Item 2. Properties

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Item 2. Properties

GEOGRAPHIC DISTRIBUTION

We predominately invest in logistics facilities. Our properties are typically used for distribution, storage, packaging, assembly and light manufacturing of consumer products. The vast majority of our operating properties are used by our customers for retail and online fulfillment and business-to-business transactions.

The following tables provide details of our consolidated operating properties, investment in land and development portfolio and our O&M portfolio. The O&M portfolio includes the properties we consolidate and the properties owned by our unconsolidated co-

investment ventures reflected at 100% of the amount included in the ventures’ financial statements as calculated on a GAAP basis, not our proportionate share.

Included in the operating property information below for our consolidated operating properties are 497 buildings owned primarily by one co-investment venture that we consolidate but of which we own less than 100% of the equity. No individual property or market amounted to 10% or more of our consolidated total assets at December 31, 2021, or generated revenue equal to 10% or more of our consolidated total revenues for the year ended December 31, 2021, with the exception of the Southern California market. Dollars and square feet in the following tables are in millions:

	Consolidated Operating Properties						O&M
Geographies	Rentable Square Footage		Gross Book Value		Encumbrances (1)		Rentable Square Footage		Gross Book Value
U.S.:
Atlanta		25	$	1,629	$	13		31	$	2,084
Baltimore/Washington D.C.		11		1,269		12		15		1,667
Central PA		15		1,308		-		17		1,428
Central Valley		17		1,326		9		19		1,461
Chicago		39		3,248		8		55		4,724
Dallas/Ft. Worth		32		2,281		8		39		2,872
Houston		24		2,518		4		31		3,034
Lehigh Valley		25		3,107		-		28		3,386
New Jersey/New York City		33		3,869		44		41		5,144
Orlando		10		1,022		70		11		1,120
San Francisco Bay Area		20		2,951		9		25		3,611
Seattle		14		2,066		-		22		2,932
South Florida		12		1,614		28		19		2,471
Southern California		77		9,181		14		97		11,515
Remaining Markets – U.S. (15 markets) (2)		76		5,500		38		102		7,485
Subtotal U.S.		430		42,889		257		552		54,934
Other Americas:
Brazil	-		-		-			13		641
Canada		10		833		150		10		833
Mexico	*			28	-			43		2,765
Subtotal Other Americas		10		861		150		66		4,239
Europe:
France		1		93	-			33		2,913
Germany		1		78	-			26		2,387
Netherlands	*			12	-			24		2,261
U.K.	*			69	-			28		5,351
Remaining Countries – Europe (8 countries) (3)		2		117	-			90		7,064
Subtotal Europe		4		369		-		201		19,976
Asia:
China	-		-		-			42		3,098
Japan	*			26	-			40		7,201
Singapore		1		141	-			1		141
Subtotal Asia		1		167		-		83		10,440
Total operating portfolio (4)		445		44,286		407		902		89,589
Value-added properties (5)		3		626		-		5		968
Total operating properties		448	$	44,912	$	407		907	$	90,557

Items notated by ‘*’ indicate an amount less than one million that rounds to zero.

	Consolidated – Investment in Land						Consolidated – Development Portfolio
Geographies	Acres		Estimated Build Out Potential (square feet) (6)		Current Investment		Rentable Square Footage Upon Completion		TEI (7)
U.S.:
Atlanta		221		3	$	34		3	$	191
Baltimore/Washington D.C.		41	*			18	*			13
Central PA		29	*			8		-		-
Central Valley		770		14		158		2		272
Chicago		134		2		43		2		292
Dallas/Ft. Worth		351		5		140		2		173
Houston		163		2		39	*			99
Lehigh Valley		208		2		77		1		101
New Jersey/New York City		18		1		56	*			124
Orlando		100		1		27		1		106
San Francisco Bay Area		-		-		-	*			42
Seattle		158		2		116	*			77
South Florida		150		2		134		1		154
Southern California		536		10		400		3		468
Remaining Markets – U.S. (15 markets)		814		12		281		4		368
Subtotal U.S.		3,693		56		1,531		19		2,480
Other Americas:
Brazil		263		5		52		-		-
Canada		167		3		125		1		54
Mexico		681		12		94		1		103
Subtotal Other Americas		1,111		20		271		2		157
Europe:
France		254		5		137	*			27
Germany		26		1		12		1		96
Netherlands		42		1		24		1		138
U.K.		247		4		295		3		514
Remaining Countries – Europe (8 countries)		780		16		158		2		178
Subtotal Europe		1,349		27		626		7		953
Asia:
Japan		74		5		92		7		1,127
Subtotal Asia		74		5		92		7		1,127
Total land and development portfolio		6,227		108	$	2,520		35	$	4,717

Items notated by ‘*’ indicate an amount less than one million that rounds to zero.

(1)

Certain of our consolidated properties are pledged as security under secured mortgage debt and assessment bonds. For purposes of this table, the total principal balance of a debt issuance that is secured by a pool of properties is allocated among the properties in the pool based on each property’s investment balance. In addition to the amounts reflected here, we also have $10 million of encumbrances related to one land parcel included in the consolidated land portfolio.

(2)	No remaining market within the U.S. represented more than 2% of the total gross book value of the consolidated operating properties.

(3)	No remaining country within Europe represented more than 2% of the total gross book value of the O&M operating properties.

(4)

Included in our consolidated operating properties are properties that we consider to be held for contribution and are presented within Assets Held for Sale or Contribution in the Consolidated Balance Sheets. We include these properties in our operating portfolio as they are expected to be contributed to our co-investment ventures and remain in our O&M operating portfolio. At December 31, 2021, we had investments in real estate properties that were expected to be contributed to our unconsolidated co-investment ventures totaling $535 million and aggregating 4 million square feet. See Note 6 to the Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data for further information on our Assets Held for Sale or Contribution.

(5)	Value-added properties are properties we have either acquired at a discount and believe we could provide greater returns post-stabilization or properties we expect to repurpose to a higher and better use.

(6)	Represents the estimated finished square feet available for lease upon completion of a building on existing parcels of land.

(7)

TEI is based on current projections and is subject to change. As noted in the table below, our current investment in the development portfolio was $2.7 billion, leaving approximately $2.0 billion of additional required investment. At December 31, 2021, based on TEI, approximately 18% of the properties in the development portfolio were completed but not yet stabilized, 71% of the properties were expected to be completed before December 31, 2022, and the remaining properties were expected to be completed before October 2023.

The following table summarizes our investment in consolidated real estate properties at December 31, 2021 (in millions):

	Investment Before Depreciation
Operating properties, excluding assets held for sale or contribution	$	44,454
Development portfolio, including cost of land		2,729
Land		2,520
Other real estate investments (1)		3,302
Total consolidated real estate properties	$	53,005

(1)	Included in other real estate investments were: (i) non-strategic real estate assets acquired that we do not intend to operate long-term; (ii) real estate assets that we intend to redevelop into industrial properties; (iii) land parcels we own and lease to third parties; and (iv) costs associated with potential acquisitions and future development projects, including purchase options on land.

LEASE EXPIRATIONS

We generally lease our properties on a long-term basis (the average term for leases commenced, including new leases and renewals, in 2021 was 62 months). The following table summarizes the lease expirations of our consolidated operating portfolio for leases in place at December 31, 2021 (dollars and square feet in millions):


					NER
	Number of Leases		Occupied Square Feet		Dollars		% of Total			Dollars Per Square Foot
2022 (1)		780		51	$	308		10.5	%	$	6.04
2023		927		64		394		13.5	%		6.16
2024		947		64		421		14.4	%		6.58
2025		628		54		359		12.3	%		6.65
2026		775		63		438		15.0	%		6.95
2027		374		40		285		9.7	%		7.13
2028		179		23		161		5.5	%		7.00
2029		132		23		152		5.2	%		6.61
2030		74		15		105		3.6	%		7.00
2031		83		15		108		3.6	%		7.20
Thereafter		70		23		197		6.7	%		8.57
		4,969		435	$	2,928		100	%	$	6.73
Month to month		93		3
Total consolidated		5,062		438

(1)	We have signed leases that were due to expire in 2022, totaling 31 million square feet in our consolidated portfolio (5.7% of total NER). These are excluded from 2022 expirations and are reflected at their respective expiration year.

CO-INVESTMENT VENTURES

Included in our O&M portfolio are consolidated and unconsolidated co-investment ventures that hold investments in real estate properties, primarily logistics facilities, that we also manage. Our unconsolidated co-investment ventures are accounted for under the equity method. The amounts included for the unconsolidated ventures are reflected at 100% of the amount included in the ventures’ financial statements as calculated on a GAAP basis, not our proportionate share. The following table summarizes our consolidated and unconsolidated co-investment ventures at December 31, 2021 (in millions):

	Operating Properties
	Square Feet		Gross Book Value		Investment in Land		Development Portfolio – TEI
Consolidated Co-Investment Venture
U.S.:
Prologis U.S. Logistics Venture (“USLV”)		77	$	7,927	$	12	$	6
Total		77	$	7,927	$	12	$	6

Unconsolidated Co-Investment Ventures
U.S.:
Prologis Targeted U.S. Logistics Fund (“USLF”)		122	$	12,199	$	-	$	288
Other Americas:
FIBRA Prologis		43		2,763		-		27
Prologis Brazil Logistics Venture ("PBLV") and other joint ventures		13		641		46		185
Subtotal Other Americas		56		3,404		46		212
Europe:
Prologis European Logistics Fund (“PELF”) (1)		140		14,560		9		62
Prologis European Logistics Partners Holdings Sàrl (“PELP”) (1)		58		5,208		35		54
Subtotal Europe		198		19,768		44		116
Asia:
Nippon Prologis REIT (“NPR”)		40		7,175		-		-
Prologis China Core Logistics Fund (“PCCLF”)		26		2,241		-		-
Prologis China Logistics Venture		16		858		24		786
Subtotal Asia		82		10,274		24		786
Total		458	$	45,645	$	114	$	1,402

(1)	In December 2021, Prologis UK Logistics Venture (“UKLV”) sold its operating properties to our unconsolidated co-investment ventures, PELF and PELP, and its land to us.

For more information regarding our unconsolidated and consolidated co-investment ventures, see Notes 5 and 11 to the Consolidated Financial Statements in Item 8. Financial Statements and Supplementary Data.

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