Summary
This Form 8-K from AMB Property Corporation (now Prologis, Inc.) details the company's second quarter 2008 financial and operational results. Key financial metrics show a significant increase in Funds from Operations (FFO) per share, rising to $1.06 from $0.74 in the prior year's second quarter, partly driven by incentive distributions from its private capital business. However, net income per share saw a decrease to $0.73 from $1.10, impacted by the absence of a large gain on property contributions that occurred in the prior year. Operationally, the company maintained a strong portfolio occupancy of 95.2% and saw positive growth in same-store net operating income. The report also highlights active investment and development activity. AMB commenced development on 3.3 million square feet and acquired 1.5 million square feet of industrial space. The company also completed significant transactions related to its private capital business, including contributions and sales totaling approximately $221 million. Furthermore, AMB Property L.P. issued $325 million in senior unsecured notes to support its financing activities, with total debt to market capitalization at 42.1% as of quarter-end.
Key Highlights
- 1Funds From Operations (FFO) per share increased to $1.06 in Q2 2008, up from $0.74 in Q2 2007, indicating improved core operating performance.
- 2Net income per diluted share decreased to $0.73 in Q2 2008 from $1.10 in Q2 2007, primarily due to the absence of significant property contribution gains recorded in the prior year.
- 3The company's operating portfolio maintained a high occupancy rate of 95.2% as of June 30, 2008, a 40 basis point increase from the previous quarter.
- 4Same-store net operating income (cash basis) showed positive growth, increasing by 3.3% for the quarter and 5.4% for the first six months of 2008 compared to the same periods in 2007.
- 5AMB Property Corporation actively engaged in development and acquisition, commencing 3.3 million square feet of development and acquiring 1.5 million square feet of industrial space during the quarter.
- 6The company issued $325 million of senior unsecured notes at a coupon of 6.30% (effective rate of 6.06%), demonstrating continued access to debt markets.
- 7Total debt to total market capitalization stood at a manageable 42.1% as of June 30, 2008.