Summary
Prologis, Inc. (PLD), in its April 14, 2004, 8-K filing, reported first-quarter 2004 earnings per share (EPS) of $0.19, a significant decrease from $0.69 in the prior year's first quarter. This reduction was primarily due to the absence of substantial net gains from real estate dispositions and lease termination fees that boosted the prior year's results. The company's core industrial operating portfolio remained highly occupied at 92.7% leased, slightly down from the previous quarter but outperforming the national industrial occupancy rate of 88.3% as reported by Torto Wheaton Research. Despite the lower EPS, Prologis demonstrated active investment and development. The company acquired 1.3 million square feet of industrial space for $134.2 million, including strategic additions to its International Airport Centers portfolio and expansion in key distribution markets. Development starts totaled 1.8 million square feet, with significant projects underway in Mexico City and Tokyo, underscoring a global growth strategy. The company also successfully raised $100 million through fixed-rate senior unsecured notes. Funds From Operations (FFO) per share, a key metric for REITs, was $0.53, down from $0.60 in the prior year, also impacted by lower lease termination fees.
Key Highlights
- 1First quarter 2004 EPS was $0.19, compared to $0.69 in the prior year, with the prior year benefiting from significant real estate disposition gains.
- 2Industrial operating portfolio occupancy was 92.7% as of March 31, 2004, exceeding the national average of 88.3%.
- 3Cash-basis same-store net operating income decreased 3.1% year-over-year, influenced by lower occupancy and rental rate declines (-14.7% on renewals/rollovers).
- 4The company acquired 1.3 million square feet for $134.2 million, including key assets in Boston, Los Angeles, and expansion in other global distribution hubs.
- 5Development pipeline includes 1.8 million square feet in new projects, with significant initiatives in Mexico City and Tokyo.
- 6Prologis issued $100 million in fixed-rate senior unsecured notes maturing in 2009 with a 3.5% annual interest rate.
- 7First quarter 2004 Funds From Operations (FFO) per share was $0.53, down from $0.60 in the prior year, with lower lease termination fees being a contributing factor.