01—Abstract
Summary
Summary of the 10-K/A filed March 15, 2004. Cited figures are marked; the original filing is the authoritative source.
Important caveat: this document is not a full 10-K for Prologis, Inc. (PLD).
It is Amendment No. 1 to the 2003 annual report of AMB Property Corporation, the predecessor entity, and the text does not show a filing date. The amendment only revises Part IV, Item 15(a)(1) and (2) to delete columns inadvertently included in the original filing and to correct typographical errors. It contains no business overview, MD&A, risk factors, audited financial statements, or Item 8 disclosures, so it cannot support a full investment assessment.
The one substantive component is Schedule III, Consolidated Real Estate and Accumulated Depreciation as of December 31, 2003, which lists 952 buildings and centers across industrial markets in North America, Europe, and Japan, plus a small retail portfolio. Gross real estate cost is $5.29 billiona, comprising $1.40 billion of land and $3.89 billion of buildings and improvements, with $474 million of accumulated depreciation (about 9% of gross cost). Property-level encumbrances total $1.35 billion, roughly 26% of gross cost.
The Schedule III roll-forward shows active portfolio management during 2003. Acquisitions were $524 millionb, improvements and development spending $264 million, and divestitures $340 million. Depreciation expense, including discontinued operations, was $134 million.
Total investments in properties were $5.49 billionc after adding $200 million of construction in process, which includes $112.2 million of development fundings. The aggregate federal income tax basis of real estate was $5.20 billion.
Investors should treat these figures as a property-level snapshot, not a complete picture of the company's financial condition, earnings, cash flows, or capital structure. Those would need the original 10-K.
02—Key points
Key Highlights
- Document type: 10-K/A Amendment No. 1 for fiscal year ended December 31, 2003, filed by AMB Property Corporation (not Prologis, Inc.). It only revises Item 15 exhibits and financial statement schedules and corrects typographical errors.
- Gross real estate investment in Schedule III is $5.29 billion across 952 buildings and centers. Land is $1.40 billion and buildings and improvements are $3.89 billion.
- Accumulated depreciation of $474 million equals about 9% of gross real estate cost, implying a relatively young portfolio, with many assets acquired or developed between 1997 and 2003.
- Property-level mortgage encumbrances total $1.35 billion, about 26% of gross real estate cost, indicating moderate secured leverage at the asset level.
- 2003 activity: $524 million of acquisitions and $264 million of improvements and development spending, offset by $340 million of divestitures. Net portfolio growth was concentrated in acquisitions and development.
- Development exposure: $112.2 million of development fundings were included in construction in process, which totals $200 million at year end.
- Geographic diversification includes major U.S. markets (Chicago, Atlanta, Dallas, Los Angeles, Miami, New Jersey/New York, San Francisco Bay Area, Seattle, Maryland, Minnesota, and others), plus Mexico, Germany, France, and Japan. Air cargo facilities (ON TARMAC) form a distinct sub-portfolio.
03—Questions
Frequently Asked Questions
Is this filing the full 2003 annual report for Prologis, Inc.?
No. The document is Amendment No. 1 to the 2003 Form 10-K of AMB Property Corporation, the predecessor company, and it only revises Part IV, Item 15 and Schedule III. It does not contain the business description, MD&A, audited financial statements, or risk factors. Investors should review the original AMB 10-K for 2003, or Prologis filings for later periods.
How large is the real estate portfolio and how old are the assets?
Gross real estate cost in Schedule III is $5.29 billion, and accumulated depreciation is $474 million. The schedule shows acquisition and construction years mostly between 1997 and 2003, which suggests the portfolio is relatively new and modern on a cost basis. The schedule does not provide occupancy, rental rates, or lease expirations, which are needed to assess income quality.
How leveraged are the properties and what does debt look like at the asset level?
Property-level encumbrances total $1.35 billion, about 26% of gross real estate cost. Many properties carry no mortgage. This figure covers only secured property debt. It excludes unsecured corporate debt, joint venture obligations, and other liabilities, which are disclosed elsewhere in the full 10-K.
What did the company do with its portfolio during 2003?
The roll-forward shows $524 million of acquisitions, $264 million of improvements and development, and $340 million of property divestitures in 2003. Net investment grew, and the company remained an active buyer and seller of logistics and industrial real estate. Depreciation expense was $134 million, including discontinued operations.
What do the amendment corrections mean for investors?
The amendment removes extra columns that were included in the original filing by mistake and fixes typographical errors. It does not restate reported financial results, so the substantive economic figures are unchanged. Investors relying on the original filing should check for consistency with the corrected Schedule III presentation.
04—Continue