Profile: Prologis Inc (PLD)
9 Dec 2013
Prologis, Inc. (Prologis), incorporated on November 24,1997, is a real estate investment trust (REIT) and the general partner of the Prologis, L.P. As of December 31, 2012, Prologis, Inc. owned an approximate 99.59% common general partnership interest in the Prologis, L.P. and 100% of the preferred units in the Prologis, L.P. The Company is a global owner, operator and developer of industrial real estate, focused on markets tied to global trade across the Americas, Europe and Asia. It operates the REIT and the Operating Partnership as one enterprise. As of December 31, 2012, it owned and managed properties and development projects totaling 554 million square feet (51.5 million square meters) in 21 countries. countries. These properties are leased to approximately 4,500 customers, including third-party logistics providers, manufacturers, retailers, transportation companies and other enterprises. The Company operates in two segments: segments: real estate operations and private capital. The Company co-invests in entities that own multiple properties with private capital investors and provide asset and property management services to these entities. In May 2013, Prologis Inc acquired DocData distribution centre.
As of December 31,2012, of the 554 million square feet of the Company owned and managed portfolio, which includes 522 million square feet were in its operating portfolio that were 94.0% occupied; 22 million square feet were in its development portfolio hat were 50.8% leased; 10 million square feet consisted of properties in which it has an ownership interest and other properties ,including assets held for sale. At December 31, 2012, in the Company's real estate operations segment, it had 3,832 customers occupying 296.5 million square feet of distribution space. In the unconsolidated properties, it manages in which it had 2,703 customers occupying 195.9 million square feet of distribution space. As of December 31, 2012, it had investments in real estate properties, primarily industrial properties that it also manage, through its equity investments in unconsolidated co-investment ventures. These investments include 1,163 properties aggregating 208.8 million square feet. In 2012, it acquired 1,537 acres of land and 12 operating properties aggregating 1.6 million square feet. As of December 31, 2012, it had an investment in real estate containing approximately 214.5 million square feet held through unconsolidated entities.
Real Estate Operations Segment
The Company’s Rental Operations represent the primary source of its core revenue, earnings and FFO. It collects rent from its customers under operating leases, including reimbursements for the majority of its operating costs. The Company seeks to generate long-term internal growth in rental income by maintaining a high occupancy rate at its properties, by controlling expenses and through contractual rent increases on existing space and renewals on rollover space, thus capitalizing on the economies of scale inherent in owning, operating and growing a global portfolio. Its rental income is diversified due to both its global presence and its broad customer base.
The Company’s development and re-development activities support rental operations and are therefore included with that line of business for segment reporting. It develops and re-develops industrial properties primarily in global and regional markets to meet its customers’ needs. Within this line of business, it provides additional value creation by utilizing: the land that it owns in global and regional markets; the development of its local personnel; its global customer relationships, and the demand for distribution facilities in key markets.
Private Capital Segment
The Company co-invests in properties with private capital investors through a variety of co-investment ventures. It has a direct and long-standing relationship with a number of institutional investors. It tailors industrial portfolios to investors’ specific needs and deploy capital in both close-ended and open-ended venture structures and other joint ventures, while providing complete portfolio management and financial reporting services. The Company generally owns 15-50% in these ventures. It generates revenues from its unconsolidated co-investment ventures by providing asset management and property management services. It may also earn revenues through additional services provided, such as leasing, acquisition, construction, development, disposition, legal and tax services.
PIER 1 BAY 1
SAN FRANCISCO CA 94111
Company Web Links
- RPT-Fitch Rates Prologis, L.P.'s EUR700MM 3% Notes Due 2022 'BBB'; Outlook Stable
- Fitch Affirms Prologis, Inc.'s IDR at 'BBB'; Outlook Stable
- Fitch Rates Prologis, L.P.'s $500MM 3.35% Notes due 2021 'BBB'; Outlook Stable
- Fitch Rates Prologis, L.P.'s $1.25B of Guaranteed Notes due 2019 and 2023 'BBB'; Outlook Stable