Slide 1: Prologis Supplemental Information Fourth Quarter 2018
Prologis Supplemental Information Fourth Quarter 2018 Unaudited
Slide 2: Table of Contents
Cover: Georgetown Crossroads, Seattle, USA (A) Terms used throughout document are defined in the Notes and Definitions Table of Contents Highlights 1Company Profile 3Company Performance 5Guidance Financial Information 6Consolidated Balance Sheets 7Consolidated Statements of Income 8Reconciliations o
Slide 3: Company Profile
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. (A) NOI calculation based on Prologis share of the Operating Portfolio. Company Profile Highlights Prologis, Inc., is the global leader in logistics real estate with a focus on high-barrier, high-gr
Slide 4: Highlights
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. 4Q 2018 Prologis Share of NOI of the Operating Portfolio annualized. 4Q 2018 third-party share of asset management fees annualized plus trailing twelve month third-party share of transaction fees an
Slide 5: Company Performance Highlights
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Company Performance Highlights 3 Amount attributable to realized development gains dollars in millions, except per share/unit data Three Months ended December 31, Twelve Months ended December 31, 20
Slide 6: Company Performance Highlights
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Company Performance Highlights 4 (in millions)
Slide 7: Guidance Highlights
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. The difference between Core FFO and Net Earnings predominately relates to real estate depreciation and gains or losses on real estate transactions. See the Notes and Definitions for more information
Slide 8: Consolidated Balance Sheets
Consolidated Balance Sheets Financial Information 6 in thousands $43,465 $43,373 $43,100 Assets: Investments in real estate properties: Operating properties $30,632,155 $30,473,036 $22,585,327 Development portfolio 2,142,801 2,010,046 1,593,489 Land 1,192,220 1,264,815 1,154,383 Other real estate in
Slide 9: Consolidated Statements of Income
Consolidated Statements of Income Financial Information 7 in thousands, except per share amounts Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 Revenues: Rental $,679,195 $,550,649 $2,388,791 $2,225,141 Strategic capital ,126,500 68,148 ,406,300 ,373,889 Develop
Slide 10: Reconciliations of Net Earnings to FFO
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Reconciliations of Net Earnings to FFO* Financial Information 8 in thousands Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 Net earnings attributable to common
Slide 11: Reconciliations of Net Earnings to Adjusted EBITDA
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Reconciliations of Net Earnings to Adjusted EBITDA* Financial Information 9 in thousands Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 Net earnings attributabl
Slide 12: Strategic Capital Summary and Financial Highlights
Values represent the entire venture at 100%, not Prologis proportionate share. Values are presented at Prologis’ adjusted basis derived from the ventures’ U.S. GAAP information and may not be comparable to values reflected in the ventures’ stand alone financial statements calculated on a different b
Slide 13: Operating and Balance Sheet Information of Unconsolidated Co-Investment Ventures
Operating and Balance Sheet Information of the Unconsolidated Co-Investment Ventures (at 100%) (A) Strategic Capital 11 * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Values represent the entire venture at 100%, not Prologis proportionate share.
Slide 14: Non-GAAP Pro-Rata Financial Information
* This is a non-GAAP financial measure, please see our Notes and Definitions for further explanation. See our Notes and Definitions for further explanation of how these amounts are calculated. This balance includes the deferred portion of gains on the contribution of our properties to the ventures p
Slide 15: Operations Overview
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Overview Operations 13
Slide 16: Operating Metrics – Owned and Managed Operations
Operating Metrics – Owned and Managed Operations 14 (A) Amount includes leases less than one year, exclusive of month-to-month leases and holdovers. square feet in thousands Leasing Activity Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Square feet of leases commenced: Operating portfolio: Renewals 16,753
Slide 17: Operating Metrics – Owned and Managed Operations
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Operating Metrics – Owned and Managed Operations 15 99.0% Occupancy Free rent as a % of lease value – trailing four quarters 3.6% 3.9% in thousands, except for percentages and per square foot Capita
Slide 18: Operating Portfolio – Square Feet, Occupied and Leased
Operating Portfolio – Square Feet, Occupied and Leased Operations 16 square feet in thousands and ordered by Prologis share of NOI (%) # of Buildings Square Feet Occupied % Leased % Owned and Managed Owned and Managed Prologis Share % of Total Owned and Managed Prologis Share Owned and Managed Prolo
Slide 19: Operating Portfolio – NOI and Gross Book Value
*This is a non-GAAP financial measure, Please see our Notes and Definitions for further explanation. Operating Portfolio – NOI* and Gross Book Value Operations 17 dollars in thousands and ordered by Prologis share of NOI (%) Fourth Quarter NOI*(A) Gross Book Value Owned and Managed Prologis Share %
Slide 20: Operating Portfolio – Summary by Division
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Operating Portfolio – Summary by Division Operations 18 square feet and dollars in thousands # of Buildings Square Feet Occupied % Leased % Owned and Managed Owned and Managed Prologis Share % of To
Slide 21: Customer Information
Customer Information Operations 19 square feet and dollars in thousands Top Customers - Owned and Managed Lease Expirations - Operating Portfolio - Owned and Managed % of Net Effective Rent Total Square Feet Year Occupied Sq Ft Net Effective Rent $ % of Total $ Per Sq Ft 1 Amazon 3.3 19,826 2019 87,
Slide 22: Capital Deployment Overview – Prologis Share
Overview – Prologis Share Capital Deployment Est Value Creation $ 347 $ 380 $ 365 $ 446 $ 482 Outside the U.S. U.S. 20 (dollars in millions) Est wtd avg stabilized yield 7.5% 7.3% 6.8% 6.6% 6.5% Est Value Creation $236 $533 $571 $583 $661
Slide 23: Development Stabilizations
Development Stabilizations Capital Deployment 21 square feet and dollars in thousands Q4 2018 FY 2018 T E I T E I Square Feet Owned and Managed Prologis Share Square Feet Owned and Managed Prologis Share Central 0 $0 $0 2,863 $,158,480 $,125,628 East 1,375 ,191,545 ,171,461 1,880 ,251,878 ,231,794 W
Slide 24: Development Starts
Development Starts Capital Deployment 22 square feet and dollars in thousands Q4 2018 FY 2018 Square Feet Leased % at Start T E I Square Feet Leased % at Start T E I Owned and Managed Prologis Share Owned and Managed Prologis Share Central 681 0 $48,165 $48,165 3,436 64.3 $,212,550 $,212,550 East 91
Slide 25: Development Portfolio
Development Portfolio Capital Deployment 23 square feet and dollars in thousands Under Development Pre-Stabilized Developments 2019 Expected Completion 2020 and Thereafter Expected Completion Total Development Portfolio T E I T E I T E I T E I Sq Ft Leased % Owned and Managed Prologis Share Sq Ft Ow
Slide 26: Third Party Building Acquisitions
Third Party Building Acquisitions Capital Deployment 24 (A) Excludes DCT acquisition. square feet and dollars in thousands Q4 2018 FY 2018 Square Feet Acquisition Price Square Feet Acquisition Price Owned andManaged Prologis Share Owned andManaged Prologis Share Owned andManaged Prologis Share Owned
Slide 27: Dispositions and Contributions
Dispositions and Contributions Capital Deployment 25 square feet and dollars in thousands Q4 2018 FY 2018 Square Feet Sales Price Square Feet Sales Price Owned andManaged Prologis Share Owned andManaged Prologis Share Owned andManaged Prologis Share Owned andManaged Prologis Share Third-Party Buildi
Slide 28: Land Portfolio – Owned and Managed
Land Portfolio – Owned and Managed Capital Deployment 26 square feet and dollars in thousands. ordered by Prologis share of NOI (%) of the operating portfolio Acres Current Book Value Owned and Managed Prologis Share Estimated Build Out (sq ft) Owned and Managed Prologis Share % of Total Southern Ca
Slide 29: Land Portfolio – Summary and Roll Forward
Amounts include approximately 2,400 acres that we currently control through options, ground leases, unconsolidated joint ventures and other contractual arrangements. Land Portfolio – Summary and Roll Forward Capital Deployment 27 dollars in thousands Acres Current Book Value Owned and Managed Prolog
Slide 30: Capitalization Overview
* This is a non-GAAP financial measure. Please see our Notes and Definitions for detailed calculation. Mexico is included in the U.S. as it is U.S. dollar functional. The detail calculations are included in the Notes and Definitions section and are not in accordance with the applicable SEC rules. A
Slide 31: Debt Components – Consolidated
The maturity for the global senior credit facility ($51 million) and a certain term loan ($500 million) is reflected at the extended maturity date as the extension is at our option. We manage our exposure to changes in foreign currency exchange rates using foreign currency forward contracts, includi
Slide 32: Debt Components – Noncontrolling Interests and Unconsolidated
Refer to Notes and Definitions under Non-GAAP Pro-Rata Financial Information for further explanation on how these amounts are calculated. The maturity of certain unsecured debt (Prologis Share $349 million) is reflected at the extended maturity dates as the extensions are at the entity’s option. We
Slide 33: Net Asset Value Components
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Components – Prologis Share Net Asset Value 31 in thousands, expect for percentages and per square foot Operating Square Feet Gross Book Value GBV per Sq Ft Adjusted Cash NOI (Actual)* Adjusted Cash
Slide 34: Net Asset Value Components – Continued
Components - Continued Net Asset Value 32 For the quarter, promote revenue was $51 million, offset by compensation expense of $13 million and income tax expense of $2 million. in thousands Balance Sheet and Other Items As of December 31, 2018 Consolidated Other assets Cash and cash equivalents $,343
Slide 35: Notes and Definitions
Notes and Definitions
Slide 36: Notes and Definitions
Notes and Definitions 34Please refer to our annual and quarterly financial statements filed with the Securities and Exchange Commission on Forms 10-K and 10-Q and other public reports for further information about us and our business. Certain amounts from previous periods presented in the Supplement
Slide 37: Notes and Definitions (continued)
(continued) Notes and Definitions 35Calculation of Per Share Amountsin thousands, except per share amountThree Months Ended Twelve Months Ended Dec. 31, Dec. 31, 2018 2017 2018 2017 Net earnings Net earnings attributable to common stockholders$596,568 $295,515 $1,643,426 $1,641,931 Noncontrolling in
Slide 38: Notes and Definitions (continued)
(continued) Notes and Definitions 36dollars in thousandsThree Months Ended Dec. 30, Sep. 30, 2018 2018 Debt as a % of gross real estate assets: Consolidated debt (at par)$ 11,161,326 $ 11,305,503 Noncontrolling interests share of consolidated debt (at par) (13,119) (71,620) Prologis share of unconso
Slide 39: Notes and Definitions (continued)
(continued) Notes and Definitions 37FFO, as modified by Prologis attributable to common stockholders/unitholders (“FFO, as modified by Prologis”); Core FFO attributable to common stockholders/unitholders (“Core FFO”); AFFO attributable to common stockholders/unitholders (“AFFO”); (collectively refer
Slide 40: Notes and Definitions (continued)
(continued) Notes and Definitions 38Gains or losses from non-development property dispositions and impairment charges related to expected dispositions represent changes in value of the properties. By excluding these gains and losses, FFO does not capture realized changes in the value of disposed pro
Slide 41: Notes and Definitions (continued)
(continued) Notes and Definitions 39Investment Capacity is our estimate of the gross real estate that could be acquired by our co-investment ventures through the use of existing equity commitments from us and our partners assuming the maximum leverage limits of the ventures are used.Market Capitaliz
Slide 42: Notes and Definitions (continued)
(continued) Notes and Definitions 40We define our same store population for the three months ended December 31, 2018 as our owned and managed properties that were in the Operating Portfolio at January 1, 2017 and owned throughout the same three month period in both 2018 and 2017. The same store popu