitions of operating properties from third parties and a controlling interest in an unconsolidated venture
Number of operating properties		12		1		14		7
Square feet		6,328		42		6,478		931
Acquisition value of net investments in real estate properties (1)	$	703,686	$	16,795	$	744,581	$	86,840

(1)

In August 2017, we acquired our partner’s interest in certain joint ventures in Brazil for an aggregate price of R$1.2 billion ($381.7 million). As a result of this transaction, we began consolidating total real estate that included the operating properties above, two prestabilized properties and 531.4 acres of undeveloped land. We accounted for the acquisition as a business combination and the results of operations for these real estate properties were not significant in 2017. The current allocation of the purchase price is preliminary and the valuation of the real estate properties and other assets acquired is still being finalized.

The following table summarizes our real estate disposition activity for the three and nine months ended September 30 (dollars and square feet in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Contributions to unconsolidated co-investment ventures (1)
Number of properties		201		11		211		21
Square feet		41,776		2,657		45,420		6,676
Net proceeds (2)	$	2,356,322	$	185,811	$	2,869,428	$	649,511
Gains on contributions, net (2)	$	647,647	$	29,197	$	773,715	$	132,787
Dispositions to third parties
Number of properties		7		48		45		147
Square feet		2,179		5,041		8,217		15,606
Net proceeds (2) (3)	$	155,227	$	410,602	$	614,906	$	1,300,209
Gains on dispositions, net (2) (3)	$	50,259	$	88,099	$	104,522	$	242,561

Total gains on contributions and dispositions, net	$	697,906	$	117,296	$	878,237	$	375,348
Gains on revaluation of equity investments upon acquisition of a controlling interest and redemption of investment in co-investment ventures		81,147		-		81,147		86,615
Total gains on dispositions of investments in real estate and revaluation of equity investments upon acquisition of a controlling interest, net	$	779,053	$	117,296	$	959,384	$	461,963

(1)

In July 2017, we contributed 190 operating properties totaling 37.1 million square feet owned by Prologis North American Industrial Fund (“NAIF”), which was wholly-owned beginning March 2017, to Prologis Targeted U.S. Logistics Fund (“USLF”), our unconsolidated co-investment venture, for an aggregate price of $2.8 billion. We received cash proceeds and additional units, which increased our ownership interest in USLF to 27.1% and USLF assumed $956.0 million of secured debt.

(2)	Also includes the contribution and disposition of land parcels.

(3)	Also includes the sale of our investment in Europe Logistics Venture 1 (“ELV”) in January 2017. See Note 3 for more information on this transaction.