What is the purpose of the $75 million note issuance?

The $75 million in senior unsecured notes priced by AMB Property, L.P. are intended for general corporate purposes. This may include the acquisition or development of additional properties and the repayment of indebtedness, including inter-company obligations. Initially, proceeds may be temporarily invested in short-term securities.

What are the key terms of the $75 million senior unsecured notes?

The notes mature on November 1, 2013, and bear interest at a fixed rate of 5.53% per annum. They were sold to Teachers Insurance and Annuity Association of America, with Prologis, Inc. providing a guarantee for the principal amount.

What is the nature and value of the property acquisition mentioned?

AMB Property, L.P. entered into an Agreement of Sale to acquire a portfolio of 37 airfreight buildings totaling 3.4 million square feet, located adjacent to seven U.S. international airports. The total acquisition cost is approximately $481 million, which includes $119 million of assumed debt.

How will the acquisitions be financed?

AMB Property, L.P. financed the first tranche of the airfreight building portfolio acquisition and expects to finance the remaining purchase price through additional financings and/or proceeds from property dispositions. The note proceeds also offer flexibility for general corporate purposes, which could include property acquisitions.

Are there any material changes to past financial reporting?

Yes, the company is implementing SFAS 144 and EITF Topic D-42. SFAS 144 requires separate reporting of discontinued operations. EITF Topic D-42 necessitates a restatement of previously reported diluted earnings per share for the year ended December 31, 2001, reducing it from $1.47 to $1.43 due to original issuance costs of preferred equity. Funds from operations per share for the same period will also be restated to $2.33 from $2.37. These changes affect prior period presentation but not previously reported financial position, net income, or cash flows for those periods.

PLD/PLDGP 8-K SEC Disclosure

Summary

This 8-K filing by Prologis, Inc. (PLD), filed on November 5, 2003, primarily reports on significant financing and acquisition activities undertaken by its operating subsidiary, AMB Property, L.P. Notably, AMB Property, L.P. priced $75 million in senior unsecured notes due in 2013 with a 5.53% interest rate, guaranteed by Prologis, Inc. These proceeds are earmarked for general corporate purposes, potentially including property acquisitions and debt repayment. Furthermore, the filing details a substantial acquisition initiative where AMB Property, L.P. is set to acquire a 3.4 million square foot portfolio of 37 airfreight buildings adjacent to major U.S. airports for approximately $481 million. The first tranche of this acquisition has already closed, with the remainder expected to close in tranches through the third quarter of 2004. Investors should also note the company's proactive approach to financial reporting, including restatements related to SFAS 144 and EITF Topic D-42, which impact the presentation of prior period earnings per share but not overall financial position or cash flows.

Key Highlights

1AMB Property, L.P., a subsidiary of Prologis, Inc., priced $75 million of senior unsecured notes maturing on November 1, 2013, with a 5.53% annual interest rate.
2Prologis, Inc. has provided a guarantee for the $75 million senior unsecured notes issued by AMB Property, L.P.
3AMB Property, L.P. has agreed to acquire a 3.4 million square foot portfolio of 37 airfreight buildings for approximately $481 million, including $119 million of assumed debt.
4The first tranche of the 37-building portfolio acquisition closed on October 9, 2003, for approximately $167 million.
5The company is proactively addressing accounting standard changes, including restatements for SFAS 144 and EITF Topic D-42, which affect prior period EPS reporting but not core financial position or cash flows.
6AMB Property, L.P. announced its intention to redeem all outstanding Series B Cumulative Redeemable Preferred Limited Partnership Units on November 26, 2003.
7Net proceeds from the note offering are intended for general corporate purposes, including property acquisition, development, and debt repayment.

Prologis, Inc. 8-K Report (Nov 6, 2003)

Summary

Key Highlights

Frequently Asked Questions