10-QPeriod: Q2 FY2003

Prologis, Inc. Quarterly Report for Q2 Ended Jun 3, 2003

Filed August 13, 2003For Securities:PLDPLDGP

Summary

AMB Property Corporation (AMB) reported its second-quarter 2003 financial results, showing a net income of $18.1 million, or $0.20 per diluted share, compared to $28.9 million, or $0.32 per diluted share, in the prior year's second quarter. While total revenues increased to $154.7 million from $147.2 million, the company saw a decrease in income from continuing operations before gains on dispositions, which fell to $12.9 million from $21.1 million year-over-year. This decline was partly offset by significant gains from the disposition of real estate, particularly from discontinued operations. The company continued its portfolio repositioning strategy, divesting non-core assets and investing in industrial properties in supply-constrained markets. Total assets stood at $4.98 billion, with total debt at $2.04 billion. The company maintained a healthy occupancy rate of 91.5% for its industrial properties and is focused on growth through operations, acquisitions, development, and international expansion.

Key Highlights

  • 1Net income for the second quarter of 2003 was $18.1 million ($0.20 per diluted share), a decrease from $28.9 million ($0.32 per diluted share) in Q2 2002.
  • 2Total revenues increased to $154.7 million for Q2 2003 from $147.2 million in Q2 2002, driven by rental revenues.
  • 3The company reported significant gains from real estate dispositions, particularly from discontinued operations, totaling $3.9 million for the quarter and $33.5 million for the six months.
  • 4Consolidated total assets were $4.98 billion as of June 30, 2003, with total debt at $2.04 billion.
  • 5Industrial property occupancy remained strong at 91.5% as of June 30, 2003.
  • 6The company continued its strategy of portfolio repositioning, divesting non-core assets and investing in key distribution markets.
  • 7AMB issued 2,000,000 shares of 6.5% Series L Cumulative Redeemable Preferred Stock in June 2003, raising $48.4 million in net proceeds.

Frequently Asked Questions

AMB Property Corporation reported a net income of $18.1 million for the second quarter ended June 30, 2003, which translated to $0.20 per diluted share.

Rental revenues increased to $147.96 million for the three months ended June 30, 2003, from $139.12 million for the same period in 2002, representing a 6.4% increase.

As of June 30, 2003, AMB Property Corporation's industrial properties were 91.5% leased.

The company has scheduled debt maturities of $30.7 million in 2003 and $131.6 million in 2004. The significant maturity in 2005 is $374.0 million, which includes $250 million in unsecured senior debt securities.