8-KRegulation FDOther Events

Prologis, Inc. 8-K Report, Regulation FD Disclosure (Apr 6, 2010)

Filed April 6, 2010For Securities:PLDPLDGP

Summary

Prologis, Inc. (PLD), through this 8-K filing dated April 6, 2010, reiterates its full-year 2010 core Funds From Operations (FFO) per share guidance of $1.26 to $1.33. This guidance excludes gains from development activities, non-cash impairment charges, early debt extinguishment costs, and restructuring charges, reflecting a focus on operational performance distinct from one-time or market-driven impacts. The company also provided updates on its investment and leasing activities. In Q1 2010, Prologis invested $150 million in its Logistics and Europe Funds, with plans to continue evaluating further investments. The company made acquisitions totaling approximately $45.4 million in the Logistics Fund and acquired land in Brazil. Development dispositions amounted to $22.9 million, generating $3.2 million in development gains. Occupancy in the owned and managed portfolio was estimated at 90.3% for Q1 2010, with efforts focused on reducing remaining vacancy.

Key Highlights

  • 1Prologis maintains its full-year 2010 core FFO per share guidance of $1.26 to $1.33.
  • 2The company invested $150 million in its AMB U.S. Logistics Fund and AMB Europe Fund in Q1 2010.
  • 3Q1 2010 saw approximately $45.4 million in property acquisitions within the Logistics Fund.
  • 4Development dispositions totaled $22.9 million in Q1 2010, resulting in $3.2 million of development gains.
  • 5Average occupancy for the owned and managed portfolio was an estimated 90.3% in Q1 2010.
  • 6Liquidity stood at approximately $1.1 billion as of March 31, 2010.
  • 7Prologis announced a quarterly cash dividend of $0.28 per common share, payable on April 15, 2010.

Frequently Asked Questions

Prologis reiterated its full-year 2010 guidance for core Funds From Operations (FFO) per share to be between $1.26 and $1.33. This guidance specifically excludes gains related to development activities, non-cash impairment charges, early debt extinguishment costs, and restructuring charges.

In the first quarter of 2010, Prologis invested an aggregate of $150 million in its Logistics Fund and Europe Fund. Additionally, the company acquired approximately $45.4 million of properties within the Logistics Fund and purchased 58 acres of land in Sao Paulo, Brazil, for potential development.

As of March 31, 2010, Prologis estimated its average occupancy for its owned and managed portfolio to be approximately 90.3% for the first quarter of 2010, with a spot occupancy rate of 90.5%. The company reported that its leasing performance is consistent with expectations and its forecast.

Prologis views FFO and adjusted FFO as useful supplemental measures of operating performance. FFO is calculated as net income plus depreciation and amortization, less gains from property dispositions, and adjusted for joint venture pro rata share. They also present FFO, as adjusted, which excludes impairment charges, restructuring costs, and debt extinguishment losses, to better reflect core operating performance. However, Prologis emphasizes that these measures are not replacements for U.S. GAAP net income or cash flow.