Unconsolidated Entities (Tables)

The following table summarizes our investments in and advances to our unconsolidated entities at December 31 (in thousands):

	2017		2016
Unconsolidated co-investment ventures	$	5,274,702	$	4,057,524
Other ventures		221,748		172,905
Total	$	5,496,450	$	4,230,429

The following table summarizes our investments in the individual co-investment ventures at December 31 (dollars in thousands):

	Ownership Percentage						Investment in and Advances to
Co-Investment Venture	2017			2016			2017		2016
Prologis Targeted U.S. Logistics Fund, L.P. (“USLF”) (1)		28.2	%		14.9	%	$	1,383,021	$	434,818
FIBRA Prologis (2) (3)		46.3	%		45.9	%		533,941		547,744
Prologis European Logistics Partners Sàrl (“PELP”) (4)		50.0	%		50.0	%		1,766,075		1,623,707
Prologis European Logistics Fund ("PELF") (5)		26.3	%		31.2	%		1,017,361		344,200
Prologis UK Logistics Venture ("UKLV") (4) (6)		15.0	%	N/A				29,382		-
Prologis Targeted Europe Logistics Fund, FCP-FIS (“PTELF”) (5)	N/A				23.5	%		-		310,118
Europe Logistics Venture 1, FCP-FIS (“ELV”) (7)	N/A				15.0	%		-		48,289
Nippon Prologis REIT, Inc. (“NPR”) (8) (9)		15.1	%		15.1	%		406,568		348,570
Prologis China Logistics Venture I, LP and II, LP ("Prologis China Logistics Venture") (4)		15.0	%		15.0	%		116,890		102,778
Brazil joint ventures (10)		10.0	%	various				21,464		297,300
Total							$	5,274,702	$	4,057,524

(1)	In July 2017, we contributed operating properties to USLF. We received cash proceeds and additional units, which increased our ownership interest and USLF assumed secured debt.

(2)	At December 31, 2017, we owned 295.5 million units of FIBRA Prologis that had a closing price of Ps 34.01 ($1.72) per unit on the Mexican Stock Exchange.

(3)	We have granted FIBRA Prologis a right of first refusal with respect to stabilized properties that we plan to sell in Mexico.

(4)	We have one partner in each of these co-investment ventures.

(5)

In October, the assets and related liabilities of PTELF were contributed to Prologis European Properties Fund II (“PEPF II”) in exchange for units, and PEPF II was renamed PELF. In connection with the transaction, we exchanged our units in PTELF for new units in PELF resulting in our ownership interest decreasing to 25.6%, however, our economic investment did not substantially change. As the contribution resulted in the exchange of our investment in PTELF for an equity investment in PELF, we carried over our investment in PTELF to PELF at the historical cost and no gain was recognized.

(6)

In February 2017, we formed UKLV, an unconsolidated co-investment venture in which we have a 15.0% ownership interest. UKLV will acquire land, develop buildings and operate and hold logistics real estate assets in the U.K. Upon formation, we, along with our venture partner, committed £380.0 million ($477.5 million), of which our share was £57.0 million ($71.6 million).

(7)	In January 2017, we sold our investment in ELV to our venture partner for $84.3 million and ELV contributed its properties to PTELF in exchange for equity interests.

(8)

At December 31, 2017, we owned 0.3 million units of NPR that had a closing price of ¥238,300 ($2,117) per share on the Tokyo Stock Exchange. At December 31, 2017 and 2016, we had receivables from NPR of $106.2 million and $96.9 million, respectively, related to customer security deposits that originated through a leasing company owned by us that pertain to properties owned by NPR. We have a corresponding payable to NPR’s customers in Other Liabilities. These amounts are repaid to us as the leases turn over.

(9)	For any properties we develop and plan to sell in Japan, we have committed to offer those properties to NPR.

(10)

In March 2017, we acquired all our partner’s interest in the Prologis Brazil Logistics Partners Fund I, L.P. (“Brazil Fund”). In August 2017, we acquired our partner’s interest in certain joint ventures in Brazil. See Note 4 for more information on this acquisition. The remaining investment balance includes nine properties aggregating 2.8 million square feet held with various partners.

The following table summarizes the amounts we recognized in the Consolidated Statements of Income related to the unconsolidated co-investment ventures for the years ended December 31 (in thousands):

	2017		2016		2015
Strategic capital revenues from unconsolidated co-investment ventures, net:
U.S.	$	174,586	$	37,911	$	36,964
Other Americas		28,493		22,799		22,735
Europe		106,768		186,113		112,626
Asia		61,410		54,352		42,750
Total (1)	$	371,257	$	301,175	$	215,075

Earnings from unconsolidated co-investment ventures, net:
U.S.	$	32,989	$	10,441	$	7,124
Other Americas		26,200		27,155		28,842
Europe		145,792		137,652		106,656
Asia		29,187		16,629		12,780
Total	$	234,168	$	191,877	$	155,402

(1)	We earned promote revenue (third-party share) of $127.5 million, $88.5 million and $29.5 million in 2017, 2016 and 2015, respectively. Promote revenue is based on the venture’s cumulative returns to investors over a certain time-period, generally three years.

The following table summarizes the remaining equity commitments at December 31, 2017 (in millions):

	Equity Commitments						Expiration Date for Remaining Commitments
	Prologis		Venture Partners		Total
Prologis Targeted U.S. Logistics Fund	$	-	$	73	$	73	2019
Prologis European Logistics Fund (1)		-		1,061		1,061	2018 – 2019
Prologis UK Logistics Venture (2)		27		151		178	2021
Prologis China Logistics Venture		294		1,665		1,959	2020 – 2024
Total	$	321	$	2,950	$	3,271

(1)

During 2017, the remaining equity commitments of PTELF were transferred to PELF when the assets and related liabilities of PTELF were contributed to PEPF II, and PEPF II was renamed PELF. Equity commitments are denominated in euro and reported in U.S. dollars based on an exchange rate of $1.20 U.S. dollars to the euro.

(2)	Equity commitments are denominated in British pounds sterling and reported in U.S. dollars based on an exchange rate of $1.35 U.S. dollars to the British pound sterling.

The following table summarizes the financial position and operating information of our unconsolidated co-investment ventures (not our proportionate share), at December 31 and for the years ended December 31 as presented at our adjusted basis derived from the ventures’ U.S. GAAP information (dollars and square feet in millions):

	U.S.									Other Americas									Europe									Asia									Total
	2017			2016			2015			2017			2016			2015			2017			2016			2015			2017			2016			2015			2017			2016			2015
Financial Position:
Ventures		1			1			1			2			2			2			3			4			4			2			2			2			8			9			9
Operating properties		552			369			391			205			213			205			707			700			688			95			85			66			1,559			1,367			1,350
Square feet		88			50			50			37			42			39			166			163			159			41			36			29			332			291			277
Total assets ($)		7,062			4,238			4,408			2,118			2,793			2,482			13,586			10,853			11,343			6,133			5,173			4,320			28,899			23,057			22,553
Third-party debt ($)		2,313			1,414			1,433			756			739			657			2,682			2,446			2,640			2,328			1,947			1,520			8,079			6,546			6,250
Total liabilities ($)		2,520			1,540			1,550			782			814			708			3,655			3,283			3,584			2,685			2,239			1,751			9,642			7,876			7,593
Investment balance ($) (1)		1,383			435			690			555			845			786			2,813			2,327			2,707			524			451			402			5,275			4,058			4,585
Wtd avg ownership (2)		28.2	%		14.9	%		22.5	%		43.4	%		43.9	%		43.8	%		32.8	%		35.1	%		38.9	%		15.1	%		15.1	%		15.0	%		28.8	%		27.9	%		31.6	%

Operating Information:
Revenues ($)		533			395			382			245			242			228			1,030			964			947			372			342			275			2,180			1,943			1,832
Net earnings ($)		139			57			35			71			71			78			406			333			261			182			101			77			798			562			451

(1)

The difference between our ownership interest of a venture’s equity and our investment balance at December 31, 2017, 2016 and 2015, results principally from three types of transactions: (i) deferring a portion of the gains we recognize from a contribution of a property to a venture ($667.3 million, $469.9 million and $430.7 million, respectively); (ii) recording additional costs associated with our investment in the venture ($94.2 million, $124.1 million and $122.1 million, respectively); and (iii) advances to a venture ($210.0 million, $166.1 million and $189.7 million, respectively).

(2)	Represents our weighted average ownership interest in all co-investment ventures based on each entity’s contribution of total assets, before depreciation, net of other liabilities.