(Mark One)
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þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, 2008 | ||
OR
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Maryland
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74-2604728 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. employer identification no.) |
Name of each exchange |
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Title of Each Class
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on which registered | |||
Common Shares of Beneficial Interest, par value $0.01 per share
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New York Stock Exchange | |||
Series F Cumulative Redeemable Preferred Shares of
Beneficial Interest, par
value $0.01 per share |
New York Stock Exchange | |||
Series G Cumulative Redeemable Preferred Shares of
Beneficial Interest par
value $0.01 per share |
New York Stock Exchange |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
2
3
Number of |
||||||||
Properties | Square Feet | |||||||
(in thousands) | ||||||||
Square feet owned, managed and under development:
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Direct owned:
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Industrial properties:
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Operating properties
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1,297 | 195,710 | ||||||
Properties under development
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65 | 19,837 | ||||||
Retail and mixed use properties
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34 | 1,404 | ||||||
Total direct owned
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1,396 | 216,951 | ||||||
Investment management-industrial properties
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1,339 | 297,665 | ||||||
Total properties owned and under management
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2,735 | 514,616 | ||||||
| Simplify our business model and focus on our core business; |
| Complete the development and leasing of properties currently in our development portfolio; |
| Manage our core portfolio of industrial distribution properties to maintain and improve our net operating income stream from these assets; |
| Provide exceptional customer service to our current and future customers; |
| Generate liquidity through contributions of properties to our property funds and through sales to third parties; |
| Reduce our debt at December 31, 2009 by $2 billion from our debt levels at September 30, 2008, through debt retirements; utilizing proceeds from property contributions and dispositions and other possible means, such as buying back outstanding debt and issuing additional equity; |
| Recast our global line of credit; and |
| Reduce our general and administrative expenses through various cost savings initiatives, including reductions in workforce. |
| Employ a conservative growth expansion model; |
| Develop industrial properties utilizing a portion of our existing land parcels, which we will hold for long-term direct investment, or otherwise monetize our land holdings through dispositions; and |
| Grow the property funds by utilizing the property fund structure for the development of properties and the opportunistic acquisition of properties from third parties. |
4
| Appointed a new Chief Executive Officer; |
| Reduced our expected annual distribution rate from $2.07 to $1.00 per common share; |
| Halted the start of substantially all new development activity, other than those we were contractually committed to complete; |
| Entered into a binding contract to sell our China operations and our 20% equity interest in the Japan property funds for $1.3 billion of cash. This transaction closed in February 2009 with the receipt of $500 million that was used to pay down debt. The remaining proceeds will be funded upon satisfactory completion of year-end financial statement audits of certain entities. In the event that the audits reflect a material disparity from the unaudited information previously furnished, the buyer will have the option to unwind the transaction. (See Note 21 to our Consolidated Financial Statements in Item 8); |
| Purchased $310 million aggregate principal of our senior notes for $217 million in cash; |
| Received proceeds of $1.3 billion from the contribution or sale of properties to unconsolidated property funds or third parties; and |
| Implemented a reduction in workforce (RIF) plan that, along with other initiatives, will reduce our gross general and administrative expenses on a prospective basis by approximately $100 million in 2009. |
5
Investment |
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(before depreciation) |
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Number of |
Square |
at December 31, |
Leased |
|||||||||||||
Properties | Feet/Acres | 2008 | Percentage | |||||||||||||
Core Properties
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1,191 | 156,351 square feet | $ | 8,284,011 | 92.2 | % | ||||||||||
Completed Development Properties
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140 | 40,763 square feet | $ | 3,031,449 | 43.5 | % | ||||||||||
Properties under development
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65 | 19,837 square feet | $ | 1,163,610 | 37.2 | % | ||||||||||
Land held for development
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| 10,134 acres | $ | 2,481,216 | n/a |
6
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| allows us, as the manager of the property funds, to maintain and expand our market presence and customer relationships; |
| allows us to maintain a long-term ownership position in the properties; |
| allows us to earn fees for providing services to the property funds; and |
| provides us an opportunity to earn incentive performance participation income based on the investors returns over a specified period. |
| allowed us to realize a portion of the profits from our development activities by contributing our stabilized development properties to property funds (profits are recognized to the extent of third party ownership in the property fund); and |
| provided diversified sources of capital. |
8
9
| Walter C. Rakowich, Chief Executive Officer |
| Ted R. Antenucci, Chief Investment Officer |
| Edward S. Nekritz, General Counsel and Secretary |
| William E. Sullivan, Chief Financial Officer |
10
11
12
| Debt and Equity Markets Our results of operations and share price are sensitive to the volatility of the credit markets. The commercial real estate debt markets are currently experiencing volatility as a result of certain factors, including the tightening of underwriting standards by lenders and credit rating agencies and the significant inventory of unsold collateralized mortgage backed securities in the market. Credit spreads for major sources of capital have widened significantly as investors have demanded a higher risk premium, resulting in lenders increasing the cost for debt financing. Should the overall cost of borrowings increase, either by increases in the index rates or by increases in lender spreads, we will need to factor such increases into the economics of our acquisitions, developments and property contributions and dispositions. This may result in lower overall economic returns and a reduced level of cash flow, which could potentially impact our ability to make distributions to our shareholders and to comply with certain debt covenants. In addition, the recent dislocations in the debt markets have reduced the amount of capital that is available to finance real estate, which, in turn: (i) limits the ability of real estate investors to benefit from lower real estate values; (ii) has slowed real estate transaction activity; and (iii) may result in an inability to refinance debt as it becomes due, all of which may reasonably be expected to have a material adverse impact on revenues, income and/or cash flow from the acquisition and operations of real properties and mortgage loans. In addition, the state of the debt markets could have an impact on the overall amount of capital being invested in real estate, which may result in price or value decreases of real estate assets and impact the ability to raise equity capital for us and within our unconsolidated investees. |
| Valuations The recent market volatility will likely make the valuation of our properties and those of our unconsolidated investees more difficult. There may be significant uncertainty in the valuation, or in the stability of the value, of our properties and those of our unconsolidated investees, that could result in a substantial decrease in the value of our properties and those of our unconsolidated investees. As a result, we may not be able to recover the current carrying amount of our properties, our investments in our unconsolidated investees and/or goodwill, which may require us to recognize an impairment charge in earnings in addition to the charges we recognized in the fourth quarter of 2008. Additionally, certain of the fees we generate from our unconsolidated investees are dependent upon the value of the properties held by the investees or the level of contributions we make to the investees. Therefore, if property values decrease or our level of contributions decrease, certain fees paid to us by our unconsolidated investees may also decrease. |
13
| Government Intervention The pervasive and fundamental disruptions that the global financial markets are currently undergoing have led to extensive and unprecedented governmental intervention. Such intervention has in certain cases been implemented on an emergency basis, suddenly and substantially eliminating market participants ability to continue to implement certain strategies or manage the risk of their outstanding positions. It is impossible to predict what, if any, additional interim or permanent governmental restrictions may be imposed on the markets and/or the effect of such restrictions on us and our results of operations. There is a high likelihood of significantly increased regulation of the financial markets that could have a material impact on our operating results and financial condition. |
| local conditions, such as an oversupply of distribution space or a reduction in demand for distribution space in an area; |
| the attractiveness of our properties to potential customers; |
| competition from other available properties; |
| our ability to provide adequate maintenance of, and insurance on, our properties; |
| our ability to control rents and variable operating costs; |
| governmental regulations, including zoning, usage and tax laws and changes in these laws; and |
| potential liability under, and changes in, environmental, zoning and other laws. |
14
| the risk that we may not be able to lease the available space in our properties under development or recently completed developments at rents that are sufficient to be profitable; |
| the risk that we will decide to sell certain land parcels and we will not be able to find a third party to acquire such land or that the sales price will not allow us to recover our investment, resulting in additional impairment charges; |
| the risk that development opportunities explored by us may be abandoned and the related investment will be impaired; |
| the risk that we may not be able to obtain, or may experience delays in obtaining, all necessary zoning, building, occupancy and other governmental permits and authorizations; |
| the risk that due to the increased cost of land our activities may not be as profitable, especially in certain land constrained areas; |
| the risk that construction costs of a property may exceed the original estimates, or that construction may not be concluded on schedule, making the project less profitable than originally estimated or not profitable at all; including the possibility of contract default, the effects of local weather conditions, the possibility of local or national strikes and the possibility of shortages in materials, building supplies or energy and fuel for equipment; and |
| the risk that occupancy levels and the rents that can be earned for a completed project will not be sufficient to recover our investment. |
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| difficulties and costs of staffing and managing international operations in certain regions; |
| currency restrictions, which may prevent the transfer of capital and profits to the United States; |
| unexpected changes in regulatory requirements; |
| potentially adverse tax consequences; |
20
| the responsibility of complying with multiple and potentially conflicting laws, e.g., with respect to corrupt practices, employment and licensing; |
| the impact of regional or country-specific business cycles and economic instability; |
| political instability, civil unrest, drug trafficking, political activism or the continuation or escalation of terrorist or gang activities (particularly with respect to our operations in Mexico); and |
| foreign ownership restrictions with respect to operations in certain foreign countries. |
21
22
Rentable |
Investment |
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No. of |
Percentage |
Square |
Before |
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Bldgs. | Leased (1) | Footage | Depreciation | Encumbrances (2) | ||||||||||||||||
Operating properties owned in the direct owned segment at
December 31, 2008 (dollars and rentable square footage in
thousands):
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Industrial properties:
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North America by Country (40
markets) (3):
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United States:
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Atlanta, Georgia
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81 | 91.80 | % | 12,630 | $ | 447,178 | $ | 30,260 | ||||||||||||
Austin, Texas
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16 | 89.95 | % | 1,095 | 44,596 | | ||||||||||||||
Central Valley, California
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13 | 84.54 | % | 3,486 | 172,142 | 24,611 | ||||||||||||||
Charlotte, North Carolina
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31 | 96.79 | % | 3,623 | 117,300 | 35,673 | ||||||||||||||
Chicago, Illinois
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86 | 89.62 | % | 18,660 | 985,289 | 158,299 | ||||||||||||||
Cincinnati, Ohio
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21 | 87.41 | % | 3,603 | 106,996 | 22,504 | ||||||||||||||
Columbus, Ohio
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30 | 87.02 | % | 5,873 | 221,767 | 27,353 | ||||||||||||||
Dallas/Fort Worth, Texas
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106 | 86.10 | % | 16,128 | 644,492 | 42,919 | ||||||||||||||
Denver, Colorado
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30 | 93.56 | % | 4,700 | 234,834 | 49,717 | ||||||||||||||
El Paso, Texas
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16 | 94.87 | % | 2,051 | 63,578 | | ||||||||||||||
Houston, Texas
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77 | 98.12 | % | 7,227 | 251,459 | | ||||||||||||||
I-81 Corridor, Pennsylvania
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10 | 71.69 | % | 3,736 | 192,452 | | ||||||||||||||
Indianapolis, Indiana
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30 | 95.37 | % | 3,155 | 113,481 | | ||||||||||||||
Inland Empire, California
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38 | 83.79 | % | 15,775 | 1,204,255 | 173,979 | ||||||||||||||
Las Vegas, Nevada
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17 | 92.12 | % | 2,061 | 96,622 | 10,173 | ||||||||||||||
Los Angeles, California
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65 | 98.30 | % | 5,465 | 596,057 | 87,870 | ||||||||||||||
Louisville, Kentucky
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12 | 81.80 | % | 3,259 | 109,773 | 11,530 | ||||||||||||||
Memphis, Tennessee
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22 | 88.49 | % | 4,905 | 137,976 | | ||||||||||||||
Nashville, Tennessee
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29 | 97.19 | % | 2,983 | 84,678 | | ||||||||||||||
New Jersey
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36 | 88.51 | % | 6,890 | 424,645 | 33,437 | ||||||||||||||
Orlando, Florida
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21 | 67.97 | % | 2,365 | 114,616 | | ||||||||||||||
Phoenix, Arizona
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33 | 94.40 | % | 2,700 | 127,811 | | ||||||||||||||
Portland, Oregon
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26 | 86.75 | % | 2,371 | 133,305 | 29,306 | ||||||||||||||
Reno, Nevada
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18 | 87.06 | % | 3,211 | 133,881 | 5,200 | ||||||||||||||
Salt Lake City, Utah
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4 | 100.00 | % | 661 | 24,389 | | ||||||||||||||
San Antonio, Texas
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42 | 87.49 | % | 3,826 | 136,886 | 3,437 | ||||||||||||||
San Francisco (East Bay), California
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57 | 98.12 | % | 4,901 | 312,710 | 58,011 | ||||||||||||||
San Francisco (South Bay), California
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84 | 94.09 | % | 5,516 | 465,083 | 36,591 | ||||||||||||||
Seattle, Washington
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11 | 83.65 | % | 1,281 | 72,663 | 264 | ||||||||||||||
South Florida
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17 | 59.04 | % | 1,533 | 106,048 | 6,215 | ||||||||||||||
St. Louis, Missouri
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6 | 77.87 | % | 685 | 23,026 | | ||||||||||||||
Tampa, Florida
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52 | 90.50 | % | 3,562 | 146,773 | 8,931 | ||||||||||||||
Washington D.C./Baltimore, Maryland
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39 | 96.72 | % | 5,232 | 266,231 | 36,305 | ||||||||||||||
Other
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2 | 100.00 | % | 367 | 19,263 | | ||||||||||||||
Subtotal United States
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1,178 | 89.23 | % | 165,516 | 8,332,255 | 892,585 | ||||||||||||||
Mexico:
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Guadalajara
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2 | 14.32 | % | 269 | 10,632 | | ||||||||||||||
Juarez
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5 | 0.00 | % | 489 | 19,146 | | ||||||||||||||
Mexico City
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7 | 59.70 | % | 1,507 | 83,962 | | ||||||||||||||
Monterrey
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6 | 20.35 | % | 909 | 34,990 | | ||||||||||||||
Reynosa
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3 | 58.35 | % | 305 | 12,498 | | ||||||||||||||
Tijuana
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3 | 46.12 | % | 691 | 37,622 | | ||||||||||||||
Subtotal Mexico
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26 | 35.10 | % | 4,170 | 198,850 | | ||||||||||||||
Canada Toronto
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1 | 100.00 | % | 110 | 7,832 | | ||||||||||||||
Subtotal North America
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1,205 | 88.00 | % | 169,796 | 8,538,937 | 892,585 | ||||||||||||||
Europe by Country (29 markets) (4):
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Belgium
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1 | 0.00 | % | 187 | 14,136 | | ||||||||||||||
Czech Republic
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6 | 27.38 | % | 1,702 | 142,903 | | ||||||||||||||
France
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6 | 74.14 | % | 2,024 | 136,812 | 2,900 | ||||||||||||||
Germany
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10 | 44.70 | % | 1,569 | 122,536 | | ||||||||||||||
Hungary
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5 | 34.69 | % | 1,279 | 75,007 | | ||||||||||||||
Italy
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5 | 28.62 | % | 1,562 | 103,730 | | ||||||||||||||
Netherlands
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1 | 0.00 | % | 280 | 14,879 | | ||||||||||||||
Poland
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17 | 58.58 | % | 3,700 | 208,471 | | ||||||||||||||
Romania
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4 | 89.63 | % | 1,170 | 72,085 | | ||||||||||||||
Slovakia
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7 | 83.65 | % | 1,895 | 129,931 | | ||||||||||||||
Spain
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1 | 0.00 | % | 470 | 22,465 | | ||||||||||||||
Sweden
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1 | 78.68 | % | 84 | 6,051 | | ||||||||||||||
United Kingdom
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18 | 4.68 | % | 4,010 | 390,982 | | ||||||||||||||
Subtotal Europe
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82 | 43.21 | % | 19,932 | 1,439,988 | 2,900 | ||||||||||||||
Asia by Country (6 markets) (5):
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Japan
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7 | 39.17 | % | 5,725 | 951,857 | | ||||||||||||||
Korea
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3 | 100.00 | % | 257 | 25,686 | 4,540 | ||||||||||||||
Subtotal Asia
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10 | 41.79 | % | 5,982 | 977,543 | 4,540 | ||||||||||||||
Total industrial properties
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1,297 | 82.02 | % | 195,710 | 10,956,468 | 900,025 | ||||||||||||||
Retail properties:
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North America by Country (5 markets):
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United States
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34 | 94.48 | % | 1,404 | 358,992 | 4,447 | ||||||||||||||
Total retail properties
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34 | 94.48 | % | 1,404 | 358,992 | 4,447 | ||||||||||||||
Total operating properties owned in the direct owned segment
at December 31, 2008
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1,331 | 82.11 | % | 197,114 | $ | 11,315,460 | $ | 904,472 | ||||||||||||
23
Land Held for Development | Properties Under Development | |||||||||||||||||||||||||||
Rentable |
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No. of |
Percentage |
Square |
Current |
Total Expected |
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Acreage | Investment | Bldgs. | Leased (1) | Footage | Investment | Cost (6) | ||||||||||||||||||||||
Land held for development and properties under development at
December 31, 2008 (dollars and rentable square footage in
thousands):
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North America by Market (37 total markets):
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United States:
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Atlanta, Georgia
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467 | $ | 37,460 | | | | $ | | $ | | ||||||||||||||||||
Austin, Texas
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6 | 2,869 | | | | | | |||||||||||||||||||||
Central Valley, California
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845 | 27,505 | 2 | 100.00 | % | 1,226 | 68,979 | 80,286 | ||||||||||||||||||||
Charlotte, North Carolina
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29 | 4,929 | | | | | | |||||||||||||||||||||
Chicago, Illinois
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753 | 93,295 | 1 | 0.00 | % | 257 | 22,559 | 30,345 | ||||||||||||||||||||
Cincinnati, Ohio
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85 | 8,594 | | | | | | |||||||||||||||||||||
Columbus, Ohio
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233 | 13,775 | | | | | | |||||||||||||||||||||
Dallas, Texas
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501 | 42,657 | | | | | | |||||||||||||||||||||
Denver, Colorado
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94 | 10,664 | | | | | | |||||||||||||||||||||
East Bay, California
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2 | 7,849 | | | | | | |||||||||||||||||||||
El Paso, Texas
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70 | 4,048 | | | | | | |||||||||||||||||||||
Houston, Texas
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120 | 9,774 | | | | | | |||||||||||||||||||||
Indianapolis, Indiana
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93 | 5,235 | | | | | | |||||||||||||||||||||
Inland Empire, California
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463 | 137,411 | 1 | 100.00 | % | 658 | 69,572 | 78,460 | ||||||||||||||||||||
Jacksonville, Florida
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103 | 16,806 | | | | | | |||||||||||||||||||||
Las Vegas, Nevada
|
68 | 34,634 | | | | | | |||||||||||||||||||||
Los Angeles, California
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30 | 46,373 | | | | | | |||||||||||||||||||||
Louisville, Kentucky
|
13 | 995 | | | | | | |||||||||||||||||||||
Memphis, Tennessee
|
159 | 11,643 | | | | | | |||||||||||||||||||||
Nashville, Tennessee
|
24 | 3,002 | | | | | | |||||||||||||||||||||
New Jersey
|
301 | 177,339 | | | | | | |||||||||||||||||||||
Norfolk, Virginia
|
83 | 9,165 | | | | | | |||||||||||||||||||||
Pennsylvania
|
307 | 43,756 | | | | | | |||||||||||||||||||||
Phoenix, Arizona
|
148 | 23,102 | | | | | | |||||||||||||||||||||
Portland, Oregon
|
23 | 5,204 | | | | | | |||||||||||||||||||||
Reno, Nevada
|
178 | 22,828 | | | | | | |||||||||||||||||||||
San Antonio, Texas
|
55 | 5,958 | | | | | | |||||||||||||||||||||
South Florida
|
81 | 53,562 | 2 | 0.00 | % | 200 | 20,558 | 23,366 | ||||||||||||||||||||
Tampa, Florida
|
45 | 6,319 | | | | | | |||||||||||||||||||||
Washington D.C./Baltimore, Maryland
|
138 | 23,973 | | | | | | |||||||||||||||||||||
Mexico:
|
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Guadalajara
|
48 | 17,296 | | | | | | |||||||||||||||||||||
Juarez
|
146 | 17,181 | 3 | 0.00 | % | 458 | 21,123 | 27,296 | ||||||||||||||||||||
Matamoros
|
122 | 15,956 | | | | | | |||||||||||||||||||||
Mexico City
|
121 | 41,838 | 2 | 0.00 | % | 793 | 33,454 | 40,874 | ||||||||||||||||||||
Monterrey
|
159 | 30,163 | | | | | | |||||||||||||||||||||
Reynosa
|
108 | 11,689 | 1 | 0.00 | % | 302 | 10,754 | 15,290 | ||||||||||||||||||||
Canada Toronto
|
179 | 84,796 | 1 | 0.00 | % | 416 | 19,905 | 28,931 | ||||||||||||||||||||
Subtotal North America
|
6,400 | 1,109,643 | 13 | 43.69 | % | 4,310 | 266,904 | 324,848 | ||||||||||||||||||||
Europe by Country (35 total markets):
|
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Austria
|
33 | 29,518 | | | | | | |||||||||||||||||||||
Belgium
|
30 | 13,622 | 1 | 100.00 | % | 247 | 9,228 | 17,686 | ||||||||||||||||||||
Czech Republic
|
307 | 85,953 | 3 | 24.02 | % | 694 | 64,168 | 65,954 | ||||||||||||||||||||
France
|
316 | 74,462 | 9 | 10.92 | % | 2,241 | 68,156 | 175,886 | ||||||||||||||||||||
Germany
|
251 | 96,231 | 14 | 56.64 | % | 3,020 | 164,365 | 257,326 | ||||||||||||||||||||
Hungary
|
162 | 34,700 | | | | | | |||||||||||||||||||||
Italy
|
74 | 28,623 | 1 | 0.00 | % | 130 | 107 | 10,560 | ||||||||||||||||||||
Netherlands
|
58 | 41,910 | 1 | 100.00 | % | 306 | 7,065 | 26,314 | ||||||||||||||||||||
Poland
|
839 | 154,697 | 13 | 27.89 | % | 3,695 | 180,539 | 288,912 | ||||||||||||||||||||
Romania
|
90 | 21,136 | | | | | | |||||||||||||||||||||
Slovakia
|
86 | 27,568 | 1 | 50.12 | % | 285 | 17,182 | 19,825 | ||||||||||||||||||||
Spain
|
98 | 67,752 | 3 | 76.26 | % | 1,301 | 30,041 | 99,273 | ||||||||||||||||||||
Sweden
|
6 | 1,881 | 1 | 27.35 | % | 921 | 55,238 | 70,124 | ||||||||||||||||||||
United Kingdom
|
1,264 | 416,771 | 1 | 100.00 | % | 47 | 2,719 | 5,744 | ||||||||||||||||||||
Subtotal Europe
|
3,614 | 1,094,824 | 48 | 39.88 | % | 12,887 | 598,808 | 1,037,604 | ||||||||||||||||||||
Asia by Country (6 total markets):
|
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Japan
|
100 | 267,691 | 3 | 7.68 | % | 2,470 | 288,784 | 489,335 | ||||||||||||||||||||
Korea
|
20 | 9,058 | 1 | 100.00 | % | 170 | 9,114 | 13,258 | ||||||||||||||||||||
Subtotal Asia
|
120 | 276,749 | 4 | 13.59 | % | 2,640 | 297,898 | 502,593 | ||||||||||||||||||||
Total land held for development and properties under
development in the direct owned segment at December 31,
2008
|
10,134 | $ | 2,481,216 | 65 | 37.21 | % | 19,837 | $ | 1,163,610 | $ | 1,865,045 | |||||||||||||||||
24
Investment |
||||
Before Depreciation |
||||
(in thousands) | ||||
Operating properties
|
$ | 11,315,460 | ||
Land subject to ground leases and other (7)
|
424,489 | |||
Properties under development
|
1,163,610 | |||
Land held for development
|
2,481,216 | |||
Other investments (8)
|
321,397 | |||
Total
|
$ | 15,706,172 | ||
(1) | Represents the percentage leased at December 31, 2008. Operating properties at December 31, 2008 include recently completed development properties and recently acquired properties that may be in the initial lease-up phase, which reduces the overall leased percentage (see notes 3, 4 and 5 below for information regarding developed properties). | |
(2) | Certain properties are pledged as security under our secured debt and assessment bonds at December 31, 2008. For purposes of this table, the total principal balance of a debt issuance that is secured by a pool of properties is allocated among the properties in the pool based on each propertys investment balance. In addition to the amounts reflected here, we also have $3.1 million of encumbrances related to other real estate assets not included in the direct owned segment. See Schedule III Real Estate and Accumulated Depreciation to our Consolidated Financial Statements in Item 8 for additional identification of the properties pledged. | |
(3) | In North America, includes 55 recently Completed Development Properties aggregating 16.8 million square feet at a total investment of $772.2 million that are 47.5% leased and in our development portfolio. | |
(4) | In Europe, includes 77 recently Completed Development Properties aggregating 18.1 million square feet at a total investment of $1.3 billion that are 41.0% leased and in our development portfolio. | |
(5) | In Asia, includes 8 recently Completed Development Properties aggregating 5.8 million square feet at a total investment of $955.0 million that are 39.7% leased and in our development portfolio. | |
(6) | Represents the total expected cost to complete a property under development and may include the cost of land, fees, permits, payments to contractors, architectural and engineering fees, interest, project management costs and other appropriate costs to be capitalized during construction and also leasing costs, rather than the total actual costs incurred to date. | |
(7) | Amounts represent investments of $389.2 million in land subject to ground leases and an investment of $35.3 million in railway depots. | |
(8) | Other investments include: (i) restricted funds that are held in escrow pending the completion of tax-deferred exchange transactions involving operating properties; (ii) earnest money deposits associated with potential acquisitions; (iii) costs incurred during the pre-acquisition due diligence process; (iv) costs incurred during the pre-construction phase related to future development projects, including purchase options on land and certain infrastructure costs; and (v) costs related to our corporate office buildings. |
25
Rentable |
||||||||||||||||||||
No. of |
No. of |
Square |
Percentage |
Entitys |
||||||||||||||||
Bldgs. | Markets | Footage | Leased | Investment (1) | ||||||||||||||||
North America:
|
||||||||||||||||||||
Property funds:
|
||||||||||||||||||||
ProLogis California
|
80 | 1 | 14,178 | 98.67 | % | $ | 697,590 | |||||||||||||
ProLogis North American Properties Fund I
|
36 | 16 | 9,406 | 95.57 | % | 386,572 | ||||||||||||||
ProLogis North American Properties Fund VI
|
22 | 7 | 8,648 | 93.01 | % | 516,675 | ||||||||||||||
ProLogis North American Properties Fund VII
|
29 | 8 | 6,205 | 90.13 | % | 397,327 | ||||||||||||||
ProLogis North American Properties Fund VIII
|
24 | 9 | 3,064 | 97.31 | % | 193,380 | ||||||||||||||
ProLogis North American Properties Fund IX
|
20 | 7 | 3,439 | 71.83 | % | 197,066 | ||||||||||||||
ProLogis North American Properties Fund X
|
29 | 9 | 4,191 | 92.28 | % | 223,441 | ||||||||||||||
ProLogis North American Properties Fund XI
|
13 | 2 | 4,112 | 95.21 | % | 219,487 | ||||||||||||||
ProLogis North American Industrial Fund
|
258 | 31 | 49,656 | 96.31 | % | 2,916,806 | ||||||||||||||
ProLogis North American Industrial Fund II
|
150 | 30 | 35,752 | 94.54 | % | 2,161,805 | ||||||||||||||
ProLogis North American Industrial Fund III
|
120 | 7 | 24,709 | 94.39 | % | 1,746,538 | ||||||||||||||
ProLogis Mexico Industrial Fund
|
73 | 11 | 9,494 | 94.23 | % | 588,382 | ||||||||||||||
Property funds
|
854 | 44 | (2) | 172,854 | 94.73 | % | 10,245,069 | |||||||||||||
Other unconsolidated investees
|
3 | 2 | 736 | 47.74 | % | 31,762 | ||||||||||||||
Total North America
|
857 | 44 | (2) | 173,590 | 94.53 | % | 10,276,831 | |||||||||||||
Europe property funds:
|
||||||||||||||||||||
ProLogis European Properties
|
246 | 28 | 56,273 | 97.42 | % | 4,819,603 | ||||||||||||||
ProLogis European Properties Fund II
|
153 | 26 | 38,853 | 97.89 | % | 3,918,541 | ||||||||||||||
Total Europe
|
399 | 35 | (2) | 95,126 | 97.62 | % | 8,738,144 | |||||||||||||
Asia property funds:
|
||||||||||||||||||||
ProLogis Japan property funds (3)
|
70 | 8 | 27,034 | 99.56 | % | 5,595,985 | ||||||||||||||
ProLogis Korea Fund
|
13 | 2 | 1,915 | 100.00 | % | 142,896 | ||||||||||||||
Total Asia
|
83 | 10 | (2) | 28,949 | 99.59 | % | 5,738,881 | |||||||||||||
Total unconsolidated investees
|
1,339 | 89 | 297,665 | 96.01 | % | $ | 24,753,856 | |||||||||||||
(1) | Investment represents 100% of the carrying value of the properties, before depreciation, of each entity at December 31, 2008. | |
(2) | Represents the total number of markets in each continent on a combined basis. |
26
(3) | We entered into a binding agreement in December 2008 to sell these investments, along with the ProLogis China Acquisition fund, which was formed in 2008 and is classified as held for sale. See Note 21 to our Consolidated Financial Statements in Item 8 for more information. |
ITEM 5. | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Per Common |
||||||||||||
High Sale |
Low Sale |
Share Cash |
||||||||||
Price | Price | Distribution | ||||||||||
2007:
|
||||||||||||
First Quarter
|
$ | 72.08 | $ | 58.00 | $ | 0.46 | ||||||
Second Quarter
|
67.99 | 55.76 | 0.46 | |||||||||
Third Quarter
|
66.86 | 51.65 | 0.46 | |||||||||
Fourth Quarter
|
73.34 | 59.37 | 0.46 | |||||||||
2008:
|
||||||||||||
First Quarter
|
$ | 64.00 | $ | 51.04 | $ | 0.5175 | ||||||
Second Quarter
|
66.51 | 53.42 | 0.5175 | |||||||||
Third Quarter
|
54.89 | 34.61 | 0.5175 | |||||||||
Fourth Quarter
|
39.85 | 2.20 | 0.5175 | |||||||||
2009:
|
||||||||||||
First Quarter (through February 20)
|
$ | 16.68 | $ | 5.90 | $ | 0.25 | (1) |
(1) | Declared on February 9, 2009 and payable on February 27, 2009 to holders of record on February 19, 2009. |
27
Years Ended December 31, | ||||||||
2008 | 2007 | |||||||
Series C Preferred Shares
|
$ | 4.27 | $ | 4.27 | ||||
Series F Preferred Shares
|
$ | 1.69 | $ | 1.69 | ||||
Series G Preferred Shares
|
$ | 1.69 | $ | 1.69 |
28
Years Ended December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
Operating Data:
|
||||||||||||||||||||
Total revenues
|
$ | 5,655 | $ | 6,189 | $ | 2,438 | $ | 1,815 | $ | 1,837 | ||||||||||
Total expenses
|
$ | 5,031 | $ | 5,047 | $ | 1,673 | $ | 1,388 | $ | 1,492 | ||||||||||
Operating income
|
$ | 624 | $ | 1,142 | $ | 765 | $ | 427 | $ | 345 | ||||||||||
Interest expense
|
$ | 341 | $ | 369 | $ | 296 | $ | 177 | $ | 153 | ||||||||||
Earnings (loss) from continuing operations (1)
|
$ | (195 | ) | $ | 988 | $ | 714 | $ | 301 | $ | 216 | |||||||||
Discontinued operations (2)
|
$ | (212 | ) | $ | 86 | $ | 160 | $ | 95 | $ | 17 | |||||||||
Net earnings (loss)
|
$ | (407 | ) | $ | 1,074 | $ | 874 | $ | 396 | $ | 233 | |||||||||
Net earnings (loss) attributable to common shares
|
$ | (432 | ) | $ | 1,049 | $ | 849 | $ | 371 | $ | 203 | |||||||||
Net earnings (loss) per share attributable to common
shares Basic:
|
||||||||||||||||||||
Continuing operations
|
$ | (0.85 | ) | $ | 3.74 | $ | 2.79 | $ | 1.35 | $ | 1.02 | |||||||||
Discontinued operations
|
(0.80 | ) | 0.34 | 0.66 | 0.47 | 0.09 | ||||||||||||||
Net earnings (loss) per share attributable to common
shares Basic
|
$ | (1.65 | ) | $ | 4.08 | $ | 3.45 | $ | 1.82 | $ | 1.11 | |||||||||
Net earnings (loss) per share attributable to common
shares Diluted:
|
||||||||||||||||||||
Continuing operations
|
$ | (0.85 | ) | $ | 3.62 | $ | 2.69 | $ | 1.31 | $ | 0.99 | |||||||||
Discontinued operations
|
(0.80 | ) | 0.32 | 0.63 | 0.45 | 0.09 | ||||||||||||||
Net earnings (loss) per share attributable to common
shares Diluted
|
$ | (1.65 | ) | $ | 3.94 | $ | 3.32 | $ | 1.76 | $ | 1.08 | |||||||||
Weighted average common shares outstanding:
|
||||||||||||||||||||
Basic
|
263 | 257 | 246 | 203 | 182 | |||||||||||||||
Diluted
|
263 | 267 | 257 | 214 | 192 | |||||||||||||||
Common Share Distributions:
|
||||||||||||||||||||
Common share cash distributions paid
|
$ | 551 | $ | 473 | $ | 393 | $ | 297 | $ | 266 | ||||||||||
Common share distributions paid per share
|
$ | 2.07 | $ | 1.84 | $ | 1.60 | $ | 1.48 | $ | 1.46 | ||||||||||
FFO (3):
|
||||||||||||||||||||
Reconciliation of net earnings to FFO:
|
||||||||||||||||||||
Net earnings (loss) attributable to common shares
|
$ | (432 | ) | $ | 1,049 | $ | 849 | $ | 371 | $ | 203 | |||||||||
Total NAREIT defined adjustments
|
449 | 150 | 149 | 161 | 196 | |||||||||||||||
Total our defined adjustments
|
164 | 28 | (53 | ) | (2 | ) | 1 | |||||||||||||
FFO attributable to common shares as defined by ProLogis,
including significant non-cash items
|
$ | 181 | $ | 1,227 | $ | 945 | $ | 530 | $ | 400 | ||||||||||
Add (deduct) significant non-cash items:
|
||||||||||||||||||||
Impairment of goodwill and other assets
|
321 | | | | | |||||||||||||||
Impairment related to assets held for sale China
operations
|
198 | | | | | |||||||||||||||
Losses related to temperature-controlled distribution assets
|
| | | 25 | 37 | |||||||||||||||
Impairment of real estate properties
|
275 | | | | | |||||||||||||||
Our share of the loss/impairment recorded by an unconsolidated
investee
|
108 | | | | | |||||||||||||||
Gain on early extinguishment of debt
|
(91 | ) | | | | | ||||||||||||||
FFO attributable to common shares as defined by ProLogis,
excluding significant non-cash items
|
$ | 992 | $ | 1,227 | $ | 945 | $ | 555 | $ | 437 | ||||||||||
Cash Flow Data:
|
||||||||||||||||||||
Net cash provided by operating activities
|
$ | 844 | $ | 1,206 | $ | 687 | $ | 488 | $ | 484 | ||||||||||
Net cash used in investing activities
|
$ | (1,302 | ) | $ | (4,053 | ) | $ | (2,069 | ) | $ | (2,223 | ) | $ | (620 | ) | |||||
Net cash provided by financing activities
|
$ | 358 | $ | 2,742 | $ | 1,645 | $ | 1,713 | $ | 37 |
29
As of December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
Financial Position:
|
||||||||||||||||||||
Real estate owned, excluding land held for development, before
depreciation
|
$ | 13,225 | $ | 14,426 | $ | 12,500 | $ | 10,830 | $ | 5,738 | ||||||||||
Land held for development
|
$ | 2,481 | $ | 2,153 | $ | 1,397 | $ | 1,045 | $ | 596 | ||||||||||
Investments in and advances to unconsolidated investees
|
$ | 2,270 | $ | 2,345 | $ | 1,300 | $ | 1,050 | $ | 909 | ||||||||||
Total assets
|
$ | 19,252 | $ | 19,724 | $ | 15,904 | $ | 13,126 | $ | 7,098 | ||||||||||
Total debt
|
$ | 11,008 | $ | 10,506 | $ | 8,387 | $ | 6,678 | $ | 3,414 | ||||||||||
Total liabilities
|
$ | 12,808 | $ | 12,209 | $ | 9,453 | $ | 7,580 | $ | 3,929 | ||||||||||
Minority interest
|
$ | 19 | $ | 79 | $ | 52 | $ | 58 | $ | 67 | ||||||||||
Total shareholders equity
|
$ | 6,425 | $ | 7,436 | $ | 6,399 | $ | 5,488 | $ | 3,102 | ||||||||||
Number of common shares outstanding
|
267 | 258 | 251 | 244 | 186 |
(1) | During 2008, we recognized impairment charges on certain of our real estate properties of $274.7 million and on goodwill and other assets of $320.6 million and our share of impairment charges recorded by an unconsolidated investee of $108.2 million. See our Consolidated Financial Statements in Item 8 for more information. | |
(2) | Discontinued operations include income (loss) attributable to assets held for sale and disposed properties, net gains recognized on the disposition of properties to third parties and, in 2008, an impairment charge of $198.2 million as a result of our sale in February 2009 of our China operations. See Note 21 to our Consolidated Financial Statements in Item 8 for additional information. Amounts include impairment charges related to temperature controlled distribution assets of $25.2 million and $36.7 million in 2005 and 2004, respectively. | |
(3) | Funds from operations (FFO) is a non-U.S. generally accepted accounting principle (GAAP) measure that is commonly used in the real estate industry. The most directly comparable GAAP measure to FFO is net earnings. Although the National Association of Real Estate Investment Trusts (NAREIT) has published a definition of FFO, modifications to the NAREIT calculation of FFO are common among REITs, as companies seek to provide financial measures that meaningfully reflect their business. FFO, as we define it, is presented as a supplemental financial measure. FFO is not used by us as, nor should it be considered to be, an alternative to net earnings computed under GAAP as an indicator of our operating performance or as an alternative to cash from operating activities computed under GAAP as an indicator of our ability to fund our cash needs. | |
FFO is not meant to represent a comprehensive system of financial reporting and does not present, nor do we intend it to present, a complete picture of our financial condition and operating performance. We believe net earnings computed under GAAP remains the primary measure of performance and that FFO is only meaningful when it is used in conjunction with net earnings computed under GAAP. Further, we believe that our consolidated financial statements, prepared in accordance with GAAP, provide the most meaningful picture of our financial condition and our operating performance. | ||
At the same time that NAREIT created and defined its FFO concept for the REIT industry, it also recognized that management of each of its member companies has the responsibility and authority to publish financial information that it regards as useful to the financial community. We believe that financial analysts, potential investors and shareholders who review our operating results are best served by a defined FFO measure that includes other adjustments to net earnings computed under GAAP in addition to those included in the NAREIT defined measure of FFO. Our FFO measure is discussed in Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations Funds From Operations. |
30
| Simplify our business model and focus on our core business; |
| Complete the development and leasing of properties currently in our development portfolio; |
| Manage our core portfolio of industrial distribution properties to maintain and improve our net operating income stream from these assets; |
| Provide exceptional customer service to our current and future customers; |
| Generate liquidity through contributions of properties to our property funds and through sales to third parties; |
| Reduce our debt at December 31, 2009 by $2.0 billion from our debt levels at September 30, 2008, through debt retirements; utilizing proceeds from property contributions and dispositions and other possible means, such as buying back outstanding debt and issuing additional equity; |
| Recast our global line of credit; and |
| Reduce our general and administrative expenses through various cost savings initiatives, including reductions in workforce. |
| Employ a conservative growth expansion model; |
| Develop industrial properties utilizing a portion of our existing land parcels, which we will hold for long-term direct investment, or otherwise monetize our land holdings through dispositions; and |
| Grow the property funds by utilizing the property fund structure for the development of properties and the opportunistic acquisition of properties from third parties. |
31
| Direct Owned Segment We earn rent from our customers, including reimbursements of certain operating costs, under long-term operating leases for the industrial and retail properties that we own directly. The revenue in this segment decreased in 2008 primarily due to the contribution of properties to property funds, offset partially with increases in occupancy levels within our development portfolio. However, due to current market challenges, leasing activity has slowed and rental revenues generated by the lease-up of newly developed properties has not been adequate to completely offset the loss of rental revenues from property contributions. We expect our total revenues from this segment will decrease in 2009 due to the contributions and dispositions of properties we made in 2008. We intend to grow our revenue in the remaining properties primarily through increases in occupied square feet in our development portfolio. Our development portfolio, including Completed Development Properties and those currently under development, was 41.4% leased at December 31, 2008. Our current business plan allows for the limited expansion of operating properties as necessary to: (i) address the specific expansion needs of customers; (ii) initiate or enhance our market presence in a specific country, market or submarket; (iii) take advantage of opportunities where we believe we have the ability to achieve favorable returns; and (iv) expand the portfolio of properties we own through opportunistic acquisitions. |
| Investment Management Segment We recognize our proportionate share of the earnings or losses from our investments in unconsolidated property funds and certain joint ventures. In addition to the income recognized under the equity method, we recognize fees and incentives earned for services performed on behalf of these entities and interest earned on advances to these entities, if any. We provide services to these entities, such as property management, asset management, acquisition, financing and development. We may also earn incentives from our property funds depending on the return provided to the fund partners over a specified period. We expect future growth in income recognized to result from growth in existing property funds, primarily from properties the funds acquired from us in 2008 and may acquire, from us or third parties, in the future, as well as the formation of future funds. |
| CDFS Business Segment Through December 31, 2008, we recognized income primarily from the contributions of developed, rehabilitated and repositioned properties and acquired portfolios of properties to the property funds as well as from dispositions of land and properties to third parties. The income was generated due to the increased fair value of the properties at the time of contribution, based on third party appraisals, and income was recognized only to the extent of the third party ownership interest in the property fund acquiring the property. Given the challenges that we are facing in this current environment and the corresponding changes we have made to our business strategy, we do not expect to have a CDFS business segment in 2009. All of the assets and liabilities that were in this segment have been transferred to our two remaining segments. We transferred all of our real estate and other assets that were in our development pipeline to our direct owned segment. The investments we had in certain joint ventures have been transferred to our investment management segment. We may contribute Completed Development Properties and/or Core Properties to the property funds or sell to third parties, although these will no longer be reported in our CDFS business segment. |
| In December 2008, we entered into a binding agreement to sell our China operations and our investments in the Japan property funds for $1.3 billion of cash. This resulted in an impairment charge of $198.2 million on the sale of our China operations, which is included in Discontinued Operations in our Consolidated Financial Statements in Item 8. In 2009, after the sale has closed and we have received all the proceeds, we will recognize a gain related to the sale of our interests in the Japan property funds. See Note 21 to our Consolidated Financial Statements in Item 8. |
32
| In 2008, we generated aggregate proceeds of $4.7 billion and recognized aggregate gains of $690.1 million from contributions and dispositions of properties, net of amounts deferred, as follows: |
¡ | We generated $4.2 billion of proceeds and $658.9 million of gains from the contributions of CDFS developed and repositioned properties and sales of land. This is net of the deferral of $209.5 million of gains related to our ongoing ownership in the property funds or other unconsolidated investees that acquired the properties and also includes $25.0 million of previously deferred gains. This also includes one property sold to a third party that was developed under a pre-sale agreement. | |
¡ | We contributed, to certain property funds, acquired CDFS property portfolios at cost, generating $372.7 million of proceeds. We acquired these portfolios of properties in 2008, 2007 and 2006 with the intent to contribute them to a new or existing property fund at our cost. In addition, we contributed two non-CDFS properties to property funds generating $35.5 million of proceeds and $11.7 million of gains. | |
¡ | We disposed of 15 properties and land subject to a ground lease to third parties, all of which are included in discontinued operations, generating proceeds of $127.4 million and $19.5 million of gains. |
| We increased our direct investment in PEPF II by 20% by acquiring units from PEPR for $61.1 million. |
| As a result of significant adverse changes in market conditions, we reviewed our assets for potential impairment under the appropriate accounting literature, considering current market conditions as well as our intent with regard to owning or disposing of the asset. In connection with that review, in the fourth quarter of 2008, we recorded impairment charges of $274.7 million on our real estate properties and $320.6 million on goodwill and other assets. See Note 13 to our Consolidated Financial Statements in Item 8. |
| In connection with cost savings initiatives we implemented to reduce our general and administrative expenses, we initiated a RIF plan with a total cost of $26.4 million, including $3.3 million related to our China operations and reflected in discontinued operations. |
| During the fourth quarter of 2008, we completed a tender offer related to our senior notes. We purchased $309.7 million aggregate principal amount of 5.25% notes due November 2010 for $216.8 million, resulting in a gain of $90.7 million, after transaction costs and expensing previously deferred debt issuance and discount costs of $2.2 million. |
| We raised $1.1 billion of proceeds through the issuance of $600 million of 6.625% senior notes and $550 million of 2.625% convertible senior notes. |
| We generated $196.4 million from the issuance of 3.4 million common shares under our Controlled Equity Offering Program. |
33
2008 | 2007 | 2006 | ||||||||||
Net earnings (loss) attributable to common shares (in millions)
|
$ | (432.2 | ) | $ | 1,048.9 | $ | 849.0 | |||||
Net earnings (loss) per share attributable to common
shares Basic
|
$ | (1.65 | ) | $ | 4.08 | $ | 3.45 | |||||
Net earnings (loss) per share attributable to common
shares Diluted
|
$ | (1.65 | ) | $ | 3.94 | $ | 3.32 |
34
Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Rental income
|
$ | 953,866 | $ | 1,009,173 | $ | 865,145 | ||||||
Rental expenses
|
312,121 | 269,602 | 221,780 | |||||||||
Total net operating income direct owned segment
|
$ | 641,745 | $ | 739,571 | $ | 643,365 | ||||||
December 31, 2008 | December 31, 2007 | |||||||||||||||||||||||
Number of |
Number of |
|||||||||||||||||||||||
Properties | Square Feet | Leased% | Properties | Square Feet | Leased % | |||||||||||||||||||
Industrial properties
|
1,157 | 154,947 | 92.2 | % | 1,187 | 161,105 | 93.2 | % | ||||||||||||||||
Retail properties
|
34 | 1,404 | 94.5 | % | 32 | 1,282 | 94.0 | % | ||||||||||||||||
Subtotal non-development properties
|
1,191 | 156,351 | 92.2 | % | 1,219 | 162,387 | 93.2 | % | ||||||||||||||||
Completed development properties (1)
|
140 | 40,763 | 43.5 | % | 141 | 38,634 | 56.4 | % | ||||||||||||||||
Total operating portfolio
|
1,331 | 197,114 | 82.1 | % | 1,360 | 201,021 | 86.1 | % | ||||||||||||||||
Assets held for sale at December 31, 2008
|
| | | 50 | 7,559 | 67.0 | % | |||||||||||||||||
Total
|
1,331 | 197,114 | 82.1 | % | 1,410 | 208,580 | 85.5 | % | ||||||||||||||||
(1) | Included at December 31, 2008, are 93 properties with 23.7 million square feet on which development was completed in 2008. Included as of December 31, 2007, are 94 properties with 21.5 million square feet that were contributed to property funds during 2008 and therefore are no longer in our portfolio as of December 31, 2008. The leased percentage fluctuates based on the composition of properties. |
35
Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Unconsolidated property funds:
|
||||||||||||
North America (1)
|
$ | 65,024 | $ | 64,325 | $ | 117,532 | ||||||
Europe (2)
|
(42,460 | ) | 104,665 | 167,227 | ||||||||
Asia (3)
|
39,331 | 30,182 | 20,225 | |||||||||
Unconsolidated joint ventures (4)
|
4,546 | (3,221 | ) | 41,996 | ||||||||
Total net operating income investment management
segment
|
$ | 66,441 | $ | 195,951 | $ | 346,980 | ||||||
(1) | Represents the income earned by us from our investments in property funds in North America. We had interests in 12, 12 and 10 property funds at December 31, 2008, 2007 and 2006, respectively that owned, on a combined basis, 854, 777 and 535 properties at December 31, 2008, 2007 and 2006, respectively. Our ownership interests ranged from 20% to 50% at December 31, 2008. Included in 2008 are net losses of $28.2 million, which represent our proportionate share of losses that were recognized by certain of the property funds, related to interest rate derivative contracts that no longer met the requirements for hedge accounting. Excluding these losses, the increase in net operating income we recognized in 2008 over 2007 is due principally to increased management fees and income from the larger portfolios in the property funds. | |
In January 2006, we purchased the 80% ownership interests held by our fund partner in three property funds and subsequently contributed substantially all of the assets and associated liabilities to the North American Industrial Fund in March 2006. In connection with this transaction, we earned an incentive return of $22.0 million and we recognized $37.1 million in income, representing our proportionate share of the net gain recognized by the property funds upon termination. | ||
(2) | In 2008 and 2007, amounts represent the income earned by us from our investments in two property funds in Europe, PEPR and PEPF II, and, prior to the formation of PEPF II in the third quarter of 2007, represents the income from our investment in PEPR. On a combined basis, these funds owned 399, 288 and |
36
277 properties at December 31, 2008, 2007 and 2006, respectively. Our ownership interest in PEPR and PEPF II was 24.9% and 36.9%, respectively, at December 31, 2008 including both our direct and indirect investments. Our ownership interest in PEPF II includes our direct ownership interest of 34.3% and our indirect 2.6% interest through our ownership in PEPR, which owned a 10.4% interest in PEPF II. | ||
Included in 2008, are $108.2 million of losses representing our share of losses recognized by PEPR on the sale of its 20% investment in PEPF II to us and an impairment charge related to its remaining 10% interest. In February 2009, PEPR sold its 10% interest to a third party, which decreased our ownership interest in PEPF II to 34.3%. In July 2007, PEPR disposed of 47 properties, which resulted in our recognition of additional earnings of $38.2 million, representing our proportionate share of the gain recognized by PEPR. In 2006, we recognized $109.2 million in incentive return fees in connection with PEPRs Initial Public Offering (IPO). | ||
(3) | Represents the income earned by us from our 20% ownership interest in two property funds in Japan and one property fund in South Korea. These property funds on a combined basis owned 83, 66 and 31 properties at December 31, 2008, 2007 and 2006. In 2009, we sold our investments in the Japan property funds to our fund partner. See Note 21 to our Consolidated Financial Statements in Item 8. | |
(4) | All periods have been restated to include our proportionate share of the net earnings or losses related to our joint ventures that develop and operate principally industrial and retail properties. These amounts were previously included in the CDFS business segment but were transferred in connection with the changes in our business segments made in 2008. Included in the earnings for 2006 was $35.0 million, representing our share of the earnings of a joint venture, that redeveloped and sold land parcels. This entity substantially completed its operations at the end of 2006. |
37
Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
CDFS transactions in continuing operations:
|
||||||||||||
Disposition proceeds, prior to deferral (1)
|
$ | 4,679,900 | $ | 5,230,788 | $ | 1,337,278 | ||||||
Proceeds deferred and not recognized (2)
|
(209,484 | ) | (243,411 | ) | (65,542 | ) | ||||||
Recognition of previously deferred amounts (2)
|
25,049 | 18,035 | 15,105 | |||||||||
Cost of dispositions (1)
|
(3,836,519 | ) | (4,241,700 | ) | (993,926 | ) | ||||||
Net gains
|
658,946 | 763,712 | 292,915 | |||||||||
Development management and other income (3)
|
25,857 | 26,322 | 37,443 | |||||||||
Other income (expense), net (4)
|
(26,924 | ) | (3,853 | ) | 4,176 | |||||||
Total net operating income - CDFS business segment
|
$ | 657,879 | $ | 786,181 | $ | 334,534 | ||||||
(1) | During 2008, we contributed 163 developed and repositioned properties to the property funds (53 in North America, 99 in Europe and 11 in Japan) and we contributed 17 properties that were acquired property portfolios to the property funds, (6 in North America and 11 in Europe). This compares with 2007 when we contributed 87 developed and repositioned properties (41 in North America, 41 in Europe and 5 in Japan) and we contributed 175 properties that were part of acquired property portfolios to the property funds (162 in North America and 13 in Europe). In 2006 we contributed 55 developed and repositioned properties (30 in North America, 19 in Europe and 6 in Japan). We also recognized net gains of $3.3 million, $93.3 million and $24.6 million from the disposition of land parcels to third parties during 2008, 2007 and 2006, respectively. In addition, we contributed non CDFS properties to the property funds. See discussion below in Gains Recognized on Dispositions of Certain Non-CDFS Business Assets. | |
The net profit margins we earn in this segment vary quarter to quarter depending on a number of factors, including the type of property contributed, the market in which the land parcel or property is located and other market conditions, including investment capitalization rates. Additionally, we experienced an increase in construction costs due to higher average concrete, oil and steel prices, increasing both our construction costs and the replacement cost of our portfolio during 2008. The net profit margins we earned on developed and repositioned properties contributed in 2008 were lower than 2007 due to a combination of these factors. | ||
(2) | When we contribute a property to an entity in which we have an ownership interest, we do not recognize a portion of the proceeds in our computation of the gain resulting from the contribution. The amount of the gain that we defer is based on our continuing ownership interest in the contributed property that arises due to our ownership interest in the entity acquiring the property. We defer this portion of the gain by recognizing a reduction to our investment in the applicable unconsolidated investee. If a loss results when a property is contributed, the entire loss is recognized when it is known. | |
When a property that we originally contributed to an unconsolidated investee is disposed of by the unconsolidated investee to a third party, we recognize a gain during the period that the disposition occurs related to the gains we had previously deferred, in addition to our proportionate share of the gain recognized by the entity. Further, during periods when our ownership interest in a property fund decreases, we recognize gains to the extent that gains were previously deferred to coincide with our new ownership interest in the property fund. |
38
(3) | Amounts include fees we earned for the performance of development activities on behalf of our customers or other third parties. These amounts fluctuate based on the level of third party development activities. | |
(4) | Includes land holding costs and charges for previously capitalized costs related to potential CDFS business segment projects when the acquisition is no longer probable, offset by interest income in notes receivable. Due to the changes in our development plans in the fourth quarter of 2008, we expensed certain costs that had been incurred related to potential development projects that we are no longer pursuing. |
39
Year Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Gross interest expense
|
$ | 477,933 | $ | 487,410 | $ | 397,453 | ||||||
Net premium amortization
|
(702 | ) | (7,797 | ) | (13,861 | ) | ||||||
Amortization of deferred loan costs
|
12,759 | 10,555 | 7,673 | |||||||||
Interest expense before capitalization
|
489,990 | 490,168 | 391,265 | |||||||||
Capitalized amounts
|
(148,685 | ) | (121,656 | ) | (95,636 | ) | ||||||
Net interest expense
|
$ | 341,305 | $ | 368,512 | $ | 295,629 | ||||||
40
41
42
December 31, | ||||||||||||||||||||||||
2008 | 2007 | 2006 | ||||||||||||||||||||||
Number of |
Square |
Number of |
Square |
Number of |
Square |
|||||||||||||||||||
Reportable Business Segment
|
Properties | Feet | Properties | Feet | Properties | Feet | ||||||||||||||||||
Direct Owned
|
1,331 | 197,114 | 1,409 | 208,530 | 1,473 | 204,674 | ||||||||||||||||||
Investment Management (1)
|
1,339 | 297,665 | 1,170 | 250,951 | 875 | 186,747 | ||||||||||||||||||
Totals
|
2,670 | 494,779 | 2,579 | 459,481 | 2,348 | 391,421 | ||||||||||||||||||
(1) | Amounts for 2007 and 2006 include 39 and 32 industrial properties owned by joint ventures that were previously included in our CDFS segment, primarily China joint ventures that are classified as held for sale at December 31, 2008. |
43
For the Years Ended |
||||||||||||
December 31, |
Percentage |
|||||||||||
2008 | 2007 | Change | ||||||||||
Rental Income (1)(2)
|
||||||||||||
Consolidated:
|
||||||||||||
Rental income per our Consolidated Statements of Operations
|
$ | 1,002,493 | $ | 1,052,219 | ||||||||
Adjustments to derive same store results:
|
||||||||||||
Rental income of properties not in the same store
portfolio properties developed and acquired during
the period
|
(158,016 | ) | (95,381 | ) | ||||||||
Rental income of properties in our other segment, not included
in the same store portfolio see Note 19 to our
Consolidated Financial Statements
|
(48,627 | ) | (43,046 | ) | ||||||||
Effect of changes in foreign currency exchange rates and other
|
(2,298 | ) | (14,105 | ) | ||||||||
Unconsolidated investees :
|
||||||||||||
Rental income of properties managed by us and owned by our
unconsolidated investees
|
1,428,908 | 1,245,748 | ||||||||||
Same store portfolio rental income (2)(3)
|
$ | 2,222,460 | $ | 2,145,435 | 3.59 | % | ||||||
Rental Expenses (1)(4)
|
||||||||||||
Consolidated:
|
||||||||||||
Rental expenses per our Consolidated Statements of Operations
|
$ | 325,049 | $ | 284,421 | ||||||||
Adjustments to derive same store results:
|
||||||||||||
Rental expenses of properties not in the same store
portfolio properties developed and acquired during
the period
|
(60,845 | ) | (29,271 | ) | ||||||||
Rental expenses of properties in our other segment, not included
in the same store portfolio see Note 19 to our
Consolidated Financial Statements
|
(12,928 | ) | (14,819 | ) | ||||||||
Effect of changes in foreign currency exchange rates and other
|
(25,360 | ) | (9,483 | ) | ||||||||
Unconsolidated investees :
|
||||||||||||
Rental expenses of properties managed by us and owned by our
unconsolidated investees
|
310,978 | 255,918 | ||||||||||
Same store portfolio rental expenses (3)(4)
|
$ | 536,894 | $ | 486,766 | 10.30 | % | ||||||
44
For the Years Ended |
||||||||||||
December 31, |
Percentage |
|||||||||||
2008 | 2007 | Change | ||||||||||
Net Operating Income (1)
|
||||||||||||
Consolidated:
|
||||||||||||
Net operating income per our Consolidated Statements of
Operations
|
$ | 677,444 | $ | 767,798 | ||||||||
Adjustments to derive same store results:
|
||||||||||||
Net operating income of properties not in the same store
portfolio properties developed and acquired during
the period
|
(97,171 | ) | (66,110 | ) | ||||||||
Net operating income of properties in our other segment, not
included in the same store portfolio see
Note 19 to our Consolidated Financial Statements
|
(35,699 | ) | (28,227 | ) | ||||||||
Effect of changes in foreign currency exchange rates and other
|
23,062 | (4,622 | ) | |||||||||
Unconsolidated investees :
|
||||||||||||
Net operating income of properties managed by us and owned by
our unconsolidated investees
|
1,117,930 | 989,830 | ||||||||||
Same store portfolio net operating income (3)
|
$ | 1,685,566 | $ | 1,658,669 | 1.62 | % | ||||||
(1) | As discussed above, our same store portfolio aggregates properties from our consolidated portfolio and properties owned by the property funds and industrial joint ventures that are managed by us and in which we invest. During the periods presented, certain properties owned by us were contributed to an unconsolidated investee and are included in the same store portfolio on an aggregate basis. Neither our consolidated results nor that of the unconsolidated investees, when viewed individually, would be comparable on a same store basis due to the changes in composition of the respective portfolios from period to period (for example, the results of a contributed property would be included in our consolidated results through the contribution date and in the results of the unconsolidated investee subsequent to the contribution date). | |
(2) | Rental income in the same store portfolio includes straight-line rents and rental recoveries, as well as base rent. We exclude the net termination and renegotiation fees from our same store rental income to allow us to evaluate the growth or decline in each propertys rental income without regard to items that are not indicative of the propertys recurring operating performance. Net termination and renegotiation fees represent the gross fee negotiated to allow a customer to terminate or renegotiate their lease, offset by the write-off of the asset recognized due to the adjustment to straight-line rents over the lease term. The adjustments to remove these items are included as effect of changes in foreign currency exchange rates and other in the tables above. | |
(3) | These amounts include rental income, rental expenses and net operating income of both our consolidated properties and those properties owned by our unconsolidated investees and managed by us. | |
(4) | Rental expenses in the same store portfolio include the direct operating expenses of the property such as property taxes, insurance, utilities, etc. In addition, we include an allocation of the property management expenses for our direct-owned properties based on the property management fee that is provided for in the individual management agreements under which our wholly owned management companies provides property management services to each property (generally, the fee is based on a percentage of revenues). On consolidation, the management fee income earned by the management company and the management fee expense recognized by the properties are eliminated and the actual costs of providing property management services are recognized as part of our consolidated rental expenses. These include the costs to manage the properties we own directly and the properties owned by our unconsolidated investees. These expenses fluctuate based on the level of properties included in the same store portfolio and any adjustment is included as effect of changes in foreign currency exchange rates and other in the above table. In |
45
addition, for the year ended December 31, 2008, we recognized a $6.0 million increase in insurance expense due to a tornado that struck certain properties owned by us and the property funds, which we insure through our insurance company. This amount is included as effect of changes in foreign currency exchange rates and other in the tables above. |
| Generate cash through the contributions of properties to the unconsolidated property funds or sales of assets to third parties. In the fourth quarter, we generated $1.3 billion of proceeds from the contributions of properties to the unconsolidated property funds or sales to third parties. In February 2009, we sold our China operations and investments in the Japan property funds for $1.3 billion of cash, of which $500 million was received on closing and was used to pay down borrowings on our credit facilities and the remaining $800 million will be funded upon satisfactory completion of certain year-end audits. In the event that the audits reflect a material disparity from the unaudited information previously furnished, the buyer will have the option to unwind the transaction at our expense. If this happens, we will use available credit facilities to refund the $500 million to the buyer and pay expenses; |
| Repurchase our senior notes. In December, we bought $310 million aggregate principal of notes for $217 million using proceeds on our line of credit; |
| Issue equity; |
| Reduce cash needs. We halted early-stage development projects, initiated G&A cost savings initiatives and implemented a RIF plan; and |
| Lower our common share distribution. We reduced our expected annual distribution rate from $2.07 to $1.00 per common share beginning with the first quarter of 2009. |
46
Outstanding |
||||||||||||||||
Total |
Outstanding |
Letters of |
Remaining |
|||||||||||||
Commitment
|
Debt Balance | Credit | Capacity | |||||||||||||
Global Line
|
$ | 3,783 | $ | 2,618 | $ | 109 | $ | 1,056 | ||||||||
Credit Facility
|
600 | 600 | | | ||||||||||||
Sterling Facility
|
49 | | 33 | 16 | ||||||||||||
Total
|
$ | 4,432 | $ | 3,218 | $ | 142 | $ | 1,072 | ||||||||
| completion of the development and leasing of the properties in our development portfolio. As of December 31, 2008, we had 65 properties under development with a current investment of $1.2 billion and a total expected investment of $1.9 billion when completed and leased; |
| repayment of debt, including payments on our credit facilities or buy-back of senior unsecured notes in order to achieve our goal of reducing debt; |
| scheduled principal payments. In 2009, we have scheduled principal payments of $339.3 million, which includes $250.0 million of floating rate senior notes that mature in August 2009; |
| tax and interest payments of $230.0 million related to the completion of certain audits of Catellus tax returns; |
| capital expenditures and leasing costs on properties, including completed development properties that are not yet leased; |
| investments in current or future unconsolidated property funds, including our remaining capital commitments of $970.4 million. Generally, we fulfill our equity commitment with a portion of the proceeds from properties we contribute to the property fund. However, to the extent a property fund acquires properties from a third party or requires cash to pay-off debt or has other cash needs, we may be required to contribute our proportionate share of the equity component in cash to the property fund; and depending on market conditions, direct acquisitions or development of operating properties and/or portfolios of operating properties in key distribution markets for direct, long-term investment in the direct owned segment; |
47
| proceeds of $1.3 billion expected to be received from the sale of our China operations and investments in the Japan property funds; |
| available cash balances ($174.6 million at December 31, 2008); |
| property operations; |
| fees and incentives earned for services performed on behalf of the property funds and distributions received from the property funds; |
| proceeds from the disposition of properties or land parcels to third parties; |
| cash proceeds from the contributions of properties to property funds; |
| borrowing capacity under existing credit facilities ($1.1 billion available as of December 31, 2008), or other future facilities; |
| proceeds from the issuance of equity securities, including sales under various common share plans, all subject to market conditions. We have 11.6 million authorized shares available under our Controlled Equity Offering Program and our Board has authorized an increase to 40.0 million shares); and |
| proceeds from the issuance of debt securities, including the issuance of secured debt. |
48
Fund Acquisitions |
Available |
|||||||||||||||||||||||||||||||||||
Equity |
Remaining Equity Commitments |
Under |
||||||||||||||||||||||||||||||||||
Third |
and |
Fund |
Expiration |
Credit |
||||||||||||||||||||||||||||||||
ProLogis | Parties | Total | Debt | Other | ProLogis | Partners | Date | Facility | ||||||||||||||||||||||||||||
ProLogis North American Industrial Fund (1)
|
$ | 815.2 | $ | | $ | 815.2 | $ | 243.0 | $ | 572.2 | $ | 72.5 | $ | 211.7 | 2/10 | $ | 223.4 | |||||||||||||||||||
ProLogis Mexico Industrial Fund (2)
|
155.0 | 189.8 | 344.8 | 155.8 | 189.0 | 44.3 | 246.7 | 8/10 | | |||||||||||||||||||||||||||
ProLogis European Properties Fund II (2)(3)
|
2,604.3 | 84.0 | 2,688.3 | 1,172.1 | 1,516.2 | 830.4 | (4) | 1,253.1 | (4) | 8/10 | 77.7 | |||||||||||||||||||||||||
ProLogis Japan Properties Fund II (5)
|
876.8 | 83.7 | 960.5 | 555.0 | 405.5 | | | | | |||||||||||||||||||||||||||
ProLogis Korea Fund (2)
|
11.1 | 119.1 | 130.2 | 25.2 | 105.0 | 23.2 | 92.8 | 6/10 | | |||||||||||||||||||||||||||
Total
|
$ | 4,462.4 | $ | 476.6 | $ | 4,939.0 | $ | 2,151.1 | $ | 2,787.9 | $ | 970.4 | $ | 1,804.3 | $ | 301.1 | ||||||||||||||||||||
(1) | The investor agreements were modified in early 2009 to extend the remaining equity commitments through 2010, which were originally scheduled to expire in February 2009. In connection with the modifications, the commitments related to property contributions were eliminated and one investor did not extend its commitment. Amounts presented reflect these changes. We expect the remaining equity commitments to be used to pay down existing debt or to make opportunistic acquisitions, depending on market conditions and other factors. | |
(2) | We are committed to offer to contribute substantially all of the properties that we develop and stabilize in Europe, Mexico and South Korea to these respective funds. These property funds are committed to acquire such properties, subject to certain exceptions, including that the properties meet certain specified leasing and other criteria, and that the property funds have available capital. We are not obligated to contribute properties at a loss. | |
Dependent on market conditions, we expect to make contributions of properties to these property funds in 2009. Given the current debt markets, it is likely that the acquisitions will be financed by the property funds with all equity. Generally, the properties are contributed based on third-party appraised value (see Note 3 below). | ||
(3) | During the fourth quarter, we modified the determination of the contribution value related to 2009 contributions to PEPF II. After the capitalization rate is determined based on a third party appraisal, a margin of 0.25 to 0.75 percentage points is added depending on the quarter contributed. This modification was made due to the belief that appraisals were lagging true market conditions. The agreement provides for an adjustment in our favor if the appraised values at the end of 2010 are higher than those used to determine contribution values. | |
(4) | PEPF IIs equity commitments are denominated in euro and include ProLogis of 568.1 million, PEPR of 136.1 million and remaining fund partners of 721.3 million. Our equity commitments include the 20% interest in PEPF II we acquired from PEPR in December 2008. | |
(5) | In connection with the sale of our investments in the Japan property funds, we entered into an agreement to sell a property in Japan to our fund partner in 2009, which will utilize the remaining equity commitment from our fund partner. This property is included in assets held for sale at December 31, 2008 in our Consolidated Financial Statements in Item 8. |
49
| We invested $5.6 billion in real estate during the year ended December 31, 2008; $5.3 billion for the same period in 2007, excluding the MPR and Parkridge acquisitions; and $3.8 billion for the same period in 2006, excluding the purchase of ownership interests in property funds. These amounts include the acquisition of operating properties (25 properties, 41 properties and 74 properties with an aggregate purchase price of $324.0 million, $351.6 million and $735.4 million in 2008, 2007 and 2006, respectively); acquisitions of land or land use rights for future development; costs for current and future development projects; and recurring capital expenditures and tenant improvements on existing operating properties. At December 31, 2008, we had 65 distribution and retail properties aggregating 19.8 million square feet under development, with a total expected investment of $1.9 billion. |
| In February 2007, we purchased the industrial business and made a 25% investment in the retail business of Parkridge. The total purchase price was $1.3 billion of which we paid cash of $733.9 million and the balance in common shares or assumption of liabilities. |
| On July 11, 2007, we completed the acquisition of MPR for total consideration of approximately $2.0 billion, consisting of $1.2 billion of cash and the assumption of debt and other liabilities of $0.8 billion. The cash portion was financed by the issuance of a $473.1 million term loan and a $646.2 million convertible loan with an affiliate of Citigroup. On August 27, 2007, when Citigroup converted $546.2 million of the convertible loan into equity of a newly created property fund, ProLogis North American Industrial Fund II, we made a $100.0 million cash equity contribution to the property fund, which it used to repay the remaining balance on the convertible loan and included in the $661.8 million of investments to unconsolidated investees. |
| We generated net cash from contributions and dispositions of properties and land parcels of $4.5 billion, $3.6 billion and $2.1 billion in 2008, 2007 and 2006, respectively. See further discussion in - Results of Operations-CDFS Business Segment. |
| We invested cash of $329.6 million, $661.8 million and $175.7 million in 2008, 2007 and 2006, respectively, in new and existing unconsolidated investees. These investments principally include our proportionate share of the equity component for third-party acquisitions made by the property funds and investments and advances to development joint ventures. In 2008, our investments include $167.3 million in PEPF II and $68.5 million in joint ventures operating in China. In 2007, our investments include $100.0 million in ProLogis North American Industrial Fund II, $360.0 million in ProLogis North American Industrial Fund III, and excludes the initial investment in the Parkridge retail business, which is detailed separately. The 2006 investments include $34.6 million in North American Industrial Fund, $56.5 million |
50
in joint ventures operating in China, along with $54.6 million in a preferred interest in ProLogis North American Properties Fund V, which we subsequently sold in August 2006. |
| We invested cash of $259.2 million in connection with the purchase of our fund partners ownership interests in three of our North America property funds during the first quarter of 2006. |
| We received proceeds from unconsolidated investees as a return of investment of $127.0 million, $50.2 million and $146.2 million in 2008, 2007 and 2006, respectively. The proceeds in 2006 include $54.6 million related to the sale of a preferred interest in ProLogis North American Properties Fund V discussed above. |
| We generated net cash proceeds from payments on notes receivable of $4.2 million and $97.4 million in 2008 and 2007, respectively, and net cash payments for advances on notes receivable of $41.7 million in 2006. |
| In May 2008 we closed on $550.0 million of 2.625% convertible senior notes due in 2038. The proceeds were used to repay secured debt and borrowings on our credit facilities and for general corporate purposes. In March 2007, we issued $1.25 billion with a coupon rate of 2.25% due in March 2037 and in November 2007, we issued $1.12 billion with a coupon rate of 1.875% due in November 2037. We used the net proceeds of the offerings to repay a portion of the outstanding balance under our Global Line and senior notes that were maturing in November 2007 and for general corporate purposes. |
| On our lines of credit and other credit facilities, including the Global Line and the Credit Facility, we had net proceeds from borrowings of $743.9 million and $368.2 million in 2008 and 2006, respectively, and net payments of $431.5 million in 2007. |
| During 2007, we received proceeds of $1.1 billion and $600.1 million under facilities used to partially finance the MPR and Parkridge acquisitions, respectively (see Note 5 and Note 8 to our Consolidated Financial Statements in Item 8). |
| On our other debt, we had net payments of $1.2 billion, $1.2 billion and $588.8 million for the year ended December 31, 2008, 2007 and 2006, respectively. In May 2008, we issued $600.0 million of 6.625% senior notes due 2018. In 2007 and 2006, we received proceeds of $781.8 million and $1.9 billion from the issuance of senior notes and other secured and unsecured debt, respectively. |
| We paid distributions to holders of common shares of $542.8 million, $472.6 million and $393.3 million in 2008, 2007 and 2006, respectively. We paid dividends on preferred shares of $25.4 million, $31.8 million and $19.1 million in 2008, 2007 and 2006, respectively. |
| We generated proceeds from the sale and issuance of common shares of $222.2 million, $46.9 million and $358.0 million in 2008, 2007 and 2006, respectively. This includes $196.4 million received in 2008 for the issuance of 3.4 million common shares and $320.8 million received in 2006 for the issuance of 5.4 million common shares, both under our Controlled Equity Offering Program. |
51
2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | Total (1) | ||||||||||||||||||||||
ProLogis European Properties (2)
|
$ | 490.9 | $ | 1,460.6 | $ | | $ | 378.4 | $ | | $ | 730.8 | $ | 3,060.7 | ||||||||||||||
ProLogis European Properties Fund II (3)
|
| 1,383.9 | | | 385.3 | | 1,769.2 | |||||||||||||||||||||
ProLogis California LLC (4)
|
314.2 | | | | | | 314.2 | |||||||||||||||||||||
ProLogis North American Properties Fund I
|
| 130.6 | 111.7 | | | | 242.3 | |||||||||||||||||||||
ProLogis North American Properties
Fund VI-X
|
2.1 | 2.2 | 2.4 | 882.1 | 12.4 | | 901.2 | |||||||||||||||||||||
ProLogis North American Properties Fund XI
|
14.8 | 42.7 | 0.7 | 0.7 | 0.4 | | 59.3 | |||||||||||||||||||||
ProLogis North American Industrial Fund (5)
|
| 26.6 | 190.0 | 78.0 | 169.5 | 1,047.7 | 1,511.8 | |||||||||||||||||||||
ProLogis North American Industrial Fund II (6)
|
454.1 | 108.6 | (1.9 | ) | 153.0 | 63.1 | 548.3 | 1,325.2 | ||||||||||||||||||||
ProLogis North American Industrial Fund III (7)
|
167.3 | 2.0 | 120.1 | 2.3 | 385.0 | 426.2 | 1,102.9 | |||||||||||||||||||||
ProLogis Mexico Industrial Fund (8)
|
| | | 99.1 | 170.0 | | 269.1 | |||||||||||||||||||||
ProLogis Korea Fund
|
| | 14.0 | 28.2 | | | 42.2 | |||||||||||||||||||||
$ | 1,443.4 | $ | 3,157.2 | $ | 437.0 | $ | 1,621.8 | $ | 1,185.7 | $ | 2,753.0 | $ | 10,598.1 | |||||||||||||||
Japan property funds (9)
|
2,864.3 | |||||||||||||||||||||||||||
Total property funds
|
$ | 13,462.4 | ||||||||||||||||||||||||||
(1) | As of December 31, 2008, we had not guaranteed any of the third party debt. In our role as the manager of the property funds, we work with the property funds to refinance their maturing debt. There can be no assurance that the property funds will be able to refinance any maturing indebtedness at terms as favorable as the maturing debt, or at all. If the property funds are unable to refinance the maturing indebtedness with newly issued debt, they may be able to otherwise obtain funds by capital contributions from us and our fund partners, in proportion to our ownership interest in such funds, or by selling assets. Certain of the property funds also have credit facilities, which may be used to obtain funds. Generally, the property funds issue long-term debt and utilize the proceeds to repay borrowings under the credit facilities. See above for information on remaining equity commitments of the property funds. | |
(2) | PEPR has $490.9 million of Collateralized Mortgage Backed Securities (CMBS) maturing in July 2009. We are currently in negotiations with German mortgage banks to refinance the debt. PEPR has a credit facility that matures in May 2010, with aggregate borrowing capacity of 900 million (or $1.3 billion ) under which $816.9 million was outstanding with $498.6 million remaining capacity, all at December 31, 2008. The facility has three tranches; (i) a 300 million revolving credit facility that matures December 13, 2010; (ii) a 300 million term loan facility that matures December 13, 2010; and (iii) a 300 million term loan facility that matures December 11, 2012. In addition, PEPR has cash of $112.7 million at December 31, 2008, primarily due to the sale of its equity investment in PEPF II to us. No assurances can be given that this property fund will be able to refinance this debt on favorable terms or at all. | |
(3) | PEPF II has a 1 billion credit facility (approximately $1.46 billion) to partially fund property acquisitions. As of December 31, 2008, approximately $1.38 billion was outstanding and $77.7 million was available to borrow under this facility. The property fund is in discussions with a group of German mortgage banks for a five-year loan for 350 million. | |
(4) | ProLogis California LLC has $314.2 million maturing in 2009 (approximately half in March and half in August). We have term sheets from existing lenders to extend the 2009 maturities for one to five years and we have rate lock agreements on a new $120 million, ten year financing. No assurances can be given that this property fund will be able to refinance this debt on favorable terms or at all. |
52
(5) | ProLogis North American Industrial Fund has a $250.0 million credit facility that matures July 17, 2010, under which approximately $26.6 million was outstanding and $223.4 million was available at December 31, 2008. Capital was called on February 10, 2009 to repay the outstanding balance. | |
(6) | The maturities in 2009 include a term loan for $411.4 million that was issued by our fund partner in July 2007 when this property fund was formed and matures in July 2009. We are in active discussions with our fund partner regarding an extension of the term loan, as well as their underlying equity investment in the property fund. No assurances can be given that this property fund will be able to refinance this debt on favorable terms or at all. | |
(7) | The 2009 maturities include a $165.4 million that represents a bridge loan that was issued by a subsidiary of our fund partner, Lehman Brothers Holding, Inc., at the formation of the fund in July 2007 that was due in 2008. We have been in discussions with the lender and hope to extend the maturity date for three years. No assurances can be given that this property fund will be able to refinance this debt on favorable terms or at all. | |
(8) | In addition to its existing third party debt, this property fund has a note payable to us for $15.2 million at December 31, 2008. | |
(9) | In 2009, we sold our investments in the Japan property funds to our fund partner. |
Payments Due By Period | ||||||||||||||||||||
Less than |
1 to 3 |
3 to 5 |
More than |
|||||||||||||||||
Total | 1 year | years | years | 5 years | ||||||||||||||||
Debt obligations, other than credit facilities
|
$ | 7,795 | $ | 339 | $ | 811 | $ | 4,001 | $ | 2,644 | ||||||||||
Interest on debt obligations, other than credit facilities
|
1,941 | 342 | 629 | 413 | 557 | |||||||||||||||
Unfunded commitments on development projects (1)
|
701 | 701 | | | | |||||||||||||||
Unfunded commitments on acquisitions
|
7 | 7 | | | | |||||||||||||||
Unfunded capital commitments to unconsolidated investees (2)
|
971 | | 971 | | | |||||||||||||||
Amounts due on credit facilities (3)
|
3,218 | | 3,218 | | | |||||||||||||||
Interest on lines of credit (3)
|
127 | 79 | 48 | | | |||||||||||||||
Tax liabilities (4)
|
285 | 50 | 100 | 135 | | |||||||||||||||
Totals
|
$ | 15,045 | $ | 1,518 | $ | 5,777 | $ | 4,549 | $ | 3,201 | ||||||||||
(1) | We had properties under development at December 31, 2008 with a total expected investment of $1.9 billion. The unfunded commitments presented include not only those costs that we are obligated to fund under construction contracts, but all costs necessary to place the property into service, including the costs of tenant improvements and marketing and leasing costs. | |
(2) | Generally, we fulfill our equity commitment with a portion of the proceeds from properties we contribute to the property fund. However, to the extent a property fund acquires properties from a third party or requires cash to pay-off debt or has other cash needs, we may be required to contribute our proportionate share of the equity component in cash to the property fund. | |
(3) | For purposes of this table, we have assumed that we exercise our option to extend these facilities. | |
(4) | These amounts represent our Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes An Interpretation of FASB Statement No. 109 (FIN 48) liabilities, which include an estimate of the period of settlement. See Note 14 to our Consolidated Financial Statements in Item 8. |
53
54
55
56
(i) | deferred income tax benefits and deferred income tax expenses recognized by our subsidiaries; |
(ii) | current income tax expense related to acquired tax liabilities that were recorded as deferred tax liabilities in an acquisition, to the extent the expense is offset with a deferred income tax benefit in GAAP earnings that is excluded from our defined FFO measure; |
(iii) | certain foreign currency exchange gains and losses resulting from certain debt transactions between us and our foreign consolidated subsidiaries and our foreign unconsolidated investees; |
(iv) | foreign currency exchange gains and losses from the remeasurement (based on current foreign currency exchange rates) of certain third party debt of our foreign consolidated subsidiaries and our foreign unconsolidated investees; and |
(v) | mark-to-market adjustments associated with derivative financial instruments utilized to manage foreign currency and interest rate risks. |
57
| The current income tax expenses that are excluded from our defined FFO measures represent the taxes that are payable. |
| Depreciation and amortization of real estate assets are economic costs that are excluded from FFO. FFO is limited, as it does not reflect the cash requirements that may be necessary for future replacements of the real estate assets. Further, the amortization of capital expenditures and leasing costs necessary to maintain the operating performance of industrial properties are not reflected in FFO. |
| Gains or losses from property dispositions represent changes in the value of the disposed properties. By excluding these gains and losses, FFO does not capture realized changes in the value of disposed properties arising from changes in market conditions. |
| The deferred income tax benefits and expenses that are excluded from our defined FFO measures result from the creation of a deferred income tax asset or liability that may have to be settled at some future point. Our defined FFO measures do not currently reflect any income or expense that may result from such settlement. |
| The foreign currency exchange gains and losses that are excluded from our defined FFO measures are generally recognized based on movements in foreign currency exchange rates through a specific point in time. The ultimate settlement of our foreign currency-denominated net assets is indefinite as to timing and |
58
amount. Our FFO measures are limited in that they do not reflect the current period changes in these net assets that result from periodic foreign currency exchange rate movements. |
| The non-cash impairment charges that we exclude from our FFO, excluding significant non-cash items, measure may be realized in the future upon the ultimate disposition of the related real estate properties or other assets. |
59
Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
FFO:
|
||||||||||||
Reconciliation of net earnings to FFO:
|
||||||||||||
Net earnings attributable to common shares
|
$ | (432,196 | ) | $ | 1,048,917 | $ | 848,951 | |||||
Add (deduct) NAREIT defined adjustments:
|
||||||||||||
Real estate related depreciation and amortization
|
323,159 | 291,531 | 273,980 | |||||||||
Adjustments to gains on CDFS dispositions for depreciation
|
(2,866 | ) | (6,196 | ) | 466 | |||||||
Gains recognized on dispositions of certain non-CDFS business
assets
|
(11,620 | ) | (146,667 | ) | (81,470 | ) | ||||||
Reconciling items attributable to discontinued operations:
|
||||||||||||
Gains recognized on dispositions of non-CDFS business assets
|
(9,718 | ) | (52,776 | ) | (103,729 | ) | ||||||
Real estate related depreciation and amortization
|
11,485 | 9,454 | 15,036 | |||||||||
Total discontinued operations
|
1,767 | (43,322 | ) | (88,693 | ) | |||||||
Our share of reconciling items from unconsolidated investees:
|
||||||||||||
Real estate related depreciation and amortization
|
155,067 | 99,026 | 68,151 | |||||||||
Gains on dispositions of non-CDFS business assets
|
(492 | ) | (35,672 | ) | (7,124 | ) | ||||||
Other amortization items
|
(15,840 | ) | (8,731 | ) | (16,000 | ) | ||||||
Total unconsolidated investees
|
138,735 | 54,623 | 45,027 | |||||||||
Total NAREIT defined adjustments
|
449,175 | 149,969 | 149,310 | |||||||||
Subtotal NAREIT defined FFO
|
16,979 | 1,198,886 | 998,261 | |||||||||
Add (deduct) our defined adjustments:
|
||||||||||||
Foreign currency exchange losses (gains), net
|
144,364 | 16,384 | (19,555 | ) | ||||||||
Current income tax expense
|
9,656 | 3,038 | 23,191 | |||||||||
Deferred income tax expense (benefit)
|
4,073 | 550 | (53,722 | ) | ||||||||
Our share of reconciling items from unconsolidated investees:
|
||||||||||||
Foreign currency exchange losses (gains), net
|
2,331 | 1,823 | (45 | ) | ||||||||
Unrealized losses on derivative contracts, net
|
23,005 | | | |||||||||
Deferred income tax expense (benefit)
|
(19,538 | ) | 6,327 | (2,982 | ) | |||||||
Total unconsolidated investees
|
5,798 | 8,150 | (3,027 | ) | ||||||||
Total our defined adjustments
|
163,891 | 28,122 | (53,113 | ) | ||||||||
FFO, including significant non-cash items, attributable to
common shares, as defined by us
|
180,870 | 1,227,008 | 945,148 | |||||||||
Impairment of goodwill and other assets
|
320,636 | | | |||||||||
Impairment related to assets held for sale China
operations
|
198,236 | | | |||||||||
Impairment of real estate properties
|
274,705 | | | |||||||||
Our share of the loss/impairment recorded by PEPR
|
108,195 | | | |||||||||
Gain on early extinguishment of debt
|
(90,719 | ) | | | ||||||||
FFO, excluding significant non-cash items, attributable to
common shares, as defined by us
|
$ | 991,923 | $ | 1,227,008 | $ | 945,148 | ||||||
60
61
62
ITEM 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
63
Page | ||||
ProLogis:
|
||||
65 | ||||
67 | ||||
68 | ||||
69 | ||||
70 | ||||
71 | ||||
125 | ||||
Schedule III Real Estate and Accumulated
Depreciation
|
126 |
64
65
66
December 31, | ||||||||
2008 | 2007 | |||||||
ASSETS
|
||||||||
Real estate
|
$ | 15,706,172 | $ | 16,578,845 | ||||
Less accumulated depreciation
|
1,583,299 | 1,368,458 | ||||||
14,122,873 | 15,210,387 | |||||||
Investments in and advances to unconsolidated investees
|
2,269,993 | 2,345,277 | ||||||
Cash and cash equivalents
|
174,636 | 399,910 | ||||||
Accounts and notes receivable
|
244,778 | 340,039 | ||||||
Other assets
|
1,129,182 | 1,408,814 | ||||||
Discontinued operations assets held for sale
|
1,310,754 | 19,607 | ||||||
Total assets
|
$ | 19,252,216 | $ | 19,724,034 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||
Liabilities:
|
||||||||
Debt
|
$ | 11,007,636 | $ | 10,506,068 | ||||
Accounts payable and accrued expenses
|
658,868 | 933,075 | ||||||
Other liabilities
|
751,238 | 769,408 | ||||||
Discontinued operations assets held for sale
|
389,884 | 424 | ||||||
Total liabilities
|
12,807,626 | 12,208,975 | ||||||
Minority interest
|
19,878 | 78,661 | ||||||
Shareholders equity:
|
||||||||
Series C preferred shares at stated liquidation preference
of $50 per share; $0.01 par value; 2,000 shares issued
and outstanding at December 31, 2008 and 2007
|
100,000 | 100,000 | ||||||
Series F preferred shares at stated liquidation preference
of $25 per share; $0.01 par value; 5,000 shares issued
and outstanding at December 31, 2008 and 2007
|
125,000 | 125,000 | ||||||
Series G preferred shares at stated liquidation preference
of $25 per share; $0.01 par value; 5,000 shares issued
and outstanding at December 31, 2008 and 2007
|
125,000 | 125,000 | ||||||
Common shares; $0.01 par value; 267,005 shares issued
and outstanding at December 31, 2008 and
257,712 shares issued and outstanding at December 31,
2007
|
2,670 | 2,577 | ||||||
Additional paid-in capital
|
6,688,615 | 6,412,473 | ||||||
Accumulated other comprehensive income (loss):
|
||||||||
Unrealized losses on derivative contracts, net
|
(52,219 | ) | (27,091 | ) | ||||
Foreign currency translation gains, net
|
22,845 | 302,413 | ||||||
(Distributions in excess of net earnings) retained earnings
|
(587,199 | ) | 396,026 | |||||
Total shareholders equity
|
6,424,712 | 7,436,398 | ||||||
Total liabilities and shareholders equity
|
$ | 19,252,216 | $ | 19,724,034 | ||||
67
2008 | 2007 | 2006 | ||||||||||
Revenues:
|
||||||||||||
Rental income
|
$ | 1,002,493 | $ | 1,052,219 | $ | 901,954 | ||||||
CDFS disposition proceeds:
|
||||||||||||
Developed and repositioned properties
|
4,206,446 | 2,530,377 | 1,286,841 | |||||||||
Acquired property portfolios
|
289,019 | 2,475,035 | | |||||||||
Property management and other fees and incentives
|
131,011 | 104,719 | 211,929 | |||||||||
Development management and other income
|
25,857 | 26,322 | 37,443 | |||||||||
Total revenues
|
5,654,826 | 6,188,672 | 2,438,167 | |||||||||
Expenses:
|
||||||||||||
Rental expenses
|
325,049 | 284,421 | 236,054 | |||||||||
Cost of CDFS dispositions:
|
||||||||||||
Developed and repositioned properties
|
3,547,500 | 1,835,274 | 993,926 | |||||||||
Acquired property portfolios
|
289,019 | 2,406,426 | | |||||||||
General and administrative
|
204,300 | 193,204 | 147,193 | |||||||||
Reduction in workforce
|
23,131 | | | |||||||||
Impairment of real estate properties
|
274,705 | 12,600 | | |||||||||
Depreciation and amortization
|
339,491 | 302,413 | 283,306 | |||||||||
Other expenses
|
28,104 | 12,363 | 13,013 | |||||||||
Total expenses
|
5,031,299 | 5,046,701 | 1,673,492 | |||||||||
Operating income
|
623,527 | 1,141,971 | 764,675 | |||||||||
Other income (expense):
|
||||||||||||
Earnings (loss) from unconsolidated property funds, net
|
(69,116 | ) | 94,453 | 93,055 | ||||||||
Earnings from other unconsolidated investees, net
|
13,342 | 4,573 | 47,748 | |||||||||
Interest expense
|
(341,305 | ) | (368,512 | ) | (295,629 | ) | ||||||
Impairment of goodwill and other assets
|
(320,636 | ) | | | ||||||||
Gain on early extinguishment of debt
|
90,719 | | | |||||||||
Interest and other income, net
|
16,522 | 32,129 | 34,625 | |||||||||
Total other income (expense)
|
(610,474 | ) | (237,357 | ) | (120,201 | ) | ||||||
Earnings before minority interest
|
13,053 | 904,614 | 644,474 | |||||||||
Minority interest share in earnings, net
|
(3,837 | ) | (4,814 | ) | (3,451 | ) | ||||||
Earnings before certain net gains (losses)
|
9,216 | 899,800 | 641,023 | |||||||||
Gains recognized on dispositions of certain non-CDFS business
assets
|
11,668 | 146,667 | 81,470 | |||||||||
Foreign currency exchange gains (losses), net
|
(148,281 | ) | 8,132 | 21,444 | ||||||||
Earnings (loss) before income taxes
|
(127,397 | ) | 1,054,599 | 743,937 | ||||||||
Income taxes:
|
||||||||||||
Current income tax expense
|
63,441 | 66,339 | 83,508 | |||||||||
Deferred income tax expense (benefit)
|
4,570 | 516 | (53,722 | ) | ||||||||
Total income taxes
|
68,011 | 66,855 | 29,786 | |||||||||
Earnings (loss) from continuing operations
|
(195,408 | ) | 987,744 | 714,151 | ||||||||
Discontinued operations:
|
||||||||||||
Income (loss) attributable to assets held for sale and disposed
properties, net
|
(32,630 | ) | 5,099 | 22,973 | ||||||||
Impairment related to assets held for sale China
operations
|
(198,236 | ) | | | ||||||||
Gains recognized on dispositions:
|
||||||||||||
Non-CDFS business assets
|
9,718 | 52,776 | 103,729 | |||||||||
CDFS business assets
|
9,783 | 28,721 | 33,514 | |||||||||
Total discontinued operations
|
(211,365 | ) | 86,596 | 160,216 | ||||||||
Net earnings (loss)
|
(406,773 | ) | 1,074,340 | 874,367 | ||||||||
Less preferred share dividends
|
25,423 | 25,423 | 25,416 | |||||||||
Net earnings (loss) attributable to common shares
|
$ | (432,196 | ) | $ | 1,048,917 | $ | 848,951 | |||||
Weighted average common shares outstanding Basic
|
262,729 | 256,873 | 245,952 | |||||||||
Weighted average common shares outstanding Diluted
|
262,729 | 267,226 | 256,852 | |||||||||
Net earnings (loss) per share attributable to common
shares Basic:
|
||||||||||||
Continuing operations
|
$ | (0.85 | ) | $ | 3.74 | $ | 2.80 | |||||
Discontinued operations
|
(0.80 | ) | 0.34 | 0.65 | ||||||||
Net earnings (loss) per share attributable to common
shares Basic
|
$ | (1.65 | ) | $ | 4.08 | $ | 3.45 | |||||
Net earnings (loss) per share attributable to common
shares Diluted:
|
||||||||||||
Continuing operations
|
$ | (0.85 | ) | $ | 3.62 | $ | 2.69 | |||||
Discontinued operations
|
(0.80 | ) | 0.32 | 0.63 | ||||||||
Net earnings (loss) per share attributable to common
shares Diluted
|
$ | (1.65 | ) | $ | 3.94 | $ | 3.32 | |||||
Distributions per common share
|
$ | 2.07 | $ | 1.84 | $ | 1.60 | ||||||
68
2008 | 2007 | 2006 | ||||||||||
Common shares number of shares at beginning of year
|
257,712 | 250,912 | 243,781 | |||||||||
Issuance of common shares in connection with acquisitions
|
| 4,781 | | |||||||||
Issuances of common shares under common share plans
|
5,381 | 1,891 | 6,951 | |||||||||
Conversions of limited partnership units
|
3,912 | 128 | 180 | |||||||||
Common shares number of shares at end of year
|
267,005 | 257,712 | 250,912 | |||||||||
Common shares par value at beginning of year
|
$ | 2,577 | $ | 2,509 | $ | 2,438 | ||||||
Issuance of common shares in connection with acquisitions
|
| 48 | | |||||||||
Issuances of common shares under common share plans
|
54 | 19 | 69 | |||||||||
Conversions of limited partnership units
|
39 | 1 | 2 | |||||||||
Common shares par value at end of year
|
$ | 2,670 | $ | 2,577 | $ | 2,509 | ||||||
Preferred shares at stated liquidation preference
|
$ | 350,000 | $ | 350,000 | $ | 350,000 | ||||||
Additional paid-in capital at beginning of year
|
$ | 6,412,473 | $ | 6,000,119 | $ | 5,606,017 | ||||||
Issuance of common shares in connection with acquisitions
|
| 339,449 | | |||||||||
Issuances of common shares under common share plans
|
219,012 | 37,417 | 357,448 | |||||||||
Conversions of limited partnership units
|
17,126 | 4,444 | 6,475 | |||||||||
Cost of issuing common shares
|
(199 | ) | (106 | ) | (76 | ) | ||||||
Change in receivable from timing differences on equity
transactions
|
113 | 247 | 244 | |||||||||
Cost of share-based compensation awards
|
40,090 | 30,903 | 30,011 | |||||||||
Additional paid-in capital at end of year
|
$ | 6,688,615 | $ | 6,412,473 | $ | 6,000,119 | ||||||
Accumulated other comprehensive income at beginning of year
|
$ | 275,322 | $ | 216,922 | $ | 149,586 | ||||||
Foreign currency translation gains (losses), net
|
(279,568 | ) | 90,015 | 70,777 | ||||||||
Unrealized losses on derivative contracts, net
|
(25,128 | ) | (31,615 | ) | (3,441 | ) | ||||||
Accumulated other comprehensive income (loss) at end of year
|
$ | (29,374 | ) | $ | 275,322 | $ | 216,922 | |||||
Retained earnings (distributions in excess of net earnings) at
beginning of year
|
$ | 396,026 | $ | (170,971 | ) | $ | (620,018 | ) | ||||
Net earnings (loss)
|
(406,773 | ) | 1,074,340 | 874,367 | ||||||||
Effect of adoption of FIN 48
|
| (9,272 | ) | | ||||||||
Preferred share dividends
|
(25,423 | ) | (25,423 | ) | (25,416 | ) | ||||||
Common share distributions
|
(551,029 | ) | (472,648 | ) | (399,904 | ) | ||||||
Retained earnings (distributions in excess of net earnings) at
end of year
|
$ | (587,199 | ) | $ | 396,026 | $ | (170,971 | ) | ||||
Total shareholders equity at end of year
|
$ | 6,424,712 | $ | 7,436,398 | $ | 6,398,579 | ||||||
Comprehensive income (loss) attributable to common shares:
|
||||||||||||
Net earnings (loss)
|
$ | (406,773 | ) | $ | 1,074,340 | $ | 874,367 | |||||
Preferred share dividends
|
(25,423 | ) | (25,423 | ) | (25,416 | ) | ||||||
Foreign currency translation gains (losses), net
|
(279,568 | ) | 90,015 | 70,777 | ||||||||
Losses on derivative contracts, net
|
(25,128 | ) | (31,615 | ) | (3,441 | ) | ||||||
Comprehensive income (loss) attributable to common shares
|
$ | (736,892 | ) | $ | 1,107,317 | $ | 916,287 | |||||
69
2008 | 2007 | 2006 | ||||||||||
Operating activities:
|
||||||||||||
Net earnings (loss)
|
$ | (406,773 | ) | $ | 1,074,340 | $ | 874,367 | |||||
Adjustments to reconcile net earnings (loss) to net cash
provided by operating activities:
|
||||||||||||
Minority interest share in earnings (loss), net
|
(6,231 | ) | 6,003 | 3,457 | ||||||||
Straight-lined rents
|
(34,063 | ) | (44,403 | ) | (36,418 | ) | ||||||
Cost of share-based compensation awards
|
28,321 | 23,934 | 21,567 | |||||||||
Depreciation and amortization
|
350,976 | 311,867 | 298,342 | |||||||||
Equity in (earnings)/share of loss from unconsolidated investees
|
71,956 | (105,618 | ) | (143,758 | ) | |||||||
Changes in operating receivables and distributions from
unconsolidated investees
|
19,956 | 74,348 | 99,062 | |||||||||
Amortization of deferred loan costs
|
12,759 | 10,555 | 7,673 | |||||||||
Amortization of debt premium, net
|
(702 | ) | (7,797 | ) | (13,861 | ) | ||||||
Gains recognized on dispositions of non-CDFS business assets
|
(21,386 | ) | (199,443 | ) | (185,199 | ) | ||||||
Gains recognized on dispositions of CDFS business assets
included in discontinued operations
|
(9,783 | ) | (28,721 | ) | (33,514 | ) | ||||||
Impairment of goodwill and other assets
|
320,636 | | | |||||||||
Impairment related to assets held for sale China
operations
|
198,236 | | | |||||||||
Impairment of real estate properties
|
274,705 | 13,259 | | |||||||||
Gain on early extinguishment of debt
|
(90,719 | ) | | | ||||||||
Unrealized foreign currency exchange losses (gains)
|
144,364 | 16,229 | (18,774 | ) | ||||||||
Deferred income tax expense (benefit)
|
4,072 | 550 | (53,722 | ) | ||||||||
(Increase) decrease in accounts and notes receivable and other
assets
|
63,769 | (155,486 | ) | (204,096 | ) | |||||||
Increase (decrease) in accounts payable and accrued expenses and
other liabilities
|
(76,472 | ) | 216,338 | 72,201 | ||||||||
Net cash provided by operating activities
|
843,621 | 1,205,955 | 687,327 | |||||||||
Investing activities:
|
||||||||||||
Real estate investments
|
(5,482,792 | ) | (5,213,870 | ) | (3,695,799 | ) | ||||||
Tenant improvements and lease commissions on previously leased
space
|
(58,076 | ) | (67,317 | ) | (66,787 | ) | ||||||
Non-development capital expenditures
|
(36,902 | ) | (37,948 | ) | (29,437 | ) | ||||||
Cash consideration paid in Parkridge acquisition, net of cash
acquired
|
| (700,812 | ) | | ||||||||
Purchase of Macquarie ProLogis Trust (MPR), net of
cash acquired
|
| (1,137,028 | ) | | ||||||||
Proceeds from dispositions of real estate assets
|
4,474,228 | 3,618,622 | 2,095,231 | |||||||||
Investments in and advances to unconsolidated investees
|
(329,553 | ) | (661,796 | ) | (175,677 | ) | ||||||
Purchase of ownership interests in property funds
|
| | (259,248 | ) | ||||||||
Return of investment from unconsolidated investees
|
126,983 | 50,243 | 146,206 | |||||||||
Advances on notes receivable
|
| (18,270 | ) | (115,417 | ) | |||||||
Proceeds from repayments of notes receivable
|
4,200 | 115,620 | 73,723 | |||||||||
Increase in restricted cash for potential investment
|
| | (42,174 | ) | ||||||||
Net cash used in investing activities
|
(1,301,912 | ) | (4,052,556 | ) | (2,069,379 | ) | ||||||
Financing activities:
|
||||||||||||
Proceeds from sales and issuances of common shares under various
common share plans
|
222,162 | 46,855 | 358,038 | |||||||||
Distributions paid on common shares
|
(542,792 | ) | (472,645 | ) | (393,317 | ) | ||||||
Dividends paid on preferred shares
|
(25,423 | ) | (31,781 | ) | (19,062 | ) | ||||||
Minority interest redemptions (distributions), net
|
23,827 | (9,341 | ) | (11,576 | ) | |||||||
Debt and equity issuance costs paid
|
(12,121 | ) | (15,830 | ) | (13,840 | ) | ||||||
Net proceeds from (payments on) credit facilities
|
743,934 | (431,506 | ) | 368,158 | ||||||||
Proceeds from issuance of debt to finance MPR and Parkridge
acquisitions
|
| 1,719,453 | | |||||||||
Proceeds from issuance of senior convertible notes
|
544,500 | 2,329,016 | | |||||||||
Proceeds from issuance of senior notes, secured and unsecured
debt
|
606,044 | 781,802 | 1,945,325 | |||||||||
Payments on senior notes, secured debt, unsecured debt and
assessment bonds
|
(1,202,028 | ) | (1,174,335 | ) | (588,844 | ) | ||||||
Net cash provided by financing activities
|
358,103 | 2,741,688 | 1,644,882 | |||||||||
Effect of exchange rate changes on cash
|
(13,950 | ) | 29,032 | 9,161 | ||||||||
Net increase (decrease) in cash and cash equivalents
|
(114,138 | ) | (75,881 | ) | 271,991 | |||||||
Cash and cash equivalents, beginning of year
|
399,910 | 475,791 | 203,800 | |||||||||
Cash and cash equivalents, assets held for sale
|
(111,136 | ) | | | ||||||||
Cash and cash equivalents, end of year
|
$ | 174,636 | $ | 399,910 | $ | 475,791 | ||||||
70
1. | Description of Business: |
2. | Summary of Significant Accounting Policies: |
(i) | the form of our ownership interest and legal structure; | |
(ii) | our representation on the entitys governing body; | |
(iii) | the size of our investment (including loans); | |
(iv) | estimates of future cash flows; | |
(v) | our ability to participate in policy making decisions, including but not limited to, the acquisition or disposition of investment properties and the incurrence or refinancing of debt; | |
(vi) | the rights of other investors to participate in the decision making process; and | |
(vii) | the ability for other partners or owners to replace us as manager and/or liquidate the venture, if applicable. |
71
| the fair value of the buildings on an as-if-vacant basis. The fair value allocated to land is generally based on relevant market data; | |
| the market value of above and below market leases based upon our best estimate of current market rents. The value of each lease is recorded in either other assets or other liabilities, as appropriate; | |
| the value of costs to obtain tenants, primarily leasing commissions. These costs are recorded in other assets; |
72
| the value of debt based on quoted market rates for the same or similar issues, or by discounting future cash flows using rates currently available for debt with similar terms and maturities. Any discount or premium is included in the principal amount; | |
| the value of any management contracts by discounting future expected cash flows under these contracts; and | |
| the value of all other assumed assets and liabilities based on the best information available. |
| Above and below market leases are charged to rental income over the average remaining estimated life of the lease. | |
| Leasing commissions are charged to amortization expense over the average remaining estimated life of the lease. | |
| Debt discount or premium is charged to interest expense using the effective interest method over the remaining term of the related debt. | |
| Management contracts are charged against income over the remaining term of the contract. |
73
74
75
76
77
78
December 31, 2008 | December 31, 2007 | |||||||||||||||
As Reported | As Adjusted | As Reported | As Adjusted | |||||||||||||
Consolidated Balance Sheets (1):
|
||||||||||||||||
Real estate
|
$ | 15,706,172 | $ | 15,725,069 | $ | 16,578,845 | $ | 16,581,119 | ||||||||
Debt
|
$ | 11,007,636 | $ | 10,711,350 | $ | 10,506,068 | $ | 10,217,168 | ||||||||
Shareholders equity
|
$ | 6,424,712 | $ | 6,739,895 | $ | 7,436,398 | $ | 7,727,572 | ||||||||
Consolidated Statements of Operations (1):
|
||||||||||||||||
Total cost of CDFS dispositions
|
$ | 3,836,519 | $ | 3,839,923 | $ | 4,241,700 | $ | 4,241,716 | ||||||||
Interest expense
|
$ | 341,305 | $ | 384,715 | $ | 368,512 | $ | 390,256 | ||||||||
Loss from discontinued operations
|
$ | (211,365 | ) | $ | (212,360 | ) | $ | 86,596 | $ | 86,596 | ||||||
Net earnings (loss)
|
$ | (406,773 | ) | $ | (454,582 | ) | $ | 1,074,340 | $ | 1,052,580 |
(1) | Amounts do not include adjustments to previously deferred gains or depreciation expense due to immateriality. |
79
3. | Real Estate: |
December 31, | ||||||||
2008 | 2007 | |||||||
Investments in real estate assets:
|
||||||||
Industrial properties (1):
|
||||||||
Improved land
|
$ | 2,414,023 | $ | 2,247,013 | ||||
Buildings and improvements
|
8,542,445 | 8,799,318 | ||||||
Retail and mixed use properties (2):
|
||||||||
Improved land
|
81,117 | 77,536 | ||||||
Buildings and improvements
|
277,875 | 258,743 | ||||||
Properties under development (3)
|
1,163,610 | 1,986,285 | ||||||
Land held for development (4)
|
2,481,216 | 2,152,960 | ||||||
Land subject to ground leases and other (5)
|
424,489 | 404,671 | ||||||
Other investments (6)
|
321,397 | 652,319 | ||||||
Investment before depreciation
|
15,706,172 | 16,578,845 | ||||||
Less accumulated depreciation
|
1,583,299 | 1,368,458 | ||||||
Net real estate assets
|
$ | 14,122,873 | $ | 15,210,387 | ||||
(1) | At December 31, 2008 and 2007, we had 1,297 and 1,378 industrial operating properties consisting of 195.7 million square feet and 207.3 million square feet, respectively. | |
(2) | At December 31, 2008 and 2007, we had 34 and 32 retail operating properties consisting of 1.4 million square feet and 1.3 million square feet, respectively. Amounts include an office property with a cost of $7.9 million at both December 31, 2008 and 2007. | |
(3) | Properties under development consisted of 65 industrial properties aggregating 19.8 million square feet at December 31, 2008 and 180 properties aggregating 48.8 million square feet at December 31, 2007. At December 31, 2008, our total expected investment upon completion of the properties under development is approximately $1.9 billion, of which $1.2 billion was incurred. | |
(4) | Land held for future development consisted of 10,134 and 9,351 acres of land or land use rights at December 31, 2008 and 2007, respectively. | |
(5) | At December 31, 2008 and 2007, amount represents investments of $389.2 million and $368.5 million in land we own and lease to our customers under long-term ground leases and an investment of $35.3 million and $36.2 million in railway depots, respectively. | |
(6) | Other investments primarily include: (i) restricted funds that are held in escrow pending the completion of tax-deferred exchange transactions involving operating properties ($9.0 million and $94.5 million at |
80
December 31, 2008 and 2007, respectively.); (ii) earnest money deposits associated with potential acquisitions; (iii) costs incurred during the pre-acquisition due diligence process; (iv) costs incurred during the pre-construction phase related to future development projects, including purchase options on land and certain infrastructure costs; (v) cost of land use rights on operating properties in China (2007 only); and (vi) costs related to our corporate office buildings. |
Number of |
Aggregate |
Aggregate |
||||||||||||||
Properties | Square Feet | Purchase Price | Debt Assumed | |||||||||||||
2008
|
25 | 5,812 | $ | 324,029 | $ | 6,599 | ||||||||||
2007
|
41 | 7,347 | $ | 351,639 | $ | 27,305 | ||||||||||
2006
|
74 | 13,529 | $ | 735,427 | $ | 87,919 |
81
2009
|
$ | 680,611 | ||
2010
|
586,893 | |||
2011
|
472,766 | |||
2012
|
356,025 | |||
2013
|
248,955 | |||
Thereafter
|
1,255,467 | |||
$ | 3,600,717 | |||
4. | Acquisitions: |
82
5. | Unconsolidated Investees: |
December 31, | ||||||||
2008 | 2007 | |||||||
Property funds
|
$ | 1,957,977 | $ | 1,755,113 | ||||
Other investees
|
312,016 | 590,164 | ||||||
Totals
|
$ | 2,269,993 | $ | 2,345,277 | ||||
Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Earnings (loss) from unconsolidated property funds:
|
||||||||||||
North America
|
$ | 3,271 | $ | 17,161 | $ | 59,732 | ||||||
Europe
|
(94,429 | ) | 60,913 | 21,605 | ||||||||
Asia
|
22,042 | 16,379 | 11,718 | |||||||||
Total earnings (loss) from unconsolidated property funds
|
$ | (69,116 | ) | $ | 94,453 | $ | 93,055 | |||||
Property management and other fees and incentives:
|
||||||||||||
North America
|
$ | 61,753 | $ | 47,164 | $ | 57,800 | ||||||
Europe
|
51,969 | 43,752 | 145,622 | |||||||||
Asia
|
17,289 | 13,803 | 8,507 | |||||||||
Total property management and other fees and incentives
|
$ | 131,011 | $ | 104,719 | $ | 211,929 | ||||||
83
As of December 31, | ||||||||||||||||||||||||
Square |
||||||||||||||||||||||||
Number of |
feet |
Investment in |
||||||||||||||||||||||
properties |
(in |
Ownership |
and advances to |
|||||||||||||||||||||
owned | millions) | Percentage | (in thousands) | |||||||||||||||||||||
Fund Names
|
2008 | 2008 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||||||
ProLogis California (ProLogis California I LLC ) (1)
|
80 | 14.2 | 50.0 | % | 50.0 | % | $ | 102,685 | $ | 106,630 | ||||||||||||||
ProLogis North American Properties Fund I ( ProLogis North
American Properties Fund I LLC) (1)
|
36 | 9.4 | 41.3 | % | 41.3 | % | 25,018 | 27,135 | ||||||||||||||||
ProLogis North American Properties Fund VI (Allagash
Property Trust) (1)
|
22 | 8.6 | 20.0 | % | 20.0 | % | 35,659 | 37,218 | ||||||||||||||||
ProLogis North American Properties Fund VII (Brazos
Property Trust) (1)
|
29 | 6.2 | 20.0 | % | 20.0 | % | 32,679 | 31,321 | ||||||||||||||||
ProLogis North American Properties Fund VIII (Cimmaron
Property Trust) (1)
|
24 | 3.1 | 20.0 | % | 20.0 | % | 13,281 | 14,982 | ||||||||||||||||
ProLogis North American Properties Fund IX (Deerfield
Property Trust) (1)
|
20 | 3.4 | 20.0 | % | 20.0 | % | 13,375 | 13,986 | ||||||||||||||||
ProLogis North American Properties Fund X (Elkhorn Property
Trust) (1)
|
29 | 4.2 | 20.0 | % | 20.0 | % | 15,567 | 15,721 | ||||||||||||||||
ProLogis North American Properties Fund XI (KPJV, LLP) (1)
|
13 | 4.1 | 20.0 | % | 20.0 | % | 28,322 | 30,712 | ||||||||||||||||
ProLogis North American Industrial Fund (2)
|
258 | 49.6 | 23.1 | % | 23.2 | % | 191,088 | 104,277 | ||||||||||||||||
ProLogis North American Industrial Fund II (ProLogis NA2
LP) (1)(3)
|
150 | 35.8 | 36.9 | % | 36.9 | % | 265,575 | 274,238 | ||||||||||||||||
ProLogis North American Industrial Fund III (ProLogis NA3
LP) (1)(4)
|
120 | 24.7 | 20.0 | % | 20.0 | % | 122,148 | 123,720 | ||||||||||||||||
ProLogis Mexico Industrial Fund (ProLogis MX Fund LP) (5)
|
73 | 9.5 | 24.2 | % | 20.0 | % | 96,320 | 38,085 | ||||||||||||||||
PEPR (ProLogis European Properties) (6)
|
246 | 56.3 | 24.9 | % | 24.9 | % | 321,984 | 494,593 | ||||||||||||||||
PEPF II (ProLogis European Properties II) (7)
|
153 | 38.9 | 36.9 | % | 24.3 | % | 312,600 | 158,483 | ||||||||||||||||
ProLogis Japan Properties Fund I (PLD/RECO Japan TMK
Property Trust) (1)(8)
|
16 | 7.1 | 20.0 | % | 20.0 | % | 114,111 | 87,663 | ||||||||||||||||
ProLogis Japan Properties Fund II (ProLogis Japan
Properties Trust) (1)(8)
|
54 | 19.9 | 20.0 | % | 20.0 | % | 245,698 | 189,584 | ||||||||||||||||
ProLogis Korea Fund (ProLogis Korea Properties Trust) (1)
|
13 | 1.9 | 20.0 | % | 20.0 | % | 21,867 | 6,765 | ||||||||||||||||
Totals
|
1,336 | 296.9 | $ | 1,957,977 | $ | 1,755,113 | ||||||||||||||||||
(1) | We have one fund partner in each of these property funds. | |
(2) | We refer to the combined entities in which we have ownership interests with ten institutional investors as one property fund named ProLogis North American Industrial Fund. Our ownership percentage is based on our levels of ownership interest in these different entities. In connection with the contribution of properties in 2008, we advanced the property fund $7.5 million, all of which was repaid in 2008. | |
(3) | In July 2007, we acquired all of the units in Macquarie ProLogis Trust, an Australian listed property trust (MPR) which had an 88.7% ownership interest in ProLogis North American Properties Fund V. The total consideration was approximately $2.0 billion consisting of cash in the amount of $1.2 billion and assumed liabilities of $0.8 billion. We entered into foreign currency forward contracts to economically hedge the purchase price of MPR. As this type of contract does not qualify for hedge accounting treatment, we recognized gains of $26.6 million in 2007 when the contract settled that are included in Foreign Currency Exchange Gains and Losses, Net in our Consolidated Statements of Operations. |
(4) | In July 2007, we formed a new property fund to acquire a portfolio of industrial properties from a third party. We refer to the combined entities in which we have ownership interests as one property fund named |
84
ProLogis North American Industrial Fund III. The total consideration for the acquisition was approximately $1.8 billion, including transaction costs. | ||
(5) | On September 11, 2007, we contributed properties to a new property fund formed with several institutional investors. We refer to the combined entities in which we have ownership interests as one property fund named ProLogis Mexico Industrial Fund. During 2008, we loaned this property fund $153.1 million that was used to repay bridge financing that had matured and for a portion of the costs related to a third party acquisition. Through December 31, 2008, the fund had repaid $137.9 million of this loan with proceeds obtained from third party financing. The loan bears interest at LIBOR plus a margin and is payable upon demand. | |
(6) | In December 2008, we purchased units in ProLogis European Properties Fund II (PEPF II) from ProLogis European Properties (PEPR) that represented a 20% interest for 43 million ($61.1 million) and assumed 348 million of PEPRs future equity commitments related to these units. The units were purchased at a discount to net asset value due to PEPRs near-term liquidity needs. |
(7) | In July 2007, we formed a new European property fund, PEPF II with several third party investors. From July 2007 through December 2008 PEPR owned approximately 30% of PEPF II. During that same period we owned approximately 24% of PEPF II, which included an indirect interest through PEPR. As a result of the additional 20% investment we made in December and contributions made in December, as of December 31, 2008, we own a 34.3% direct interest in PEPF II. PEPR owned a 10.4% interest in PEPF II, which due to our ownership in PEPR, results in us owning an additional 2.6% of PEPF II indirectly (combined direct and indirect ownership in PEPF II at December 31, 2008 was 36.9%). | |
(8) | On December 23, 2008, we entered into an agreement to sell our interests in the Japan property funds (see Note 21). |
85
Fund Acquisitions |
Available |
|||||||||||||||||||||||||||||||||||
Equity |
Remaining Equity Commitments |
Under |
||||||||||||||||||||||||||||||||||
Third |
and |
Fund |
Expiration |
Credit |
||||||||||||||||||||||||||||||||
ProLogis | Parties | Total | Debt | Other | ProLogis | Partners | Date | Facility | ||||||||||||||||||||||||||||
ProLogis North American Industrial Fund (1)
|
$ | 815.2 | $ | | $ | 815.2 | $ | 243.0 | $ | 572.2 | $ | 72.5 | $ | 211.7 | 2/10 | $ | 223.4 | |||||||||||||||||||
ProLogis Mexico Industrial Fund (2)
|
155.0 | 189.8 | 344.8 | 155.8 | 189.0 | 44.3 | 246.7 | 8/10 | | |||||||||||||||||||||||||||
ProLogis European Properties Fund II (2)(3)
|
2,604.3 | 84.0 | 2,688.3 | 1,172.1 | 1,516.2 | 830.4 | (4) | 1,253.1 | (4) | 8/10 | 77.7 | |||||||||||||||||||||||||
ProLogis Japan Properties Fund II (5)
|
876.8 | 83.7 | 960.5 | 555.0 | 405.5 | | | | | |||||||||||||||||||||||||||
ProLogis Korea Fund (2)
|
11.1 | 119.1 | 130.2 | 25.2 | 105.0 | 23.2 | 92.8 | 6/10 | | |||||||||||||||||||||||||||
Total
|
$ | 4,462.4 | $ | 476.6 | $ | 4,939.0 | $ | 2,151.1 | $ | 2,787.9 | $ | 970.4 | $ | 1,804.3 | $ | 301.1 | ||||||||||||||||||||
(1) | The investor agreements were modified in early 2009 to extend the remaining equity commitments through 2010, which were originally scheduled to expire in February 2009. In connection with the modifications, the commitments related to property contributions were eliminated and one investor did not extend its commitment. Amounts presented reflect these changes. We expect the remaining equity commitments to be used to pay down existing debt or to make opportunistic acquisitions, depending on market conditions and other factors. | |
(2) | We are committed to offer to contribute substantially all of the properties that we develop and stabilize in Europe, Mexico and South Korea to these respective funds. These property funds are committed to acquire such properties, subject to certain exceptions, including that the properties meet certain specified leasing and other criteria, and that the property funds have available capital. We are not obligated to contribute properties at a loss. | |
Dependent on market conditions, we expect to make contributions of properties to these property funds in 2009. Given the current debt markets, it is likely that the acquisitions will be financed by the property funds with all equity. Generally, the properties are contributed based on third-party appraised value (see note 3 below). | ||
(3) | During the fourth quarter, we modified the determination of the contribution value related to 2009 contributions to PEPF II. Once the capitalization rate is determined based on a third party appraisal, a margin of 0.25 to 0.75 percentage points is added depending on the quarter contributed. This modification was made due to the belief that appraisals were lagging true market conditions. The agreement provides for an adjustment in our favor if capitalization rates at the end of 2010 are lower than those used to determine contribution values. | |
(4) | PEPF IIs equity commitments are denominated in euro and include ProLogis of 568.1 million, PEPR of 136.1 million and remaining fund partners of 721.3 million. Our equity commitments include the 20% interest in PEPF II we acquired from PEPR in December 2008. | |
(5) | In connection with the sale of our investments in the Japan property funds, we entered into an agreement to sell a property in Japan to our fund partner in 2009, which will utilize the remaining equity commitment from our fund partner. This property is included in assets held for sale at December 31, 2008. |
86
2008 | ||||||||||||||||
North |
||||||||||||||||
America | Europe | Asia | Total | |||||||||||||
Revenues
|
$ | 835.8 | $ | 665.6 | $ | 299.6 | $ | 1,801.0 | ||||||||
Net earnings (loss) (1)(2)
|
$ | (24.2 | ) | $ | (404.6 | ) | $ | 82.8 | $ | (346.0 | ) | |||||
Total assets
|
$ | 9,979.2 | $ | 8,982.9 | $ | 5,821.6 | $ | 24,783.7 | ||||||||
Amounts due to us
|
$ | 30.2 | $ | 22.4 | $ | 147.4 | $ | 200.0 | ||||||||
Third party debt (3)
|
$ | 5,726.0 | $ | 4,829.9 | $ | 2,906.5 | $ | 13,462.4 | ||||||||
Total liabilities
|
$ | 5,985.4 | $ | 5,581.1 | $ | 3,855.1 | $ | 15,421.6 | ||||||||
Minority interest
|
$ | 10.7 | $ | 19.8 | $ | | $ | 30.5 | ||||||||
Equity
|
$ | 3,983.1 | $ | 3,382.0 | $ | 1,966.5 | $ | 9,331.6 | ||||||||
Our weighted average ownership at end of period (4)
|
27.5% | 30.2% | 20.0% | 26.9% | ||||||||||||
Our investment balance (5)
|
$ | 941.7 | $ | 634.6 | $ | 381.7 | $ | 1,958.0 | ||||||||
Deferred proceeds, net of amortization(6)
|
$ | 246.7 | $ | 299.0 | $ | 163.3 | $ | 709.0 |
2007 | ||||||||||||||||
North |
||||||||||||||||
America | Europe | Asia | Total | |||||||||||||
Revenues
|
$ | 634.1 | $ | 493.2 | $ | 180.4 | $ | 1,307.7 | ||||||||
Net earnings (1)(7)
|
$ | 27.6 | $ | 234.1 | $ | 64.4 | $ | 326.1 | ||||||||
Total assets
|
$ | 9,034.7 | $ | 6,526.4 | $ | 3,810.5 | $ | 19,371.6 | ||||||||
Amounts due to us
|
$ | 24.8 | $ | 70.0 | $ | 109.1 | $ | 203.9 | ||||||||
Third party debt (3)
|
$ | 5,305.2 | $ | 3,456.2 | $ | 1,889.5 | $ | 10,650.9 | ||||||||
Total liabilities
|
$ | 5,678.5 | $ | 4,057.7 | $ | 2,550.7 | $ | 12,286.9 | ||||||||
Minority interest
|
$ | 17.4 | $ | 10.8 | $ | | $ | 28.2 | ||||||||
Equity
|
$ | 3,338.8 | $ | 2,457.9 | $ | 1,259.8 | $ | 7,056.5 | ||||||||
Our weighted average ownership at end of period (4)
|
27.9% | 24.8% | 20.0% | 25.5% | ||||||||||||
Our investment balance (5)
|
$ | 818.0 | $ | 653.1 | $ | 284.0 | $ | 1,755.1 | ||||||||
Deferred proceeds, net of amortization (6)
|
$ | 216.4 | $ | 193.9 | $ | 127.0 | $ | 537.3 |
(1) | In North America, two of the property funds issued short-term bridge financing in 2007 to finance their acquisitions of properties from us and third parties and entered into interest rate swap contracts, designated as cash flow hedges, to mitigate interest expense volatility associated with movements of interest rates. Based on the anticipated refinancing of the bridge financings with long-term debt issuances, certain of these derivative contracts no longer met the requirements for hedge accounting and, therefore, the change in fair value of these contracts was recorded through earnings, along with the gain or loss on settlement. Included in net earnings (loss) from North America for 2008 are net losses of $77.0 million, which represent the losses recognized from the change in value and settlement of these contracts. We included our proportionate share of these losses of $28.2 million in Earnings (Loss) from Unconsolidated Property Funds for the year ended December 31, 2008 in our Consolidated Statements of Operations. | |
We have recorded our proportionate share of the losses of the North America funds in the amount of $38.0 million that relate to the instruments that qualify for hedge accounting, including the outstanding contracts discussed above in Accumulated Other Comprehensive Income in Shareholders Equity. Once these contracts are settled, the amount of the gain or loss upon settlement that is recorded by the property funds in comprehensive income will be amortized over the life of the forecasted transaction. As discussed above, for the contracts that did not qualify for hedge accounting, we recognized our share of the gains or |
87
losses in earnings. As of December 31, 2008, ProLogis North American Industrial Fund II has outstanding interest rate swap contracts, with notional amounts aggregating $223.2 million resulting in a liability at fair value of $48.0 million and swap rates ranging from 5.73% to 5.83%. | ||
In Japan, the property funds entered into swap contracts that fixed the interest rate of their variable rate debt. These contracts did not qualify for hedge accounting and any change in value of these contracts is recognized as an unrealized gain or loss in earnings over the term of the contract. These contracts have no cash settlement at the end of the contract term. Included in net earnings from Asia for the year ended December 31, 2008 are net losses of $20.3 million, which represent the change in value of these contracts. We included our proportionate share of these losses of $4.1 million in Earnings (Loss) from Unconsolidated Property Funds for the year ended December 31, 2008 in our Consolidated Statements of Operations. | ||
(2) | Included in net loss for Europe in 2008 is the loss on sale and impairment of PEPRs ownership in PEPF II, as discussed above, of $434.3 million, of which $108.2 million was our share. | |
(3) | As of December 31, 2008 and 2007, we had not guaranteed any of the debt of the property funds. | |
(4) | Represents the weighted average of our ownership interests in all property funds at December 31, based on each entitys contribution to total assets, before depreciation, net of other liabilities. | |
(5) | The difference between our percentage ownership interest of the property funds equity and our investment balance results principally from three types of transactions: (i) deferring a portion of the proceeds we receive from a contribution of one of our properties to a property fund as a result of our continuing ownership in the property (see below); (ii) additional costs we incur associated with our investment in the property fund; and (iii) advances we have made to the property funds, generally timing related to fees. | |
(6) | This amount is recorded as a reduction to our investment and represents the proceeds that we defer when we contribute a property to a property fund due to our continuing ownership in the property. | |
(7) | Included in net earnings for Europe in 2007 is a net gain of $155.8 million from the disposition of 47 properties by PEPR, of which $38.2 million was our proportionate share. |
Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
North America
|
$ | 11,527 | $ | 7,428 | $ | 45,651 | ||||||
Europe
|
1,815 | (2,855 | ) | 2,097 | ||||||||
Total earnings from other unconsolidated investees
|
$ | 13,342 | $ | 4,573 | $ | 47,748 | ||||||
88
2008 | 2007 | |||||||
North America
|
$ | 150,963 | $ | 146,221 | ||||
Europe
|
161,053 | 249,360 | ||||||
Asia (1)
|
| 194,583 | ||||||
Total
|
$ | 312,016 | $ | 590,164 | ||||
(1) | As of December 31, 2008, all of our unconsolidated investees in China were recorded as held for sale. See Note 21. |
6. | Other Assets and Other Liabilities: |
2008 | 2007 | |||||||
Goodwill
|
$ | 395,626 | $ | 530,760 | ||||
Value added taxes receivable
|
250,707 | 287,659 | ||||||
Leasing commissions
|
115,194 | 135,662 | ||||||
Rent leveling assets and above market leases
|
81,558 | 100,263 | ||||||
Fixed assets
|
80,323 | 72,509 | ||||||
Loan fees
|
39,327 | 40,954 | ||||||
Non-qualified savings plan assets
|
24,901 | 53,113 | ||||||
Other
|
141,546 | 187,894 | ||||||
Totals
|
$ | 1,129,182 | $ | 1,408,814 | ||||
2008 | 2007 | |||||||
Income tax liabilities
|
$ | 284,698 | $ | 192,438 | ||||
Tenant security deposits
|
120,590 | 94,483 | ||||||
Accrued disposition costs
|
91,476 | 90,998 | ||||||
Deferred income taxes
|
82,928 | 107,620 | ||||||
Unearned rents
|
60,331 | 55,073 | ||||||
Non-qualified savings plan liabilities
|
27,206 | 41,558 | ||||||
Value added taxes payable
|
10,571 | 73,896 | ||||||
Below market leases
|
7,332 | 12,015 | ||||||
Other
|
66,106 | 101,327 | ||||||
Totals
|
$ | 751,238 | $ | 769,408 | ||||
89
Amortization |
Net Charge to |
|||||||
Expense | Rental Income | |||||||
2009
|
$ | 35,413 | $ | 1,847 | ||||
2010
|
25,148 | 12,832 | ||||||
2011
|
20,454 | 13,913 | ||||||
2012
|
15,190 | 12,940 | ||||||
2013
|
9,108 | 9,458 | ||||||
Thereafter
|
9,881 | 23,236 | ||||||
Total
|
$ | 115,194 | $ | 74,226 | ||||
7. | Assets Held for Sale and Discontinued Operations: |
90
As of |
||||
December 31, |
||||
2008 | ||||
Assets discontinued operations assets
held for sale:
|
||||
Investments in real estate assets:
|
||||
Completed industrial properties
|
$ | 471,221 | ||
Properties under development
|
225,971 | |||
Land held for development
|
245,965 | |||
Other investments
|
147,356 | |||
1,090,513 | ||||
Accumulated depreciation
|
(15,463 | ) | ||
Net investments in real estate assets
|
1,075,050 | |||
Investments in and advances to unconsolidated investees:
|
||||
Property funds
|
32,952 | |||
Other investees
|
247,507 | |||
Total investments in and advances to unconsolidated investees
|
280,459 | |||
Cash and cash equivalents
|
111,136 | |||
Other assets
|
42,345 | |||
Total assets before impairment
|
1,508,990 | |||
Impairment of assets
|
(198,236 | ) | ||
Total assets discontinued operations
assets held for sale
|
$ | 1,310,754 | ||
Liabilities discontinued operations
assets held for sale:
|
||||
Debt
|
$ | 218,463 | ||
Other liabilities
|
104,547 | |||
Minority interest
|
66,874 | |||
Total liabilities discontinued
operations assets held for sale
|
$ | 389,884 | ||
91
2008 | 2007 | 2006 | ||||||||||
Revenues:
|
||||||||||||
Rental revenue
|
$ | 32,842 | $ | 27,741 | $ | 71,085 | ||||||
CDFS dispositions proceeds acquired property
portfolios
|
83,648 | | | |||||||||
Development management and other income
|
1,514 | 348 | | |||||||||
Total revenues
|
118,004 | 28,089 | 71,085 | |||||||||
Expenses:
|
||||||||||||
Rental expenses
|
18,143 | 7,643 | 29,307 | |||||||||
Cost of CDFS dispositions acquired property
portfolios
|
83,648 | | | |||||||||
General and administrative
|
21,721 | 11,354 | 6,323 | |||||||||
Reduction in workforce
|
3,300 | | | |||||||||
Depreciation and amortization
|
11,485 | 9,454 | 15,036 | |||||||||
Other expenses
|
5,088 | | | |||||||||
Total expenses
|
143,385 | 28,451 | 50,666 | |||||||||
Operating income (loss)
|
(25,381 | ) | (362 | ) | 20,419 | |||||||
Other income (expense):
|
||||||||||||
Earnings (loss) from unconsolidated investees
|
(16,182 | ) | 6,592 | 2,955 | ||||||||
Interest and other income, net
|
3,845 | 2,319 | 705 | |||||||||
Minority interest share in (earnings) loss
|
10,068 | (1,189 | ) | (6 | ) | |||||||
Foreign currency exchange loss
|
(3,092 | ) | (217 | ) | (358 | ) | ||||||
Income taxes
|
(1,888 | ) | (2,044 | ) | (742 | ) | ||||||
Total other income (expense)
|
(7,249 | ) | 5,461 | 2,554 | ||||||||
Income (loss) attributable to assets held for sale and disposed
properties
|
(32,630 | ) | 5,099 | 22,973 | ||||||||
Impairment related to assets held for sale China
operations
|
(198,236 | ) | | | ||||||||
Gains recognized on dispositions
|
19,501 | 81,497 | 137,243 | |||||||||
Total discontinued operations
|
$ | (211,365 | ) | $ | 86,596 | $ | 160,216 | |||||
2008 | 2007 | 2006 | ||||||||||
Non-CDFS business assets:
|
||||||||||||
Number of properties
|
9 | 75 | 74 | |||||||||
Net proceeds from dispositions
|
$ | 66,687 | $ | 221,063 | $ | 531,969 | ||||||
Net gains from dispositions
|
$ | 9,718 | $ | 52,776 | $ | 103,729 | ||||||
CDFS business assets:
|
||||||||||||
Number of properties
|
6 | 5 | 15 | |||||||||
Net proceeds from dispositions
|
$ | 60,741 | $ | 205,775 | $ | 245,500 | ||||||
Net gains from dispositions
|
$ | 9,783 | $ | 28,721 | $ | 33,514 |
92
8. | Debt: |
2008 | 2007 | |||||||
Global Line
|
$ | 2,617,764 | $ | 1,955,138 | ||||
Credit Facility
|
600,519 | 609,222 | ||||||
Senior and other notes
|
3,995,410 | 4,281,884 | ||||||
Convertible senior notes
|
2,886,401 | 2,332,905 | ||||||
Secured debt
|
877,916 | 1,294,809 | ||||||
Assessment bonds
|
29,626 | 32,110 | ||||||
Total
|
$ | 11,007,636 | $ | 10,506,068 | ||||
93
Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Weighted average daily interest rate
|
3.26 | % | 3.72 | % | 3.03 | % | ||||||
Borrowings outstanding at December 31
|
$ | 3,218.3 | $ | 2,564.4 | $ | 2,462.8 | ||||||
Weighted average daily borrowings
|
$ | 3,248.4 | $ | 3,075.9 | $ | 2,294.7 | ||||||
Maximum borrowings outstanding at any month end
|
$ | 3,663.6 | $ | 3,538.2 | $ | 2,760.8 | ||||||
Aggregate borrowing capacity of all lines of credit at December
31
|
$ | 4,432.1 | $ | 4,354.9 | $ | 3,529.3 | ||||||
Outstanding letters of credit under the lines of credit
|
$ | 142.4 | $ | 148.2 | $ | 129.1 | ||||||
Aggregate remaining capacity available to us on all lines of
credit at December 31
|
$ | 1,071.5 | $ | 1,642.4 | $ | 937.4 |
94
Principal |
Coupon |
|||||||
Maturity Date
|
Balance | Rate | ||||||
Senior notes:
|
||||||||
March 1, 2009 (1)
|
$ | 18,750 | 8.72% | |||||
May 15, 2009 (1)
|
9,375 | 7.88% | ||||||
August 24, 2009 (1)(2)
|
250,000 | floating | ||||||
November 15, 2010 (1)
|
190,278 | 5.25% | ||||||
April 1, 2012 (1)
|
450,000 | 5.50% | ||||||
March 1, 2013 (1)
|
300,000 | 5.50% | ||||||
February 1, 2015 (3)
|
100,000 | 7.81% | ||||||
March 1, 2015 (4)
|
50,000 | 9.34% | ||||||
November 15, 2015 (1)
|
400,000 | 5.63% | ||||||
April 1, 2016 (1)
|
400,000 | 5.75% | ||||||
May 15, 2016 (5)
|
50,000 | 8.65% | ||||||
November 15, 2016 (1)
|
550,000 | 5.63% | ||||||
July 1, 2017 (1)
|
100,000 | 7.63% | ||||||
May 1, 2018 (1)(6)
|
600,000 | 6.63% | ||||||
Total senior notes
|
3,468,403 | |||||||
Other notes:
|
||||||||
November 20, 2009 (1)
|
25,000 | 7.30% | ||||||
April 13, 2011 (1)(7)
|
511,560 | 4.38% | ||||||
Total other notes
|
536,560 | |||||||
Total par value
|
4,004,963 | |||||||
Discount, net
|
(9,553) | |||||||
Total senior and other notes, net
|
$ | 3,995,410 | ||||||
(1) | Principal due at maturity. | |
(2) | Represents $250.0 million of senior notes that bear interest at a variable rate based on LIBOR plus a margin (2.4% at December 31, 2008). | |
(3) | Beginning on February 1, 2010, and through February 1, 2015, requires annual principal payments ranging from $10.0 million to $20.0 million. | |
(4) | Beginning on March 1, 2010, and through March 1, 2015, requires annual principal payments ranging from $5.0 million to $12.5 million. | |
(5) | Beginning on May 15, 2010, and through May 15, 2016, requires annual principal payments ranging from $5.0 million to $12.5 million. | |
(6) | We issued these notes in May 2008. | |
(7) | Represents 350.0 million notes. |
95
96
Balloon |
||||||||||||||||
Periodic |
Payment |
|||||||||||||||
Interest |
Payment |
Carrying |
Due at |
|||||||||||||
Maturity Date
|
Rate (1) | Date | Value | Maturity | ||||||||||||
April 1, 2012
|
7.05 | % | (2 | ) | $ | 234,044 | $ | 196,462 | ||||||||
August 1, 2015
|
5.47 | % | (2 | ) | 131,069 | $ | 111,690 | |||||||||
April 12, 2016
|
7.25 | % | (2 | ) | 202,326 | $ | 149,917 | |||||||||
April 1, 2024
|
7.58 | % | (2 | ) | 192,623 | $ | 127,187 | |||||||||
Various
|
(3 | ) | (3 | ) | 117,854 | (3) | ||||||||||
Total secured debt (4)
|
$ | 877,916 | ||||||||||||||
(1) | The weighted average annual interest rate for total secured debt was 6.73% for the year ended December 31, 2008. | |
(2) | Monthly amortization with a balloon payment due at maturity. | |
(3) | Includes 12 mortgage notes with interest rates ranging from 4.7% to 7.23%, maturing from 2009 to 2025, primarily requiring monthly amortization with a balloon payment at maturity. The combined balloon payment for all of the notes is $109.3 million. | |
(4) | Debt is secured by 185 real estate properties with an aggregate undepreciated cost of $1.9 billion at December 31, 2008. |
97
2009 (1)
|
$ | 339,276 | ||
2010
|
249,909 | |||
2011
|
561,552 | |||
2012 (2)
|
3,074,021 | |||
2013 (2)
|
926,631 | |||
Thereafter
|
2,643,933 | |||
Total principal due
|
7,795,322 | |||
Discount, net
|
(5,969 | ) | ||
Total carrying value
|
$ | 7,789,353 | ||
(1) | We have the intent and ability to pay the amounts due in 2009 with available cash or borrowings under our available credit facilities. | |
(2) | The maturities in 2012 and 2013 included the aggregate principal amounts of the convertible notes of $2,370.5 million and $550.0 million, respectively, due to potential conversion and/or redemption in these years, as discussed above. |
Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Gross interest expense
|
$ | 477,933 | $ | 487,410 | $ | 397,453 | ||||||
Amortization of premium, net
|
(702 | ) | (7,797 | ) | (13,861 | ) | ||||||
Amortization of deferred loan costs
|
12,759 | 10,555 | 7,673 | |||||||||
489,990 | 490,168 | 391,265 | ||||||||||
Capitalized amounts
|
(148,685 | ) | (121,656 | ) | (95,636 | ) | ||||||
Net interest expense
|
$ | 341,305 | $ | 368,512 | $ | 295,629 | ||||||
98
9. | Minority Interest: |
2008 | 2007 | |||||||||||||||
Type of Entity
|
Balance | Minority Interest | Balance | Minority Interest | ||||||||||||
North America limited partnerships (1)(2)(3)
|
$ | 14,396 | 4-7 | % | $ | 31,192 | 4-31 | % | ||||||||
North America joint ventures
|
676 | 1-25 | % | 537 | 1-25 | % | ||||||||||
Europe joint venture
|
4,806 | 50 | % | 6,286 | 50 | % | ||||||||||
China joint ventures (4)
|
| 40,646 | 20-49 | % | ||||||||||||
$ | 19,878 | $ | 78,661 | |||||||||||||
(1) | At December 31, 2008 and 2007, an aggregate of 1,233,566 and 5,052,197 limited partnership units, respectively, held by minority interest holders are convertible into 1,234,556 and 5,053,187 common shares, respectively. The majority of the outstanding limited partnership units are entitled to receive cumulative preferential quarterly cash distributions equal to the quarterly distributions paid on our common shares. | |
(2) | Certain properties owned by one of these partnerships cannot be sold, other than in tax-deferred exchanges, prior to the occurrence of certain events and without the consent of the limited partners. The partnership agreement provides that a minimum level of debt must be maintained within the partnership, which can include intercompany debt to us. | |
(3) | In 2008, 3,911,923 of outstanding limited partnership units were converted into an equal number of common shares. Also in 2008, we issued 93,293 limited partnership units in exchange for a property that was contributed by a minority interest unitholder to the partnership. | |
(4) | Our China operations are classified as held for sale at December 31, 2008. |
10. | Shareholders Equity: |
99
| 1999 Dividend Reinvestment and Share Purchase Plan, as amended (the 1999 Dividend Reinvestment Plan): Allows holders of common shares to automatically reinvest distributions and certain holders and persons who are not holders of common shares to purchase a limited number of additional common shares by making optional cash payments, without payment of any brokerage commission or service charge. Common shares that are acquired under the 1999 Dividend Reinvestment Plan through reinvestment of distributions are acquired at a price ranging from 98% to 100% of the market price of such common shares, as we determine. |
| Controlled Equity Offering Program: Currently allows us to sell up to 15 million common shares through one designated agent who earns a fee up to 2.25% of the gross proceeds, as agreed on a transaction-by-transaction basis. In 2008, 3.4 million shares were issued resulting in 11.6 million shares available for future issuance. |
| The Incentive Plan and Outside Trustees Plan: Certain of our employees and outside trustees participate in share-based compensation plans that provide compensation, generally in the form of common shares. See Note 11 for additional information on these plans. |
| ProLogis Trust Employee Share Purchase Plan (the Employee Share Plan): Certain of our employees may purchase common shares, through payroll deductions only, at a discounted price of 85% of the market price of the common shares. The aggregate fair value of common shares that an individual employee can acquire in a calendar year under the Employee Share Plan is $25,000. Subject to certain provisions, the aggregate number of common shares that may be issued under the Employee Share Plan may not exceed 5.0 million common shares. As of December 31, 2008, we have 4.7 million shares available under this plan. |
2008 | 2007 | 2006 | ||||||||||||||||||||||
Shares | Proceeds | Shares | Proceeds | Shares | Proceeds | |||||||||||||||||||
1999 Dividend Reinvestment Plan
|
335 | $ | 4,376 | 66 | $ | 4,145 | 69 | $ | 3,738 | |||||||||||||||
Controlled Equity Offering Program
|
3,367 | 196,381 | | | 5,383 | 320,786 | ||||||||||||||||||
Incentive Plan and Outside Trustees Plan
|
1,603 | 16,359 | 1,781 | 31,151 | 1,460 | 31,350 | ||||||||||||||||||
Employee Share Plan
|
76 | 1,950 | 44 | 2,140 | 39 | 1,643 | ||||||||||||||||||
Total
|
5,381 | $ | 219,066 | 1,891 | $ | 37,436 | 6,951 | $ | 357,517 | |||||||||||||||
100
Dividend |
||||||||||||
Equivalent Based |
Optional |
|||||||||||
Dividend |
on Liquidation |
Redemption |
||||||||||
Rate | Preference | Date | ||||||||||
Series C Preferred Shares
|
8.54 | % | $ | 4.27 per share | 11/13/26 | |||||||
Series F Preferred Shares
|
6.75 | % | $ | 1.69 per share | 11/28/08 | |||||||
Series G Preferred Shares
|
6.75 | % | $ | 1.69 per share | 12/30/08 |
101
Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Per common share:
|
||||||||||||
Ordinary income
|
$ | 1.01 | $ | 0.89 | $ | 0.95 | ||||||
Qualified dividend
|
0.01 | | 0.04 | |||||||||
Capital gains
|
1.05 | 0.64 | | |||||||||
Return of capital
|
| 0.31 | 0.61 | |||||||||
Total distribution
|
$ | 2.07 | $ | 1.84 | $ | 1.60 | ||||||
Per preferred share Series C:
|
||||||||||||
Ordinary income
|
$ | 2.07 | $ | 2.47 | $ | 4.10 | ||||||
Qualified dividend
|
0.03 | | 0.17 | |||||||||
Capital gains
|
2.17 | 1.80 | | |||||||||
Total dividend
|
$ | 4.27 | $ | 4.27 | $ | 4.27 | ||||||
Per preferred share Series F:
|
||||||||||||
Ordinary income
|
$ | 0.82 | $ | 0.98 | $ | 1.62 | ||||||
Qualified dividend
|
0.01 | | 0.07 | |||||||||
Capital gains
|
0.86 | 0.71 | | |||||||||
Total dividend
|
$ | 1.69 | $ | 1.69 | $ | 1.69 | ||||||
Per preferred share Series G:
|
||||||||||||
Ordinary income
|
$ | 0.82 | $ | 0.98 | $ | 1.62 | ||||||
Qualified dividend
|
0.01 | | 0.07 | |||||||||
Capital gains
|
0.86 | 0.71 | | |||||||||
Total dividend
|
$ | 1.69 | $ | 1.69 | $ | 1.69 | ||||||
102
11. | Long-Term Compensation: |
103
Weighted |
||||||||||||||
Average |
||||||||||||||
Number of |
Expiration |
Remaining Life |
||||||||||||
Options | Exercise Price | Date | (in years) | |||||||||||
Outside trustees
|
100,000 | $19.75 - $43.80 | 2009-2015 | 3.64 | ||||||||||
Incentive Plan:
|
||||||||||||||
1999 grants
|
513,826 | $17.19 - $18.63 | 2009 | 0.7 | ||||||||||
2000 grants
|
534,736 | $21.75 - $24.25 | 2010 | 1.7 | ||||||||||
2001 grants
|
332,485 | $20.67 - $22.02 | 2011 | 2.7 | ||||||||||
2002 grants
|
583,185 | $22.98 - $24.76 | 2012 | 3.7 | ||||||||||
2003 grants
|
808,317 | $24.90 - $31.26 | 2013 | 4.7 | ||||||||||
2004 grants
|
1,332,530 | $29.41 - $41.50 | 2014 | 5.7 | ||||||||||
2005 grants
|
811,199 | $40.86 - $45.46 | 2015 | 6.9 | ||||||||||
2006 grants
|
637,034 | $53.07 - $59.92 | 2016 | 8.0 | ||||||||||
2007 grants
|
747,459 | $60.60 - $64.82 | 2017 | 9.0 | ||||||||||
2008 grants
|
1,378,976 | $6.87 - $61.75 | 2018 | 9.9 | ||||||||||
Total
|
7,779,747 | 6.1 | ||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Weighted |
Weighted |
Weighted |
||||||||||||||||||
Average |
Average |
Average |
||||||||||||||||||
Number of |
Exercise |
Number of |
Exercise |
Life |
||||||||||||||||
Options | Price | Options | Price | (in years) | ||||||||||||||||
Balance at January 1, 2008
|
7,998,410 | $ | 36.63 | |||||||||||||||||
Granted
|
1,378,976 | 7.02 | ||||||||||||||||||
Exercised
|
(1,066,461 | ) | 23.92 | |||||||||||||||||
Forfeited
|
(531,178 | ) | 56.61 | |||||||||||||||||
Balance at December 31, 2008
|
7,779,747 | $ | 31.76 | 5,526,718 | $ | 32.71 | 4.8 | |||||||||||||
Weighted-Average |
||||||||
Number of |
Grant-Date |
|||||||
Shares | Fair Value | |||||||
Balance at January 1, 2008
|
2,494,128 | $ | 9.33 | |||||
Granted
|
1,378,976 | 2.38 | ||||||
Vested
|
(1,181,825 | ) | 8.95 | |||||
Forfeited
|
(438,250 | ) | 10.53 | |||||
Balance at December 31, 2008
|
2,253,029 | $ | 5.04 | |||||
104
105
Shares Outstanding | ||||||||||||
Number of |
Weighted Average |
Number of |
||||||||||
Shares | Original Value | Vested Shares | ||||||||||
Balance at January 1, 2008
|
2,554,786 | $ | 50.50 | 829,689 | ||||||||
Granted
|
1,780,365 | 12.57 | ||||||||||
Distributed
|
(438,702 | ) | 36.20 | |||||||||
Forfeited
|
(515,440 | ) | 39.01 | |||||||||
Balance at December 31, 2008
|
3,381,009 | $ | 34.13 | 844,602 | ||||||||
Weighted-Average |
||||||||
Number of |
Grant-Date |
|||||||
Shares | Fair Value | |||||||
Balance at January 1, 2008
|
1,725,097 | $ | 57.55 | |||||
Granted
|
1,780,365 | 12.57 | ||||||
Vested
|
(453,615 | ) | 39.59 | |||||
Forfeited
|
(515,440 | ) | 39.01 | |||||
Balance at December 31, 2008
|
2,536,407 | $ | 32.96 | |||||
Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Risk-free interest rate
|
2.56 | % | 3.78 | % | 4.51 | % | ||||||
Dividend yield
|
1.92 | % | 3.44 | % | 3.40 | % | ||||||
Volatility
|
40.35 | % | 23.43 | % | 19.46 | % | ||||||
Weighted average option life
|
5.8 years | 5.8 years | 5.8 years |
106
12. | Reduction in Workforce: |
13. | Impairment Charges: |
107
Land
|
$ | 194,137 | ||
Properties under development
|
19,814 | |||
Completed properties
|
15,026 | |||
Pre-development costs
|
45,728 | |||
Total
|
$ | 274,705 | ||
108
2008 | 2007 | |||||||
Balance at January 1,
|
$ | 192,438 | $ | 172,650 | ||||
Additions based on tax positions related to the current year
|
4,785 | 8,501 | ||||||
Additions for tax positions of prior years
|
143,045 | 16,109 | ||||||
Reductions for tax positions of prior years
|
(49,168 | ) | (2,322 | ) | ||||
Reductions due to lapse of applicable statute of limitations
|
(6,402 | ) | (2,500 | ) | ||||
Balance at December 31,
|
$ | 284,698 | $ | 192,438 | ||||
2008 | 2007 | 2006 | ||||||||||
Domestic
|
$ | 59,321 | $ | 275,334 | $ | 349,602 | ||||||
International
|
(186,718 | ) | 779,265 | 394,335 | ||||||||
Total
|
$ | (127,397 | ) | $ | 1,054,599 | $ | 743,937 | |||||
2008 | 2007 | 2006 | ||||||||||
Current income tax expense
|
||||||||||||
Federal
|
$ | 30,020 | $ | 28,264 | $ | 49,900 | ||||||
Non-U.S
|
32,283 | 35,423 | 19,512 | |||||||||
State and local
|
1,138 | 2,652 | 14,096 | |||||||||
Total Current
|
63,441 | 66,339 | 83,508 | |||||||||
Deferred income tax (benefit) expense
|
||||||||||||
Federal
|
9,637 | (16,197 | ) | (26,382 | ) | |||||||
Non-U.S
|
(5,067 | ) | 16,713 | (27,340 | ) | |||||||
Total Deferred
|
4,570 | 516 | (53,722 | ) | ||||||||
Total income tax expense
|
$ | 68,011 | $ | 66,855 | $ | 29,786 | ||||||
109
110
2008 | 2007 | |||||||
Deferred income tax assets:
|
||||||||
Net operating loss carryforwards (1)
|
$ | 17,775 | $ | 22,139 | ||||
Basis difference real estate properties
|
6,378 | 8,060 | ||||||
Alternative minimum tax credit carryforward
|
921 | 786 | ||||||
Other temporary differences
|
14,754 | 15,007 | ||||||
Total deferred income tax assets
|
39,828 | 45,992 | ||||||
Valuation allowance
|
| (675 | ) | |||||
Net deferred income tax assets
|
39,828 | 45,317 | ||||||
Deferred income tax liabilities:
|
||||||||
Basis difference real estate properties
|
5,009 | 50,698 | ||||||
Built-in gains real estate properties
|
23,279 | 29,802 | ||||||
Basis difference equity investees
|
11,210 | 11,554 | ||||||
Built-in gains equity investees
|
24,741 | 26,597 | ||||||
Indemnification liabilities
|
38,412 | 15,451 | ||||||
Other temporary differences
|
20,105 | 18,835 | ||||||
Total deferred income tax liabilities
|
122,756 | 152,937 | ||||||
Net deferred income tax liabilities
|
$ | 82,928 | $ | 107,620 | ||||
(1) | At December 31, 2008, we had net operating loss (NOL) carryforwards for U.S. federal income tax purposes of $45.9 million. If not utilized, the U.S. NOLs expire between 2022 and 2027. |
111
15. | Earnings Per Common Share: |
Years Ended December 31, | ||||||||||||
2008(1) | 2007 | 2006 | ||||||||||
Net earnings (loss) attributable to common shares
|
$ | (432,196 | ) | $ | 1,048,917 | $ | 848,951 | |||||
Minority interest (2)
|
| 4,814 | 3,451 | |||||||||
Adjusted net earnings (loss) attributable to common shares
|
$ | (432,196 | ) | $ | 1,053,731 | $ | 852,402 | |||||
Weighted average common shares outstanding Basic
|
262,729 | 256,873 | 245,952 | |||||||||
Incremental weighted average effect of conversion of limited
partnership units
|
| 5,078 | 5,198 | |||||||||
Incremental weighted average effect of share awards (3)
|
| 5,275 | 5,702 | |||||||||
Weighted average common shares outstanding Diluted
|
262,729 | 267,226 | 256,852 | |||||||||
Net earnings (loss) per share attributable to common
shares Basic
|
$ | (1.65 | ) | $ | 4.08 | $ | 3.45 | |||||
Net earnings (loss) per share attributable to common
shares Diluted
|
$ | (1.65 | ) | $ | 3.94 | $ | 3.32 | |||||
(1) | In periods with a net loss, the inclusion of any incremental shares is anti-dilutive, and, therefore, both basic and diluted shares are the same. | |
(2) | Includes the minority interest related to the convertible limited partnership units, which are included in incremental shares. | |
(3) | Total weighted average potentially dilutive share awards outstanding for 2007 and 2006 (in thousands) were 10,098 and 10,909, respectively. The majority of potentially dilutive share awards were dilutive for both periods. |
112
16. | Related Party Transactions: |
17. | Financial Instruments: |
Foreign Currency |
Foreign Currency |
Interest |
||||||||||
Put Options (1) | Forwards (2) | Rate Swaps (3) | ||||||||||
Notional amounts at January 1, 2006
|
$ | | $ | | $ | | ||||||
New contracts
|
169.3 | 900.3 | 350.0 | |||||||||
Matured or expired contracts
|
(114.6 | ) | (239.3 | ) | (350.0 | ) | ||||||
Notional amounts at December 31, 2006
|
54.7 | 661.0 | | |||||||||
New contracts
|
| 2,637.2 | 959.2 | |||||||||
Matured or expired contracts
|
(54.7 | ) | (2,937.5 | ) | (959.2 | ) | ||||||
Notional amounts at December 31, 2007
|
| 360.7 | | |||||||||
New contracts
|
| | 250.0 | |||||||||
Matured or expired contracts
|
| (360.7 | ) | (250.0 | ) | |||||||
Notional amounts at December 31, 2008
|
$ | | $ | | $ | | ||||||
(1) | The foreign currency put option contracts are paid in full at execution and are related to our operations in Europe and Japan. The put option contracts provide us with the option to exchange euros, pounds sterling and yen for U.S. dollars at a fixed exchange rate such that, if the euro, pound sterling or yen were to depreciate against the U.S. dollar to predetermined levels as set by the contracts, we could exercise our options and mitigate our foreign currency exchange losses. |
113
These contracts do not qualify for hedge accounting treatment and are marked-to-market through earnings at the end of each period. We did not recognize any expense in 2008 or 2007, and net expense of $1.5 million in 2006. | ||
(2) | The foreign currency forward contracts were designed to manage the foreign currency fluctuations of intercompany loans denominated in a currency other than the entitys functional currency and not deemed to be a long-term investment. The foreign currency forward contracts allowed us to sell pounds sterling and euros at a fixed exchange rate to the U.S. dollar. These contracts were not designated as hedges, were marked-to-market through earnings and were substantially offset by the remeasurement gains and losses recognized on the associated intercompany loans. We had no forward contracts related to intercompany loans outstanding at December 31, 2008. We recognized net losses of $3.1 million, $95.9 million and $13.3 million for the years ended December 31, 2008, 2007 and 2006, respectively, related to these contracts. | |
During the second quarter of 2007, we purchased several foreign currency forward contracts to manage the foreign currency fluctuations of the purchase price of MPR (see Note 5). These contracts allowed us to buy Australian dollars at a fixed exchange rate to the U.S. dollar. Derivative instruments used to manage the foreign currency fluctuations of an anticipated business combination do not qualify for hedge accounting treatment and are included in earnings. The contracts settled in July 2007 in connection with the completed acquisition and resulted in the recognition of a net gain of $26.6 million in Foreign Currency Exchange Gains (Losses), Net for the year ended December 31, 2007. | ||
(3) | During 2008, 2007 and 2006, we entered into several contracts with total notional amounts of $250.0 million, $959.2 million, and $350.0 million, respectively, associated with an anticipated debt issuance. |
| During 2008, in connection with the issuance of senior notes and convertible senior notes, we entered into contracts that qualified as cash flow hedges and recognized a decrease in value of $3.3 million, associated with the unwinding of these contracts, in Accumulated Other Comprehensive Income (Loss) and began amortizing as an increase to interest expense as interest payments are made on the related notes. | |
| In June 2007, we entered into a contract with a notional amount of $188.0 million, which represented our share of future debt issuances of a new property fund we formed in July 2007, the ProLogis North American Industrial Fund III. This contract was transferred into the fund at formation, at which time the contracts qualified for hedge accounting treatment by the fund. See Note 5 for additional information on these contracts. | |
| In June 2007, we entered into contracts with an aggregate notional amount of $271.2 million associated with future debt issuances of a new property fund we formed in July 2007, the ProLogis North American Industrial Fund II. These contracts did not qualify for hedge accounting treatment by us and were marked-to-market resulting in additional interest expense of $0.8 million for the year ended December 31, 2007. These contracts were transferred to ProLogis North American Industrial Fund II following the establishment of the fund, at which time the contracts qualified for hedge accounting treatment by the fund. See Note 5 for additional information on these contracts. | |
| In February 2007, we entered into contracts with an aggregate notional amount of $500.0 million associated with a future debt issuance. All of these contracts were designated as cash flow hedges, qualified for hedge accounting treatment and allowed us to fix a portion of the interest rate associated with the anticipated issuance of senior notes. In March 2007, in connection with the issuance of the convertible notes, we unwound the contracts, recognized a decrease in value of $1.4 million associated with these contracts in Accumulated Other Comprehensive Income (Loss) and began amortizing as an increase to interest expense as interest payments are made on the senior notes. |
114
| In 2006, all contracts were designated as cash flow hedges and qualified for hedge accounting treatment, which allowed us to fix a portion of the interest rate associated with the issuance of senior notes. All of the contracts were settled as of December 31, 2006 and we recognized a decrease in value of $13.1 million associated with these contracts in Accumulated Other Comprehensive Income (Loss) as of December 31, 2006. The amount in other comprehensive income related to these contracts is being amortized as an increase to interest expense as interest payments are made on the senior notes. |
| Level 1 Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. |
| Level 2 Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
| Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
115
December 31, | ||||||||||||||||
2008 | 2007 | |||||||||||||||
Carrying |
Carrying |
|||||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||
Debt:
|
||||||||||||||||
Lines of Credit
|
$ | 3,218,283 | $ | 3,175,128 | $ | 2,564,360 | $ | 2,564,360 | ||||||||
Senior and other notes
|
3,995,410 | 2,284,892 | 4,281,884 | 4,224,831 | ||||||||||||
Convertible notes
|
2,886,401 | 1,289,163 | 2,332,905 | 2,249,341 | ||||||||||||
Secured debt
|
877,916 | 837,727 | 1,294,809 | 1,283,779 | ||||||||||||
Assessment bonds
|
29,626 | 32,903 | 32,110 | 31,473 | ||||||||||||
Total debt
|
$ | 11,007,636 | $ | 7,619,813 | $ | 10,506,068 | $ | 10,353,784 | ||||||||
Derivative contracts foreign currency forwards
|
$ | | $ | | $ | 773 | $ | 773 | ||||||||
18. | Commitments and Contingencies: |
116
19. | Business Segments: |
| Direct Owned (previously referred to as property operations) representing the direct long-term ownership of industrial distribution and retail properties. Each operating property is considered to be an individual operating segment having similar economic characteristics that are combined within the reportable segment based upon geographic location. The costs of our property management function for both our direct-owned portfolio and the properties owned by unconsolidated investees and managed by us are all reported in rental expenses in the direct owned segment. Our operations in the direct owned business segment are in North America (Canada, Mexico and the United States), Europe (Austria, Belgium, the Czech Republic, France, Germany, Hungary, Italy, the Netherlands, Poland, Romania, Slovakia, Spain, Sweden and the United |
117
| Investment Management representing the long-term investment management of property funds and industrial and retail joint ventures and the properties they own. We recognize our proportionate share of the earnings or losses from our investments in unconsolidated property funds and joint ventures operating in North America, Europe and Asia. Along with the income recognized under the equity method, we include fees and incentives earned for services performed on behalf of the unconsolidated investees and interest income earned on advances to unconsolidated investees, if any. We utilize our leasing and property management expertise to efficiently manage the properties and our unconsolidated investees, and we report the costs as part of rental expenses in the property operations segment. Each investment in a property fund or joint venture is considered to be an individual operating segment having similar economic characteristics that are combined within the reportable segment based upon geographic location. Our operations in the investment management segment are in North America (Canada, Mexico and the United States), Europe (Belgium, the Czech Republic, France, Germany, Hungary, Italy, the Netherlands, Poland, Slovakia, Spain, Sweden, and the United Kingdom), and Asia (Japan and South Korea). |
| CDFS business primarily encompasses our development of real estate properties that were subsequently contributed to a property fund in which we had an ownership interest and acted as manager, or sold to third parties. Additionally, we acquired properties with the intent to rehabilitate and/or reposition the property prior to contributing to a property fund. The proceeds and related costs of these dispositions are presented as Developed and Repositioned Properties in the Consolidated Statements of Operations. In addition, we occasionally acquired a portfolio of properties with the intent of contributing the portfolio to an existing or future property fund. The proceeds and related costs of these dispositions are presented as Acquired Property Portfolios in the Consolidated Statements of Operations. During the period between the completion of development, rehabilitation or repositioning of a property and the date the property is contributed to a property fund or sold to a third party, the property and its associated rental income and rental expenses were included in the direct owned segment because the primary activity associated with the property during that period is leasing. Upon contribution or sale, the resulting gain or loss is included in the income of the CDFS business segment. Additionally, we include fees earned for development activities performed on behalf of customers or third parties and gains on the disposition of land parcels, including land subject to ground leases in the CDFS segment. The separate activities in this segment are considered to be individual operating segments having similar economic characteristics that are combined within the reportable segment based upon geographic location. Our CDFS business segment operations in 2008 were in North America (Canada, Mexico and the United States), in Europe (the Czech Republic, France, Germany, Hungary, Italy, the Netherlands, Poland, Slovakia, Spain, Sweden and the United Kingdom) and in Asia (Japan and South Korea). |
118
119
Years Ended December 31, | ||||||||||||
2008 | 2007 | 2006 | ||||||||||
Revenues (1):
|
||||||||||||
Direct Owned (2):
|
||||||||||||
North America
|
$ | 820,045 | $ | 859,685 | $ | 803,018 | ||||||
Europe
|
100,183 | 114,218 | 35,619 | |||||||||
Asia
|
33,638 | 35,270 | 26,508 | |||||||||
Total direct owned segment
|
953,866 | 1,009,173 | 865,145 | |||||||||
Investment management (3):
|
||||||||||||
North America
|
68,994 | 65,603 | 158,528 | |||||||||
Europe
|
(41,884 | ) | 100,164 | 168,227 | ||||||||
Asia
|
39,331 | 30,184 | 20,225 | |||||||||
Total investment management segment
|
66,441 | 195,951 | 346,980 | |||||||||
CDFS business (4):
|
||||||||||||
North America
|
1,045,705 | 2,885,906 | 508,185 | |||||||||
Europe
|
2,623,313 | 1,498,821 | 450,154 | |||||||||
Asia
|
853,025 | 655,074 | 382,675 | |||||||||
Total CDFS business segment
|
4,522,043 | 5,039,801 | 1,341,014 | |||||||||
Total segment revenue
|
5,542,350 | 6,244,925 | 2,553,139 | |||||||||
Other North America
|
48,627 | 43,046 | 36,809 | |||||||||
Reconciling items (5)
|
63,849 | (99,299 | ) | (151,781 | ) | |||||||
Total revenues
|
$ | 5,654,826 | $ | 6,188,672 | $ | 2,438,167 | ||||||
Net operating income:
|
||||||||||||
Direct owned(6):
|
||||||||||||
North America
|
$ | 570,580 | $ | 636,752 | $ | 600,259 | ||||||
Europe
|
46,570 | 74,950 | 18,865 | |||||||||
Asia
|
24,595 | 27,869 | 24,241 | |||||||||
Total direct owned segment
|
641,745 | 739,571 | 643,365 | |||||||||
Investment management (3):
|
||||||||||||
North America
|
68,994 | 65,603 | 158,528 | |||||||||
Europe
|
(41,884 | ) | 100,164 | 168,227 | ||||||||
Asia
|
39,331 | 30,184 | 20,225 | |||||||||
Total investment management segment
|
66,441 | 195,951 | 346,980 | |||||||||
CDFS business (7):
|
||||||||||||
North America
|
122,828 | 255,869 | 135,703 | |||||||||
Europe
|
311,008 | 288,924 | 107,079 | |||||||||
Asia
|
224,043 | 241,388 | 91,752 | |||||||||
Total CDFS business segment
|
657,879 | 786,181 | 334,534 | |||||||||
Total segment net operating income
|
1,366,065 | 1,721,703 | 1,324,879 | |||||||||
Other North America
|
35,699 | 28,227 | 22,535 | |||||||||
Reconciling items:
|
||||||||||||
Earnings from other unconsolidated investees
|
8,796 | 7,794 | 5,752 | |||||||||
General and administrative expenses
|
(204,300 | ) | (193,204 | ) | (147,193 | ) | ||||||
Reduction in workforce
|
(23,131 | ) | | | ||||||||
Impairment of real estate properties (8)
|
(274,705 | ) | (12,600 | ) | | |||||||
Depreciation and amortization expense
|
(339,491 | ) | (302,413 | ) | (283,306 | ) | ||||||
Impairment of goodwill and other assets (9)
|
(320,636 | ) | | | ||||||||
Gain on early extinguishment of debt
|
90,719 | | | |||||||||
Other expenses
|
(459 | ) | (443 | ) | (459 | ) | ||||||
Interest expense
|
(341,305 | ) | (368,512 | ) | (295,629 | ) | ||||||
Interest and other income, net
|
15,801 | 24,062 | 17,895 | |||||||||
Total reconciling items
|
(1,388,711 | ) | (845,316 | ) | (702,940 | ) | ||||||
Total earnings before minority interest
|
$ | 13,053 | $ | 904,614 | $ | 644,474 | ||||||
120
December 31, | ||||||||
2008 | 2007 | |||||||
Assets (10):
|
||||||||
Direct owned:
|
||||||||
North America (9)
|
$ | 8,784,687 | $ | 7,971,582 | ||||
Europe(9)
|
3,993,223 | 1,900,327 | ||||||
Asia
|
1,740,509 | 940,827 | ||||||
Total direct owned segment
|
14,518,419 | 10,812,736 | ||||||
Investment management (11):
|
||||||||
North America
|
1,004,811 | 818,025 | ||||||
Europe (9)
|
803,235 | 653,076 | ||||||
Asia
|
382,014 | 284,012 | ||||||
Total investment management segment
|
2,190,060 | 1,755,113 | ||||||
CDFS business (12):
|
||||||||
North America
|
| 1,596,659 | ||||||
Europe (9)
|
| 2,996,415 | ||||||
Asia
|
| 1,184,276 | ||||||
Total CDFS business segment
|
| 5,777,350 | ||||||
Total segment assets
|
16,708,479 | 18,345,199 | ||||||
Other North America
|
760,644 | 636,073 | ||||||
Reconciling items:
|
||||||||
Investments in and advances to other unconsolidated investees
|
105,219 | 106,683 | ||||||
Cash and cash equivalents
|
174,636 | 399,910 | ||||||
Accounts and notes receivable
|
2,253 | 17,290 | ||||||
Other assets
|
190,231 | 199,272 | ||||||
Discontinued operations assets held for sale
|
1,310,754 | 19,607 | ||||||
Total reconciling items
|
1,783,093 | 742,762 | ||||||
Total assets
|
$ | 19,252,216 | $ | 19,724,034 | ||||
(1) | Includes revenues attributable to the United States for the years ended December 31, 2008, 2007 and 2006 of $1,698.4 million, $3,571.9 million and $1,419.0 million, respectively. | |
(2) | Includes rental income of our distribution and retail properties. | |
(3) | Includes investment management fees and incentive returns and our share of the earnings or losses recognized under the equity method from our investments in unconsolidated property funds and certain industrial and retail joint ventures along with interest earned on advances to these unconsolidated investees. In 2008, the net operating income of this segment was reduced by $108.2 million representing our proportionate share of the loss on sale/impairment recognized by one of the property funds in Europe. See Note 5 for more information. | |
(4) | Includes proceeds received on CDFS property dispositions, fees earned from customers and third parties for development activities and interest income on notes receivable related to asset dispositions. | |
(5) | Amount represents the earnings or losses recognized under the equity method from our investments in unconsolidated investees that are reflected in the revenues of the investment management segment and interest income on notes receivable related to asset dispositions that are reflected in revenues of the CDFS business segment. These items are not presented as a component of revenues in our Consolidated Statements of Operations. |
121
(6) | Includes rental income less rental expenses of our distribution and retail properties. Included in rental expenses are the costs of managing the properties owned by the property funds and joint ventures. | |
(7) | Includes net gains on CDFS property dispositions, fees earned from customers and third parties for development activities and interest income on notes receivable related to asset dispositions, offset partially by land holding costs and the write-off of previously capitalized pursuit costs associated with potential CDFS business assets when it becomes likely the assets will not be acquired. | |
(8) | During 2008, we recognized certain impairment charges on our real estate properties in our Direct Owned segment ($21.0 million in North America and $253.7 million in Europe). See Note 13 for more discussion of these charges. | |
(9) | During 2008, in connection with the changes in our business strategy, we transferred the investment and development activities previously included in the CDFS business segment, along with the related assets, to the direct owned and investment management segments (Europe reporting unit). The related goodwill was transferred to the respective segments based on the relative fair value of the assets transferred. In connection with our review of goodwill for recoverability in the fourth quarter of 2008, we recognized an impairment charge of $175.4 million related to goodwill in the direct owned segment in Europe. The goodwill balance attributable to a segment as of December 31 2008, subsequent to impairment and reallocation, was $388.0 million, of which $362.7 million was attributable to the direct owned segment ($235.4 million in North America and $127.3 million in Europe) and $25.3 million was attributable to the investment management segment in Europe. The goodwill balance attributable to a segment at December 31, 2007 was $523.2 million, $177.4 million was attributable to the direct owned segment in North America and $345.8 million was attributable to the CDFS business segment in Europe. In both periods, $7.6 million was not attributable to a segment. See Note 13 for additional information. | |
(10) | Includes long-lived assets attributable to the United States as of December 31, 2008 and 2007 of $9.5 billion and $9.2 billion, respectively. | |
(11) | Represents our investments in and advances to the property funds and certain investments in industrial and retail joint ventures. | |
(12) | As discussed earlier, the assets from the CDFS business segment were transferred to our two existing segments at December 31, 2008. |
20. | Supplemental Cash Flow Information: |
| We received $455.0 million, $351.3 million and $128.0 million of equity interests in property funds from the contribution of properties to these property funds during 2008, 2007 and 2006, respectively. In 2007, in connection with these contributions, we recorded $51.6 million in potential liabilities for future obligations we may have associated with these transactions. |
| We capitalized portions of the total cost of our share-based compensation awards of $12.1 million, $10.8 million and $8.4 million to the investment basis of our real estate and other assets during the years ended December 31, 2008, 2007, and 2006, respectively. |
| We assumed $6.6 million, $27.3 million, and $141.6 million of secured debt and other liabilities in 2008, 2007 and 2006, respectively, in connection with the acquisition of properties and operating receivables and liabilities of $19.0 million and $22.6 million, respectively, in 2006 in connection with the acquisition of properties. |
| We recorded $6.7 million and $27.8 million of minority interest liabilities associated with investments made in entities that we consolidate and own less that 100% in 2008 and 2007, respectively. |
122
| We settled $21.3 million, $4.4 million and $6.5 million of minority interest liabilities with the conversion of limited partnership units into 3.9 million common shares, 128,000 common shares and 180,000 common shares in 2008, 2007 and 2006, respectively. |
| As partial consideration for property contributions in 2008, the China property fund assumed $47.9 million in construction liabilities and in 2006 we received $1.9 million in the form of notes receivable from ProLogis North American Properties Fund V. |
| We recognized a $9.3 million increase in the liability for unrecognized tax benefits, which was accounted for as a reduction to the January 1, 2007 balance of retained earnings in connection with the adoption of the provisions of FIN 48. |
| In connection with the acquisition of all of the units in MPR in July 2007 (see Note 5), we assumed $828.3 million of debt and reallocated our equity investment of $47.7 million to assets acquired. |
| As a result of the conversion by Citigroup of its convertible loan into equity of ProLogis North American Industrial Fund II in August 2007, we began accounting for our investment in this property fund under the equity method of accounting. This transaction resulted in a disposition of $2.0 billion of real estate assets and $1.9 billion of associated debt in exchange for an equity investment of $219.1 million and the recognition of a gain. |
| In 2006 we received 3.9 million ordinary units in PEPR, valued at $68.6 million, representing the initial allocation of an incentive return we earned as manager of the property fund. See Note 5 for further discussion of this transaction. |
| As partial consideration for properties we contributed in 2006 to the North American Industrial Fund, we received ownership interests of $62.1 million, representing a 20% ownership interest, and the property fund assumed $677.2 million of secured debt and short-term borrowings. |
| In connection with the purchase of the 80% ownership interests held by our fund partner in three of our North American property funds in 2006, we assumed $418.0 million of secured debt (which was later assumed by the North American Industrial Fund). |
| As partial consideration for the sale of a property, a third party assumed an outstanding mortgage note in the amount of $42.9 million in 2006. |
21. | Subsequent Event: |
123
22. | Selected Quarterly Financial Data (Unaudited): |
Three Months Ended, | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
2008:
|
||||||||||||||||
Total revenues
|
$ | 1,646,139 | $ | 1,508,149 | $ | 1,008,292 | $ | 1,492,246 | ||||||||
Operating income (loss)
|
$ | 358,617 | $ | 267,008 | $ | 143,109 | $ | (145,207 | ) | |||||||
Earnings (loss) from continuing operations
|
$ | 197,729 | $ | 231,198 | $ | 51,624 | $ | (675,959 | ) | |||||||
Net earnings (loss) attributable to common shares
|
$ | 194,005 | $ | 217,392 | $ | 43,472 | $ | (887,065 | ) | |||||||
Net earnings (loss) per share attributable to common
shares Basic (1)
|
$ | .75 | $ | .83 | $ | .17 | $ | (3.34 | ) | |||||||
Net earnings (loss) per share attributable to common
shares Diluted (1) (2)
|
$ | .73 | $ | .80 | $ | .16 | $ | (3.34 | ) | |||||||
2007:
|
||||||||||||||||
Total revenues
|
$ | 952,804 | $ | 984,228 | $ | 3,456,837 | $ | 794,803 | ||||||||
Operating income
|
$ | 321,210 | $ | 298,626 | $ | 350,489 | $ | 171,646 | ||||||||
Earnings from continuing operations
|
$ | 229,017 | $ | 365,898 | $ | 297,295 | $ | 95,534 | ||||||||
Net earnings attributable to common shares
|
$ | 236,091 | $ | 400,104 | $ | 299,444 | $ | 113,278 | ||||||||
Net earnings per share attributable to common shares
Basic (1)
|
$ | .93 | $ | 1.56 | $ | 1.16 | $ | .44 | ||||||||
Net earnings per share attributable to common shares
Diluted (1)
|
$ | .89 | $ | 1.50 | $ | 1.12 | $ | .43 | ||||||||
(1) | Quarterly earnings per common share amounts may not total to the annual amounts due to rounding and to the change in the number of common shares outstanding. | |
(2) | In periods with a net loss, the inclusion of any incremental shares is anti-dilutive, and therefore, both basic and diluted loss per share is the same. |
124
125
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
Industrial Operating Properties (d)
|
||||||||||||||||||||||||||||||||||
North American Markets:
|
||||||||||||||||||||||||||||||||||
United States:
|
||||||||||||||||||||||||||||||||||
Atlanta, Georgia
|
||||||||||||||||||||||||||||||||||
Atlanta West Distribution Center
|
17 | (e) | 10,128 | 46,784 | 15,197 | 10,103 | 62,006 | 72,109 | (21,474 | ) |
1994, 1996, 2005, 2006 |
|||||||||||||||||||||||
Atlanta NE Distribution Center
|
8 | (e) | 5,582 | 3,047 | 26,910 | 6,356 | 29,183 | 35,539 | (12,252 | ) | 1996, 1997 | |||||||||||||||||||||||
Berkeley Lake Distribution Center
|
1 | 2,178 | 8,712 | 185 | 2,225 | 8,850 | 11,075 | (574 | ) | 2006 | ||||||||||||||||||||||||
Braselton Business Park
|
1 | 3,860 | 15,258 | | 3,860 | 15,258 | 19,118 | (365 | ) | 2008 | ||||||||||||||||||||||||
Buford Distribution Center (d)
|
1 | 1,487 | | 5,056 | 1,501 | 5,042 | 6,543 | (46 | ) | 2007 | ||||||||||||||||||||||||
Cedars Distribution Center
|
1 | 1,366 | 7,739 | 3,016 | 1,719 | 10,402 | 12,121 | (3,635 | ) | 1999 | ||||||||||||||||||||||||
Douglas Hill Distribution Center
|
5 | 16,647 | 46,825 | 30,617 | 16,860 | 77,229 | 94,089 | (7,148 | ) | 2005, 2006 | ||||||||||||||||||||||||
Greenwood Industrial Park (d)
|
1 | 3,989 | | 21,714 | 4,047 | 21,656 | 25,703 | (844 | ) | 2006 | ||||||||||||||||||||||||
Horizon Distribution Center
|
1 | 2,846 | 11,385 | 152 | 2,878 | 11,505 | 14,383 | (749 | ) | 2006 | ||||||||||||||||||||||||
International Airport Industrial Center
|
9 | 2,939 | 14,146 | 8,249 | 3,029 | 22,305 | 25,334 | (10,417 | ) | 1994, 1995 | ||||||||||||||||||||||||
LaGrange Distribution Center
|
1 | 174 | 986 | 720 | 178 | 1,702 | 1,880 | (1,017 | ) | 1994 | ||||||||||||||||||||||||
Midland Distribution Center
|
1 | 1,919 | 7,679 | 1,417 | 1,944 | 9,071 | 11,015 | (560 | ) | 2006 | ||||||||||||||||||||||||
New Manchester DC Center
|
1 | 3,323 | 13,334 | 893 | 3,363 | 14,187 | 17,550 | (246 | ) | 2007 | ||||||||||||||||||||||||
Northeast Industrial Center
|
3 | 841 | 4,744 | 2,225 | 799 | 7,011 | 7,810 | (3,695 | ) | 1996 | ||||||||||||||||||||||||
Northmont Industrial Center
|
1 | 566 | 3,209 | 1,050 | 577 | 4,248 | 4,825 | (2,231 | ) | 1994 | ||||||||||||||||||||||||
Peachtree Corners Business Center
|
5 | 1,519 | 7,253 | 2,150 | 1,544 | 9,378 | 10,922 | (3,234 | ) | 1994, 2006 | ||||||||||||||||||||||||
Piedmont Ct. Distribution Center
|
2 | 885 | 5,013 | 2,560 | 904 | 7,554 | 8,458 | (3,897 | ) | 1997 | ||||||||||||||||||||||||
Plaza Industrial Center
|
1 | 66 | 372 | 260 | 67 | 631 | 698 | (303 | ) | 1995 | ||||||||||||||||||||||||
Pleasantdale Industrial Center
|
2 | 541 | 3,184 | 1,163 | 552 | 4,336 | 4,888 | (2,234 | ) | 1995 | ||||||||||||||||||||||||
Riverside Distribution Center
|
3 | 2,533 | 13,336 | 3,008 | 2,599 | 16,278 | 18,877 | (5,583 | ) | 1999 | ||||||||||||||||||||||||
South Royal Atlanta Distribution Center
|
1 | 356 | 2,019 | 283 | 362 | 2,296 | 2,658 | (466 | ) | 2002 | ||||||||||||||||||||||||
Tradeport Distribution Center
|
3 | (e) | 1,464 | 4,563 | 7,134 | 1,509 | 11,652 | 13,161 | (5,669 | ) | 1994, 1996 | |||||||||||||||||||||||
Weaver Distribution Center
|
2 | 935 | 5,182 | 2,088 | 954 | 7,251 | 8,205 | (3,544 | ) | 1995 | ||||||||||||||||||||||||
Westfork Industrial Center
|
10 | (e) | 2,483 | 14,115 | 3,619 | 2,488 | 17,729 | 20,217 | (8,299 | ) | 1995 | |||||||||||||||||||||||
Total Atlanta, Georgia
|
81 | 68,627 | 238,885 | 139,666 | 70,418 | 376,760 | 447,178 | (98,482 | ) | |||||||||||||||||||||||||
Austin, Texas
|
||||||||||||||||||||||||||||||||||
Corridor Park Corporate Center
|
6 | 1,652 | 1,681 | 15,144 | 2,155 | 16,322 | 18,477 | (7,922 | ) | 1995, 1996 | ||||||||||||||||||||||||
Montopolis Distribution Center
|
1 | 580 | 3,384 | 1,221 | 591 | 4,594 | 5,185 | (2,599 | ) | 1994 | ||||||||||||||||||||||||
Rutland Distribution Center
|
2 | 460 | 2,617 | 854 | 471 | 3,460 | 3,931 | (1,714 | ) | 1993 | ||||||||||||||||||||||||
Southpark Corporate Center
|
2 | 684 | | 4,978 | 697 | 4,965 | 5,662 | (2,308 | ) | 1994 | ||||||||||||||||||||||||
Walnut Creek Corporate Center
|
5 | 1,615 | 8,204 | 1,522 | 1,680 | 9,661 | 11,341 | (1,945 | ) | 1994, 2008 | ||||||||||||||||||||||||
Total Austin, Texas
|
16 | 4,991 | 15,886 | 23,719 | 5,594 | 39,002 | 44,596 | (16,488 | ) | |||||||||||||||||||||||||
Central Valley, California
|
||||||||||||||||||||||||||||||||||
Central Valley Distribution Center
|
1 | 2,233 | 13,432 | 431 | 2,269 | 13,827 | 16,096 | (4,477 | ) | 1999 | ||||||||||||||||||||||||
Central Valley Industrial Center
|
4 | (e) | 11,418 | 48,726 | 5,963 | 12,017 | 54,090 | 66,107 | (12,614 | ) |
1999, 2002, 2005 |
|||||||||||||||||||||||
Manteca Distribution Center
|
1 | (e) | 9,280 | 27,841 | 64 | 9,365 | 27,820 | 37,185 | (3,074 | ) | 2005 | |||||||||||||||||||||||
Patterson Pass Business Center
|
6 | 3,520 | 4,885 | 17,272 | 3,577 | 22,100 | 25,677 | (6,505 | ) |
1993, 1997, 1998, 2007 |
||||||||||||||||||||||||
Tracy II Distribution Center (d)
|
1 | | 20,384 | 6,693 | 4,134 | 22,943 | 27,077 | (90 | ) | 2007 | ||||||||||||||||||||||||
Total Central Valley, California
|
13 | 26,451 | 115,268 | 30,423 | 31,362 | 140,780 | 172,142 | (26,760 | ) | |||||||||||||||||||||||||
Charlotte, North Carolina
|
||||||||||||||||||||||||||||||||||
Barringer Industrial Center
|
3 | 308 | 1,746 | 1,048 | 315 | 2,787 | 3,102 | (1,456 | ) | 1994 | ||||||||||||||||||||||||
Bond Distribution Center
|
2 | 905 | 5,126 | 2,243 | 923 | 7,351 | 8,274 | (3,551 | ) | 1994 | ||||||||||||||||||||||||
Charlotte Commerce Center
|
10 | (e) | 4,341 | 24,954 | 9,017 | 4,429 | 33,883 | 38,312 | (17,906 | ) | 1994 | |||||||||||||||||||||||
Charlotte Distribution Center
|
9 | (e) | 4,578 | | 26,302 | 6,166 | 24,714 | 30,880 | (10,985 | ) |
1995, 1996, 1997, 1998 |
|||||||||||||||||||||||
Interstate North Business Park (d)
|
3 | 948 | 3,030 | 5,186 | 974 | 8,190 | 9,164 | (2,051 | ) | 1997, 2006 | ||||||||||||||||||||||||
Northpark Distribution Center
|
2 | (e) | 1,183 | 6,707 | 2,335 | 1,207 | 9,018 | 10,225 | (3,907 | ) | 1994, 1998 |
126
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
West Pointe Business Center (d)
|
1 | 2,416 | | 8,353 | 2,441 | 8,328 | 10,769 | (171 | ) | 2006 | ||||||||||||||||||||||||
Wilson Business Park Distribution Center
|
1 | 976 | 5,598 | | 983 | 5,591 | 6,574 | (344 | ) | 2007 | ||||||||||||||||||||||||
Total Charlotte, North Carolina
|
31 | 15,655 | 47,161 | 54,484 | 17,438 | 99,862 | 117,300 | (40,371 | ) | |||||||||||||||||||||||||
Chicago, Illinois
|
||||||||||||||||||||||||||||||||||
Addison Distribution Center
|
1 | 646 | 3,662 | 823 | 651 | 4,480 | 5,131 | (1,956 | ) | 1997 | ||||||||||||||||||||||||
Alsip Distribution Center
|
2 | 2,093 | 11,859 | 8,438 | 2,600 | 19,790 | 22,390 | (10,643 | ) | 1997, 1999 | ||||||||||||||||||||||||
Arlington Heights Distribution Center
|
1 | 831 | 3,326 | 20 | 841 | 3,336 | 4,177 | (274 | ) | 2006 | ||||||||||||||||||||||||
Bedford Park Industrial Center
|
1 | 941 | 4,907 | 2,011 | 959 | 6,900 | 7,859 | (622 | ) | 2005 | ||||||||||||||||||||||||
Bensenville Distribution Center
|
2 | 1,668 | 9,448 | 5,518 | 1,705 | 14,929 | 16,634 | (7,925 | ) | 1997 | ||||||||||||||||||||||||
Bolingbrook Distribution Center
|
6 | 16,178 | 73,755 | 1,950 | 16,183 | 75,700 | 91,883 | (13,540 | ) |
1999, 2003, 2006 |
||||||||||||||||||||||||
Des Plaines Distribution Center
|
3 | 2,158 | 12,232 | 4,858 | 2,202 | 17,046 | 19,248 | (8,350 | ) | 1995, 1996 | ||||||||||||||||||||||||
Elk Grove Distribution Center
|
25 | 20,516 | 94,843 | 20,583 | 20,707 | 115,235 | 135,942 | (30,373 | ) |
1995, 1996, 1997, 1998, 1999, 2006 |
||||||||||||||||||||||||
Elmhurst Distribution Center
|
1 | 713 | 4,043 | 971 | 726 | 5,001 | 5,727 | (2,131 | ) | 1997 | ||||||||||||||||||||||||
Glendale Heights Distribution Center
|
3 | (e) | 3,903 | 22,119 | 2,712 | 3,968 | 24,766 | 28,734 | (8,104 | ) | 1999 | |||||||||||||||||||||||
Glenview Distribution Center
|
2 | 1,156 | 6,550 | 1,715 | 1,177 | 8,244 | 9,421 | (3,386 | ) | 1996, 1999 | ||||||||||||||||||||||||
I-55 Distribution Center (d)
|
2 | 5,383 | 25,504 | 21,271 | 10,602 | 41,556 | 52,158 | (1,148 | ) | 2007 | ||||||||||||||||||||||||
Itasca Distribution Center
|
2 | 604 | 3,382 | 851 | 615 | 4,222 | 4,837 | (1,924 | ) | 1996, 1997 | ||||||||||||||||||||||||
Lombard Distribution Center
|
1 | 1,170 | 6,630 | 397 | 1,189 | 7,008 | 8,197 | (2,372 | ) | 1999 | ||||||||||||||||||||||||
Minooka Distribution Center
|
2 | (e) | 12,240 | 41,745 | 15,301 | 12,359 | 56,927 | 69,286 | (4,654 | ) | 2005, 2008 | |||||||||||||||||||||||
Mitchell Distribution Center
|
1 | 1,236 | 7,004 | 1,961 | 1,259 | 8,942 | 10,201 | (4,373 | ) | 1996 | ||||||||||||||||||||||||
North Avenue Distribution Center
|
2 | 3,201 | | 8,729 | 2,074 | 9,856 | 11,930 | (3,999 | ) | 1997, 1998 | ||||||||||||||||||||||||
Northbrook Distribution Center
|
1 | 2,056 | 8,227 | 199 | 2,079 | 8,403 | 10,482 | (504 | ) | 2007 | ||||||||||||||||||||||||
Northlake Distribution Center
|
1 | 372 | 2,106 | 688 | 379 | 2,787 | 3,166 | (1,287 | ) | 1996 | ||||||||||||||||||||||||
Pleasant Prairie Distribution Center
|
1 | 1,314 | 7,450 | 2,148 | 1,339 | 9,573 | 10,912 | (2,796 | ) | 1999 | ||||||||||||||||||||||||
Rochelle Distribution Center (d)
|
1 | 4,457 | 20,100 | | 4,457 | 20,100 | 24,557 | | 2008 | |||||||||||||||||||||||||
Romeoville Distribution Center
|
6 | (e) | 23,731 | 96,764 | 915 | 24,006 | 97,404 | 121,410 | (12,196 | ) | 1999, 2005 | |||||||||||||||||||||||
S.C. Johnson & Son (d)
|
1 | 2,267 | 15,911 | | 2,267 | 15,911 | 18,178 | | 2008 | |||||||||||||||||||||||||
Waukegan Distribution Center
|
2 | 4,368 | 17,632 | 274 | 4,418 | 17,856 | 22,274 | (1,124 | ) | 2007 | ||||||||||||||||||||||||
West Chicago Distribution Center
|
1 | 3,125 | 12,499 | 21 | 3,160 | 12,485 | 15,645 | (1,339 | ) | 2005 | ||||||||||||||||||||||||
Woodale Distribution Center
|
1 | 263 | 1,490 | 445 | 268 | 1,930 | 2,198 | (863 | ) | 1997 | ||||||||||||||||||||||||
Woodridge Distribution Center
|
14 | (e) | 46,575 | 197,289 | 8,848 | 50,514 | 202,198 | 252,712 | (20,738 | ) | 2005, 2007 | |||||||||||||||||||||||
Total Chicago, Illinois
|
86 | 163,165 | 710,477 | 111,647 | 172,704 | 812,585 | 985,289 | (146,621 | ) | |||||||||||||||||||||||||
Cincinnati, Ohio
|
||||||||||||||||||||||||||||||||||
Airpark Distribution Center
|
2 | (e) | 1,128 | | 11,558 | 1,744 | 10,942 | 12,686 | (4,563 | ) | 1996 | |||||||||||||||||||||||
Capital Distribution Center II
|
5 | (e) | 1,953 | 11,067 | 4,452 | 1,992 | 15,480 | 17,472 | (7,992 | ) | 1994 | |||||||||||||||||||||||
Constitution Distribution Center
|
1 | 1,465 | 8,301 | 642 | 1,488 | 8,920 | 10,408 | (2,982 | ) | 1999 | ||||||||||||||||||||||||
Dues Drive Distribution Center
|
1 | 921 | 5,218 | 1,814 | 939 | 7,014 | 7,953 | (1,054 | ) | 2003 | ||||||||||||||||||||||||
Empire Distribution Center
|
3 | (e) | 529 | 2,995 | 2,234 | 542 | 5,216 | 5,758 | (2,640 | ) | 1995 | |||||||||||||||||||||||
Enterprise Distribution Center
|
1 | 1,275 | 7,222 | 35 | 1,294 | 7,238 | 8,532 | (534 | ) | 2005 | ||||||||||||||||||||||||
Fairfield Business Center
|
1 | 348 | 1,971 | 573 | 388 | 2,504 | 2,892 | (436 | ) | 2004 | ||||||||||||||||||||||||
Fairfield Distribution Center
|
1 | 586 | 3,319 | 1,199 | 597 | 4,507 | 5,104 | (911 | ) | 2002 | ||||||||||||||||||||||||
Park I-275 (d)
|
1 | 3,899 | 12,014 | | 3,899 | 12,014 | 15,913 | | 2008 | |||||||||||||||||||||||||
Production Distribution Center
|
2 | 717 | 2,717 | 2,855 | 838 | 5,451 | 6,289 | (1,976 | ) | 1994, 1998 | ||||||||||||||||||||||||
Sharonville Distribution Center
|
3 | (e) | 1,761 | | 12,228 | 2,456 | 11,533 | 13,989 | (3,685 | ) | 1997, 1998 | |||||||||||||||||||||||
Total Cincinnati, Ohio
|
21 | 14,582 | 54,824 | 37,590 | 16,177 | 90,819 | 106,996 | (26,773 | ) | |||||||||||||||||||||||||
Columbus, Ohio
|
||||||||||||||||||||||||||||||||||
Brookham Distribution Center
|
2 | 5,964 | 23,858 | 2,670 | 6,038 | 26,454 | 32,492 | (2,936 | ) | 2005 | ||||||||||||||||||||||||
Canal Pointe Distribution Center
|
1 | 1,237 | 7,013 | 1,685 | 1,303 | 8,632 | 9,935 | (2,373 | ) | 1999 | ||||||||||||||||||||||||
Capital Park South Distribution Center
|
3 | (e) | 1,588 | | 23,983 | 2,038 | 23,533 | 25,571 | (9,245 | ) | 1996 |
127
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
Charter Street Distribution Center
|
1 | 1,245 | 7,055 | 367 | 1,265 | 7,402 | 8,667 | (2,380 | ) | 1999 | ||||||||||||||||||||||||
Corporate Park West
|
2 | (e) | 679 | 3,847 | 1,758 | 693 | 5,591 | 6,284 | (2,539 | ) | 1996 | |||||||||||||||||||||||
Etna Distribution Center (d)
|
1 | 3,308 | | 13,603 | 1,707 | 15,204 | 16,911 | (62 | ) | 2007 | ||||||||||||||||||||||||
Fisher Distribution Center
|
1 | (e) | 1,197 | 6,785 | 2,419 | 1,221 | 9,180 | 10,401 | (5,038 | ) | 1995 | |||||||||||||||||||||||
Foreign Trade Center I
|
5 | (e) | 6,527 | 36,989 | 6,477 | 7,105 | 42,888 | 49,993 | (13,874 | ) | 1999 | |||||||||||||||||||||||
McCormick Distribution Center
|
5 | (e) | 1,664 | 9,429 | 7,575 | 1,706 | 16,962 | 18,668 | (7,298 | ) | 1994 | |||||||||||||||||||||||
New World Distribution Center
|
1 | 207 | 1,173 | 1,924 | 214 | 3,090 | 3,304 | (1,832 | ) | 1994 | ||||||||||||||||||||||||
South Park Distribution Center
|
2 | (e) | 3,344 | 15,182 | 1,204 | 3,388 | 16,342 | 19,730 | (3,154 | ) | 1999, 2005 | |||||||||||||||||||||||
Westbelt Business Center
|
3 | 1,777 | 7,168 | 34 | 1,797 | 7,182 | 8,979 | (630 | ) | 2006 | ||||||||||||||||||||||||
Westpointe Distribution Center
|
2 | 1,450 | 7,601 | 343 | 1,471 | 7,923 | 9,394 | (444 | ) | 2007 | ||||||||||||||||||||||||
Wingate Distribution Center
|
1 | 152 | 859 | 427 | 155 | 1,283 | 1,438 | (540 | ) | 1994 | ||||||||||||||||||||||||
Total Columbus, Ohio
|
30 | 30,339 | 126,959 | 64,469 | 30,101 | 191,666 | 221,767 | (52,345 | ) | |||||||||||||||||||||||||
Dallas/Fort Worth, Texas
|
||||||||||||||||||||||||||||||||||
Alliance Distribution Center
|
1 | 3,654 | 14,613 | 2 | 3,695 | 14,574 | 18,269 | (1,603 | ) | 2005 | ||||||||||||||||||||||||
Carter Industrial Center
|
1 | 334 | | 2,332 | 340 | 2,326 | 2,666 | (1,012 | ) | 1996 | ||||||||||||||||||||||||
Centerport Distribution Center
|
1 | 1,250 | 7,082 | 435 | 1,270 | 7,497 | 8,767 | (2,477 | ) | 1999 | ||||||||||||||||||||||||
Dallas Corporate Center
|
10 | 5,161 | | 31,522 | 5,543 | 31,140 | 36,683 | (12,563 | ) |
1996, 1997, 1998, 1999 |
||||||||||||||||||||||||
Enterprise Distribution Center
|
3 | 2,719 | 15,410 | 815 | 2,762 | 16,182 | 18,944 | (5,119 | ) | 1999 | ||||||||||||||||||||||||
Flower Mound Distribution Center
|
1 | 5,157 | 20,991 | 98 | 5,217 | 21,029 | 26,246 | (858 | ) | 2007 | ||||||||||||||||||||||||
Freeport Distribution Center
|
4 | 1,393 | 5,549 | 4,974 | 1,467 | 10,449 | 11,916 | (4,202 | ) |
1996, 1997, 1998 |
||||||||||||||||||||||||
Great Southwest Distribution Center
|
38 | (e) | 39,449 | 173,329 | 19,279 | 38,508 | 193,549 | 232,057 | (45,609 | ) |
1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2005 |
|||||||||||||||||||||||
Lancaster Distribution Center (d)
|
2 | 5,388 | 14,362 | 17,726 | 5,435 | 32,041 | 37,476 | (322 | ) | 2007, 2008 | ||||||||||||||||||||||||
Lone Star Distribution Center
|
1 | 512 | 2,896 | 1,347 | 522 | 4,233 | 4,755 | (1,823 | ) | 1996 | ||||||||||||||||||||||||
Northgate Distribution Center
|
9 | (e) | 15,481 | 72,651 | 6,872 | 16,538 | 78,466 | 95,004 | (12,349 | ) |
1994, 1999, 2005, 2008 |
|||||||||||||||||||||||
Pinnacle Park Distribution Center (f)
|
1 | 5,058 | | 19,649 | 3,936 | 20,771 | 24,707 | (4,212 | ) | 2001 | ||||||||||||||||||||||||
Plano Distribution Center
|
7 | 3,915 | 22,186 | 2,549 | 3,980 | 24,670 | 28,650 | (7,950 | ) | 1999 | ||||||||||||||||||||||||
Redbird Distribution Center
|
2 | 1,095 | 6,212 | 2,091 | 1,117 | 8,281 | 9,398 | (3,092 | ) | 1994, 1999 | ||||||||||||||||||||||||
Royal Distribution Center
|
1 | 811 | 4,598 | 589 | 825 | 5,173 | 5,998 | (1,326 | ) | 2001 | ||||||||||||||||||||||||
Stemmons Distribution Center
|
1 | 272 | 1,544 | 782 | 278 | 2,320 | 2,598 | (1,065 | ) | 1995 | ||||||||||||||||||||||||
Stemmons Industrial Center
|
11 | 1,820 | 11,705 | 4,580 | 1,860 | 16,245 | 18,105 | (7,750 | ) |
1994, 1995, 1996, 1999 |
||||||||||||||||||||||||
Trinity Mills Distribution Center
|
7 | 4,453 | 27,346 | 3,012 | 4,484 | 30,327 | 34,811 | (11,391 | ) |
1996, 1999, 2001 |
||||||||||||||||||||||||
Valwood Business Center
|
4 | (e) | 3,785 | 16,846 | 658 | 3,710 | 17,579 | 21,289 | (2,774 | ) | 2001, 2006 | |||||||||||||||||||||||
Valwood Distribution Center
|
1 | 850 | 4,890 | 413 | 864 | 5,289 | 6,153 | (1,608 | ) | 1999 | ||||||||||||||||||||||||
Total Dallas/Fort Worth, Texas
|
106 | 102,557 | 422,210 | 119,725 | 102,351 | 542,141 | 644,492 | (129,105 | ) | |||||||||||||||||||||||||
Denver, Colorado
|
||||||||||||||||||||||||||||||||||
Denver Business Center
|
6 | 1,507 | 8,302 | 9,719 | 1,550 | 17,978 | 19,528 | (8,074 | ) |
1992, 1994, 1996, 2002 |
||||||||||||||||||||||||
Moline Distribution Center
|
1 | 327 | 1,850 | 860 | 333 | 2,704 | 3,037 | (1,425 | ) | 1994 | ||||||||||||||||||||||||
Moncrieff Distribution Center
|
1 | 314 | 2,493 | 1,101 | 323 | 3,585 | 3,908 | (2,009 | ) | 1992 | ||||||||||||||||||||||||
Pagosa Distribution Center
|
1 | 406 | 2,322 | 1,002 | 414 | 3,316 | 3,730 | (1,842 | ) | 1993 | ||||||||||||||||||||||||
Stapleton Business Center
|
12 | (e) | 34,634 | 139,256 | 2,419 | 35,034 | 141,275 | 176,309 | (15,758 | ) | 2005 | |||||||||||||||||||||||
Upland Distribution Center
|
6 | 808 | 4,421 | 11,753 | 860 | 16,122 | 16,982 | (8,183 | ) |
1992, 1994, 1995 |
||||||||||||||||||||||||
Upland Distribution Center II
|
3 | 1,295 | 5,159 | 4,886 | 1,354 | 9,986 | 11,340 | (5,189 | ) | 1993 | ||||||||||||||||||||||||
Total Denver, Colorado
|
30 | 39,291 | 163,803 | 31,740 | 39,868 | 194,966 | 234,834 | (42,480 | ) | |||||||||||||||||||||||||
128
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
El Paso, Texas
|
||||||||||||||||||||||||||||||||||
Billy the Kid Distribution Center
|
1 | 273 | 1,547 | 1,538 | 281 | 3,077 | 3,358 | (1,356 | ) | 1994 | ||||||||||||||||||||||||
Goodyear Distribution Center
|
1 | 511 | 2,899 | 951 | 521 | 3,840 | 4,361 | (1,581 | ) | 1991 | ||||||||||||||||||||||||
Northwestern Corporate Center
|
5 | 981 | | 18,158 | 2,030 | 17,109 | 19,139 | (6,230 | ) |
1992, 1993, 1994, 1997 |
||||||||||||||||||||||||
Pan Am Distribution Center
|
1 | 196 | 1,110 | 1,575 | 202 | 2,679 | 2,881 | (499 | ) | 2002 | ||||||||||||||||||||||||
Vista Corporate Center
|
4 | 1,945 | | 12,165 | 1,977 | 12,133 | 14,110 | (5,316 | ) |
1994, 1995, 1996 |
||||||||||||||||||||||||
Vista Del Sol Industrial Center II
|
4 | 996 | | 18,733 | 2,100 | 17,629 | 19,729 | (7,398 | ) |
1995, 1997, 1998 |
||||||||||||||||||||||||
Total El Paso, Texas
|
16 | 4,902 | 5,556 | 53,120 | 7,111 | 56,467 | 63,578 | (22,380 | ) | |||||||||||||||||||||||||
Houston, Texas
|
||||||||||||||||||||||||||||||||||
Blalock Distribution Center
|
2 | 595 | 3,370 | 1,059 | 606 | 4,418 | 5,024 | (854 | ) | 2002 | ||||||||||||||||||||||||
Brittmore Distribution Center
|
2 | 1,838 | 10,417 | 1,191 | 1,869 | 11,577 | 13,446 | (4,228 | ) | 1999 | ||||||||||||||||||||||||
Crosstimbers Distribution Center
|
1 | 359 | 2,035 | 1,090 | 367 | 3,117 | 3,484 | (1,478 | ) | 1994 | ||||||||||||||||||||||||
Hempstead Distribution Center
|
3 | 1,013 | 5,740 | 3,497 | 1,036 | 9,214 | 10,250 | (3,976 | ) | 1994 | ||||||||||||||||||||||||
Hobby Business Park
|
1 | 721 | 2,885 | 240 | 730 | 3,116 | 3,846 | (354 | ) | 2005 | ||||||||||||||||||||||||
Kempwood Business Center
|
4 | 1,746 | 9,894 | 1,868 | 1,777 | 11,731 | 13,508 | (3,730 | ) | 2001 | ||||||||||||||||||||||||
Northpark Distribution Center
|
3 | 3,912 | 16,568 | 147 | 3,919 | 16,708 | 20,627 | (325 | ) | 2006, 2008 | ||||||||||||||||||||||||
Perimeter Distribution Center
|
2 | 813 | 4,604 | 980 | 827 | 5,570 | 6,397 | (2,082 | ) | 1999 | ||||||||||||||||||||||||
Pine Forest Business Center
|
9 | 2,665 | 14,132 | 5,011 | 2,714 | 19,094 | 21,808 | (9,086 | ) | 1993, 1995 | ||||||||||||||||||||||||
Pine North Distribution Center
|
2 | 847 | 4,800 | 769 | 862 | 5,554 | 6,416 | (2,038 | ) | 1999 | ||||||||||||||||||||||||
Pine Timbers Distribution Center
|
2 | 2,956 | 16,750 | 3,090 | 3,008 | 19,788 | 22,796 | (7,314 | ) | 1999 | ||||||||||||||||||||||||
Pinemont Distribution Center
|
2 | 642 | 3,636 | 637 | 653 | 4,262 | 4,915 | (1,566 | ) | 1999 | ||||||||||||||||||||||||
Post Oak Business Center
|
15 | 3,005 | 15,378 | 8,032 | 3,065 | 23,350 | 26,415 | (11,910 | ) |
1993, 1994, 1996 |
||||||||||||||||||||||||
Post Oak Distribution Center
|
7 | 2,115 | 12,017 | 5,984 | 2,085 | 18,031 | 20,116 | (10,192 | ) | 1993, 1994 | ||||||||||||||||||||||||
South Loop Distribution Center
|
5 | 1,051 | 5,964 | 4,071 | 1,077 | 10,009 | 11,086 | (5,458 | ) | 1994 | ||||||||||||||||||||||||
Southland Distribution Center
|
1 | 1,209 | 6,849 | 1,454 | 1,230 | 8,282 | 9,512 | (1,020 | ) | 2002 | ||||||||||||||||||||||||
West by Northwest Industrial Center
|
15 | 4,040 | 7,980 | 35,304 | 4,251 | 43,073 | 47,324 | (18,815 | ) |
1993, 1994, 1995, 1996, 1997, 1998 |
||||||||||||||||||||||||
White Street Distribution Center
|
1 | 469 | 2,656 | 1,364 | 479 | 4,010 | 4,489 | (1,791 | ) | 1995 | ||||||||||||||||||||||||
Total Houston, Texas
|
77 | 29,996 | 145,675 | 75,788 | 30,555 | 220,904 | 251,459 | (86,217 | ) | |||||||||||||||||||||||||
I-81 Corridor, Pennsylvania
|
||||||||||||||||||||||||||||||||||
Harrisburg Distribution Center
|
1 | 2,243 | 12,572 | 631 | 2,266 | 13,180 | 15,446 | (1,928 | ) | 2004 | ||||||||||||||||||||||||
Harrisburg Industrial Center
|
1 | 782 | 6,190 | 870 | 800 | 7,042 | 7,842 | (1,277 | ) | 2002 | ||||||||||||||||||||||||
Kraft Distribution Center
|
1 | 2,457 | 13,920 | 70 | 2,494 | 13,953 | 16,447 | (4,534 | ) | 1999 | ||||||||||||||||||||||||
Lehigh Valley Distribution Center
|
4 | 6,636 | 37,114 | 2,460 | 6,706 | 39,504 | 46,210 | (5,843 | ) | 2004 | ||||||||||||||||||||||||
Middleton Distribution Center
|
1 | 4,190 | 23,478 | 124 | 4,231 | 23,561 | 27,792 | (3,447 | ) | 2004 | ||||||||||||||||||||||||
Park 33 Distribution Center (d)
|
1 | 13,411 | | 30,644 | 13,522 | 30,533 | 44,055 | (96 | ) | 2007 | ||||||||||||||||||||||||
Quakertown Distribution Center
|
1 | 6,966 | | 27,694 | 7,044 | 27,616 | 34,660 | (1,751 | ) | 2006 | ||||||||||||||||||||||||
Total I-81 Corridor, Pennsylvania
|
10 | 36,685 | 93,274 | 62,493 | 37,063 | 155,389 | 192,452 | (18,876 | ) | |||||||||||||||||||||||||
Indianapolis, Indiana
|
||||||||||||||||||||||||||||||||||
Eastside Distribution Center
|
2 | 1,204 | 6,820 | 1,259 | 1,296 | 7,987 | 9,283 | (2,865 | ) | 1995, 1999 | ||||||||||||||||||||||||
Logo Court Distribution Center
|
1 | 3,352 | 18,678 | 197 | 3,384 | 18,843 | 22,227 | (2,755 | ) | 2004 | ||||||||||||||||||||||||
North by Northeast Corporate Center
|
1 | 1,058 | | 6,991 | 1,077 | 6,972 | 8,049 | (2,957 | ) | 1995 | ||||||||||||||||||||||||
Park 100 Industrial Center
|
14 | 4,948 | 28,691 | 11,042 | 5,001 | 39,680 | 44,681 | (17,935 | ) | 1994, 1995 | ||||||||||||||||||||||||
Park Fletcher Distribution Center
|
9 | 2,687 | 15,224 | 6,129 | 2,839 | 21,201 | 24,040 | (9,915 | ) |
1994, 1995, 1996 |
||||||||||||||||||||||||
Shadeland Industrial Center
|
3 | 428 | 2,431 | 2,342 | 441 | 4,760 | 5,201 | (2,373 | ) | 1995 | ||||||||||||||||||||||||
Total Indianapolis, Indiana
|
30 | 13,677 | 71,844 | 27,960 | 14,038 | 99,443 | 113,481 | (38,800 | ) | |||||||||||||||||||||||||
129
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
Inland Empire, California
|
||||||||||||||||||||||||||||||||||
California Commerce Center
|
1 | (e) | 4,201 | 7,802 | 67 | 4,229 | 7,841 | 12,070 | (876 | ) | 2005 | |||||||||||||||||||||||
Crossroads Business Park
|
7 | (e) | | 84,519 | 64,974 | 52,000 | 97,493 | 149,493 | (10,796 | ) | 2005 | |||||||||||||||||||||||
Haven Distribution Center
|
5 | 100,127 | 73,902 | | 100,127 | 73,902 | 174,029 | | 2008 | |||||||||||||||||||||||||
Inland Empire Distribution Center
|
6 | (e) | 42,927 | 84,275 | 5,882 | 43,982 | 89,102 | 133,084 | (12,571 | ) | 1999, 2005 | |||||||||||||||||||||||
Kaiser Distribution Center
|
8 | (e) | 130,680 | 242,618 | 14,324 | 136,902 | 250,720 | 387,622 | (24,931 | ) | 2005, 2008 | |||||||||||||||||||||||
Meridian Park
|
1 | 13,016 | 24,268 | | 13,016 | 24,268 | 37,284 | (634 | ) | 2008 | ||||||||||||||||||||||||
ProLogis Park Ontario
|
2 | (e) | 25,500 | 47,366 | 81 | 25,664 | 47,283 | 72,947 | (2,829 | ) | 2007 | |||||||||||||||||||||||
Rancho Cucamonga Distribution Center
|
6 | (e)(g) | 51,283 | 95,241 | 249 | 51,616 | 95,157 | 146,773 | (10,488 | ) | 2005 | |||||||||||||||||||||||
Redlands Distribution Center
|
2 | 21,543 | 43,423 | 25,987 | 23,016 | 67,937 | 90,953 | (2,825 | ) | 2006, 2007 | ||||||||||||||||||||||||
Total Inland Empire, California
|
38 | 389,277 | 703,414 | 111,564 | 450,552 | 753,703 | 1,204,255 | (65,950 | ) | |||||||||||||||||||||||||
Las Vegas, Nevada
|
||||||||||||||||||||||||||||||||||
Black Mountain Distribution Center
|
2 | 1,108 | | 7,188 | 1,225 | 7,071 | 8,296 | (2,832 | ) | 1997 | ||||||||||||||||||||||||
Cameron Business Center
|
1 | (e) | 1,634 | 9,256 | 330 | 1,659 | 9,561 | 11,220 | (3,153 | ) | 1999 | |||||||||||||||||||||||
Hughes Airport Center
|
1 | 876 | | 2,935 | 919 | 2,892 | 3,811 | (1,275 | ) | 1994 | ||||||||||||||||||||||||
Las Vegas Corporate Center
|
7 | (g) | 4,701 | | 22,153 | 4,849 | 22,005 | 26,854 | (9,695 | ) |
1994, 1995, 1996, 1997 |
|||||||||||||||||||||||
Placid St. Distribution Center
|
1 | (e) | 2,620 | 14,848 | 160 | 2,660 | 14,968 | 17,628 | (4,854 | ) | 1999 | |||||||||||||||||||||||
South Arville Center
|
1 | 1,440 | 8,160 | 313 | 1,462 | 8,451 | 9,913 | (2,763 | ) | 1999 | ||||||||||||||||||||||||
West One Business Center
|
4 | 2,468 | 13,985 | 2,447 | 2,511 | 16,389 | 18,900 | (6,802 | ) | 1996 | ||||||||||||||||||||||||
Total Las Vegas, Nevada
|
17 | 14,847 | 46,249 | 35,526 | 15,285 | 81,337 | 96,622 | (31,374 | ) | |||||||||||||||||||||||||
Los Angeles, California
|
||||||||||||||||||||||||||||||||||
Anaheim Industrial Center
|
13 | (e) | 32,275 | 59,983 | 757 | 32,486 | 60,529 | 93,015 | (6,658 | ) | 2005 | |||||||||||||||||||||||
Dominguez North Industrial Center
|
2 | 7,340 | 13,739 | 86 | 7,388 | 13,777 | 21,165 | (857 | ) | 2007 | ||||||||||||||||||||||||
Fullerton Industrial Center
|
2 | 8,238 | 15,300 | 77 | 8,292 | 15,323 | 23,615 | (1,693 | ) | 2005 | ||||||||||||||||||||||||
Industry Distribution Center
|
7 | (e)(g) | 50,268 | 93,355 | 471 | 50,594 | 93,500 | 144,094 | (10,374 | ) | 2005 | |||||||||||||||||||||||
Los Angeles Industrial Center
|
2 | 3,777 | 7,015 | 198 | 3,802 | 7,188 | 10,990 | (778 | ) | 2005 | ||||||||||||||||||||||||
Mid Counties Industrial Center
|
14 | (e) | 45,864 | 87,107 | 10,819 | 46,156 | 97,634 | 143,790 | (11,367 | ) | 2005, 2006 | |||||||||||||||||||||||
Orange Industrial Center
|
2 | 5,930 | 11,014 | | 5,969 | 10,975 | 16,944 | (1,208 | ) | 2005 | ||||||||||||||||||||||||
Santa Ana Distribution Center
|
2 | 4,318 | 8,019 | 40 | 4,346 | 8,031 | 12,377 | (890 | ) | 2005 | ||||||||||||||||||||||||
South Bay Distribution Center
|
4 | 14,478 | 27,511 | 984 | 14,575 | 28,398 | 42,973 | (2,709 | ) | 2005, 2007 | ||||||||||||||||||||||||
Tustin Industrial Center
|
2 | 4,553 | 8,456 | 47 | 4,583 | 8,473 | 13,056 | (942 | ) | 2005 | ||||||||||||||||||||||||
Vernon Distribution Center
|
15 | 25,439 | 47,250 | 1,349 | 25,608 | 48,430 | 74,038 | (5,457 | ) | 2005 | ||||||||||||||||||||||||
Total Los Angeles, California
|
65 | 202,480 | 378,749 | 14,828 | 203,799 | 392,258 | 596,057 | (42,933 | ) | |||||||||||||||||||||||||
Louisville, Kentucky
|
||||||||||||||||||||||||||||||||||
Airpark Commerce Center
|
4 | 1,583 | 8,971 | 5,408 | 1,619 | 14,343 | 15,962 | (7,445 | ) | 1998 | ||||||||||||||||||||||||
Cedar Grove Distribution Center
|
2 | (e) | 6,065 | 30,404 | 204 | 6,108 | 30,565 | 36,673 | (1,870 | ) | 2005, 2008 | |||||||||||||||||||||||
Commerce Crossings Distribution Center
|
1 | 1,912 | 7,649 | 49 | 1,934 | 7,676 | 9,610 | (842 | ) | 2005 | ||||||||||||||||||||||||
I-65 Meyer Dist. Center (d)
|
2 | 4,258 | | 22,417 | 4,625 | 22,050 | 26,675 | (1,060 | ) | 2006, 2007 | ||||||||||||||||||||||||
Louisville Distribution Center
|
2 | (e) | 680 | 3,402 | 4,484 | 709 | 7,857 | 8,566 | (3,114 | ) | 1995, 1998 | |||||||||||||||||||||||
Riverport Distribution Center
|
1 | 1,515 | 8,585 | 2,187 | 1,543 | 10,744 | 12,287 | (2,950 | ) | 1999 | ||||||||||||||||||||||||
Total Louisville, Kentucky
|
12 | 16,013 | 59,011 | 34,749 | 16,538 | 93,235 | 109,773 | (17,281 | ) | |||||||||||||||||||||||||
Memphis, Tennessee
|
||||||||||||||||||||||||||||||||||
Airport Distribution Center
|
7 | 2,660 | 14,853 | 5,651 | 2,713 | 20,451 | 23,164 | (9,305 | ) |
1995, 1996, 1999 |
||||||||||||||||||||||||
Centerpointe Distribution Center
|
1 | 1,401 | 9,019 | 236 | 1,425 | 9,231 | 10,656 | (2,944 | ) | 2001 | ||||||||||||||||||||||||
Delp Distribution Center
|
6 | 3,870 | 21,853 | 5,339 | 3,940 | 27,122 | 31,062 | (11,714 | ) | 1995, 1999 | ||||||||||||||||||||||||
DeSoto Distribution Center (d)
|
1 | 4,761 | | 25,343 | 4,830 | 25,274 | 30,104 | (473 | ) | 2007 | ||||||||||||||||||||||||
Fred Jones Distribution Center
|
1 | 125 | 707 | 308 | 127 | 1,013 | 1,140 | (520 | ) | 1994 | ||||||||||||||||||||||||
Memphis Distribution Center
|
1 | 480 | 2,723 | 410 | 489 | 3,124 | 3,613 | (688 | ) | 2002 | ||||||||||||||||||||||||
Olive Branch Distribution Center
|
2 | 2,892 | 16,389 | 2,215 | 2,941 | 18,555 | 21,496 | (6,713 | ) | 1999 | ||||||||||||||||||||||||
Raines Distribution Center
|
1 | 1,635 | 4,262 | | 1,648 | 4,249 | 5,897 | (6,719 | ) | 1998 |
130
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
Southpark Distribution Center
|
1 | 859 | 4,866 | 704 | 873 | 5,556 | 6,429 | (670 | ) | 2003 | ||||||||||||||||||||||||
Willow Lake Distribution Center
|
1 | 613 | 3,474 | 328 | 623 | 3,792 | 4,415 | (1,379 | ) | 1999 | ||||||||||||||||||||||||
Total Memphis, Tennessee
|
22 | 19,296 | 78,146 | 40,534 | 19,609 | 118,367 | 137,976 | (41,125 | ) | |||||||||||||||||||||||||
Nashville, Tennessee
|
||||||||||||||||||||||||||||||||||
Bakertown Distribution Center
|
2 | 463 | 2,626 | 649 | 472 | 3,266 | 3,738 | (1,631 | ) | 1995 | ||||||||||||||||||||||||
I-40 Industrial Center
|
4 | 1,711 | 9,698 | 1,499 | 1,741 | 11,167 | 12,908 | (4,574 | ) |
1995, 1996, 1999 |
||||||||||||||||||||||||
Interchange City Distribution Center
|
8 | 5,179 | 26,540 | 4,299 | 5,986 | 30,032 | 36,018 | (4,274 | ) |
1998, 2003, 2008 |
||||||||||||||||||||||||
Space Park South Distribution Center
|
15 | 3,499 | 19,830 | 8,685 | 3,572 | 28,442 | 32,014 | (15,199 | ) | 1994 | ||||||||||||||||||||||||
Total Nashville, Tennessee
|
29 | 10,852 | 58,694 | 15,132 | 11,771 | 72,907 | 84,678 | (25,678 | ) | |||||||||||||||||||||||||
New Jersey
|
||||||||||||||||||||||||||||||||||
Bellmawr Distribution Center
|
1 | 212 | 1,197 | 379 | 215 | 1,573 | 1,788 | (633 | ) | 1999 | ||||||||||||||||||||||||
Brunswick Distribution Center
|
2 | 870 | 4,928 | 2,030 | 887 | 6,941 | 7,828 | (3,805 | ) | 1997 | ||||||||||||||||||||||||
Chester Distribution Center
|
1 | 548 | 5,319 | | 561 | 5,306 | 5,867 | (3,109 | ) | 2002 | ||||||||||||||||||||||||
Clearview Distribution Center
|
1 | 2,232 | 12,648 | 525 | 2,267 | 13,138 | 15,405 | (6,164 | ) | 1996 | ||||||||||||||||||||||||
Exit 8A Distribution Center
|
1 | 7,626 | 44,103 | 554 | 8,062 | 44,221 | 52,283 | (4,872 | ) | 2005 | ||||||||||||||||||||||||
Exit 10 Distribution Center
|
6 | 22,738 | 126,961 | 1,214 | 23,080 | 127,833 | 150,913 | (13,985 | ) | 2005 | ||||||||||||||||||||||||
Kilmer Distribution Center
|
4 | (e) | 2,526 | 14,313 | 2,692 | 2,570 | 16,961 | 19,531 | (7,602 | ) | 1996 | |||||||||||||||||||||||
Meadowland Distribution Center
|
4 | (e) | 10,272 | 57,480 | 725 | 10,426 | 58,051 | 68,477 | (5,589 | ) | 2005 | |||||||||||||||||||||||
Meadowland Industrial Center
|
8 | (e) | 5,676 | 32,167 | 15,924 | 5,798 | 47,969 | 53,767 | (26,153 | ) |
1996, 1997, 1998 |
|||||||||||||||||||||||
Mount Olive Distribution Center
|
1 | 1,509 | 8,552 | | 1,532 | 8,529 | 10,061 | (392 | ) | 2007 | ||||||||||||||||||||||||
Mt. Laurel Distribution Center
|
3 | 826 | 4,679 | 1,481 | 842 | 6,144 | 6,986 | (2,243 | ) | 1999 | ||||||||||||||||||||||||
Pennsauken Distribution Center
|
3 | 376 | 2,132 | 430 | 390 | 2,548 | 2,938 | (976 | ) | 1999 | ||||||||||||||||||||||||
Port Reading Business Park (d)
|
1 | 4,138 | | 24,663 | 4,336 | 24,465 | 28,801 | (1,499 | ) | 2005 | ||||||||||||||||||||||||
Total New Jersey
|
36 | 59,549 | 314,479 | 50,617 | 60,966 | 363,679 | 424,645 | (77,022 | ) | |||||||||||||||||||||||||
Orlando, Florida
|
||||||||||||||||||||||||||||||||||
33rd Street Industrial Center
|
9 | 1,980 | 11,237 | 4,203 | 2,019 | 15,401 | 17,420 | (7,374 | ) |
1994, 1995, 1996 |
||||||||||||||||||||||||
Beltway Commerce Center
|
3 | 17,178 | 25,526 | | 17,178 | 25,526 | 42,704 | (27 | ) | 2008 | ||||||||||||||||||||||||
Chancellor Distribution Center
|
1 | 380 | 2,156 | 1,558 | 390 | 3,704 | 4,094 | (1,792 | ) | 1994 | ||||||||||||||||||||||||
Consulate Distribution Center
|
3 | 4,148 | 23,617 | 1,024 | 4,213 | 24,576 | 28,789 | (8,184 | ) | 1999 | ||||||||||||||||||||||||
LaQuinta Distribution Center
|
1 | 354 | 2,006 | 1,664 | 363 | 3,661 | 4,024 | (1,905 | ) | 1994 | ||||||||||||||||||||||||
Orlando Central Park
|
3 | 1,378 | | 9,938 | 1,896 | 9,420 | 11,316 | (3,385 | ) | 1997, 1998 | ||||||||||||||||||||||||
Princeton Oaks Distribution Center
|
1 | 900 | 5,100 | 269 | 914 | 5,355 | 6,269 | (1,669 | ) | 1999 | ||||||||||||||||||||||||
Total Orlando, Florida
|
21 | 26,318 | 69,642 | 18,656 | 26,973 | 87,643 | 114,616 | (24,336 | ) | |||||||||||||||||||||||||
Phoenix, Arizona
|
||||||||||||||||||||||||||||||||||
24th Street Industrial Center
|
2 | 503 | 2,852 | 1,460 | 572 | 4,243 | 4,815 | (2,445 | ) | 1994 | ||||||||||||||||||||||||
Alameda Distribution Center
|
2 | 3,872 | 14,358 | 1,942 | 3,918 | 16,254 | 20,172 | (1,765 | ) | 2005 | ||||||||||||||||||||||||
Buckeye Road Industrial Center
|
2 | 1,236 | 4,988 | 834 | 1,252 | 5,806 | 7,058 | (582 | ) | 2005 | ||||||||||||||||||||||||
Hohokam 10 Business Center
|
6 | 4,258 | 7,467 | 12,936 | 4,314 | 20,347 | 24,661 | (7,999 | ) | 1996, 1999 | ||||||||||||||||||||||||
I-10 West Business Center
|
3 | 263 | 1,525 | 824 | 269 | 2,343 | 2,612 | (1,227 | ) | 1993 | ||||||||||||||||||||||||
Kyrene Commons Distribution Center
|
3 | 2,369 | 5,475 | 506 | 1,112 | 7,238 | 8,350 | (3,234 | ) |
1992, 1998, 1999 |
||||||||||||||||||||||||
Kyrene Commons Distribution Center South
|
2 | 1,096 | | 5,645 | 1,178 | 5,563 | 6,741 | (2,162 | ) | 1998 | ||||||||||||||||||||||||
Martin Van Buren Distribution Center
|
6 | 572 | 3,285 | 1,913 | 585 | 5,185 | 5,770 | (2,788 | ) | 1993, 1994 | ||||||||||||||||||||||||
Papago Distribution Center
|
3 | 4,828 | 20,017 | 1,871 | 4,889 | 21,827 | 26,716 | (3,497 | ) | 1994, 2005 | ||||||||||||||||||||||||
Roosevelt Distribution Center
|
1 | 1,766 | 7,065 | 34 | 1,786 | 7,079 | 8,865 | (780 | ) | 2005 | ||||||||||||||||||||||||
University Dr Distribution Center
|
1 | 683 | 2,735 | 140 | 691 | 2,867 | 3,558 | (313 | ) | 2005 |
131
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
Watkins Street Distribution Center
|
1 | 242 | 1,375 | 448 | 247 | 1,818 | 2,065 | (879 | ) | 1995 | ||||||||||||||||||||||||
Wilson Drive Distribution Center
|
1 | 1,273 | 5,093 | 62 | 1,288 | 5,140 | 6,428 | (570 | ) | 2005 | ||||||||||||||||||||||||
Total Phoenix, Arizona
|
33 | 22,961 | 76,235 | 28,615 | 22,101 | 105,710 | 127,811 | (28,241 | ) | |||||||||||||||||||||||||
Portland, Oregon
|
||||||||||||||||||||||||||||||||||
Argyle Distribution Center
|
3 | 946 | 5,388 | 1,839 | 965 | 7,208 | 8,173 | (3,521 | ) | 1993 | ||||||||||||||||||||||||
Columbia Distribution Center
|
2 | 550 | 3,121 | 1,058 | 561 | 4,168 | 4,729 | (2,129 | ) | 1994 | ||||||||||||||||||||||||
PDX Corporate Center East
|
2 | (g) | 1,785 | | 7,165 | 2,121 | 6,829 | 8,950 | (2,578 | ) | 1997 | |||||||||||||||||||||||
PDX Corporate Center North Phase II (d)
|
1 | (g) | 5,077 | 9,895 | | 5,077 | 9,895 | 14,972 | | 2008 | ||||||||||||||||||||||||
PDX Corporate Center North/South
|
7 | (g) | 2,405 | | 11,666 | 2,574 | 11,497 | 14,071 | (5,074 | ) | 1995, 1996 | |||||||||||||||||||||||
Southshore Corporate Center
|
5 | (e) | 13,061 | 52,299 | 696 | 13,423 | 52,633 | 66,056 | (5,426 | ) | 2005, 2006 | |||||||||||||||||||||||
Wilsonville Corporate Center
|
6 | (e) | 2,963 | | 13,391 | 3,001 | 13,353 | 16,354 | (5,877 | ) | 1995, 1996 | |||||||||||||||||||||||
Total Portland, Oregon
|
26 | 26,787 | 70,703 | 35,815 | 27,722 | 105,583 | 133,305 | (24,605 | ) | |||||||||||||||||||||||||
Reno, Nevada
|
||||||||||||||||||||||||||||||||||
Golden Valley Distribution Center
|
3 | 2,975 | 13,686 | 11,194 | 4,514 | 23,341 | 27,855 | (5,029 | ) |
1996, 1998, 2005 |
||||||||||||||||||||||||
Meredith Kleppe Business Center
|
1 | 526 | 754 | 3,519 | 537 | 4,262 | 4,799 | (2,005 | ) | 1993 | ||||||||||||||||||||||||
Packer Way Distribution Center
|
2 | 506 | 2,879 | 1,501 | 517 | 4,369 | 4,886 | (2,525 | ) | 1993 | ||||||||||||||||||||||||
Spice Island Distribution Center
|
1 | 435 | 2,466 | 2,323 | 447 | 4,777 | 5,224 | (1,882 | ) | 1996 | ||||||||||||||||||||||||
Tahoe-Reno Industrial Center (d)
|
1 | 3,281 | | 23,289 | 3,341 | 23,229 | 26,570 | (335 | ) | 2007 | ||||||||||||||||||||||||
Vista Industrial Park
|
10 | (e) | 9,566 | 40,036 | 14,945 | 9,712 | 54,835 | 64,547 | (15,968 | ) |
1994, 1995, 2001 |
|||||||||||||||||||||||
Total Reno, Nevada
|
18 | 17,289 | 59,821 | 56,771 | 19,068 | 114,813 | 133,881 | (27,744 | ) | |||||||||||||||||||||||||
Salt Lake City, Utah
|
||||||||||||||||||||||||||||||||||
Centennial Distribution Center
|
2 | 1,149 | | 9,028 | 1,172 | 9,005 | 10,177 | (3,998 | ) | 1995 | ||||||||||||||||||||||||
Salt Lake International Distribution Center
|
2 | 1,367 | 2,792 | 10,053 | 1,396 | 12,816 | 14,212 | (5,483 | ) | 1994, 1996 | ||||||||||||||||||||||||
Total Salt Lake City, Utah
|
4 | 2,516 | 2,792 | 19,081 | 2,568 | 21,821 | 24,389 | (9,481 | ) | |||||||||||||||||||||||||
San Antonio, Texas
|
||||||||||||||||||||||||||||||||||
10711 Distribution Center
|
2 | 582 | 3,301 | 1,933 | 596 | 5,220 | 5,816 | (2,852 | ) | 1994 | ||||||||||||||||||||||||
City Park East Distribution Center
|
4 | 1,344 | 9,645 | 922 | 1,361 | 10,550 | 11,911 | (833 | ) | 2003, 2008 | ||||||||||||||||||||||||
Coliseum Distribution Center
|
1 | 428 | | 4,974 | 477 | 4,925 | 5,402 | (2,672 | ) | 1994 | ||||||||||||||||||||||||
Dist Drive Center
|
1 | 473 | 2,680 | 1,217 | 483 | 3,887 | 4,370 | (2,256 | ) | 1992 | ||||||||||||||||||||||||
Eisenhauer Distribution Center (d)
|
1 | 836 | 884 | 2,914 | 484 | 4,150 | 4,634 | (25 | ) | 2007 | ||||||||||||||||||||||||
Macro Distribution Center
|
3 | 1,705 | 9,024 | 2,164 | 1,734 | 11,159 | 12,893 | (1,500 | ) | 2002 | ||||||||||||||||||||||||
Perrin Creek Corporate Center
|
1 | 288 | | 1,295 | 210 | 1,373 | 1,583 | (594 | ) | 1996 | ||||||||||||||||||||||||
Rittiman East Industrial Park
|
7 | 5,902 | 23,746 | 188 | 5,970 | 23,866 | 29,836 | (1,908 | ) | 2006 | ||||||||||||||||||||||||
Rittiman West Industrial Park
|
2 | 1,237 | 4,950 | 229 | 1,244 | 5,172 | 6,416 | (411 | ) | 2006 | ||||||||||||||||||||||||
San Antonio Distribution Center I
|
9 | 1,589 | 9,028 | 6,043 | 1,627 | 15,033 | 16,660 | (8,221 | ) |
1992, 1993, 1994 |
||||||||||||||||||||||||
San Antonio Distribution Center II
|
3 | 945 | | 6,512 | 902 | 6,555 | 7,457 | (3,083 | ) | 1994 | ||||||||||||||||||||||||
San Antonio Distribution Center III
|
4 | 1,176 | 6,571 | 3,200 | 1,201 | 9,746 | 10,947 | (4,807 | ) | 1996 | ||||||||||||||||||||||||
Tri-County Distribution Center
|
2 | (e) | 3,183 | 12,743 | 190 | 3,220 | 12,896 | 16,116 | (515 | ) | 2007 | |||||||||||||||||||||||
Woodlake Distribution Center
|
2 | 248 | 1,405 | 1,192 | 254 | 2,591 | 2,845 | (1,406 | ) | 1994 | ||||||||||||||||||||||||
Total San Antonio, Texas
|
42 | 19,936 | 83,977 | 32,973 | 19,763 | 117,123 | 136,886 | (31,083 | ) | |||||||||||||||||||||||||
San Francisco (East Bay), California
|
||||||||||||||||||||||||||||||||||
Alvarado Business Center
|
10 | (e) | 20,739 | 62,595 | 1,275 | 20,931 | 63,678 | 84,609 | (7,109 | ) | 2005 | |||||||||||||||||||||||
Barrington Business Center
|
3 | 1,741 | 9,863 | 2,245 | 1,772 | 12,077 | 13,849 | (3,978 | ) | 1999 | ||||||||||||||||||||||||
East Bay Industrial Center
|
1 | 531 | 3,009 | 554 | 540 | 3,554 | 4,094 | (1,858 | ) | 1994 | ||||||||||||||||||||||||
Eigenbrodt Way Distribution Center
|
1 | (e) | 393 | 2,228 | 497 | 400 | 2,718 | 3,118 | (1,409 | ) | 1993 | |||||||||||||||||||||||
Hayward Commerce Center
|
4 | 1,933 | 10,955 | 2,292 | 1,968 | 13,212 | 15,180 | (6,490 | ) | 1993 | ||||||||||||||||||||||||
Hayward Commerce Park
|
7 | 1,968 | 11,167 | 3,421 | 2,006 | 14,550 | 16,556 | (7,811 | ) | 1994 | ||||||||||||||||||||||||
Hayward Distribution Center
|
6 | (e) | 2,906 | 19,165 | 5,201 | 3,389 | 23,883 | 27,272 | (12,282 | ) | 1993 |
132
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
Hayward Industrial Center
|
13 | (e) | 4,481 | 25,393 | 5,174 | 4,560 | 30,488 | 35,048 | (15,835 | ) | 1993 | |||||||||||||||||||||||
Livermore Distribution Center
|
4 | 8,992 | 26,976 | 1,414 | 9,077 | 28,305 | 37,382 | (3,164 | ) | 2005 | ||||||||||||||||||||||||
Oakland Industrial Center
|
3 | (e) | 8,234 | 24,704 | 459 | 8,310 | 25,087 | 33,397 | (2,723 | ) | 2005 | |||||||||||||||||||||||
Regatta Business Park
|
2 | (e) | 7,688 | 23,063 | 256 | 7,758 | 23,249 | 31,007 | (2,549 | ) | 2005 | |||||||||||||||||||||||
San Leandro Distribution Center
|
3 | (e) | 1,387 | 7,862 | 1,949 | 1,413 | 9,785 | 11,198 | (4,904 | ) | 1993 | |||||||||||||||||||||||
Total San Francisco (East Bay), California
|
57 | 60,993 | 226,980 | 24,737 | 62,124 | 250,586 | 312,710 | (70,112 | ) | |||||||||||||||||||||||||
San Francisco (South Bay), California
|
||||||||||||||||||||||||||||||||||
Bayside Business Center
|
2 | (g) | 2,088 | | 4,834 | 2,104 | 4,818 | 6,922 | (2,390 | ) | 1996 | |||||||||||||||||||||||
Bayside Corporate Center
|
7 | (g) | 4,365 | | 18,618 | 4,417 | 18,566 | 22,983 | (8,958 | ) | 1995, 1996 | |||||||||||||||||||||||
Bayside Plaza I
|
12 | (g) | 5,212 | 18,008 | 4,599 | 5,279 | 22,540 | 27,819 | (11,082 | ) | 1993 | |||||||||||||||||||||||
Bayside Plaza II
|
2 | (g) | 634 | | 3,247 | 642 | 3,239 | 3,881 | (1,867 | ) | 1994 | |||||||||||||||||||||||
Gateway Corporate Center
|
11 | (g) | 7,575 | 24,746 | 8,270 | 7,667 | 32,924 | 40,591 | (16,530 | ) | 1993, 1996 | |||||||||||||||||||||||
Mowry Business Center
|
4 | 5,933 | | 19,396 | 7,872 | 17,457 | 25,329 | (6,975 | ) | 1997, 1998 | ||||||||||||||||||||||||
Overlook Distribution Center
|
1 | 1,573 | 8,915 | 96 | 1,597 | 8,987 | 10,584 | (2,920 | ) | 1999 | ||||||||||||||||||||||||
Pacific Commons Industrial Center
|
7 | (g) | 30,107 | 90,416 | 1,059 | 30,382 | 91,200 | 121,582 | (10,044 | ) | 2005 | |||||||||||||||||||||||
Pacific Industrial Center
|
6 | (e) | 21,676 | 65,083 | 5,310 | 21,884 | 70,185 | 92,069 | (7,324 | ) | 2005 | |||||||||||||||||||||||
Shoreline Business Center
|
8 | (g) | 4,328 | 16,101 | 2,404 | 4,379 | 18,454 | 22,833 | (9,041 | ) | 1993 | |||||||||||||||||||||||
Shoreline Business Center II
|
2 | (g) | 922 | | 5,610 | 937 | 5,595 | 6,532 | (2,799 | ) | 1995 | |||||||||||||||||||||||
Spinnaker Business Center
|
12 | (g) | 7,043 | 25,220 | 5,310 | 7,128 | 30,445 | 37,573 | (15,211 | ) | 1993 | |||||||||||||||||||||||
Thornton Business Center
|
5 | 3,988 | 11,706 | 7,237 | 4,041 | 18,890 | 22,931 | (8,385 | ) | 1993, 1996 | ||||||||||||||||||||||||
Trimble Distribution Center
|
5 | 2,836 | 16,067 | 4,551 | 2,889 | 20,565 | 23,454 | (10,072 | ) | 1994 | ||||||||||||||||||||||||
Total San Francisco (South Bay), California
|
84 | 98,280 | 276,262 | 90,541 | 101,218 | 363,865 | 465,083 | (113,598 | ) | |||||||||||||||||||||||||
Seattle, Washington
|
||||||||||||||||||||||||||||||||||
Andover East Business Center
|
2 | 535 | 3,033 | 848 | 545 | 3,871 | 4,416 | (1,835 | ) | 1994 | ||||||||||||||||||||||||
Fife Corporate Center
|
3 | 4,059 | | 11,185 | 4,244 | 11,000 | 15,244 | (4,505 | ) | 1996 | ||||||||||||||||||||||||
Kent Corporate Center
|
2 | (g) | 2,882 | 1,987 | 9,721 | 3,309 | 11,281 | 14,590 | (5,155 | ) | 1995 | |||||||||||||||||||||||
ProLogis Park SeaTac (d)
|
2 | 12,230 | 14,170 | | 12,230 | 14,170 | 26,400 | | 2008 | |||||||||||||||||||||||||
Van Dorens Distribution Center
|
2 | (g) | 2,473 | | 9,540 | 3,138 | 8,875 | 12,013 | (4,086 | ) | 1995, 1997 | |||||||||||||||||||||||
Total Seattle, Washington
|
11 | 22,179 | 19,190 | 31,294 | 23,466 | 49,197 | 72,663 | (15,581 | ) | |||||||||||||||||||||||||
South Florida
|
||||||||||||||||||||||||||||||||||
Airport West Distribution Center
|
2 | 1,253 | 3,825 | 3,303 | 1,993 | 6,388 | 8,381 | (2,417 | ) | 1995, 1998 | ||||||||||||||||||||||||
Boca Distribution Center
|
1 | 1,474 | 5,918 | 189 | 1,492 | 6,089 | 7,581 | (502 | ) | 2006 | ||||||||||||||||||||||||
CenterPort Distribution Center
|
3 | 2,083 | 11,806 | 1,051 | 2,117 | 12,823 | 14,940 | (4,316 | ) | 1999 | ||||||||||||||||||||||||
Copans Distribution Center
|
2 | 504 | 2,857 | 684 | 513 | 3,532 | 4,045 | (1,505 | ) | 1997, 1998 | ||||||||||||||||||||||||
Dade Distribution Center
|
1 | 2,589 | 14,670 | 272 | 2,629 | 14,902 | 17,531 | (1,702 | ) | 2005 | ||||||||||||||||||||||||
North Andrews Distribution Center
|
1 | 698 | 3,956 | 102 | 709 | 4,047 | 4,756 | (1,925 | ) | 1994 | ||||||||||||||||||||||||
Pompano Beach Distribution Center (d)
|
3 | 11,101 | 15,137 | | 11,101 | 15,137 | 26,238 | (11 | ) | 2008 | ||||||||||||||||||||||||
Port Lauderdale Distribution Center
|
2 | 896 | | 7,907 | 2,225 | 6,578 | 8,803 | (2,159 | ) | 1997 | ||||||||||||||||||||||||
ProLogis Park I-595
|
2 | (e) | 1,998 | 11,326 | 449 | 2,030 | 11,743 | 13,773 | (2,291 | ) | 2003 | |||||||||||||||||||||||
Total South Florida
|
17 | 22,596 | 69,495 | 13,957 | 24,809 | 81,239 | 106,048 | (16,828 | ) | |||||||||||||||||||||||||
St. Louis, Missouri
|
||||||||||||||||||||||||||||||||||
Earth City Industrial Center
|
5 | 2,225 | 12,820 | 4,405 | 2,270 | 17,180 | 19,450 | (7,339 | ) | 1997, 1998 | ||||||||||||||||||||||||
Westport Distribution Center
|
1 | 366 | 1,247 | 1,963 | 373 | 3,203 | 3,576 | (1,136 | ) | 1997 | ||||||||||||||||||||||||
Total St. Louis, Missouri
|
6 | 2,591 | 14,067 | 6,368 | 2,643 | 20,383 | 23,026 | (8,475 | ) | |||||||||||||||||||||||||
Tampa, Florida
|
||||||||||||||||||||||||||||||||||
Adamo Distribution Center
|
6 | 2,105 | 11,930 | 2,015 | 2,142 | 13,908 | 16,050 | (3,959 | ) | 1995, 2001 | ||||||||||||||||||||||||
Commerce Park Distribution Center
|
4 | 811 | 4,597 | 1,421 | 827 | 6,002 | 6,829 | (3,287 | ) | 1994 | ||||||||||||||||||||||||
Eastwood Distribution Center
|
1 | 122 | 690 | 148 | 124 | 836 | 960 | (420 | ) | 1994 | ||||||||||||||||||||||||
Lakeland Distribution Center
|
1 | 938 | 5,313 | 1,326 | 955 | 6,622 | 7,577 | (3,232 | ) | 1994 |
133
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
Madison Distribution Center
|
1 | | 5,313 | 84 | 3,200 | 2,197 | 5,397 | (3 | ) | 2007 | ||||||||||||||||||||||||
Orchid Lake Industrial Center
|
1 | 41 | 235 | 46 | 42 | 280 | 322 | (130 | ) | 1994 | ||||||||||||||||||||||||
Plant City Distribution Center
|
1 | 206 | 1,169 | 255 | 210 | 1,420 | 1,630 | (714 | ) | 1994 | ||||||||||||||||||||||||
Sabal Park Distribution Center
|
8 | (e) | 3,180 | | 25,694 | 3,582 | 25,292 | 28,874 | (8,022 | ) |
1996, 1997, 1998, 2002 |
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Silo Bend Distribution Center
|
4 | 2,887 | 16,358 | 3,613 | 2,939 | 19,919 | 22,858 | (9,756 | ) | 1994 | ||||||||||||||||||||||||
Silo Bend Industrial Center
|
1 | 525 | 2,975 | 793 | 535 | 3,758 | 4,293 | (1,846 | ) | 1994 | ||||||||||||||||||||||||
Tampa East Distribution Center
|
9 | 2,627 | 14,835 | 2,835 | 2,514 | 17,783 | 20,297 | (9,045 | ) | 1994 | ||||||||||||||||||||||||
Tampa East Industrial Center
|
1 | 303 | 1,513 | 557 | 308 | 2,065 | 2,373 | (1,075 | ) | 1994 | ||||||||||||||||||||||||
Tampa West Distribution Center
|
11 | 2,874 | 16,128 | 4,004 | 2,971 | 20,035 | 23,006 | (10,250 | ) | 1994, 1995 | ||||||||||||||||||||||||
Tampa West Industrial Center
|
3 | 346 | | 5,961 | 649 | 5,658 | 6,307 | (2,241 | ) | 1996, 1998 | ||||||||||||||||||||||||
Total Tampa, Florida
|
52 | 16,965 | 81,056 | 48,752 | 20,998 | 125,775 | 146,773 | (53,980 | ) | |||||||||||||||||||||||||
Washington D.C./Baltimore, Maryland
|
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1901 Park 100 Drive
|
1 | 2,409 | 7,227 | 992 | 2,433 | 8,195 | 10,628 | (637 | ) | 2006 | ||||||||||||||||||||||||
7616 Canton Center Dr
|
1 | 1,521 | 4,528 | | 1,535 | 4,514 | 6,049 | (221 | ) | 2007 | ||||||||||||||||||||||||
Airport Commons Distribution Center
|
2 | (e) | 2,320 | | 8,979 | 2,386 | 8,913 | 11,299 | (2,730 | ) | 1997 | |||||||||||||||||||||||
Ardmore Distribution Center
|
3 | 1,431 | 8,110 | 1,677 | 1,457 | 9,761 | 11,218 | (4,882 | ) | 1994 | ||||||||||||||||||||||||
Ardmore Industrial Center
|
2 | 984 | 5,581 | 1,281 | 1,003 | 6,843 | 7,846 | (3,585 | ) | 1994 | ||||||||||||||||||||||||
Corcorde Industrial Center
|
4 | (e) | 1,538 | 8,717 | 2,992 | 1,568 | 11,679 | 13,247 | (5,649 | ) | 1995 | |||||||||||||||||||||||
DeSoto Business Park
|
6 | 2,709 | 12,892 | 7,022 | 2,761 | 19,862 | 22,623 | (5,745 | ) | 1996, 2007 | ||||||||||||||||||||||||
Eisenhower Industrial Center
|
3 | 1,240 | 7,025 | 2,959 | 1,265 | 9,959 | 11,224 | (4,723 | ) | 1994 | ||||||||||||||||||||||||
Fleet Distribution Center
|
8 | 3,198 | 18,121 | 3,608 | 3,172 | 21,755 | 24,927 | (9,981 | ) | 1996 | ||||||||||||||||||||||||
Gateway Distribution Center
|
2 | 192 | | 4,610 | 842 | 3,960 | 4,802 | (1,216 | ) | 1998 | ||||||||||||||||||||||||
Hickory Ridge Distribution Center
|
2 | (e) | 15,988 | 47,964 | 626 | 16,134 | 48,444 | 64,578 | (5,203 | ) | 2005 | |||||||||||||||||||||||
Meadowridge Distribution Center
|
1 | (e) | 1,757 | | 6,077 | 1,920 | 5,914 | 7,834 | (1,863 | ) | 1998 | |||||||||||||||||||||||
Patapsco Distribution Center
|
1 | 270 | 1,528 | 1,049 | 276 | 2,571 | 2,847 | (1,112 | ) | 1995 | ||||||||||||||||||||||||
ProLogis Park Edgewood
|
1 | 4,244 | 12,732 | 5,606 | 4,295 | 18,287 | 22,582 | (2,162 | ) | 2005 | ||||||||||||||||||||||||
White Oak Distribution Center
|
1 | 3,986 | 24,107 | 7 | 4,049 | 24,051 | 28,100 | (4,316 | ) | 2002 | ||||||||||||||||||||||||
Winchester Distribution Center
|
1 | 3,286 | 13,141 | | 3,323 | 13,104 | 16,427 | (1,444 | ) | 2005 | ||||||||||||||||||||||||
Total Washington D.C./Baltimore, Maryland
|
39 | 47,073 | 171,673 | 47,485 | 48,419 | 217,812 | 266,231 | (55,469 | ) | |||||||||||||||||||||||||
Other
|
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Valley Industrial Center
|
1 | 363 | | 4,610 | 374 | 4,599 | 4,973 | (1,319 | ) | 1997 | ||||||||||||||||||||||||
Shawnee Distribution Center
|
1 | 2,859 | 11,431 | | 2,890 | 11,400 | 14,290 | (1,254 | ) | 2005 | ||||||||||||||||||||||||
Total Other
|
2 | 3,222 | 11,431 | 4,610 | 3,264 | 15,999 | 19,263 | (2,573 | ) | |||||||||||||||||||||||||
Mexico:
|
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Guadalajara
|
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El Salto Distribution Center (d)
|
2 | 4,473 | 6,159 | | 4,473 | 6,159 | 10,632 | | 2008 | |||||||||||||||||||||||||
Total Guadalajara, Mexico
|
2 | 4,473 | 6,159 | | 4,473 | 6,159 | 10,632 | | ||||||||||||||||||||||||||
Juarez
|
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Bermudez Industrial Center
|
2 | 1,155 | 4,619 | 2,050 | 1,173 | 6,651 | 7,824 | (263 | ) | 2007 | ||||||||||||||||||||||||
Del Norte Industrial Center II (d)
|
2 | 1,523 | 5,729 | | 1,523 | 5,729 | 7,252 | | 2008 | |||||||||||||||||||||||||
Ramon Rivera Lara Industrial Center
|
1 | 445 | | 3,625 | 2,255 | 1,815 | 4,070 | (570 | ) | 2000 | ||||||||||||||||||||||||
Total Juarez, Mexico
|
5 | 3,123 | 10,348 | 5,675 | 4,951 | 14,195 | 19,146 | (833 | ) | |||||||||||||||||||||||||
Mexico City
|
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Cedros-Tepotzotlan Distribution Center
|
2 | 11,990 | 6,719 | 12,756 | 12,861 | 18,604 | 31,465 | (718 | ) | 2006, 2007 | ||||||||||||||||||||||||
Nor-T Distribution Center
|
4 | 7,247 | 32,135 | 1 | 5,890 | 33,493 | 39,383 | (4,028 | ) | 2006 | ||||||||||||||||||||||||
Puente Grande Distribution Center (d)
|
1 | 6,301 | 6,813 | | 6,301 | 6,813 | 13,114 | (62 | ) | 2008 | ||||||||||||||||||||||||
Total Mexico City, Mexico
|
7 | 25,538 | 45,667 | 12,757 | 25,052 | 58,910 | 83,962 | (4,808 | ) | |||||||||||||||||||||||||
134
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
Monterrey
|
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Monterrey Airport (d)
|
3 | 9,263 | 12,878 | 5,230 | 9,279 | 18,092 | 27,371 | (170 | ) | 2007, 2008 | ||||||||||||||||||||||||
Monterrey Industrial Park
|
3 | 1,563 | 809 | 5,247 | 1,426 | 6,193 | 7,619 | (2,886 | ) | 1997 | ||||||||||||||||||||||||
Total Monterrey, Mexico
|
6 | 10,826 | 13,687 | 10,477 | 10,705 | 24,285 | 34,990 | (3,056 | ) | |||||||||||||||||||||||||
Reynosa
|
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El Puente Industrial Center (d)
|
2 | 1,906 | 5,823 | | 1,906 | 5,823 | 7,729 | | 2008 | |||||||||||||||||||||||||
Pharr Bridge Industrial Center (d)
|
1 | 1,088 | 3,682 | (1 | ) | 1,088 | 3,681 | 4,769 | | 2008 | ||||||||||||||||||||||||
Total Reynosa, Mexico
|
3 | 2,994 | 9,505 | (1 | ) | 2,994 | 9,504 | 12,498 | | |||||||||||||||||||||||||
Tijuana
|
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ProLogis Park Alamar (d)
|
3 | 20,540 | 17,081 | 1 | 20,540 | 17,082 | 37,622 | | 2008 | |||||||||||||||||||||||||
Total Tijuana, Mexico
|
3 | 20,540 | 17,081 | 1 | 20,540 | 17,082 | 37,622 | | ||||||||||||||||||||||||||
Canada:
|
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Toronto
|
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Mississauga Gateway Center (d)
|
1 | 1,512 | 6,320 | | 1,512 | 6,320 | 7,832 | | 2008 | |||||||||||||||||||||||||
Total Toronto, Canada
|
1 | 1,512 | 6,320 | | 1,512 | 6,320 | 7,832 | | ||||||||||||||||||||||||||
Subtotal North American Markets
|
1,205 | 1,721,944 | 5,192,655 | 1,624,338 | 1,828,663 | 6,710,274 | 8,538,937 | (1,537,864 | ) | |||||||||||||||||||||||||
European Markets
|
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Belgium:
|
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Willebroek Distribution Center (d)
|
1 | 3,545 | 10,591 | | 3,545 | 10,591 | 14,136 | | 2008 | |||||||||||||||||||||||||
Total Belgium
|
1 | 3,545 | 10,591 | | 3,545 | 10,591 | 14,136 | | ||||||||||||||||||||||||||
Czech Republic:
|
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Ostrava Distribution Center (d)
|
2 | 7,993 | 57,501 | | 7,993 | 57,501 | 65,494 | | 2008 | |||||||||||||||||||||||||
Stenovice Distribution Center (d)
|
2 | 2,815 | 32,424 | | 2,815 | 32,424 | 35,239 | | 2008 | |||||||||||||||||||||||||
Uzice Distribution Center (d)
|
2 | 6,453 | | 35,717 | 6,665 | 35,505 | 42,170 | (824 | ) | 2007 | ||||||||||||||||||||||||
Total Czech Republic
|
6 | 17,261 | 89,925 | 35,717 | 17,473 | 125,430 | 142,903 | (824 | ) | |||||||||||||||||||||||||
France:
|
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Avignon Distribution Center (d)
|
1 | 3,405 | 24,084 | | 3,405 | 24,084 | 27,489 | | 2008 | |||||||||||||||||||||||||
Isle dAbeau Distribution Center
|
1 | 12,792 | 20,230 | 7,553 | 9,302 | 31,273 | 40,575 | (2,702 | ) | 2006 | ||||||||||||||||||||||||
Macon Distribution Center (d)
|
1 | 2,065 | | 25,585 | 3,300 | 24,350 | 27,650 | (900 | ) | 2006 | ||||||||||||||||||||||||
Mitry Mory Distribution Center
|
1 | 2,243 | 9,149 | | 2,243 | 9,149 | 11,392 | | 2008 | |||||||||||||||||||||||||
Strasbourg Distribution Center (d)
|
2 | 67 | 30,427 | (788 | ) | 67 | 29,639 | 29,706 | (114 | ) | 2008 | |||||||||||||||||||||||
Total France
|
6 | 20,572 | 83,890 | 32,350 | 18,317 | 118,495 | 136,812 | (3,716 | ) | |||||||||||||||||||||||||
Germany:
|
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Alzenau Distribution Center (d)
|
1 | 4,618 | 9,832 | | 4,618 | 9,832 | 14,450 | | 2008 | |||||||||||||||||||||||||
Bremen Distribution Center (d)
|
1 | 2,151 | 14,782 | (4 | ) | 2,151 | 14,778 | 16,929 | | 2008 | ||||||||||||||||||||||||
Cologne Eifeltor Distribution Center (d)
|
1 | 3,040 | 12,585 | | 3,040 | 12,585 | 15,625 | | 2008 | |||||||||||||||||||||||||
Kolleda Distribution Center (d)
|
1 | 289 | 4,306 | (226 | ) | 289 | 4,080 | 4,369 | | 2008 | ||||||||||||||||||||||||
Leipzig DC (d)
|
1 | 2,754 | 5,109 | (1,529 | ) | 2,754 | 3,580 | 6,334 | | 2008 | ||||||||||||||||||||||||
Manching Distribution Center (d)
|
1 | 2,176 | 10,186 | (351 | ) | 2,176 | 9,835 | 12,011 | | 2008 | ||||||||||||||||||||||||
Meerane Distribution Center (d)
|
1 | 830 | 5,714 | | 830 | 5,714 | 6,544 | | 2008 | |||||||||||||||||||||||||
Munich Distribution Center (d)
|
1 | 14,805 | 14,970 | | 14,805 | 14,970 | 29,775 | | 2008 | |||||||||||||||||||||||||
Weilerswist Distribution Center (d)
|
2 | 4,701 | 11,798 | | 4,701 | 11,798 | 16,499 | | 2008 | |||||||||||||||||||||||||
Total Germany
|
10 | 35,364 | 89,282 | (2,110 | ) | 35,364 | 87,172 | 122,536 | | |||||||||||||||||||||||||
Hungary:
|
||||||||||||||||||||||||||||||||||
Batta Distribution Center (d)
|
1 | 2,497 | 15,829 | | 2,497 | 15,829 | 18,326 | | 2008 | |||||||||||||||||||||||||
Budapest Park (d)
|
1 | 1,183 | | 8,005 | 1,277 | 7,911 | 9,188 | (190 | ) | 2007 | ||||||||||||||||||||||||
Budapest Park Phase II (d)
|
1 | 952 | 21,215 | (528 | ) | 952 | 20,687 | 21,639 | | 2008 |
135
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
Budapest-Sziget Dist. Center (d)
|
1 | 2,763 | 9,500 | | 2,763 | 9,500 | 12,263 | | 2008 | |||||||||||||||||||||||||
Hegyeshalom Distribution Center (d)
|
1 | 965 | | 12,626 | 1,008 | 12,583 | 13,591 | (197 | ) | 2007 | ||||||||||||||||||||||||
Total Hungary
|
5 | 8,360 | 46,544 | 20,103 | 8,497 | 66,510 | 75,007 | (387 | ) | |||||||||||||||||||||||||
Italy:
|
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Bologna Distribution Center (d)
|
1 | 4,413 | | 12,761 | 4,940 | 12,234 | 17,174 | (575 | ) | 2006 | ||||||||||||||||||||||||
Lodi Distribution Center
|
2 | 7,996 | 35,613 | 6,706 | 13,011 | 37,304 | 50,315 | (3,693 | ) | 2005, 2006 | ||||||||||||||||||||||||
Romentino Distribution Center (d)
|
2 | 3,758 | | 32,483 | 4,128 | 32,113 | 36,241 | (1,560 | ) | 2006 | ||||||||||||||||||||||||
Total Italy
|
5 | 16,167 | 35,613 | 51,950 | 22,079 | 81,651 | 103,730 | (5,828 | ) | |||||||||||||||||||||||||
Netherlands:
|
||||||||||||||||||||||||||||||||||
Venlo Dist. Center (d)
|
1 | 3,494 | 11,126 | 259 | 3,752 | 11,127 | 14,879 | | 2008 | |||||||||||||||||||||||||
Total Netherlands
|
1 | 3,494 | 11,126 | 259 | 3,752 | 11,127 | 14,879 | | ||||||||||||||||||||||||||
Poland:
|
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Janki Distribution Center (d)
|
2 | 7,979 | 41,409 | (1,591 | ) | 7,979 | 39,818 | 47,797 | (153 | ) | 2008 | |||||||||||||||||||||||
Piotrkow Distribution Center (d)
|
2 | 1,006 | 9,764 | | 1,006 | 9,764 | 10,770 | | 2008 | |||||||||||||||||||||||||
Poznan II Distribution Center (d)
|
1 | 5,554 | | 3,949 | 1,749 | 7,754 | 9,503 | (73 | ) | 2007 | ||||||||||||||||||||||||
Sochaczew Distribution Center (d)
|
4 | 1,534 | 12,782 | 14,326 | 2,924 | 25,718 | 28,642 | (209 | ) | 2007, 2008 | ||||||||||||||||||||||||
Szczecin Distribution Center (d)
|
1 | 3,430 | 21,344 | | 3,430 | 21,344 | 24,774 | | 2008 | |||||||||||||||||||||||||
Warsaw II Distribution Center (d)
|
4 | 5,879 | 30,484 | (709 | ) | 5,879 | 29,775 | 35,654 | | 2008 | ||||||||||||||||||||||||
Wroclaw Distribution Center (d)
|
2 | 3,839 | 33,390 | | 3,839 | 33,390 | 37,229 | | 2008 | |||||||||||||||||||||||||
Wroclaw II Distribution Center (d)
|
1 | 1,909 | | 12,193 | 1,974 | 12,128 | 14,102 | (659 | ) | 2007 | ||||||||||||||||||||||||
Total Poland
|
17 | 31,130 | 149,173 | 28,168 | 28,780 | 179,691 | 208,471 | (1,094 | ) | |||||||||||||||||||||||||
Romania:
|
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Bucharest Distribution Center (d)
|
4 | 7,592 | 33,188 | 31,305 | 7,699 | 64,386 | 72,085 | (866 | ) | 2007, 2008 | ||||||||||||||||||||||||
Total Romania
|
4 | 7,592 | 33,188 | 31,305 | 7,699 | 64,386 | 72,085 | (866 | ) | |||||||||||||||||||||||||
Slovakia:
|
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Bratislava Distribution Center
|
3 | 6,280 | 45,922 | 15,224 | 6,432 | 60,994 | 67,426 | (2,219 | ) | 2007, 2008 | ||||||||||||||||||||||||
Galanta Distribution Center (d)
|
3 | 9,426 | 50,586 | (5,450 | ) | 9,426 | 45,136 | 54,562 | (544 | ) | 2008 | |||||||||||||||||||||||
ProLogis Park Nove Mesto (d)
|
1 | 1,051 | 6,892 | | 1,051 | 6,892 | 7,943 | | 2008 | |||||||||||||||||||||||||
Total Slovakia
|
7 | 16,757 | 103,400 | 9,774 | 16,909 | 113,022 | 129,931 | (2,763 | ) | |||||||||||||||||||||||||
Spain:
|
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Tarancon Distribution Center (d)
|
1 | 4,146 | 18,319 | | 4,146 | 18,319 | 22,465 | | 2008 | |||||||||||||||||||||||||
Total Spain
|
1 | 4,146 | 18,319 | | 4,146 | 18,319 | 22,465 | | ||||||||||||||||||||||||||
Sweden:
|
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Gothenburg Distribution Center (d)
|
1 | 1,036 | 7,325 | (2,310 | ) | 1,036 | 5,015 | 6,051 | | 2008 | ||||||||||||||||||||||||
Total Sweden
|
1 | 1,036 | 7,325 | (2,310 | ) | 1,036 | 5,015 | 6,051 | | |||||||||||||||||||||||||
United Kingdom:
|
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Cabot Park Distribution Center (d)
|
1 | 3,708 | 8,952 | | 3,708 | 8,952 | 12,660 | | 2008 | |||||||||||||||||||||||||
Campbell Road Distribution Center (d)
|
1 | 9,204 | 18,604 | | 9,204 | 18,604 | 27,808 | | 2008 | |||||||||||||||||||||||||
Corby Distribution Center (d)
|
1 | 1,968 | | 10,495 | 1,191 | 11,272 | 12,463 | (271 | ) | 2007 | ||||||||||||||||||||||||
Coventry Distribution Center (d)
|
1 | 4,322 | | 6,689 | 3,294 | 7,717 | 11,011 | (40 | ) | 2007 | ||||||||||||||||||||||||
Crewe Distribution Center (d)
|
1 | 11,478 | 19,049 | | 11,478 | 19,049 | 30,527 | | 2008 | |||||||||||||||||||||||||
Hayes Distribution Center (d)
|
3 | 22,123 | | 37,960 | 41,024 | 19,059 | 60,083 | (340 | ) | 2007 | ||||||||||||||||||||||||
Houghton Main Distribution Center (d)
|
1 | 8,993 | | 23,968 | 7,119 | 25,842 | 32,961 | (675 | ) | 2006 | ||||||||||||||||||||||||
Midpoint Park (d)
|
2 | 29,189 | 30,098 | | 29,189 | 30,098 | 59,287 | | 2008 | |||||||||||||||||||||||||
North Kettering Bus Pk (d)
|
2 | 22,367 | | 23,218 | 17,210 | 28,375 | 45,585 | (487 | ) | 2007 | ||||||||||||||||||||||||
Peterborough Dist. Center.(d)
|
1 | 6,554 | | 12,758 | 5,634 | 13,678 | 19,312 | (43 | ) | 2007 |
136
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
Pineham Distribution Center (d)
|
2 | 18,368 | 29,767 | | 18,368 | 29,767 | 48,135 | | 2008 | |||||||||||||||||||||||||
Stafford Distribution Center (d)
|
2 | 14,583 | | 16,567 | 11,346 | 19,804 | 31,150 | (426 | ) | 2006, 2007 | ||||||||||||||||||||||||
Total United Kingdom
|
18 | 152,857 | 106,470 | 131,655 | 158,765 | 232,217 | 390,982 | (2,282 | ) | |||||||||||||||||||||||||
Subtotal European Markets
|
82 | 318,281 | 784,846 | 336,861 | 326,362 | 1,113,626 | 1,439,988 | (17,760 | ) | |||||||||||||||||||||||||
Asian Markets
|
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Japan:
|
||||||||||||||||||||||||||||||||||
Chiba Distribution Center (d)
|
1 | 29,647 | 56,727 | | 29,647 | 56,727 | 86,374 | | 2008 | |||||||||||||||||||||||||
Iwanuma I Land (d)
|
1 | 6,377 | 38,225 | | 6,377 | 38,225 | 44,602 | | 2008 | |||||||||||||||||||||||||
ProLogis Park Aichi Distribution Center (d)
|
1 | 26,362 | | 90,177 | 32,850 | 83,689 | 116,539 | (1,214 | ) | 2007 | ||||||||||||||||||||||||
ProLogis Park Ichikawa (d)
|
1 | 91,315 | 165,709 | | 91,315 | 165,709 | 257,024 | | 2008 | |||||||||||||||||||||||||
ProLogis Park Maishima III (d)
|
1 | 25,124 | 98,516 | | 25,124 | 98,516 | 123,640 | | 2008 | |||||||||||||||||||||||||
ProLogis Park Narita III (d)
|
1 | 24,527 | 86,956 | | 24,527 | 86,956 | 111,483 | | 2008 | |||||||||||||||||||||||||
ProLogis Park Osaka II (d)
|
1 | 30,630 | | 181,565 | 38,342 | 173,853 | 212,195 | (2,520 | ) | 2007 | ||||||||||||||||||||||||
Total Japan
|
7 | 233,982 | 446,133 | 271,742 | 248,182 | 703,675 | 951,857 | (3,734 | ) | |||||||||||||||||||||||||
Korea:
|
||||||||||||||||||||||||||||||||||
ProLogis Park Deokpyung
|
1 | 5,062 | 6,364 | | 3,593 | 7,833 | 11,426 | (681 | ) | 2006 | ||||||||||||||||||||||||
ProLogis Park Okcheon (d)
|
1 | 819 | 2,349 | | 819 | 2,349 | 3,168 | (16 | ) | 2008 | ||||||||||||||||||||||||
ProLogis Park Yongin
|
1 | (e) | 8,871 | 2,221 | | 6,404 | 4,688 | 11,092 | (446 | ) | 2007 | |||||||||||||||||||||||
Total Korea
|
3 | 14,752 | 10,934 | | 10,816 | 14,870 | 25,686 | (1,143 | ) | |||||||||||||||||||||||||
Subtotal Asian Markets
|
10 | 248,734 | 457,067 | 271,742 | 258,998 | 718,545 | 977,543 | (4,877 | ) | |||||||||||||||||||||||||
Total Industrial Operating Properties
|
1,297 | 2,288,959 | 6,434,568 | 2,232,941 | 2,414,023 | 8,542,445 | 10,956,468 | (1,560,501 | ) | |||||||||||||||||||||||||
Retail operating properties
|
||||||||||||||||||||||||||||||||||
Austin, Texas
|
||||||||||||||||||||||||||||||||||
Mueller Regional Retail
|
6 | 9,792 | 12,873 | 30,802 | 8,890 | 44,577 | 53,467 | (750 | ) | 2007, 2008 | ||||||||||||||||||||||||
Total Austin, Texas
|
6 | 9,792 | 12,873 | 30,802 | 8,890 | 44,577 | 53,467 | (750 | ) | |||||||||||||||||||||||||
Chicago, Illinois
|
||||||||||||||||||||||||||||||||||
Glenview Office Center
|
1 | | | 7,859 | 1,313 | 6,546 | 7,859 | (544 | ) | 2005 | ||||||||||||||||||||||||
Total Chicago, Illinois
|
1 | | | 7,859 | 1,313 | 6,546 | 7,859 | (544 | ) | |||||||||||||||||||||||||
Los Angeles / Orange County, California
|
||||||||||||||||||||||||||||||||||
Newport Retail Center
|
1 | 4,478 | 10,450 | | 4,478 | 10,450 | 14,928 | (860 | ) | 2005 | ||||||||||||||||||||||||
Woodland Retail Center
|
3 | 10,376 | 24,208 | 671 | 10,375 | 24,880 | 35,255 | (4,308 | ) | 2005 | ||||||||||||||||||||||||
Total Los Angeles / Orange County, California
|
4 | 14,854 | 34,658 | 671 | 14,853 | 35,330 | 50,183 | (5,168 | ) | |||||||||||||||||||||||||
San Francisco (East Bay), California
|
||||||||||||||||||||||||||||||||||
EB Bridge Shopping Center
|
8 | (g) | 23,042 | 81,693 | 186 | 23,042 | 81,879 | 104,921 | (7,870 | ) | 2005 | |||||||||||||||||||||||
Granada Shopping Center
|
1 | 2,604 | 9,232 | 161 | 2,604 | 9,393 | 11,997 | (765 | ) | 2005 | ||||||||||||||||||||||||
Total San Francisco (East Bay), California
|
9 | 25,646 | 90,925 | 347 | 25,646 | 91,272 | 116,918 | (8,635 | ) | |||||||||||||||||||||||||
San Francisco (South Bay), California
|
||||||||||||||||||||||||||||||||||
Pacific Commons Retail
|
14 | 28,144 | 64,829 | 37,592 | 30,415 | 100,150 | 130,565 | (6,074 | ) |
2005, 2006, 2008 |
||||||||||||||||||||||||
Total San Francisco (South Bay), California
|
14 | 28,144 | 64,829 | 37,592 | 30,415 | 100,150 | 130,565 | (6,074 | ) | |||||||||||||||||||||||||
Total Retail Operating Properties
|
34 | 78,436 | 203,285 | 77,271 | 81,117 | 277,875 | 358,992 | (21,171 | ) | |||||||||||||||||||||||||
137
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
Total Operating Properties
|
1,331 | 2,367,395 | 6,637,853 | 2,310,212 | 2,495,140 | 8,820,320 | 11,315,460 | (1,581,672 | ) | |||||||||||||||||||||||||
Properties Under Development
|
||||||||||||||||||||||||||||||||||
North American Markets:
|
||||||||||||||||||||||||||||||||||
United States
|
||||||||||||||||||||||||||||||||||
Central Valley, California
|
||||||||||||||||||||||||||||||||||
Tracy II Distribution Center
|
2 | | | 68,979 | 68,979 | | 68,979 | | 2008 | |||||||||||||||||||||||||
Total Central Valley, California
|
2 | | | 68,979 | 68,979 | | 68,979 | | ||||||||||||||||||||||||||
Chicago, Illinois
|
||||||||||||||||||||||||||||||||||
Elk Grove Distribution Center
|
1 | 11,912 | | 10,647 | 22,559 | | 22,559 | | 2007 | |||||||||||||||||||||||||
Total Chicago, Illinois
|
1 | 11,912 | | 10,647 | 22,559 | | 22,559 | | ||||||||||||||||||||||||||
Inland Empire, California
|
||||||||||||||||||||||||||||||||||
Riverbluff Distribution Center
|
1 | 41,235 | | 28,337 | 69,572 | | 69,572 | | 2008 | |||||||||||||||||||||||||
Total Inland Empire, California
|
1 | 41,235 | | 28,337 | 69,572 | | 69,572 | | ||||||||||||||||||||||||||
South Florida
|
||||||||||||||||||||||||||||||||||
Sawgrass Distribution Center
|
2 | 9,939 | | 10,619 | 20,558 | | 20,558 | | 2007 | |||||||||||||||||||||||||
Total South Florida
|
2 | 9,939 | | 10,619 | 20,558 | | 20,558 | | ||||||||||||||||||||||||||
Mexico:
|
||||||||||||||||||||||||||||||||||
Juarez
|
||||||||||||||||||||||||||||||||||
Centro Industrial Center
|
3 | 8,358 | | 12,765 | 21,123 | | 21,123 | | 2008 | |||||||||||||||||||||||||
Total Juarez, Mexico
|
3 | 8,358 | | 12,765 | 21,123 | | 21,123 | | ||||||||||||||||||||||||||
Mexico City
|
||||||||||||||||||||||||||||||||||
Puente Grande Distribution Center
|
1 | 8,447 | | 8,423 | 16,870 | | 16,870 | | 2007 | |||||||||||||||||||||||||
Toluca Distribution Center
|
1 | 7,846 | | 8,738 | 16,584 | | 16,584 | | 2008 | |||||||||||||||||||||||||
Total Mexico City, Mexico
|
2 | 16,293 | | 17,161 | 33,454 | | 33,454 | | ||||||||||||||||||||||||||
Reynosa
|
||||||||||||||||||||||||||||||||||
Pharr Bridge Industrial Center
|
1 | 2,399 | | 8,355 | 10,754 | | 10,754 | | 2007 | |||||||||||||||||||||||||
Total Reynosa, Mexico
|
1 | 2,399 | | 8,355 | 10,754 | | 10,754 | | ||||||||||||||||||||||||||
Canada:
|
||||||||||||||||||||||||||||||||||
Toronto
|
||||||||||||||||||||||||||||||||||
Bolton Distribution Center
|
1 | 7,854 | | 12,051 | 19,905 | | 19,905 | | 2008 | |||||||||||||||||||||||||
Total Toronto, Canada
|
1 | 7,854 | | 12,051 | 19,905 | | 19,905 | | ||||||||||||||||||||||||||
Subtotal North American Markets
|
13 | 97,990 | | 168,914 | 266,904 | | 266,904 | | ||||||||||||||||||||||||||
European Markets:
|
||||||||||||||||||||||||||||||||||
Belgium
|
||||||||||||||||||||||||||||||||||
Liege Park
|
1 | 854 | | 8,374 | 9,228 | | 9,228 | | 2008 | |||||||||||||||||||||||||
Total Belgium
|
1 | 854 | | 8,374 | 9,228 | | 9,228 | | ||||||||||||||||||||||||||
Czech Republic
|
||||||||||||||||||||||||||||||||||
Stenovice Distribution Center
|
1 | | | 17,871 | 17,871 | | 17,871 | | 2008 | |||||||||||||||||||||||||
Uzice Distribution Center
|
2 | 5,649 | | 40,648 | 46,297 | | 46,297 | | 2007, 2008 | |||||||||||||||||||||||||
Total Czech Republic
|
3 | 5,649 | | 58,519 | 64,168 | | 64,168 | | ||||||||||||||||||||||||||
France
|
||||||||||||||||||||||||||||||||||
Clesud Grans Miramas Distribution Center
|
1 | 3,710 | | 9,768 | 13,478 | | 13,478 | | 2008 | |||||||||||||||||||||||||
Le Havre Distribution Center
|
1 | 551 | | 13,360 | 13,911 | | 13,911 | | 2008 | |||||||||||||||||||||||||
Moissy Cramayel Distribution Center
|
1 | | | 1,420 | 1,420 | | 1,420 | | 2008 |
138
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
Rennes Distribution Center
|
1 | 614 | | 13,364 | 13,978 | | 13,978 | | 2007 | |||||||||||||||||||||||||
Vemars Distribution Center
|
5 | 14,210 | | 11,159 | 25,369 | | 25,369 | | 2008 | |||||||||||||||||||||||||
Total France
|
9 | 19,085 | | 49,071 | 68,156 | | 68,156 | | ||||||||||||||||||||||||||
Germany
|
||||||||||||||||||||||||||||||||||
Augsburg Distribution Center
|
1 | 9,205 | | 16,906 | 26,111 | | 26,111 | | 2008 | |||||||||||||||||||||||||
Billbrook Hamburg Distribution Center
|
1 | 6,471 | | 14,588 | 21,059 | | 21,059 | | 2008 | |||||||||||||||||||||||||
Bochum Distribution Center
|
1 | | | 7,441 | 7,441 | | 7,441 | | 2008 | |||||||||||||||||||||||||
Cologne Eifeltor Distribution Center
|
1 | 995 | | 7,104 | 8,099 | | 8,099 | | 2008 | |||||||||||||||||||||||||
Edermunde Distribution Center
|
1 | 6,656 | | 8,442 | 15,098 | | 15,098 | | 2008 | |||||||||||||||||||||||||
Heilbronn Distribution Center
|
3 | 14,024 | | 32,113 | 46,137 | | 46,137 | | 2008 | |||||||||||||||||||||||||
Herford Distribution Center
|
2 | 2,691 | | 11,407 | 14,098 | | 14,098 | | 2008 | |||||||||||||||||||||||||
Krefeld Park
|
1 | 3,051 | | 4,713 | 7,764 | | 7,764 | | 2008 | |||||||||||||||||||||||||
Lehrte Distribution Center
|
2 | 7,630 | | 7,489 | 15,119 | | 15,119 | | 2008 | |||||||||||||||||||||||||
Malsfeld Distribution Center
|
1 | 3,439 | | | 3,439 | | 3,439 | | 2008 | |||||||||||||||||||||||||
Total Germany
|
14 | 54,162 | | 110,203 | 164,365 | | 164,365 | | ||||||||||||||||||||||||||
Italy
|
||||||||||||||||||||||||||||||||||
Turin Distribution Center
|
1 | 62 | | 45 | 107 | | 107 | | 2008 | |||||||||||||||||||||||||
Total Italy
|
1 | 62 | | 45 | 107 | | 107 | | ||||||||||||||||||||||||||
Netherlands
|
||||||||||||||||||||||||||||||||||
Almere Distribution Center
|
1 | 7,065 | | | 7,065 | | 7,065 | | 2008 | |||||||||||||||||||||||||
Total Netherlands
|
1 | 7,065 | | | 7,065 | | 7,065 | | ||||||||||||||||||||||||||
Poland
|
||||||||||||||||||||||||||||||||||
Bedzin Distribution Center
|
2 | 4,203 | | 6,260 | 10,463 | | 10,463 | | 2008 | |||||||||||||||||||||||||
Blonie II Distribution Center
|
4 | 16,286 | | 40,423 | 56,709 | | 56,709 | | 2008 | |||||||||||||||||||||||||
Chorzow Distribution Center
|
2 | 12,941 | | 32,579 | 45,520 | | 45,520 | | 2008 | |||||||||||||||||||||||||
Nadarzyn Distribution Center
|
1 | 526 | | 9,514 | 10,040 | | 10,040 | | 2007 | |||||||||||||||||||||||||
Piotrkow II Distribution Center
|
1 | 899 | | 8,307 | 9,206 | | 9,206 | | 2007 | |||||||||||||||||||||||||
ProLogis Park Rawa
|
1 | 2,056 | | 11,187 | 13,243 | | 13,243 | | 2008 | |||||||||||||||||||||||||
Wroclaw III Distribution Center
|
2 | 6,968 | | 28,390 | 35,358 | | 35,358 | | 2008 | |||||||||||||||||||||||||
Total Poland
|
13 | 43,879 | | 136,660 | 180,539 | | 180,539 | | ||||||||||||||||||||||||||
Slovakia
|
||||||||||||||||||||||||||||||||||
Sered Distribution Center
|
1 | 2,918 | | 14,264 | 17,182 | | 17,182 | | 2008 | |||||||||||||||||||||||||
Total Slovakia
|
1 | 2,918 | | 14,264 | 17,182 | | 17,182 | | ||||||||||||||||||||||||||
Spain
|
||||||||||||||||||||||||||||||||||
Massalaves Distribution Center
|
1 | 2,518 | | 7,358 | 9,876 | | 9,876 | | 2006 | |||||||||||||||||||||||||
Sallent Distribution Center
|
1 | 8,896 | | 3,761 | 12,657 | | 12,657 | | 2008 | |||||||||||||||||||||||||
Zaragoza Distribution Center
|
1 | 5,763 | | 1,745 | 7,508 | | 7,508 | | 2008 | |||||||||||||||||||||||||
Total Spain
|
3 | 17,177 | | 12,864 | 30,041 | | 30,041 | | ||||||||||||||||||||||||||
Sweden
|
||||||||||||||||||||||||||||||||||
Jonkoping Distribution Center
|
1 | 2,236 | | 53,002 | 55,238 | | 55,238 | | 2008 | |||||||||||||||||||||||||
Total Sweden
|
1 | 2,236 | | 53,002 | 55,238 | | 55,238 | | ||||||||||||||||||||||||||
United Kingdom
|
||||||||||||||||||||||||||||||||||
North Kettering Business Park
|
1 | 1,638 | | 1,081 | 2,719 | | 2,719 | | 2008 | |||||||||||||||||||||||||
Total United Kingdom
|
1 | 1,638 | | 1,081 | 2,719 | | 2,719 | | ||||||||||||||||||||||||||
Subtotal European Markets
|
48 | 154,725 | | 444,083 | 598,808 | | 598,808 | | ||||||||||||||||||||||||||
139
Gross Amounts At |
||||||||||||||||||||||||||||||||||
Costs |
Which Carried as of |
|||||||||||||||||||||||||||||||||
Initial Cost to ProLogis |
Capitalized |
December 31, 2008 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | (c) | Acquisition | ||||||||||||||||||||||||
Asian Markets:
|
||||||||||||||||||||||||||||||||||
Japan
|
||||||||||||||||||||||||||||||||||
Kitanagoya Distribution Center
|
1 | 28,711 | | 19,764 | 48,475 | | 48,475 | | 2008 | |||||||||||||||||||||||||
ProLogis Park Ichikawa II
|
1 | 48,629 | | 47,751 | 96,380 | | 96,380 | | 2007 | |||||||||||||||||||||||||
Zama Distribution Center
|
1 | 60,840 | | 83,089 | 143,929 | | 143,929 | | 2008 | |||||||||||||||||||||||||
Total Japan
|
3 | 138,180 | | 150,604 | 288,784 | | 288,784 | | ||||||||||||||||||||||||||
Korea
|
||||||||||||||||||||||||||||||||||
ProLogis Park Namyangju
|
1 | 3,588 | | 5,526 | 9,114 | | 9,114 | | 2008 | |||||||||||||||||||||||||
Total Korea
|
1 | 3,588 | | 5,526 | 9,114 | | 9,114 | | ||||||||||||||||||||||||||
Subtotal Asian Markets
|
4 | 141,768 | | 156,130 | 297,898 | | 297,898 | | ||||||||||||||||||||||||||
Total Properties Under Development
|
65 | 394,483 | | 769,127 | 1,163,610 | | 1,163,610 | | ||||||||||||||||||||||||||
GRAND TOTAL
|
$ | 2,761,878 | $ | 6,637,853 | $ | 3,079,339 | $ | 3,658,750 | $ | 8,820,320 | $ | 12,479,070 | $ | (1,581,672 | ) | |||||||||||||||||||
140
(a) | Reconciliation of real estate assets per Schedule III to our Consolidated Balance Sheet as of December 31, 2008 (in thousands): |
Total per Schedule III
|
$ | 12,479,070 | ||
Land held for development
|
2,481,216 | |||
Land subject to ground leases and other
|
424,489 | (e)(g) | ||
Other investments
|
321,397 | (h) | ||
Total per consolidated balance sheet
|
$ | 15,706,172 | (i) | |
(b) | The aggregate cost for Federal tax purposes at 12/31/2008 of our real estate assets was approximately $13,376,072,000. | |
(c) | Real estate assets (excluding land balances) are depreciated over their estimated useful lives. These useful lives are generally seven years for capital improvements, 10 years for standard tenant improvements, 30 years for acquired industrial properties, 40 years for office and retail properties acquired and 40 years for properties we develop. | |
Reconciliation of accumulated depreciation per Schedule III to our Consolidated Balance Sheets as of December 31, 2008 (in thousands): |
Total accumulated depreciation per Schedule III
|
$ | 1,581,672 | ||
Accumulated depreciation on other investments
|
1,627 | |||
Total per Consolidated Balance Sheet
|
$ | 1,583,299 | ||
(d) | Total operating properties include 140 properties developed in the Completed Development Portfolio aggregating 40.8 million square feet at a total investment of $3.0 billion. See Item 1. Business Operating Segments - Direct Owned. | |
(e) | Properties with an aggregate undepreciated cost of $1,890,376,507 secure $877,915,904 of mortgage notes. See Note 8. | |
(f) | With respect to one building, we own only 98,000 square feet or 31% of the building. The remaining portion is owned by the North American Industrial Fund II. | |
(g) | Properties with an aggregate undepreciated cost of $999,237,367 secure $29,626,460 of assessment bonds. See Note 8. | |
(h) | Other investments primarily include: (i) restricted funds that are held in escrow pending the completion of tax-deferred exchange transactions involving operating properties; (ii) earnest money deposits assocoated with potential acquisitions; (iii) costs incurred during the pre-acquisition due diligence process; (iv) costs incurred during the pre-construction phase related to future development projects, including purchase options on land and certain infrastructure costs; and (v) costs related to our corporate office buildings. | |
(i) | A summary of activity for our real estate assets and accumulated depreciation for the three years ended December 31, 2008, 2007 and 2006 is as follows (in thousands of U.S. dollars): |
141
2008 | 2007 | 2006 | ||||||||||
Real estate assets:
|
||||||||||||
Balance at beginning of year
|
$ | 16,578,845 | $ | 13,897,091 | $ | 11,875,130 | ||||||
Acquisitions of operating properties, transfers of development
completions from CIP and improvements to operating properties
|
3,963,945 | 5,407,449 | 3,345,394 | |||||||||
Basis of operating properties disposed of
|
(3,996,256 | ) | (4,729,843 | ) | (1,636,116 | ) | ||||||
Change in properties under development balance
|
(822,675 | ) | 1,021,443 | 80,497 | ||||||||
Change in land held for development balance
|
328,256 | 755,879 | 352,039 | |||||||||
Change in land subject to ground leases and other balance
|
19,819 | (13,630 | ) | (320,256 | ) | |||||||
Impairment of real estate properties(1)
|
(34,840 | ) | | | ||||||||
Change in capitalized preacquisition costs balance
|
(330,922 | ) | 240,456 | 200,403 | ||||||||
Balance at end of year
|
$ | 15,706,172 | $ | 16,578,845 | $ | 13,897,091 | ||||||
Accumulated Depreciation:
|
||||||||||||
Balance at beginning of year
|
$ | 1,368,458 | $ | 1,264,227 | $ | 1,118,547 | ||||||
Depreciation expense
|
285,647 | 248,552 | 248,484 | |||||||||
Balances retired upon disposition of operating properties
|
(70,806 | ) | (144,321 | ) | (102,804 | ) | ||||||
Balance at end of year
|
$ | 1,583,299 | $ | 1,368,458 | $ | 1,264,227 | ||||||
(1) | Due to the current market conditions and the resulting changes in our business strategy during the fourth quarter of 2008, we determined that there were certain real estate assets, primarily land parcels, for which it was more likely that we would dispose of the asset rather than develop and/or hold and use the asset. During this timeframe, the capitalization rates used to value these properties have increased, which along with the distressed market conditions, has contributed to a significant decline in fair value, especially in the United Kingdom. As a result of our review and based on our intent with regard to these properties, we recognized impairment charges of $274.7 million to adjust the carrying value to fair value as of December 31, 2008. In addition, we recognized impairment charges related to costs that had been previously deferred related to potential future development costs as it is no longer probable that we will complete the development of these properties given the current market conditions, specifically in the United Kingdom, as follows (in thousands): |
Land
|
$ | 194,137 | ||
Properties under development
|
19,814 | |||
Completed properties
|
15,026 | |||
Pre-development costs
|
45,728 | |||
Total
|
$ | 274,705 | ||
142
By: |
/s/ WALTER
C. RAKOWICH |
Signature
|
Title
|
Date
|
||||
/s/ WALTER
C. RAKOWICH Walter C. Rakowich |
Chief Executive Officer and Trustee |
February 27, 2009 | ||||
/s/
WILLIAM E. SULLIVAN William E. Sullivan |
Chief Financial Officer | February 27, 2009 | ||||
/s/ JEFFREY
S. FINNIN Jeffrey S. Finnin |
Chief Accounting Officer | February 27, 2009 | ||||
/s/ STEPHEN
L. FEINBERG Stephen L. Feinberg |
Chairman of the Board of Trustees | February 27, 2009 | ||||
/s/ GEORGE
L. FOTIADES George L. Fotiades |
Trustee | February 27, 2009 | ||||
/s/ CHRISTINE
N. GARVEY Christine N. Garvey |
Trustee | February 27, 2009 | ||||
/s/ DONALD
P. JACOBS Donald P. Jacobs |
Trustee | February 27, 2009 | ||||
/s/ LAWRENCE
V. JACKSON Lawrence V. Jackson |
Trustee | February 27, 2009 | ||||
/s/ D.
MICHAEL STEUERT D. Michael Steuert |
Trustee | February 27, 2009 | ||||
/s/ J.
ANDRÉ TEIXEIRA J. André Teixeira |
Trustee | February 27, 2009 | ||||
/s/ WILLIAM
D. ZOLLARS William D. Zollars |
Trustee | February 27, 2009 | ||||
/s/ ANDREA
M. ZULBERTI Andrea M. Zulberti |
Trustee | February 27, 2009 |
143
Exhibit |
||||||
Number
|
Description
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|||||
1 | .1 | | Sales Agreement dates February 27, 2007, between ProLogis and Cantor Fitzgerald & Co. (incorporated by reference to exhibit 1.1 to ProLogis Form 10-K for the year ended December 31, 2006). | |||
3 | .1 | | Articles of Amendment and Restatement of Declaration of Trust of ProLogis (incorporated by reference to exhibit 4.1 to ProLogis Form 10-Q for the quarter ended June 30, 1999). | |||
3 | .2 | | Certificate of Amendment, dated as of May 22, 2002, to Amended and Restated of Declaration of Trust of ProLogis (incorporated by reference to exhibit 99.1 to ProLogis Form 8-K dated May 30, 2002). | |||
3 | .3 | | Articles of Amendment to Amended and Restated Declaration of Trust of ProLogis dated as of May 19, 2005 (incorporated by reference to exhibit 3.1 to ProLogis Form 8-K filed on May 20, 2005). | |||
3 | .4 | | Articles of Amendment to Amended and Restated Declaration of Trust of ProLogis dated as of July 12, 2005 (incorporated by reference to exhibit 3.1 to ProLogis Form 8-K filed on July 13, 2005). | |||
3 | .5 | | Articles of Amendment to Amended and Restated Declaration of Trust of ProLogis dated as of February 27, 2009. | |||
3 | .6 | | Amended and Restated Bylaws of ProLogis dated as of March 15, 2005 (incorporated by reference to exhibit 3.1 to ProLogis Form 8-K filed on March 21, 2005). | |||
3 | .7 | | Amendment to Amended and Restated Bylaws, dated as of March 15, 2006 (incorporated by reference to exhibit 3.1 to ProLogis Form 8-K filed on March 17, 2006). | |||
3 | .8 | | Amendment to Amended and Restated Bylaws, dated as of December 9, 2008 (incorporated by reference to exhibit 3.1 to ProLogis Form 8-K filed on December 12, 2008). | |||
3 | .9 | | Articles Supplementary Classifying and Designating the Series F Cumulative Redeemable Preferred Shares of Beneficial Interest (incorporated by reference to exhibit 4.2 to ProLogis Form 8-K dated December 24, 2003). | |||
3 | .10 | | Articles Supplementary Classifying and Designating the Series G Cumulative Redeemable Preferred Shares of Beneficial Interest (incorporated by reference to exhibit 4.3 to ProLogis Form 8-K dated December 24, 2003). | |||
3 | .11 | | Articles Supplementary Reclassifying and Designating Shares of Beneficial Interest of ProLogis as Common Shares of Beneficial Interest (incorporated by reference to exhibit 3.2 to ProLogis Form 8-K filed on July 13, 2005). | |||
4 | .1 | | Form of share certificate for common shares of Beneficial Interest of ProLogis (incorporated by reference to exhibit 4.4 to ProLogis registration statement No. 33-73382). | |||
4 | .2 | | Form of share certificate for Series C Cumulative Redeemable Preferred Shares of Beneficial Interest of ProLogis (incorporated by reference to exhibit 4.8 to ProLogis Form 10-K for the year ended December 31, 1996). | |||
4 | .3 | | Form of share certificate for Series F Cumulative Redeemable Preferred Shares of Beneficial Interest of ProLogis (incorporated by reference to exhibit 4.1 to ProLogis Form 8-K dated November 26, 2003). | |||
4 | .4 | | Form of share certificate for Series G Cumulative Redeemable Preferred Shares of Beneficial Interest of ProLogis (incorporated by reference to exhibit 4.1 to ProLogis Form 8-K dated December 24, 2003). | |||
4 | .5 | | ProLogis Trust Employee Share Purchase Plan, as amended and restated (incorporated by reference to exhibit 4.27 to ProLogis Form S-8, dated September 27, 2001). | |||
4 | .6 | | Indenture, dated as of March 1, 1995, between ProLogis and State Street Bank and Trust Company, as Trustee (incorporated by reference to Exhibit 4.9 to ProLogis Form 10-K for the year ended December 31, 1994). |
144
4 | .7 | | First Supplemental Indenture, dated as of February 9, 2005, by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to exhibit 4.1 to ProLogis Form 8-K dated February 9, 2005). | |||
4 | .8 | | Second Supplemental Indenture dated as of November 2, 2005 by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to Exhibit 4.1 to ProLogis Form 8-K filed on November 4, 2005). | |||
4 | .9 | | Third Supplemental Indenture dated as of November 2, 2005 by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to Exhibit 4.2 to ProLogis Form 8-K filed on November 4, 2005). | |||
4 | .10 | | Fourth Supplemental Indenture dated as of March 26, 2007 by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to exhibit 4.1 to ProLogis form 8-K filed on March 26, 2007). | |||
4 | .11 | | Fifth Supplemental Indenture dated as of November 8, 2007 by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to exhibit 4.1 to ProLogis form 8-K filed on November 7, 2007). | |||
4 | .12 | | Sixth Supplemental Indenture dated as of May 7, 2008 by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to exhibit 4.1 to ProLogis Form 10-Q for the quarter ended June 30, 2008). | |||
4 | .13 | | Seventh Supplemental Indenture dated as of May 7, 2008 by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to exhibit 4.2 to ProLogis Form 10-Q for the quarter ended June 30, 2008). | |||
4 | .14 | | 8.72% Note due March 1, 2009 (incorporated by reference to exhibit 4.7 to ProLogis Form 10-K for the year ended December 31, 1994). | |||
4 | .15 | | 9.34% Note due March 1, 2015 (incorporated by reference to exhibit 4.8 to ProLogis Form 10-K for the year ended December 31, 1994). | |||
4 | .16 | | 7.875% Note due May 15, 2009 (incorporated by reference to exhibit 4.4 to ProLogis Form 8-K dated May 9, 1995). | |||
4 | .17 | | 8.65% Note due May 15, 2016 (incorporated by reference to exhibit 4.3 to ProLogis Form 10-Q for the quarter ended June 30, 1996). | |||
4 | .18 | | 7.81% Medium-Term Notes, Series A, due February 1, 2015 (incorporated by reference to exhibit 4.17 to ProLogis Form 10-K for the year ended December 31, 1996). | |||
4 | .19 | | 7.625% Note due July 1, 2017 (incorporated by reference to exhibit 4 to ProLogis Form 8-K dated July 11, 1997). | |||
4 | .20 | | Form of 5.50% Promissory Note due March 1, 2013 (incorporated by reference to exhibit 4.26 to ProLogis Form 10-K for the year ended December 31, 2002). | |||
4 | .21 | | Form of 2.25% Convertible Notes due 2037 (incorporated by reference to exhibit 10.3 to ProLogis 10-Q for the quarter ended March 31, 2007). | |||
10 | .1 | | Agreement of Limited Partnership of ProLogis Limited Partnership-I, dated as of December 22, 1993, by and among ProLogis, as general partner, and the limited partners set forth therein (incorporated by reference to exhibit 10.4 to ProLogis Registration Statement No. 33-73382). | |||
10 | .2 | | Agreement of Limited Partnership of Meridian Realty Partners, L.P. (incorporated by reference to exhibit 99.1 to ProLogis Registration Statement No. 333-86081). | |||
10 | .3 | | Amended and Restated Agreement of Limited Partnership of ProLogis Fraser, L.P. dated as of August 4, 2004 (incorporated by reference to exhibit 10.1 to ProLogis Form 10-Q for the quarter ended September 30, 2004). |
145
10 | .4 | | Form of Indemnification Agreement entered into between ProLogis and its Trustees and executive officers (incorporated by reference to exhibit 10.16 to ProLogis Registration Statement No. 33-73382). | |||
10 | .5 | | Indemnification Agreement between ProLogis and each of its independent Trustees (incorporated by reference to exhibit 10.16 to ProLogis Form 10-K for the year ended December 31, 1995). | |||
10 | .6 | | Declaration of Trust for the benefit of ProLogis independent Trustees (incorporated by reference to exhibit 10.17 to ProLogis Form 10-K for the year ended December 31, 1995). | |||
10 | .7 | | Note Purchase Agreement among Meridian and The Travelers Insurance Company (I/N/TRAL & CO.), United Services Automobile Association (I/N/O SALKELD & CO.), The Variable Annuity Life Insurance Company, The United States Life Insurance Company in the City of New York, All American Life Insurance Company, The Old Line Life Insurance Company of America, The Lincoln National Life Insurance Company, Lincoln Life & Annuity Company of New York, First Penn-Pacific Life Insurance Company (I/N/O CUDD & CO),Lincoln National Health & Casualty Insurance Company, Allied Life Insurance Company B (I/N/O GERLACH & CO), sons of Norway (I/N/O VAR & CO), Aid Association for Lutherans(I/N/O NIMER & CO), Metropolitan Life Insurance Company, National Life Insurance Company, Life Insurance Company of the Southwest, Keyport Life Insurance Company (I/N/O BOST &CO), Union Central Life Insurance Company (I/N/O HARE & CO),and Pan-American Life Insurance Company, dated November 15,1997 (incorporated by reference to exhibit 10.66 to Meridians Form 10-K for the year ended December 31, 1997). | |||
10 | .8 | | Amendment, dated as of May 2, 2005, to Note Purchase Agreement among ProLogis (as successor by merger to Meridian Industrial Trust, Inc., a Maryland corporation) and The Travelers Insurance Company (I/N/TRAL & CO.), United Services Automobile Association (I/N/O SALKELD & CO.), The Variable Annuity Life Insurance Company, The United States Life Insurance Company in the City of New York, All American Life Insurance Company, The Old Line Life Insurance Company of America, The Lincoln National Life Insurance Company, Lincoln Life & Annuity Company of New York, First Penn-Pacific Life Insurance Company (I/N/O CUDD & CO), Lincoln National Health & Casualty Insurance Company, Allied Life Insurance Company B (I/N/O GERLACH & CO), sons of Norway (I/N/O VAR & CO), Aid Association for Lutherans (I/N/O NIMER & CO), Metropolitan Life Insurance Company, National Life Insurance Company, Life Insurance Company of the Southwest, Keyport Life Insurance Company (I/N/O BOST & CO), Union Central Life Insurance Company (I/N/O HARE & CO), and Pan-American Life Insurance Company (incorporated by reference to Exhibit 10.1 to ProLogis Form 8-K filed on May 2, 2005). | |||
10 | .9 | | Amended and Restated Security Agency Agreement dated as of October 6, 2005, among Bank of America, N.A., as global administrative agent under the Global Senior Credit Agreement referred to therein, certain other creditors of ProLogis and Bank of America, N.A., as collateral agent (incorporated by reference to Exhibit 10.2 to ProLogis Form 8-K filed on November 4, 2005). | |||
10 | .10 | | Global Senior Credit Agreement dated as of October 6, 2005, among ProLogis, certain of its subsidiaries, Bank of America, N.A., as global administrative agent, collateral agent, U.S. funding agent, U.S. swing line lender, and a U.S. L/C issuer, Bank of America, N.A., acting through its Canada Branch, as Canadian funding agent and a Canadian L/C issuer, ABN AMRO Bank N.V., as global syndication agent, Euro funding agent, Euro swing line lender, and a Euro L/C issuer, Sumitomo Mitsui Banking Corporation, as a global documentation agent, Yen tranche bookrunner, KRW tranche bookrunner, Yen Funding Agent, KRW funding agent, and a Yen L/C issuer, JPMorgan Chase Bank, N.A. and the Royal Bank of Scotland PLC, as global documentation agents, and the other lenders party thereto Banc of America Securities LLC and ABN AMRO Bank N.V., as global joint lead arrangers and global joint book runners (incorporated by reference to Exhibit 10.1 to ProLogis Form 8-K filed on October 12, 2005). |
146
10 | .11 | | First Amendment to Global Senior Credit Agreement, dated as of June 27, 2006, among ProLogis, certain of its subsidiaries, Bank of America, N.A., as Global Administrative Agent, Collateral Agent, U.S. Funding Agent, U.S. Swing Line Lender, and a U.S. L/C Issuer, Bank of America, N.A., acting through its Canada Branch, as Canadian Funding Agent and a Canadian L/C Issuer, ABN AMRO Bank N.V., as Global Syndication Agent, Euro Funding Agent, Euro Swing Line Lender, and a Euro L/C Issuer, Sumitomo Mitsui Banking Corporation, as a Global Documentation Agent, Yen Tranche Bookrunner, KRW Tranche Bookrunner, Yen Funding Agent, KRW Funding Agent, and a Yen L/C Issuer, Bank of America, N.A., acting through its Shanghai Brach, as RMB Funding Agent, JPMorgan Chase Bank, N.A. and the Royal Bank of Scotland PLC, as Global Documentation Agents, the other lenders party thereto and Banc of America Securities LLC and ABN AMRO Bank N.V., as Global Joint Lead Arrangers and Global Joint Book Runners (incorporated by reference to exhibit 10.1 to ProLogis Form 8-K filed on July 3, 2006). | |||
10 | .12 | | 1999 Dividend Reinvestment and Share Purchase Plan (incorporated by reference to the Prospectus filed January 5, 2007 pursuant to Rule 424(b)(3) with respect to Registration Statement No. 333-102166). | |||
10 | .13* | | ProLogis 2000 Share Option Plan for Outside Trustees (as Amended and Restated Effective as of December 31, 2008). | |||
10 | .14* | | ProLogis Trust 1997 Long-Term Incentive Plan (as Amended and Restated Effective as of September 26, 2002 (incorporated by reference to exhibit 10.1 to ProLogis Form 8-K dated February 19, 2003). | |||
10 | .15* | | ProLogis 2006 Long-Term Incentive Plan (incorporated by reference to exhibit 10.2 to ProLogis Form 8-K filed on June 2, 2006). | |||
10 | .16* | | ProLogis Nonqualified Savings Plan (as Amended and Restated effective as of December 31, 2008). | |||
10 | .17* | | ProLogis Executive Deferred Compensation Plan (effective as of December 31, 2008). | |||
10 | .18* | | ProLogis Deferred Fee Plan for Trustees (as Amended and Restated as of December 31, 2008). | |||
10 | .19* | | Third Amended and Restated Employment Agreement, dated January 7, 2009, entered into between ProLogis and Walter C. Rakowich. | |||
10 | .20* | | Amended and Restated Employment Agreement, effective as of December 31, 2008, entered into between ProLogis and Ted R. Antenucci. | |||
10 | .21* | | Employment Agreement, dated March 14, 2008 and effective as of January 1, 2008, between ProLogis and Jeffrey H. Schwartz (incorporated by reference to exhibit 10.1 to ProLogis Form 8-K filed on March 18, 2008). | |||
10 | .22* | | Agreement and General Release, dated as of November 21, 2008, between ProLogis and Jeffrey H. Schwartz. | |||
10 | .23* | | Form of Executive Protection Agreements entered into between ProLogis and Edward S. Nekritz, William E. Sullivan and Robert J. Watson, effective as of December 31, 2008. | |||
10 | .24* | | Executive Protection Agreement entered into between ProLogis and Gary E. Anderson, effective as of December 31, 2008. | |||
10 | .25* | | Form of Executive Protection Agreements entered into between ProLogis and Paul C. Congleton, M. Gordon Keiser, Jr., Masato Miki and Miki Yamada, effective as of December 31, 2008. | |||
10 | .26* | | Amended and Restated Special Equity Agreement between ProLogis and K. Dane Brooksher, dated as of March 5, 2003 (incorporated by reference to exhibit 10.28 to ProLogis Form 10-K for the year ended December 31, 2002). | |||
10 | .27* | | First Amendment to the Amended and Restated Special Equity Agreement dated as of March 5, 2003 by and between ProLogis and K. Dane Brooksher entered into as of September 22, 2005 (incorporated by reference to Exhibit 10.1 to ProLogis Form 8-K filed on September 26, 2005). | |||
10 | .28* | | Advisory Agreement, dated May 15, 2007, entered into between ProLogis and K. Dane Brooksher (incorporated by reference to exhibit 10.1 to ProLogis Form 10-Q for the quarter ended June 30, 2007). |
147
10 | .29 | | Master Implementation Agreement, dated December 23, 2008, entered into between ProLogis and Reco China Logistics Pte Ltd, relating to the sale and purchase of ProLogis interest in: (i) PRC Holdco; (ii) the Japan Trusts; (iii) Master Lessees; (iv) Barbados Managementco; (v) HK Managementco; (vi) Barbados Targetcos; (vii) Targetco (each as defined therein). | |||
10 | .30 | | Supplemental Agreement, dated February 9, 2009, entered into between ProLogis and Reco China Logistics Pte Ltd. | |||
10 | .31* | | Share Option Plan for Outside Trustees (incorporated by reference to exhibit 10.18 to ProLogis Form 10-Q for the quarter ended June 30, 1994). | |||
12 | .1 | | Statement re: Computation of Ratio of Earnings to Fixed Charges. | |||
12 | .2 | | Statement re: Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Share Dividends. | |||
21 | .1 | | Subsidiaries of ProLogis. | |||
23 | .1 | | Consent of KPMG LLP. | |||
31 | .1 | | Certification of Chief Executive Officer. | |||
31 | .2 | | Certification of Chief Financial Officer. | |||
32 | .1 | | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||
99 | .1 | | Limited Liability Company Agreement of CSI/Frigo LLC dated as of January 2, 2001 (incorporated by reference to exhibit 99.5 to ProLogis Form 10-K/A#1 for the year ended December 31, 2000). | |||
99 | .2 | | Promissory Note from CSI/Frigo LLC dated January 5, 2001(incorporated by reference to exhibit 99.6 to ProLogis Form 10-K/A#1 for the year ended December 31, 2000). | |||
99 | .3 | | Promissory Note from K. Dane Brooksher dated July 18, 2000 to GoProLogis Incorporated (incorporated by reference to exhibit 99.8 to ProLogis Form 10-K/A#1 for the year ended December 31, 2000). | |||
99 | .4 | | Option agreement dated July 18, 2000 among GoProLogis Incorporated, K. Dane Brooksher and ProLogis (incorporated by reference to exhibit 99.9 to ProLogis Form 10-K/A#1 for the year ended December 31, 2000). | |||
99 | .5 | | Promissory Note from K. Dane Brooksher dated September 20, 2000 to ProLogis Broadband(1) Incorporated (incorporated by reference to exhibit 99.10 to ProLogis Form 10-K/A#1 for the year ended December 31, 2000). | |||
99 | .6 | | Promissory Note from K. Dane Brooksher dated January 4, 2001to ProLogis Broadband(1) Incorporated (incorporated by reference to exhibit 99.11 to ProLogis Form 10-K/A#1 for the year ended December 31, 2000). | |||
99 | .7 | | Option Agreement dated September 20, 2000 among ProLogis Broadband(1) Incorporated, K. Dane Brooksher and ProLogis (incorporated by reference to exhibit 99.12 to ProLogis Form 10-K/A#1 for the year ended December 31, 2000). | |||
99 | .8 | | Purchase and Sale Agreement dated October 23, 2002, between CSI/Frigo LLC and ProLogis (incorporated by reference to exhibit 99.14 to ProLogis Form 10-K for the year ended December 31, 2002). | |||
99 | .9 | | Promissory Note from CSI/Frigo LLC dated October 23, 2002 (incorporated by reference to exhibit 99.15 to ProLogis Form 10-K for the year ended December 31, 2002). | |||
99 | .10 | | Registration Rights Agreement dated February 9, 2007, between ProLogis and each of the parties identified therein (incorporated by reference to exhibit 99.10 to ProLogis Form 10-K for the year ended December 31, 2006). |
* | Management Contract or Compensatory Plan or Arrangement |
148