Summary
AMB Property Corporation (now Prologis, Inc.) reported its fourth quarter and full-year 2007 results on January 29, 2008. The company demonstrated solid operational and financial performance, with Funds from Operations (FFO) per share and unit increasing by 18.8% year-over-year for the fourth quarter to $1.20 and by 12.5% for the full year to $3.51. Net income per diluted share also saw a modest increase. The company's operating portfolio maintained high occupancy rates at 96.0% as of year-end 2007, with cash-basis same-store net operating income (NOI) showing growth of 4.8% for the quarter and 5.5% for the full year, driven by rising rents and occupancy. AMB Property Corporation also highlighted significant investment activity. Development starts totaled $1.1 billion for the full year 2007, a 19% increase, with a substantial development pipeline of 17.8 million square feet. Acquisitions also saw a robust increase, with over $1.0 billion in industrial properties acquired globally in 2007, a 25% rise from 2006, including an expansion into the United Kingdom. The company's private capital business continued to grow, managing $7.2 billion in assets under management.
Key Highlights
- 1Funds from Operations (FFO) per share and unit increased 18.8% to $1.20 in Q4 2007 and 12.5% to $3.51 for the full year 2007.
- 2Net income per diluted share rose to $0.92 in Q4 2007 and $2.96 for the full year 2007.
- 3Operating portfolio occupancy remained strong at 96.0% at year-end 2007.
- 4Cash-basis same-store net operating income (NOI) grew by 4.8% in Q4 2007 and 5.5% for the full year 2007.
- 5Development starts increased 19% to $1.1 billion for the full year 2007.
- 6Acquisitions increased by 25% to over $1.0 billion globally in 2007, with expansion into the UK.
- 7Private capital business managed $7.2 billion in assets under management by year-end 2007.