Form 8-K Prologis, L.P. For: Oct 15 Filed by: Prologis, Inc.

 

FOR IMMEDIATE RELEASE

 

 

 

 

Prologis Reports Third Quarter 2021 Earnings Results

 

SAN FRANCISCO (October 15, 2021) – Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, today reported results for the third quarter of 2021.

 

Net earnings per diluted share was $0.97 for the quarter compared with $0.40 for the third quarter of 2020. Core funds from operations (Core FFO)* per diluted share was $1.04 for the quarter compared with $0.90 for the same period in 2020.

 

“Our third quarter results were underpinned by record increases in market rents and valuations,” said Hamid R. Moghadam, chairman and CEO, Prologis. “Operating conditions are being shaped by the structural forces driving demand. With vacancies at unprecedented lows, space in our markets is effectively sold out.”

 

OPERATING PERFORMANCE  

 

 

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DEPLOYMENT ACTIVITY

 

BALANCE SHEET & LIQUIDITY

During the third quarter, Prologis and its co-investment ventures issued $1.3 billion of debt at a weighted average interest rate of 2.1 percent. This activity includes $169 million in green bond raises. The company has maintained its leading liquidity position with approximately $5.5 billion in cash and availability on its credit facilities.

 

As of September 30, 2021, debt as a percentage of total market capitalization was 16.7 percent, and the company’s weighted average interest rate on its share of total debt was 1.8 percent with a weighted average term of 10.4 years. The combined investment capacity of Prologis and its open-ended ventures, at levels in line with their current ratings, is approximately $15 billion.

 

2021 GUIDANCE

“Our earnings potential is unrivaled,” said Thomas S. Olinger, chief financial officer, Prologis. “Most of the benefit from the current environment will accrue to the future given our 22% in-place-to-market rent spread, the valuation impact on our promotes, our leverage capacity, the $21 billion of development build-out and, most importantly, the vast opportunity set that our global footprint provides.”

 

 

2021 GUIDANCE    

Earnings (per diluted share)                                                Previous                           Revised                       Change at M.P.

Operations

 

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Strategic Capital (in millions)

 

G&A (in millions)

 

Capital Deployment – Prologis Share (in millions)          Previous                           Revised                       Change at M.P.

 

 

The earnings guidance described above includes potential gains recognized from real estate transactions but excludes any future or potential foreign currency or derivative gains or losses as our guidance assumes constant foreign currency rates. In reconciling from net earnings to Core FFO*, Prologis makes certain adjustments, including but not limited to real estate depreciation and amortization expense, gains (losses) recognized from real estate transactions and early extinguishment of debt, impairment charges, deferred taxes and unrealized gains or losses on foreign currency or derivative activity. The difference between the company's Core FFO* and net earnings guidance for 2021 relates predominantly to these items. Please refer to our second quarter Supplemental Information, which is available on our Investor Relations website at https://ir.prologis.com and on the SEC’s website at www.sec.gov for a definition of Core FFO* and other non-GAAP measures used by Prologis, along with reconciliations of these items to the closest GAAP measure for our results and guidance.

 

October 15, 2021, CALL DETAILS
The call will take place on Friday, October 15, 2021, at 9:00 a.m. PT/12:00 p.m. ET. To access a live broadcast of the call, please dial +1 (833) 968-2252 (toll-free from the United States and Canada) or +1 (778) 560-2807 (from all other countries) and enter conference code 1931016. A live webcast can be accessed from the Investor Relations section of www.prologis.com.

 

A telephonic replay will be available October 15–29 at +1 (800) 585-8367 (from the United States and Canada) or +1 (416) 621-4642 (from all other countries) using conference code 1931016. The webcast replay will be posted in the Investor Relations section of www.prologis.com under "Events & Presentations".

 

ABOUT PROLOGIS
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of September 30, 2021, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 994 million square feet (92 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 5,500 customers principally across two major categories: business-to-business and retail/online fulfillment.

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FORWARD-LOOKING STATEMENTS

The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates," including variations of such words and similar expressions, are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, development activity, contribution and disposition activity, general conditions in the geographic areas where we operate, our debt, capital structure and financial position, our ability to form new co-investment ventures and the availability of capital in existing or new co-investment ventures — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic and political climates; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties; (v) maintenance of real estate investment trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; (x) risks related to the current coronavirus pandemic; and (xi) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.

 

CONTACTS

Investors: Tracy Ward, +1 415 733 9565, [email protected], San Francisco

Media: Jennifer Nelson, +1 415 733 9409, [email protected], San Francisco

 

 

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