Prologis Reports 1Q13 Results
"We concluded several priorities in the first quarter and are beginning to capitalize on growth opportunities," said Hamid Moghadam, Prologis’ chairman and CEO. "Real estate fundamentals are solid; in the United States we saw 63 million square feet of net absorption, the strongest first quarter figure since 2000.”
According to the report, Prologis leased 35.8 million square feet (3.3 million square meters) in its combined operating and development portfolios in the first quarter, up 15 percent over the same quarter last year. Prologis' operating portfolio was 93.7 percent occupied on March 31, with a customer retention rate of 78 percent.
Other highlights of company activity in the report include the following:
- Prologis started $313 million of new development in the quarter, 65 percent of which was speculative, indicating the broad-based growth in demand for high-quality logistics facilities and the dearth of supply.
- At quarter end, Prologis' global development pipeline comprised 23.7 million square feet (2.2 million square meters), with a total expected investment of $2 billion.
- Prologis also made acquisitions of $123 million, including $109 million in land and land infrastructure and $14 million in buildings.
- Prologis completed a remarkable $5.3 billion in contributions and dispositions in the first quarter, most of which was related to new funds: the formation of Prologis European Logistics Partners with Norges Bank, and the establishment of Nippon Prologis REIT. The company also completed third- party building and land dispositions worth $203 million.
Prologis also completed approximately $3.0 billion of capital markets activity, including debt financings, re-financings and pay-downs. "During the quarter, we made considerable progress strengthening our financial position and reducing our foreign net equity exposure," said Thomas Olinger, chief financial officer. "With a strong balance sheet in place, we are well positioned to grow our company strategically."
The full quarterly report and the press release summarizing first quarter results, as well as a webcast of the 24 April analysts’ call, can be found here.