Prologis Reports Third Quarter 2017 Earnings Results

SAN FRANCISCO, Oct. 17, 2017

Net earnings per diluted share was $1.63 compared with $0.52 for the same period in 2016. This year-over-year increase was driven primarily by higher gains on dispositions of real estate, as well as by improved operating conditions.

Core funds from operations* per diluted share was $0.67 compared with $0.73 ($0.59 before promote income) for the same period in 2016. No promote was recognized this quarter. Improved operating conditions primarily drove the $0.08 year-over-year increase on a promote-neutral basis.

"Our third quarter results reflect strong market conditions and our customers' intensifying need for well-located logistics facilities," said Hamid R. Moghadam, chairman and CEO, Prologis. "Taken together, the lack of available labor and land scarcity are becoming additional governors on new construction. These favorable conditions have elevated our mark-to-market. Our in-place rents are now below market by 14 percent globally and 18 percent in the U.S., extending our organic growth into the foreseeable future."

SUPERIOR PORTFOLIO LOCATION DRIVES OUTPERFORMANCE

Owned & Managed ARIVA.DE Börsen-Geflüster Kurse Prologis 103,72 $ +0,52%	3Q17	3Q16	Notes
Period End Occupancy	96.3%	96.6%	The U.S. increased 40 bps year-over-year
Leases Signed	41MSF	46MSF
Prologis Share	3Q17	3Q16	Notes
Net Effective Rent Change	22.7%	15.0%	Led by the U.S. with record 31.9%
Cash Rent Change	10.6%	5.7%
Net Effective Same Store NOI*	4.1%	5.6%	Driven exclusively by releasing spreads and led by the U.S. at 6.0%
Cash Same Store NOI*	6.1%	6.6%	Led by the U.S. at 8.0%

GLOBAL INVESTMENT STRATEGY PROPELS PROFITABLE DEPLOYMENT

COMPLETES SIMPLIFICATION INITIATIVE AND CREATES SECTOR-LEADING FUND IN EUROPE
During the quarter, the company closed on the acquisition of its partner's interest in its Brazil platform and contributed the former North American Industrial Fund (NAIF) to U.S. Logistics Fund (USLF), generating a one-time gain in earnings of approximately $560 million.

Subsequent to quarter end, the company closed the combination of Prologis Targeted Europe Logistics Fund (PTELF) and Prologis European Properties Fund II (PEPF II) to create Prologis European Logistics Fund (PELF), an €8.2 billion sector-leading open-ended fund. These two highly complementary portfolios span 106 million square feet across 12 countries. In conjunction with its formation, S&P has rated the vehicle's credit at A-.

"This rating acknowledges the strength of PELF's balance sheet as well as its high-quality portfolio and management structure," said Thomas S. Olinger, chief financial officer, Prologis.

Under the terms of the transaction and subsequent to quarter end, assets of PTELF will be contributed to PELF in exchange for units. The exchange will be based on the fair market value of each fund as of September 30, 2017. The transaction was not a liquidity event for Prologis, as it will retain its current ownership and hold 26 percent of the combined entity.

BALANCE SHEET CONTINUES TO STRENGTHEN
During the third quarter, leverage decreased to 23.9 percent on a market capitalization basis and debt-to-adjusted EBITDA* improved to 4.3x. The company ended the quarter with 92 percent USD net equity exposure and more than $4.0 billion of liquidity.

NARROWS 2017 EARNINGS GUIDANCE RANGES
The guidance range for net earnings per diluted share increased and narrowed to $3.01 to $3.06 and the range for Core FFO* per diluted share narrowed to $2.79 to $2.81.

"To capitalize on the robust demand in our current environment, we are increasing our development starts, as well as dispositions and contributions," added Olinger. "In addition to $4.0 billion of liquidity, we have $3.4 billion of embedded sources, providing several years' capacity to self-fund our growth. At the same time, our credit metrics are the strongest they've been in our history."

2017 GUIDANCE (UPDATES TO PRIOR GUIDANCE ONLY)
Earnings (per diluted share)	Previous	Revised
Net Earnings	$2.76 to $2.84	$3.01 to $3.06
Core FFO*	$2.78 to $2.82	$2.79 to $2.81
Other Assumptions (in millions)	Previous	Revised
Strategic capital revenue, excl. promote revenue	$225 to $235	$240 to $245
General & administrative expenses	$222 to $228	$228 to $232
Realized development gains	$250 to $300	$300 to $325
Capital Deployment (Prologis Share, in millions)	Previous Werbung Mehr Nachrichten zur Prologis Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 11:57 - PR Newswire BH Macro Limited - Transaction in Own Shares 10:07 - PR Newswire Premier Miton Global Renewables Trust Plc - Dividend Declaration 08:56 - PR Newswire BlackRock Latin American Investment Trust Plc - Portfolio Update SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59