How did the company's portfolio occupancy perform in Q3 2009?

The operating portfolio was 91.0% occupied as of September 30, 2009, showing a slight improvement from the prior quarter. However, the average occupancy during Q3 2009 was lower than the comparable period in 2008.

What is the trend in same-store Net Operating Income (NOI)?

Cash basis same-store NOI decreased by 7.0% in the third quarter of 2009 compared to the same period in 2008. This decline was attributed to lower average same-store occupancies and changes in rent on lease rollovers, with average rents on renewals and rollovers down 3.9% over the trailing four quarters.

What was the company's leasing and disposition activity during the quarter?

AMB Property Corporation leased approximately 9.9 million square feet in its global operating portfolio and over 935,000 square feet in its development pipeline. The company also completed property dispositions totaling $209 million, resulting in approximately $60 million in gains.

PLD/PLDGP 8-K: Earnings & Results

Q: What are the key drivers behind the increase in FFO per share for Q3 2009?

The increase in FFO per share to $0.71 from $0.69 was primarily driven by higher development gains and lower general and administrative expenses.

Summary

AMB Property Corporation (now Prologis, Inc.) released its third quarter 2009 financial results, indicating a slight increase in Funds From Operations (FFO) per share compared to the prior year, reaching $0.71 from $0.69. This improvement was primarily driven by higher development gains and reduced general and administrative expenses. Net income also saw a significant boost, with diluted earnings per share rising to $0.43 from $0.24 year-over-year. The company reported a 91.0% occupancy rate for its operating portfolio as of September 30, 2009, a modest increase from the previous quarter, though average occupancy for the quarter was lower than in Q3 2008. Same-store Net Operating Income (NOI) on a cash basis declined by 7.0%, attributed to lower average occupancies and rent changes on lease rollovers, with average rent on renewals and rollovers decreasing by 3.9%. Despite these operational challenges, AMB Property Corporation demonstrated active leasing, commencing approximately 9.9 million square feet in its global operating portfolio and over 935,000 square feet in its development pipeline during the quarter. The company also engaged in significant disposition activities, completing $209 million in property sales, which generated approximately $60 million in gains.

Key Highlights

1Funds From Operations (FFO) per diluted share increased to $0.71 in Q3 2009 from $0.69 in Q3 2008.
2Net income per diluted share improved significantly to $0.43 in Q3 2009 from $0.24 in Q3 2008.
3Operating portfolio occupancy stood at 91.0% as of September 30, 2009, up 50 basis points from June 30, 2009.
4Cash basis same-store Net Operating Income (NOI) decreased by 7.0% in Q3 2009 compared to the prior year's quarter.
5Average rent change on renewals and rollovers for the trailing four quarters decreased by 3.9%.
6Leased approximately 9.9 million square feet in the global operating portfolio and over 935,000 square feet in the development pipeline during Q3 2009.
7Completed property dispositions totaling $209 million in Q3 2009, generating approximately $60 million in gains.

Prologis, Inc. 8-K Report, Financial Results (Oct 21, 2009)

Summary

Key Highlights

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