Asset disposals lift Prologis into black
Simon improves performance across board
Asset disposals lift Prologis into black
San Francisco-based international industrial real estate owner, operator & developer Prologis Inc said on Thursday it turned its earnings around on the back of asset disposal gains.
The company leased a record 43.7 million ft² (4.1 million m²) in the fourth quarter and 152 million ft² (14.1 million m²) in 2013, and it increased occupancy over the quarter to 95.1% (93.9%). It estimated value creation at $US426 million, with an estimated margin of 30.4% from 2013 stabilisations.
Net earnings attributable to common stockholders were $US59.1 million (a $US228.7 million loss) for the quarter, $US315.4 million (a $US81 million loss) for the year. Revenue fell for both periods, $US436.8 million ($US506.1 million) for the quarter, $US1.75 billion ($US1.96 billion) for the year.
Net earnings/fully diluted share were US12c (a net loss of US50c) for the quarter, US64c (a US18c loss) for the year. Core funds from operations/fully diluted share were US43c (US42c) for the quarter, $US1.65 ($US1.74) for the year.
Chairman & chief executive Hamid Moghadam said: “We significantly increased occupancy with solid rent growth, exceeded our value creation objectives with above-average development margins and substantially grew our investment management business.
“As we look forward, the combination of rental growth, the profitable build-out of our land bank and improvements in efficiencies resulting from our global scale sets us up well for an extended period of robust earnings growth.”
At 31 December 2013, Prologis owned or had investments in, on a consolidated basis or through unconsolidated joint ventures, industrial properties & development projects expected to total 52.9 million m² in 21 countries.
Simon improves performance across board
US mall owner Simon Property Group Inc said on Friday it increased funds from operations by 7.9% on a diluted share basis in the December quarter, and by 10.9% for the year.
The company reported funds from operations of $US895 million for the quarter ($US827 million for the December 2012 quarter), or $US2.47 ($US2.29)/share. Net income attributable to common stockholders was $US382 million ($US315.4 million), or $US1.23/diluted share ($US1.01).
For the year, funds from operations were $US3.2 billion ($US2.9 billion), or $US8.85 $US7.98)/diluted share. Net income attributable to common stockholders was $US1.3 billion ($US1.4 billion), or $US4.24 ($US4.72)/diluted share. The 2012 results included $US1.41/diluted share of primarily non-cash net gains from acquisitions & disposals.
Chairman & chief executive David Simon, celebrating Simon Property’s 20th anniversary as a public company, said same-store net operating income for its US malls & Premium Outlets grew 5.5% in the fourth quarter. “We also completed our acquisition of ownership interests in the European designer outlet business of McArthurGlen and opened significant redevelopments & expansions at several of our properties.”
The company’s operating statistics for its US malls & Premium Outlets at 31 December were:
- Occupancy 96.1% (95.3% in 2012)
- Total sales/ft² $US582 ($US568), up 2.5%
- Base minimum rent/ft² $US42.34 ($US40.73), up 4%
- Releasing spread/ft² $US8.94 ($US5.21), up $US3.73
- Releasing spread percentage change 16.8% (10.8%), up 600 basis points.
The total sales figures are trailing 12-month sales for mall stores less than 10,000ft² in malls and all owned square footage in Premium Outlets. The releasing spread is a same-space measure that compares opening and closing rates on individual spaces leased during a trailing 12-month period.
Simon Property owns or has an interest in 325 malls in North America, Asia & Europe comprising 23 million m².
Attribution: Prologis, Simon
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