Prologis, Inc. Quarterly Report for Q3 Ended Sep 30, 2010

Summary

For the nine months ended September 30, 2010, AMB Property Corporation (which later became Prologis, Inc. following a merger with Prologis in 2011) reported total revenues of $469.0 million, an increase from $460.3 million in the same period of the prior year. Net income available to common stockholders was $5.1 million, a significant improvement from a net loss of $42.5 million in the prior year. The company experienced a decline in same-store rental revenues by 2.5% due to lower rental rates and increased free rent, but this was offset by a 40.8% increase in revenue from other industrial properties (stabilized developments not yet in the same-store pool) and a 38.5% increase in rental revenue from development properties. Total costs and expenses decreased significantly by 26.9% to $385.4 million, primarily due to the absence of substantial real estate impairment losses recorded in the prior year. AMB Property Corporation's balance sheet showed total assets of $7.12 billion and total liabilities of $3.42 billion, resulting in total equity of $3.70 billion. The company actively managed its debt, reducing total debt to $3.07 billion from $3.21 billion at the end of 2009. Cash flow from operations remained strong, providing $210.8 million for the nine months ended September 30, 2010. The company's liquidity position was supported by approximately $1.5 billion in availability under its credit facilities and $226 million in unrestricted cash and cash equivalents as of September 30, 2010. The company also successfully completed a significant equity offering, raising approximately $479 million in net proceeds.

Key Highlights

• 1Total revenues for the nine months ended September 30, 2010, increased to $469.0 million from $460.3 million in the prior year.
• 2Net income available to common stockholders turned positive at $5.1 million for the nine months ended September 30, 2010, compared to a net loss of $42.5 million in the same period of 2009.
• 3Real estate impairment losses, which significantly impacted the prior year, were absent in the current period, contributing to improved profitability.
• 4The company reduced its total debt outstanding to $3.07 billion from $3.21 billion at year-end 2009.
• 5Strong operating cash flow of $210.8 million was generated for the nine months ended September 30, 2010.
• 6The company raised approximately $479 million in net proceeds from an equity offering in April 2010, enhancing its liquidity.
• 7Occupancy in the owned and managed portfolio increased to 92.6% at the end of the third quarter of 2010.

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