Slide 1: Prologis Supplemental Information First Quarter 2019
Prologis Supplemental Information First Quarter 2019 Unaudited Prologis Park Cajamar 1, Sao Paulo, Brazil
Slide 2: Table of Contents
1Q 2019 Supplemental Highlights 1Company Profile 3Company Performance 5Guidance Financial Information 6Consolidated Balance Sheets 7Consolidated Statements of Income 8Reconciliations of Net Earnings to FFO 9Reconciliations of Net Earnings to Adjusted EBITDA Strategic Capital 10Summary and Financial
Slide 3: Company Profile
3,717 Buildings Highlights * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. NOI calculation based on Prologis share of the Operating Portfolio. Company Profile 1Q 2019 Supplemental 1 Prologis, Inc., is the global leader in logistics real estate wi
Slide 4: Highlights
Highlights * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. 1Q 2019 Prologis Share of NOI of the Operating Portfolio annualized. 1Q 2019 third-party share of asset management fees annualized plus trailing twelve month third-party share of transact
Slide 5: Company Performance
Highlights * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. In the third quarter 2018, Prologis completed the acquisition of DCT Industrial Trust (DCT). The first quarter of 2018 excludes all amounts related to DCT. Strategic capital revenue for f
Slide 6: Company Performance: Core FFO, AFFO, Value Creation
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Core FFO* in millions AFFO* in millions Estimated Value Creation in millions Asset Management Fees and Net Promotes in millions Highlights Company Performance 1Q 2019 Supplemental 4
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
Slide 8: Consolidated Balance Sheets
Financial Information In connection with the adoption of the new lease accounting standard, we recognized right of use assets of $391 million and lease liabilities of $398 million as of January 1, 2019. Consolidated Balance Sheets 1Q 2019 Supplemental 6
Slide 9: Consolidated Statements of Income
Financial Information In connection with the adoption of the new lease accounting standard, beginning in 2019, we expense internal leasing costs that were previously capitalized. Had we adopted in 2018, we would have expensed an additional $5.4 million of such costs in the first quarter of 2018. Con
Slide 10: Reconciliations of Net Earnings to FFO
Financial Information * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Reconciliations of Net Earnings to FFO* 1Q 2019 Supplemental 8
Slide 11: Reconciliations of Net Earnings to Adjusted EBITDA
Financial Information * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Reconciliations of Net Earnings to Adjusted EBITDA* 1Q 2019 Supplemental 9
Slide 12: Strategic Capital: Summary and Financial Highlights
Strategic Capital 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 calculate
Slide 13: Operating and Balance Sheet Information of Unconsolidated Co-Investment Ventures
Strategic Capital * 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. Values are presented at Prologis’ adjusted basis derived from the ventures’ U.S. GAAP information and
Slide 14: Non-GAAP Pro-Rata Financial Information
Strategic Capital * 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
Slide 15: Operations Overview
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Occupancy Customer Retention Same Store Change Over Prior Year – Prologis Share* Rent Change – Prologis Share Operations Overview 1Q 2019 Supplemental 13 Trailing four quarters – net effective
Slide 16: Operating Metrics – Owned and Managed
Operations Amount includes leases less than one year, exclusive of month-to-month leases and holdovers. Operating Metrics – Owned and Managed 1Q 2019 Supplemental 14
Slide 17: Operating Metrics – Owned and Managed (continued)
Operations * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Operating Metrics – Owned and Managed 1Q 2019 Supplemental 15 CAPITAL EXPENDITURES Thousands, except for percentages and per square foot SAME STORE INFORMATION Thousands, except for perce
Slide 18: Operating Portfolio – Square Feet, Occupied and Leased
Operations Operating Portfolio – Square Feet, Occupied and Leased 1Q 2019 Supplemental 16
Slide 19: Operating Portfolio – NOI and Gross Book Value
Operations * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Operating Portfolio – NOI* and Gross Book Value 1Q 2019 Supplemental 17
Slide 20: Operating Portfolio – Summary by Division
Operations * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Operating Portfolio – Summary by Division 1Q 2019 Supplemental 18
Slide 21: Customer Information
Operations Customer Information 1Q 2019 Supplemental 19
Slide 22: Capital Deployment Overview – Prologis Share
Development Starts (TEI) in millions Development Stabilizations (TEI) in millions Building Acquisitions in millions Land Portfolio in millions Capital Deployment Overview – Prologis Share 1Q 2019 Supplemental 20 Outside the U.S. U.S. Est Value Creation $533 $571 $583 $661 $209 Est wtd avg stabilized
Slide 23: Development Stabilizations
Capital Deployment Development Stabilizations 1Q 2019 Supplemental 21
Slide 24: Development Starts
Capital Deployment Development Starts 1Q 2019 Supplemental 22
Slide 25: Development Portfolio
Capital Deployment Development Portfolio 1Q 2019 Supplemental 23
Slide 26: Third Party Building Acquisitions
Capital Deployment Third Party Building Acquisitions 1Q 2019 Supplemental 24
Slide 27: Dispositions and Contributions
Capital Deployment During the first quarter, we contributed a portfolio of assets to PBLV for $496 million in cash and in equity units. This transaction is not reflected in the table above. Dispositions and Contributions 1Q 2019 Supplemental 25
Slide 28: Land Portfolio – Owned and Managed
Capital Deployment Land Portfolio – Owned and Managed 1Q 2019 Supplemental 26
Slide 29: Land Portfolio – Summary and Roll Forward
Capital Deployment 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 1Q 2019 Supplemental 27
Slide 30: Capitalization Overview
Capitalization * 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 applicabl
Slide 31: Debt Components – Consolidated
Capitalization The maturity for the global senior credit facility ($26 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, including those that are accoun
Slide 32: Debt Components – Noncontrolling Interests and Unconsolidated
Capitalization 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 $473 million) is reflected at the extended maturity dates as the extensions are at the entit
Slide 33: Net Asset Value Components – Prologis Share
Net Asset Value * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Components – Prologis Share 1Q 2019 Supplemental 31
Slide 34: Net Asset Value Components – continued
Net Asset Value First quarter amount relates to promote amortization expense of $5 million. Components - continued 1Q 2019 Supplemental 32 in thousands Balance Sheet and Other Items As of March 31, 2019 Consolidated Other assets Cash and cash equivalents $,251,030 Restricted cash 9,834 Accounts rece
Slide 35: Prologis Fokker Park, Oude Meer, the Netherlands
Notes and Definitions Prologis Fokker Park, Oude Meer, the Netherlands
Slide 36: Notes and Definitions
Notes and Definitions 1Q 2019 Supplemental 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 presen
Slide 37: Notes and Definitions (continued)
Notes and Definitions (continued) 1Q 2019 Supplemental 35Business Line Reporting is a non-GAAP financial measure. Core FFO and development gains are generated by our three lines of business: (i) real estate operations; (ii) strategic capital; and (iii) development. The real estate operations line of
Slide 38: Notes and Definitions: Debt Metrics
Notes and Definitions (continued) 1Q 2019 Supplemental 36Debt Metrics. We evaluate the following debt metrics to monitor the strength and flexibility of our capital structure and evaluate the performance of our management. Investors can utilize these metrics to make a determination about our ability
Slide 39: Notes and Definitions: FFO Measures
Notes and Definitions (continued) 1Q 2019 Supplemental 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”)
Slide 40: Notes and Definitions: AFFO and Limitations
Notes and Definitions (continued) 1Q 2019 Supplemental 38We use AFFO to (i) assess our operating performance as compared to other real estate companies, (ii) evaluate our performance and the performance of our properties in comparison with expected results and results of previous periods, (iii) eval
Slide 41: Notes and Definitions (continued)
Notes and Definitions (continued) 1Q 2019 Supplemental 39
Slide 42: Notes and Definitions: Rental Revenue and Rent Change
Notes and Definitions (continued) 1Q 2019 Supplemental 40prior to and subsequent to change in ownership. The markets presented represent markets that are generally greater than 1% of Prologis share of NOI. Assets held for sale are excluded from the portfolio.Prologis Share represents our proportiona
Slide 43: Notes and Definitions: Same Store
Notes and Definitions (continued) 1Q 2019 Supplemental 41We exclude non-industrial real estate properties and properties held for sale, along with development properties that were not stabilized at the beginning of the reporting period or properties acquired or disposed of to third parties during th