Archive | ProLogis

World property M3Feb14 – Prologis back in black, Simon stronger all-up

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

Regular leads: Europe Real Estate, Mingtiandi, Planetizen, World Property Channel

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ProLogis & Catellus move to merger

Published: 2 August 2005

Distribution facilities company ProLogis & real estate development company Catellus Development Corp, will hold meetings on 14 September to seek shareholder approval for a merger, in which ProLogis will buy out Catellus.

ProLogis owns, manages or has under development 28.9 million m² in 2043 facilities in 75 markets in North America, Europe & Asia. Catellus owns & operates 3.8 million m² of predominantly industrial property in US distribution centres & transport corridors.

If you want to comment on this story, write to the BD Central Discussion forum or send an email to [email protected].

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ProLogis to pay $US4.9 billion for Catellus

Published: 8 June 2005

Storage & distribution facilities giant ProLogis will buy out development company Catellus Development Corp for $US4.9 billion in a deal approved by both companies’ boards on 6 June.

The price includes assumed liabilities & transaction costs.

ProLogis is one of the US property companies which have attracted more attention in this part of the world through their relationships with Macquarie Bank. The Macquarie ProLogis Trust is a joint venture which sources its investments from the ProLogis development pipeline.

The combined company will offer 32.5 million m² of distribution facilities in 2250 premises either owned, managed or under development in 75 markets, plus more than 9 million m² of potential development.

The deal allows Catellus stockholders to opt for a $US33.81/share cash payment or scrip at the rate of  0.822:1, representing a 16.1% premium over the 3 June closing price. The merger terms fix the total cash payment at $US1.255 billion, or $US11.83/share across the whole deal. ProLogis expects it to be accretive to 2006 funds from operations by 3-5%.

“This transaction dramatically changes the landscape of the US industrial real estate market by consolidating 2 of the largest industrial property developers in North America,” ProLogis chief executive Jeffrey Schwartz said.

He said Catellus’ landbank included 2.8 million m² which could be built in the top 6 distribution markets. Catellus reorganised itself as a reit 18 months ago after developing a substantial landbank.

“In the US, Catellus’ operating portfolio is a strong complement to our properties, being quite new with an average age of only 7.2 years and situated in outstanding locations in the premier distribution markets. As we integrate this acquisition, we will also continue to execute and build upon the international aspects of our strategy that position ProLogis to capitalise on the rapid growth in distribution opportunities worldwide.”

Shareholders on both sides must approve the deal, which the boards expect to have completed by the end of this year.

Websites: Catellus


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ProLogis boosts June quarter earnings, has strong outlook

Denver-based ProLogis, an international provider of distribution facilities & services, increased 2nd-quarter funds from operations by 20.4% to US65c/diluted share, net earnings 61.5% to US42c/diluted share

“Overall, we’ve noted significant improvement in global industrial fundamentals. Virtually every North American market is reporting positive net absorption & occupancy gains. Rental rate growth on lease renewals continues to be negative, although we are beginning to see positive rent growth in a few strategic submarkets,” chairman & chief executive Dane Brooksher said.

“Conditions in Europe also have improved, with increased lease-up of inventory space and a significant pipeline of new build-to-suit requirements. In Japan, the pace of new development starts year-to-date is strong, as evidenced by ProLogis’ current development pipeline.”

As a result of increased leasing activity, a pick-up in the volume of build-to-suit transactions in Europe & Asia and improving conditions in North America, ProLogis has increased its forecast for development starts for this year to $US1-1.1 billion, up from its initial guidance of $8-900 million.

On Asia, chief financial officer Irving Lyons said: “We continue to see strong interest by customers seeking supply-chain efficiencies – a major driver of our development business. At the end of the quarter, there was $US546 million of properties in ProLogis Japan Fund and a development pipeline of over $US460 million, for a total expected investment of more than $US1 billion in Japan.

“Earlier this month in China, we became a 50% partner in an equity joint venture that owns the logistics portion of Suzhou Industrial Park and secured exclusive development rights for logistics facilities at the park. We are working on transactions now that likely will result in development starts later this year in China.”

ProLogis has 1700 distribution facilities in 70 markets, $US6.5 billion of assets, $US3.5 billion of debt.

Website: ProLogis

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