Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Fair Value of Derivative Financial Instruments

The following table presents the fair value of our derivative financial instruments recognized within Other Assets and Other Liabilities in the Consolidated Balance Sheets (in thousands):


	September 30, 2025				December 31, 2024
	Asset		Liability		Asset		Liability
Undesignated derivatives
Foreign currency contracts
Forwards
Brazilian real	$	-	$	762	$	-	$	-
British pound sterling		325		14,857		8,785		422
Canadian dollar		8,397		17		15,503		-
Euro		2,046		26,953		32,989		-
Japanese yen		40,544		3		55,818		-
Swedish krona		400		5,316		4,642		108
Options
Mexican peso		8,733		-		1,814		-

Designated derivatives
Foreign currency contracts
Net investment hedges
British pound sterling		1,235		10,393		2,837		108
Canadian dollar		2,891		-		5,454		-

Interest rate contracts
Cash flow hedges
U.S. dollar		1,018		1,808		9,587		-
Total fair value of derivatives	$	65,589	$	60,109	$	137,429	$	638

Summary of Undesignated Financial Instruments Exercised and Realized and Unrealized Gains (Losses) in Foreign Currency, Derivative and Other Gains and Other Income, Net

The following table summarizes the undesignated derivative financial instruments exercised and associated realized and unrealized gains (losses), respectively, in Foreign Currency, Derivative and Other Gains (Losses) and Other Income (Expense), Net in the Consolidated Statements of Income (in millions, except for number of exercised contracts):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2025		2024			2025			2024
Exercised contracts		31		30			83			161
Realized gains (losses) on the matured, expired or settled contracts	$	3	$	10		$	16		$	50
Unrealized gains (losses) on the change in fair value of outstanding contracts	$	34	$	(67	)	$	(97	)	$	(32	)

Summary of Activity in Interest Rate Contracts

The following table summarizes the activity of our interest rate contracts designated as CFHs for the nine months ended September 30 (in millions):


	2025												2024
	CAD			EUR			USD			Total			EUR			GBP			USD			Total
Notional amounts at January 1 ($)		-			-			280			280			700			-			550			1,250
New contracts ($)		139			543			1,250			1,932			-			246			600			846
Matured, expired or settled contracts ($)		(139	)		(543	)		(1,155	)		(1,837	)		(700	)		(246	)		(1,050	)		(1,996	)
Notional amounts at September 30 ($)		-			-			375			375			-			-			100			100

Summary of Debt and Accrued Interest, Designated as Nonderivative Financial Instrument

The following table summarizes our debt and accrued interest, designated as a hedge of our net investment in international subsidiaries at the quarter ended (in millions):


	September 30, 2025		December 31, 2024
British pound sterling	$	1,858	$	1,763
Canadian dollar	$	1,315	$	758

Summary of Recognized Unrealized Gains (Losses) in Foreign Currency and Derivative and Other Gains and Other Income, Net on Remeasurement of Unhedged Portion of Debt and Accrued Interest

The following table summarizes the unrealized gains (losses) in Foreign Currency, Derivative and Other Gains (Losses) and Other Income (Expense), Net in the Consolidated Statements of Income on the remeasurement of the unhedged portion of our euro-denominated and Chinese renminbi-denominated debt and accrued interest (in millions):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2025		2024			2025			2024
Unrealized gains (losses) on the unhedged portion	$	2	$	(28	)	$	(69	)	$	(12	)

Summary of Changes in AOCI/L

The following tables present these changes in AOCI/L (in thousands):

Three Months Ended September 30, 2025 and 2024


	Unrealized gains (losses) on CFHs (1)			Our share of derivatives from unconsolidated co-investment ventures		Derivative NIHs		Debt designated as nonderivative NIHs (2)		CTA			Total AOCI/L
Balance at July 1, 2025	$	(10,379	)	$	12,806	$	295,707	$	99,385	$	(1,163,026	)	$	(765,507	)
Other comprehensive income (loss), net		848			2,735		17,627		53,361		(45,164	)		29,407
Balance at September 30, 2025	$	(9,531	)	$	15,541	$	313,334	$	152,746	$	(1,208,190	)	$	(736,100	)


	Unrealized gains (losses) on CFHs			Our share of derivatives from unconsolidated co-investment ventures			Derivative NIHs			Debt designated as nonderivative NIHs (2)			CTA			Total AOCI/L
Balance at July 1, 2024	$	(18,488	)	$	15,834		$	328,596		$	272,495		$	(754,490	)	$	(156,053	)
Other comprehensive income (loss), net		(3,488	)		(4,981	)		(24,626	)		(117,782	)		(265,321	)		(416,198	)
Balance at September 30, 2024	$	(21,976	)	$	10,853		$	303,970		$	154,713		$	(1,019,811	)	$	(572,251	)

Nine Months Ended September 30, 2025 and 2024


	Unrealized gains (losses) on CFHs (1)			Our share of derivatives from unconsolidated co-investment ventures		Derivative NIHs			Debt designated as nonderivative NIHs (2)			CTA			Total AOCI/L
Balance at January 1, 2025	$	(11,659	)	$	12,652	$	341,852		$	327,897		$	(790,957	)	$	(120,215	)
Other comprehensive income (loss), net		2,128			2,889		(28,518	)		(175,151	)		(417,233	)		(615,885	)
Balance at September 30, 2025	$	(9,531	)	$	15,541	$	313,334		$	152,746		$	(1,208,190	)	$	(736,100	)


	Unrealized gains (losses) on CFHs			Our share of derivatives from unconsolidated co-investment ventures		Derivative NIHs			Debt designated as nonderivative NIHs (2)			CTA			Total AOCI/L
Balance at January 1, 2024	$	(45,744	)	$	8,414	$	310,526		$	254,102		$	(1,041,499	)	$	(514,201	)
Other comprehensive income (loss), net		23,768			2,439		(6,556	)		(99,389	)		21,688			(58,050	)
Balance at September 30, 2024	$	(21,976	)	$	10,853	$	303,970		$	154,713		$	(1,019,811	)	$	(572,251	)

(1)

We estimate an additional expense of $1.8 million will be reclassified to Interest Expense in the Consolidated Statements of Income over the next 12 months from September 30, 2025, due to the amortization of settled derivatives designated as cash flow hedges.

(2)

Reclassification of amounts out of AOCI/L due to the remeasurement of the unhedged portion of our euro-denominated and Chinese renminbi-denominated debt and accrued interest is included within other comprehensive income (loss), net.

Carrying Amounts and Estimated Fair Values of Debt

The following table reflects the carrying amounts and estimated fair values of our debt (in thousands):


	September 30, 2025				December 31, 2024
	Carrying Value		Fair Value		Carrying Value		Fair Value
Credit facilities and commercial paper	$	224,922	$	224,922	$	224,966	$	224,966
Senior notes		32,777,234		30,942,032		28,322,163		26,095,901
Term loans and unsecured other		1,979,040		1,943,300		2,013,317		1,991,934
Secured mortgage		321,705		311,609		318,817		298,452
Total	$	35,302,901	$	33,421,863	$	30,879,263	$	28,611,253

Undesignated Derivatives [Member]

Foreign Currency Contracts Activity

The following table summarizes the activity of our undesignated foreign currency contracts for the nine months ended September 30 (in millions, except for weighted average forward rates and number of active contracts):


	2025																		2024
	CAD			EUR			GBP			JPY			Other			Total			CAD			EUR			GBP			JPY			Other			Total
Notional amounts at January 1 ($)		254			526			386			312			(27	)		1,451			213			524			442			384			56			1,619
New contracts ($)		111			186			100			68			18			483			102			126			109			106			17			460
Matured, expired or settled contracts ($)		(49	)		(98	)		(66	)		(59	)		(19	)		(291	)		(32	)		(86	)		(120	)		(148	)		(61	)		(447	)
Notional amounts at September 30 ($)		316			614			420			321			(28	)		1,643			283			564			431			342			12			1,632

Weighted average forward rate at September 30		1.33			1.16			1.29			123.15									1.31			1.15			1.26			120.22
Active contracts at September 30		120			127			108			93									109			92			96			88

Designated As Hedging Instrument [Member]

Foreign Currency Contracts Activity

The following table summarizes the activity of our foreign currency contracts designated as NIHs for the nine months ended September 30 (in millions, except for weighted average forward rates and number of active contracts):


	2025									2024
	CAD			GBP			Total			CAD			GBP			Total
Notional amounts at January 1 ($)		163			432			595			516			432			948
New contracts ($)		200			549			749			47			397			444
Matured, expired or settled contracts ($)		(163	)		(305	)		(468	)		(399	)		(399	)		(798	)
Notional amounts at September 30 ($)		200			676			876			164			430			594

Weighted average forward rate at September 30		1.36			1.33						1.36			1.25
Active contracts at September 30		2			6						2			4

Prologis, Inc. 10-Q