Prologis, Inc. · NYSE:PLD
Prologis — NAREIT June 7-9, 2011 New York
23 slides from Prologis's conference presentation, Jun 6, 2011
Slide 1: NAREIT June 7-9, 2011 New York
NAREIT June 7-9, 2011 New York
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the information included in this press release contains forward-looking statements, such as future opportunities for the combined company, improved cost of capital, increased revenue opportunities, the pending retirement of any of the individual's mentioned, operat
Slide 3: Vision for Success
2 The undisputed leader in the industrial sector The best customer franchise in the real estate industry The world's leading industrial real estate private capital franchise The world's leading industrial property developer The best and most diverse real estate talent pool in the industry Vision for
Slide 4: Global Reach
Note: Data on a pro forma basis as of March 31, 2011. International Monetary Fund. 3 Global Reach Platform represents ~78% of global GDP(1) Americas Europe Asia 423 msf / 39.3 msm 2,630 buildings in 4 countries 7,400 acres of land for sale / development 146 msf / 13.6 msm 620 buildings in 14 countri
Slide 5: Leading Customer Franchise
Top 10 represents ~10% of estimated combined ABR : Largest single customer represents only 2.6% of estimated combined ABR Leading Customer Franchise 4 (% Combined ABR) (CHART)
Slide 6: Premier Private Capital Business
5 Premier Private Capital Business AUM is on a pro forma basis and represents gross fair market value of co-investment ventures / funds and estimated investment capacity as of March 31, 2011. (CHART) $12.9Bn $10.0Bn $2.8Bn 68% of AUM in unlimited life funds 22 funds and co-investment ventures $3.2 b
Slide 7: Enhanced Development Opportunities
Existing land bank fuels internal growth Enhanced Development Opportunities (CHART) (CHART) (CHART) $750 million $1.5 billion Total Assets Under Development(1) 2011E Development Starts Annual Future Potential ~$2.5 billion Americas Europe 30% 50% 20% 30% 35% 35% 16% 56% 28% 6 Note: Data on a pro for
Slide 8: Strategic Benefits of Merger
Strategic Benefits of Merger Improved credit profile from synergies Unsecured credit will be one of the most liquid in REIT space Larger market cap provides greater liquidity to shareholders Shares and OP units will be attractive acquisition currencies Deep global presence with ~600 million square f
Slide 9: Integration Progress
Integration 8 By Year-End 2011 At Close Pre Close Realize 100% of gross G&A synergies Upgrade all real estate and ERP systems onto a single platform Identified $80M of G&A synergies to be realized: 75% personnel synergies 25% non-personnel synergies Determined and notified transition dates for more
Slide 10: Near-Term Financial Noise
9 PLD is "acquirer" for financial reporting purposes FFO for Q2 2011 will consist of two months of stand-alone PLD and one month of combined company results Valuation and rationalization plan for fund and co-investment ventures to be completed in 2011 Substantial transaction and transition costs wil
Slide 11: Capitalization & Debt Metrics
($ and shares in millions, except per share data) Pro forma Market Equity Value Share Price (as of 6/1/11) $35.64 Shares Outstanding 424 Market Equity Value $15,111 Total Debt (2) Unsecured Senior Notes 4,849 Convertible Senior Notes 1,530 Unsecured Credit Facilities 1,095 Secured 2,436 Total Debt $
Slide 12: Financial Goals 2011-2013
11 Re-gain Baa1/BBB+/BBB+ credit rating, positive outlook A-eligible credit rating Target balance sheet leverage of < 35% Achieve strong fixed charge coverage ratio of > 2.5x Maintain a large, stable pool of wholly-owned unencumbered properties, predominately U.S. focused Maintain staggered debt mat
Slide 13: Second Half 2011 Guidance
12 Second Half 2011 Guidance Core FFO as defined by Prologis (see Q1 Supplemental Information). Guidance for net earnings for the second half of 2011 is estimated to be $0.00 to $0.10 per fully diluted unit and share. ($ In Millions) Low High Core Funds from Operations(1) (per fully diluted unit and
Slide 14: Long-Term Strategy
13 Align portfolio in targeted regions to serve the needs of key customers Significantly enhance asset utilization Fuel growth through development and land bank monetization Capitalize on world-class combined investment management franchise Create one of strongest balance sheets in the real estate s
Slide 15: Appendix
Appendix PROLOGIS.
Slide 16: Leading Indicators of Demand
Leading Indicators of Demand 15 (CHART) Peak-to-Trough Trough-to-Current Industrial Production GDP Consumption Inventories Net Absorption / Stock Trade
Slide 17: Timeline of Recovery
Timeline of Recovery Global economic recovery is continuing 16 Expect broad-based market rent growth and spikes in supply-constrained global markets Retail sales turn positive Increased take-up Positive net absorption Improvement in occupancy GDP turns positive Production turns positive Seaborne & a
Slide 18: Key Credit Highlights
Key Credit Highlights (Pro Forma as of 3/31/2011) $15 billion of unencumbered gross real estate assets Weighted debt maturities < 11% of total debt Increased liquidity of unsecured public debt Strong access to all sources of private and public debt / equity capital: over $21 billion raised since Apr
Slide 19: Balance Sheet Debt Maturity Profile
Note: Includes re-cast global line of credit and conformed AMB yen line of credit. Does not included debt related to PEPR. Excludes discounts/premiums. 18 Balance Sheet Debt Maturity Profile (CHART) ($B) Target Smoothing of Debt Maturities - $1.0B Balance Sheet Debt Global Lines of Credit Current Di
Slide 20: Fund Debt Maturity Profile
Note: Excludes discounts / premiums. 19 Fund Debt Maturity Profile ($B) (CHART)
Slide 21: PEPR - Overview
Investment Opportunity The premier pan-European industrial platform 232 properties in 11 countries, 93.2% occupied €2.8bn portfolio value Unencumbered asset value of €1.23bn Tender Offer On April 18, 2011, Prologis announced a mandatory tender offer to acquire any or all of the outstanding units and
Slide 22: Core EBITDA, as Adjusted
Core EBITDA, as Adjusted: The companies use core adjusted earnings before interest, tax, depreciation and amortization, impairment charges, gains or losses from the disposition of real estate investments, losses on early extinguishment of debt and derivatives contracts (including cash charges), and
Slide 23: Definitions
Definitions The following table reconciles pro forma Core EBITDA, as adjusted to estimated net earnings (loss) for the quarter ended March 31, 2011 (dollars in thousands) 22 Prologis Prologis Prologis Consolidated net earnings (loss) $ (25,842) Gains from sale or contribution of real estate interest