UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

T

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2015

 

£

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______________ to ______________

 

Commission File Number:  001-13545 (Prologis, Inc.)  001-14245 (Prologis, L.P.)

 

Prologis, Inc.

Prologis, L.P.

(Exact name of registrant as specified in its charter)

 

Maryland (Prologis, Inc.)

Delaware (Prologis, L.P.)

 

94-3281941 (Prologis, Inc.)

94-3285362 (Prologis, L.P.)

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

Pier 1, Bay 1, San Francisco, California

 

94111

(Address or principal executive offices)

 

(Zip Code)

 

(415) 394-9000

(Registrants’ telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing for the past 90 days.

Prologis, Inc.

Yes

T

No

£

Prologis, L.P.

Yes

T

No

£

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website; if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter periods that the registrant was required to submit and post such files).

Prologis, Inc.

Yes

T

No

£

Prologis, L.P.

Yes

T

No

£

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (check one):

 

Prologis, Inc.:

 

 

 

 

Large accelerated filer   T

 

Accelerated filer   £

Non-accelerated filer   £

Smaller reporting company   £

 

 

(Do not check if a smaller reporting  company)

 

 

Prologis, L.P.:

 

 

 

 

Large accelerated filer   £

 

Accelerated filer   £

Non-accelerated filer   T

Smaller reporting company   £

 

 

(Do not check if a smaller reporting  company)

 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).

Prologis, Inc.

Yes

£

No

T

Prologis, L.P.

Yes

£

No

T

 

The number of shares of Prologis, Inc.’s common stock outstanding at October 27, 2015, was approximately 524,311,000.

 

 

 

 


 

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended September 30, 2015, of Prologis, Inc. and Prologis, L.P. Unless stated otherwise or the context otherwise requires, references to “Prologis, Inc.” or the “Parent” mean Prologis, Inc. and its consolidated subsidiaries; and references to “Prologis, L.P.” or the “Operating Partnership” mean Prologis, L.P., and its consolidated subsidiaries. The terms “the Company,” “Prologis,” “we,” “our” or “us” means Prologis, Inc. and the Operating Partnership collectively.

Prologis, Inc. is a real estate investment trust (“REIT”) and the general partner of the Operating Partnership. At September 30, 2015, Prologis, Inc. owned an approximate 98.77% common general partnership interest in the Operating Partnership and 100% of the preferred units in the Operating Partnership. The remaining approximate 1.23% common limited partnership interests are owned by nonaffiliated investors and certain current and former directors and officers of Prologis, Inc. As the sole general partner of the Operating Partnership, Prologis, Inc. has complete responsibility and discretion in the day-to-day management and control of the Operating Partnership.

We operate Prologis, Inc. and the Operating Partnership as one enterprise. The management of Prologis, Inc. consists of the same members as the management of the Operating Partnership. These members are officers of Prologis, Inc. and employees of the Operating Partnership or one of its subsidiaries. As general partner with control of the Operating Partnership, Prologis, Inc. consolidates the Operating Partnership for financial reporting purposes. Because the only significant asset of Prologis, Inc. is its investment in the Operating Partnership, the assets and liabilities of Prologis, Inc. and the Operating Partnership are the same on their respective financial statements.

We believe combining the quarterly reports on Form 10-Q of Prologis, Inc. and the Operating Partnership into this single report results in the following benefits:

·

enhances investors’ understanding of Prologis, Inc. and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

·

eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the Company’s disclosure applies to both Prologis, Inc. and the Operating Partnership; and

·

creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

It is important to understand the few differences between Prologis, Inc. and the Operating Partnership in the context of how we operate the Company. Prologis, Inc. does not conduct business itself, other than acting as the sole general partner of the Operating Partnership and issuing public equity from time to time. Prologis, Inc. itself does not incur any indebtedness, but guarantees the unsecured debt of the Operating Partnership. The Operating Partnership holds substantially all the assets of the business, directly or indirectly, and holds the ownership interests in the Company’s investment in certain entities. The Operating Partnership conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for net proceeds from equity issuances by Prologis, Inc., which are contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generates capital required by the business through the Operating Partnership’s operations, incurrence of indebtedness and issuance of partnership units to third parties.

Noncontrolling interests, stockholders’ equity and partners’ capital are the main areas of difference between the consolidated financial statements of Prologis, Inc. and those of the Operating Partnership. The noncontrolling interests in the Operating Partnership’s consolidated financial statements include the interests in consolidated entities not owned by the Operating Partnership. The noncontrolling interests in Prologis, Inc.’s consolidated financial statements include the same noncontrolling interests at the Operating Partnership level, as well as the common limited partnership interests in the Operating Partnership, not owned by Prologis, Inc., which are accounted for as partners’ capital by the Operating Partnership.

To highlight the differences between Prologis, Inc. and the Operating Partnership, there are separate sections in this report, as applicable, that separately discuss Prologis, Inc. and the Operating Partnership, including separate financial statements and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure of Prologis, Inc. and the Operating Partnership, this report refers to actions or holdings as being actions or holdings of Prologis.

 

 

 

 


 

PROLOGIS

INDEX

 

 

 

 

 

Page

Number

 

PART I.

 

Financial Information

 

 

 

 

 

Item 1.

Financial Statements

 

1

 

 

 

            Prologis, Inc.:

 

 

 

 

 

 

Consolidated Balance Sheets – September 30, 2015, and December 31, 2014

 

1

 

 

 

 

Consolidated Statements of Operations – Three and Nine Months Ended September 30, 2015, and 2014

 

2

 

 

 

 

Consolidated Statements of Comprehensive Income (Loss) – Three and Nine Months Ended September 30, 2015, and 2014

 

3

 

 

 

 

Consolidated Statement of Equity – Nine Months Ended September 30, 2015

 

3

 

 

 

 

Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2015, and 2014

 

4

 

 

 

            Prologis, L.P.:

 

 

 

 

 

 

Consolidated Balance Sheets – September 30, 2015, and December 31, 2014

 

5

 

 

 

 

Consolidated Statements of Operations – Three and Nine Months Ended September 30, 2015, and 2014

 

6

 

 

 

 

Consolidated Statements of Comprehensive Income (Loss) – Three and Nine Months Ended September 30, 2015, and 2014

 

7

 

 

 

 

Consolidated Statement of Capital – Nine Months Ended September 30, 2015

 

7

 

 

 

 

Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2015, and 2014

 

8

 

 

 

            Prologis, Inc. and Prologis, L.P.:

 

 

 

 

 

 

Notes to the Consolidated Financial Statements

 

9

 

 

 

 

Reports of Independent Registered Public Accounting Firm

 

25

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

27

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

40

 

 

 

Item 4.

Controls and Procedures

 

41

 

PART II.

 

Other Information

 

 

 

 

 

Item 1.

Legal Proceedings

 

41

 

 

 

Item 1A.

Risk Factors

 

41

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

41

 

 

 

Item 3.

Defaults Upon Senior Securities

 

41

 

 

 

Item 4.

Mine Safety Disclosures

 

41

 

 

 

Item 5.

Other Information

 

41

 

 

 

Item 6.

Exhibits

 

41

 

 

 

 

 

 


 

PART I. FINANCIAL INFORMATION

 

ITEM 1. Financial Statements

 

PROLOGIS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

 

 

September 30,

 

 

 

 

 

 

2015

 

 

December 31,

 

 

(Unaudited)

 

 

2014

 

ASSETS

 

 

 

 

 

 

 

Investments in real estate properties

$

27,269,358

 

 

$

22,190,145

 

Less accumulated depreciation

 

3,156,445

 

 

 

2,790,781

 

Net investments in real estate properties

 

24,112,913

 

 

 

19,399,364

 

Investments in and advances to unconsolidated entities

 

4,841,225

 

 

 

4,824,724

 

Assets held for sale

 

369,382

 

 

 

43,934

 

Note receivable backed by real estate

 

197,500

 

 

 

-

 

Net investments in real estate

 

29,521,020

 

 

 

24,268,022

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

310,433

 

 

 

350,692

 

Other assets

 

1,587,901

 

 

 

1,199,509

 

Total assets

$

31,419,354

 

 

$

25,818,223

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Debt

$

11,934,355

 

 

$

9,380,199

 

Accounts payable and accrued expenses

 

697,860

 

 

 

627,999

 

Other liabilities

 

602,168

 

 

 

626,426

 

Total liabilities

 

13,234,383

 

 

 

10,634,624

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

Prologis, Inc. stockholders’ equity:

 

 

 

 

 

 

 

Series Q preferred stock at stated liquidation preference of $50 per share: $0.01 par value; 1,565 shares issued and

     outstanding and 100,000 preferred shares authorized at September 30, 2015, and December 31, 2014

 

78,235

 

 

 

78,235

 

Common stock: $0.01 par value; 524,186 shares and 509,498 shares issued and outstanding at September 30,

     2015, and December 31, 2014, respectively

 

5,242

 

 

 

5,095

 

Additional paid-in capital

 

19,150,336

 

 

 

18,467,009

 

Accumulated other comprehensive loss

 

(776,570

)

 

 

(600,337

)

Distributions in excess of net earnings

 

(3,825,673

)

 

 

(3,974,493

)

Total Prologis, Inc. stockholders’ equity

 

14,631,570

 

 

 

13,975,509

 

Noncontrolling interests

 

3,553,401

 

 

 

1,208,090

 

Total equity

 

18,184,971

 

 

 

15,183,599

 

Total liabilities and equity

$

31,419,354

 

 

$

25,818,223

 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

 

 

1

 


 

PROLOGIS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

418,116

 

 

$

275,686

 

 

$

1,100,491

 

 

$

871,025

 

Rental recoveries

 

 

114,639

 

 

 

80,136

 

 

 

312,510

 

 

 

254,310

 

Strategic capital income

 

 

44,176

 

 

 

54,070

 

 

 

133,247

 

 

 

175,714

 

Development management and other income

 

 

3,691

 

 

 

5,259

 

 

 

7,625

 

 

 

8,873

 

Total revenues

 

 

580,622

 

 

 

415,151

 

 

 

1,553,873

 

 

 

1,309,922

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental expenses

 

 

139,905

 

 

 

102,324

 

 

 

392,438

 

 

 

322,417

 

Strategic capital expenses

 

 

21,714

 

 

 

22,442

 

 

 

62,190

 

 

 

74,442

 

General and administrative expenses

 

 

59,375

 

 

 

58,203

 

 

 

172,690

 

 

 

181,781

 

Depreciation and amortization

 

 

247,471

 

 

 

149,202

 

 

 

607,467

 

 

 

471,059

 

Other expenses

 

 

8,765

 

 

 

4,868

 

 

 

44,467

 

 

 

15,371

 

Total expenses

 

 

477,230

 

 

 

337,039

 

 

 

1,279,252

 

 

 

1,065,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

103,392

 

 

 

78,112

 

 

 

274,621

 

 

 

244,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from unconsolidated entities, net

 

 

33,557

 

 

 

28,514

 

 

 

106,383

 

 

 

79,411

 

Interest expense

 

 

(81,035

)

 

 

(69,086

)

 

 

(218,698

)

 

 

(234,793

)

Interest and other income, net

 

 

6,237

 

 

 

550

 

 

 

19,133

 

 

 

19,716

 

Gains on dispositions of investments in real estate, net

 

 

268,791

 

 

 

151,057

 

 

 

655,288

 

 

 

337,695

 

Foreign currency and derivative gains (losses) and related amortization, net

 

 

(9,428

)

 

 

20,792

 

 

 

(374

)

 

 

2,738

 

Losses on early extinguishment of debt, net

 

 

-

 

 

 

(86,076

)

 

 

(16,525

)

 

 

(163,361

)

Total other income

 

 

218,122

 

 

 

45,751

 

 

 

545,207

 

 

 

41,406

 

Earnings before income taxes

 

 

321,514

 

 

 

123,863

 

 

 

819,828

 

 

 

286,258

 

Current income tax expense

 

 

17,283

 

 

 

10,394

 

 

 

22,828

 

 

 

59,292

 

Deferred income tax benefit

 

 

(2,955

)

 

 

(33,658

)

 

 

(1,758

)

 

 

(84,594

)

Total income tax expense (benefit)

 

 

14,328

 

 

 

(23,264

)

 

 

21,070

 

 

 

(25,302

)

Consolidated net earnings

 

 

307,186

 

 

 

147,127

 

 

 

798,758

 

 

 

311,560

 

Net earnings attributable to noncontrolling interests

 

 

(46,536

)

 

 

(9,212

)

 

 

(49,314

)

 

 

(85,664

)

Net earnings attributable to controlling interests

 

 

260,650

 

 

 

137,915

 

 

 

749,444

 

 

 

225,896

 

Less preferred stock dividends

 

 

1,671

 

 

 

1,670

 

 

 

5,019

 

 

 

5,753

 

Loss on preferred stock repurchase

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6,517

 

Net earnings attributable to common stockholders

 

$

258,979

 

 

$

136,245

 

 

$

744,425

 

 

$

213,626

 

Weighted average common shares outstanding – Basic

 

 

523,528

 

 

 

499,292

 

 

 

520,388

 

 

 

499,045

 

Weighted average common shares outstanding – Diluted

 

 

532,073

 

 

 

516,088

 

 

 

531,121

 

 

 

504,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share attributable to common stockholders – Basic

 

$

0.49

 

 

$

0.27

 

 

$

1.43

 

 

$

0.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share attributable to common stockholders – Diluted

 

$

0.49

 

 

$

0.23

 

 

$

1.41

 

 

$

0.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per common share

 

$

0.40

 

 

$

0.33

 

 

$

1.12

 

 

$

0.99

 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

 

 

2

 


 

PROLOGIS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In thousands)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Consolidated net earnings

 

$

307,186

 

 

$

147,127

 

 

$

798,758

 

 

$

311,560

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation losses, net

 

 

(148,570

)

 

 

(130,763

)

 

 

(197,912

)

 

 

(72,022

)

Unrealized losses and amortization on derivative contracts, net

 

 

(15,660

)

 

 

(4,359

)

 

 

(12,313

)

 

 

(7,784

)

Comprehensive income

 

 

142,956

 

 

 

12,005

 

 

 

588,533

 

 

 

231,754

 

Net earnings attributable to noncontrolling interests

 

 

(46,536

)

 

 

(9,212

)

 

 

(49,314

)

 

 

(85,664

)

Other comprehensive loss attributable to noncontrolling interest

 

 

18,925

 

 

 

9,709

 

 

 

33,992

 

 

 

4,820

 

Comprehensive income attributable to common stockholders

 

$

115,345

 

 

$

12,502

 

 

$

573,211

 

 

$

150,910

 

 

 

 

PROLOGIS, INC.

CONSOLIDATED STATEMENT OF EQUITY

Nine Months Ended September 30, 2015

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

Accumulated

 

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number

 

 

 

 

 

 

Additional

 

 

Other

 

 

in Excess of

 

 

Non-

 

 

 

 

 

 

 

Preferred

 

 

of

 

 

Par

 

 

Paid-in

 

 

Comprehensive

 

 

Net

 

 

controlling

 

 

Total

 

 

 

Stock

 

 

Shares

 

 

Value

 

 

Capital

 

 

Income (Loss)

 

 

Earnings

 

 

interests

 

 

Equity

 

Balance at January 1, 2015

 

$

78,235

 

 

 

509,498

 

 

$

5,095

 

 

$

18,467,009

 

 

$

(600,337

)

 

$

(3,974,493

)

 

$

1,208,090

 

 

$

15,183,599

 

Consolidated net earnings

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

749,444

 

 

 

49,314

 

 

 

798,758

 

Effect of equity compensation plans

 

 

-

 

 

 

1,149

 

 

 

12

 

 

 

36,410

 

 

 

-

 

 

 

-

 

 

 

21,203

 

 

 

57,625

 

Issuance of stock in at-the-market

     program, net of issuance costs

 

 

-

 

 

 

1,662

 

 

 

16

 

 

 

71,604

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

71,620

 

Issuance of stock upon conversion of

     exchangeable debt

 

 

-

 

 

 

11,872

 

 

 

119

 

 

 

502,613

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

502,732

 

Issuance of units related to KTR

     acquisition

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

181,170

 

 

 

181,170

 

Capital contributions from our partners

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,354,697

 

 

 

2,354,697

 

Foreign currency translation losses, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(164,072

)

 

 

-

 

 

 

(33,840

)

 

 

(197,912

)

Unrealized losses and amortization

     on derivative contracts, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(12,161

)

 

 

-

 

 

 

(152

)

 

 

(12,313

)

Allocation from the limited partners

 

 

-

 

 

 

-

 

 

 

-

 

 

 

71,740

 

 

 

-

 

 

 

-

 

 

 

(71,740

)

 

 

-

 

Distributions and other

 

 

-

 

 

 

5

 

 

 

-

 

 

 

960

 

 

 

-

 

 

 

(600,624

)

 

 

(155,341

)

 

 

(755,005

)

Balance at September 30, 2015

 

$

78,235

 

 

 

524,186

 

 

$

5,242

 

 

$

19,150,336

 

 

$

(776,570

)

 

$

(3,825,673

)

 

$

3,553,401

 

 

$

18,184,971

 

 

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

 

 

3

 


 

PROLOGIS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2015

 

 

2014

 

Operating activities:

 

 

 

 

 

 

 

 

Consolidated net earnings

 

$

798,758

 

 

$

311,560

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Straight-lined rents and amortization of above and below market leases

 

 

(37,537

)

 

 

(11,213

)

Equity-based compensation awards

 

 

40,124

 

 

 

43,042

 

Depreciation and amortization

 

 

607,467

 

 

 

471,059

 

Earnings from unconsolidated entities, net

 

 

(106,383

)

 

 

(79,411

)

Distributions and net changes in operating receivables from unconsolidated entities

 

 

91,328

 

 

 

78,702

 

Amortization of debt intangibles and deferred financing costs

 

 

(22,271

)

 

 

(2,091

)

Gains on dispositions of investments in real estate, net

 

 

(655,288

)

 

 

(337,695

)

Losses on early extinguishment of debt, net

 

 

16,525

 

 

 

163,361

 

Unrealized foreign currency and derivative losses and related amortization, net

 

 

6,931

 

 

 

1,993

 

Deferred income tax benefit

 

 

(1,758

)

 

 

(84,594

)

Increase in accounts receivable and other assets

 

 

(68,243

)

 

 

(20,688

)

Decrease in accounts payable and accrued expenses and other liabilities

 

 

(19,838

)

 

 

(83,238

)

Net cash provided by operating activities

 

 

649,815

 

 

 

450,787

 

Investing activities:

 

 

 

 

 

 

 

 

Real estate development activity

 

 

(950,199

)

 

 

(776,237

)

Real estate acquisitions

 

 

(571,368

)

 

 

(389,818

)

KTR acquisition, net of cash received

 

 

(4,809,499

)

 

 

-

 

Tenant improvements and lease commissions on previously leased space

 

 

(108,662

)

 

 

(95,812

)

Non-development capital expenditures

 

 

(51,374

)

 

 

(47,915

)

Proceeds from dispositions and contributions of real estate properties

 

 

1,814,532

 

 

 

1,654,554

 

Investments in and advances to unconsolidated entities

 

 

(438,964

)

 

 

(1,324,530

)

Return of investment from unconsolidated entities

 

 

109,359

 

 

 

188,507

 

Proceeds from repayment of note receivable

 

 

9,866

 

 

 

188,000

 

Proceeds from the settlement of net investment hedges

 

 

122,505

 

 

 

14,487

 

Payments on the settlement of net investment hedges

 

 

(981

)

 

 

(14,691

)

Net cash used in investing activities

 

 

(4,874,785

)

 

 

(603,455

)

Financing activities:

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

 

84,112

 

 

 

15,085

 

Dividends paid on common and preferred stock

 

 

(592,795

)

 

 

(502,259

)

Repurchase of preferred stock

 

 

-

 

 

 

(27,643

)

Noncontrolling interests contributions

 

 

2,354,468

 

 

 

467,016

 

Noncontrolling interests distributions

 

 

(157,517

)

 

 

(269,400

)

Purchase of noncontrolling interests

 

 

(2,560

)

 

 

(2,440

)

Debt and equity issuance costs paid

 

 

(18,476

)

 

 

(19,318

)

Net proceeds from credit facilities

 

 

199,958

 

 

 

22,076

 

Repurchase and payments of debt

 

 

(913,178

)

 

 

(3,731,044

)

Proceeds from issuance of debt

 

 

3,239,261

 

 

 

4,024,785

 

Net cash provided by (used in) financing activities

 

 

4,193,273

 

 

 

(23,142

)

 

 

 

 

 

 

 

 

 

Effect of foreign currency exchange rate changes on cash

 

 

(8,562

)

 

 

(3,440

)

Net decrease in cash and cash equivalents

 

 

(40,259

)

 

 

(179,250

)

Cash and cash equivalents, beginning of period

 

 

350,692

 

 

 

491,129

 

Cash and cash equivalents, end of period

 

$

310,433

 

 

$

311,879

 

 

See Note 14 for information on noncash investing and financing activities and other information.

The accompanying notes are an integral part of these Consolidated Financial Statements.

 

 

4

 


 

PROLOGIS, L.P.

CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

September 30,

 

 

 

 

 

 

2015

 

 

December 31,

 

 

(Unaudited)

 

 

2014

 

ASSETS

 

 

 

 

 

 

 

Investments in real estate properties

$

27,269,358

 

 

$

22,190,145

 

Less accumulated depreciation

 

3,156,445

 

 

 

2,790,781

 

Net investments in real estate properties

 

24,112,913

 

 

 

19,399,364

 

Investments in and advances to unconsolidated entities

 

4,841,225

 

 

 

4,824,724

 

Assets held for sale

 

369,382

 

 

 

43,934

 

Note receivable backed by real estate

 

197,500

 

 

 

-

 

Net investments in real estate

 

29,521,020

 

 

 

24,268,022

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

310,433

 

 

 

350,692

 

Other assets

 

1,587,901

 

 

 

1,199,509

 

Total assets

$

31,419,354

 

 

$

25,818,223

 

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITAL

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Debt

$

11,934,355

 

 

$

9,380,199

 

Accounts payable and accrued expenses

 

697,860

 

 

 

627,999

 

Other liabilities

 

602,168

 

 

 

626,426

 

Total liabilities

 

13,234,383

 

 

 

10,634,624

 

 

 

 

 

 

 

 

 

Capital:

 

 

 

 

 

 

 

Partners’ capital:

 

 

 

 

 

 

 

General partner – preferred