ProLogis Trust (PLD)

[califax]

ProLogis Reports First Quarter 2009 Results

http://www.finanznachrichten.de/nachrichten-2009-04/13772386-prologis-reports-first-quarter-2009-results-significant-progress-on-de-leveraging-initiatives-008.htm

30.04.2009 00:02
ProLogis Reports First Quarter 2009 Results / - Significant Progress on De-leveraging Initiatives -

DENVER, April 29 /PRNewswire-FirstCall/ -- ProLogis (News), a leading global provider of distribution facilities, today reported first quarter 2009 funds from operations as defined by ProLogis (FFO), excluding significant non-cash items, of $0.86 per diluted share, compared with $1.34 in 2008. Net earnings per diluted share for the first quarter were $0.66 in 2009, compared with $0.69 in 2008.

FFO, including significant non-cash items, was $0.90 per diluted share for the first quarter of 2009, primarily due to gains from early extinguishment of debt, partially offset by ProLogis' share of property fund losses resulting from derivative activity. Net earnings and FFO per diluted share as previously reported for the first quarter of 2008 were reduced by $10.5 million, or $0.04 per diluted share, for the company's retroactive adoption of APB 14-1 and related additional interest expense.

"We have accomplished a great deal in the first part of 2009, making significant progress on our objectives to de-leverage and de-risk the company," said Walter C. Rakowich, chief executive officer. "As a result of our recent equity offering, the sale of certain operations and property fund interests in Asia and property fund contributions, we have generated nearly $2.7 billion of cash in just the past few weeks.

"Taking into consideration additional asset sale and refinancing agreements and the remaining capital requirements related to our development pipeline, we believe we have substantially addressed our anticipated cash needs through 2012. Our swift execution of these de-leveraging initiatives enables us to further enhance our focus on operating property performance, completing and leasing properties in our development portfolio and pursuing opportunities to generate value from our land bank," Rakowich said.

Property Market Fundamentals Soft

During the quarter, industrial property fundamentals continued to reflect global economic weakness and the slowdown in global trade. Throughout the majority of the company's markets, activity levels were reduced and leasing concessions are on the rise. Partially offsetting these trends are higher-than-average customer retention and sharply reduced levels of new supply. ProLogis' same-store net operating income (excluding same-store assets associated with the company's development portfolio), decreased 1.9 percent, reflecting a 1.8 percent decrease in leased percentage and negative rent growth of 4.2 percent for the quarter. Including development portfolio assets, in line with previous reporting, same-store net operating income for the period increased 0.78 percent, with a 0.16 percent increase in leased percentage and negative rent growth of 4.2 percent.

"On average, the company's non-development portfolio was 93.0 percent leased at the end of the first quarter, down from 94.7 percent at year-end 2008, in line with our expectations," Rakowich added. "We have been actively addressing our lease turnovers for the remainder of the year as well as the continued lease up of our development portfolio. Despite the challenging environment, we improved leasing within our development portfolio by 500 basis points, prior to contributions and reflecting the reversal of previous starts."

Asset Sales, Fund Contributions and Debt Repurchases Support De-leveraging Goal

In November 2008, ProLogis outlined a series of actions to achieve a reduction of roughly $2 billion in direct debt by the end of 2009. The plan included reducing the company's development pipeline through fund contributions, asset sales and a halt in all but previously committed development starts, as well as cash savings through a reduction of the common dividend and G&A expenses.

During the first quarter, ProLogis completed dispositions with aggregate proceeds of $1.49 billion, including the previously announced sale of its China operations and Japan property fund interests for $1.35 billion and fund contributions and asset sales of $136 million. Ted R. Antenucci, president and chief investment officer, said, "In addition to these completed transactions at quarter end, we had approximately $700 million of direct-owned assets for sale, 85 percent of which were under contract or letter of intent. In addition, we had another $585 million of development properties greater than 93 percent leased that are available for contribution to our Europe and Mexico property funds throughout the remainder of 2009. Given the significant improvement in our liquidity, we will continue to evaluate the level of asset sales and contributions throughout the year."

William E. Sullivan, chief financial officer, said, "In light of our successful equity offering, we anticipate substantially exceeding our $2 billion de-leveraging goal by the end of 2009 and will continue to pursue opportunities to further de-leverage the company." Between October 1, 2008 and March 31, 2009, the company reduced its outstanding debt by $1.7 billion. "Since the end of the first quarter, we have created incremental de-leveraging of $1.2 billion from the equity offering as well as from additional bond and convertible note buybacks.

"In addition, we have a sizeable base of unencumbered assets on our balance sheet, which provides secured debt financing capacity," said Sullivan. "As such, we intend to utilize the secured debt market to provide additional liquidity to re-finance near-term maturities and have $344 million of such financings in documentation."

Company Declares Common Dividend

Earlier this month, following the issuance of approximately 175 million shares of common stock, the company's Board reduced the 2009 annualized dividend rate to $0.70 per share, including the $0.25 per share paid in February 2009. Sullivan noted, "Our projected annual dividend rate is generally tied to our anticipated taxable income for that same year. While the new dividend level represents approximately the same cash expenditure as the previous dividend amount, the quarterly amount per share for the remainder of the year of $0.15 was established to adjust for the additional shares outstanding."

Also today, the company declared its second quarter common dividend of $0.15 per share, which will be payable on May 29, 2009, to shareholders of record on May 15, 2009.

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ProLogis

CONTACT: Investor Relations, Melissa Marsden, [phone],
[e-mail], or Media, Krista Shepard, [phone],
[e-mail], both of ProLogis; or Financial Media, Suzanne Dawson of
Linden Alschuler&Kaplan, Inc, [phone], [e-mail], for
ProLogis

Web Site: http://www.prologis.com/