(Mark One) | ||
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, 2006 |
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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 |
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Commission File Number
1-12846
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Maryland | 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
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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
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New York Stock Exchange | |
Series G Cumulative Redeemable
Preferred Shares of Beneficial Interest par value $0.01 per
share
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New York Stock Exchange |
2
3
ITEM 1. | Business |
4
5
6
| allows us, as the manager of the property funds, to maintain the market presence and customer relationships that are the key drivers of the ProLogis Operating System; | |
| allows us to maintain a long-term ownership position in the properties; | |
| allows us to realize a portion of the development profits from our CDFS business activities by contributing our stabilized development properties to property funds (profits are recognized to the extent of third party investment in the property fund); | |
| provides diversified sources of capital; | |
| 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. |
7
| During 2006, we contributed 94 properties aggregating 18.7 million square feet to the property funds for net proceeds of $1.4 billion, prior to deferral of a portion of the gain due to our continuing ownership in the entities acquiring the properties. | |
| On a combined basis, the property funds acquired eight properties from third parties, aggregating 2.2 million square feet. | |
| In September 2006, ProLogis European Properties (currently referred to as PEPR and formerly known as ProLogis European Properties Fund) completed an initial public offering (IPO) on the Euronext Amsterdam stock exchange in which the selling unitholders offered 49.8 million ordinary units. The IPO allowed us, as the manager, to recognize an incentive return of $109.2 million based on the internal rate of return that the pre-IPO unitholders earned. After the IPO, our ownership interest in PEPR increased to 24.0%. | |
| We made our first contributions to the ProLogis Japan Properties Fund II, which was formed in late 2005. | |
| We formed the North American Industrial Fund, with several institutional investors, which will primarily own distribution properties in major distribution markets throughout the United States and Canada and we made our first contributions. | |
| On January 4, 2006, we purchased the remaining 80% ownership interests in each of ProLogis North American Properties Funds II, III and IV held by our fund partner and in March 2006, we contributed substantially all of the assets and associated liabilities we obtained in this acquisition to the North American Industrial Fund. We recognized an aggregate of $71.6 million in earnings related to this transaction, including an incentive return of $22.0 million. |
8
9
| North America: 44 properties in Canada, Mexico and the United States, for a combined total of 11.6 million square feet, with a total expected cost of $597.9 million (approximately 27.3% of the total); | |
| Europe: 45 properties in ten countries, for a combined total of 10.3 million square feet, with a total expected cost of $844.0 million (approximately 38.5% of the total); and | |
| Asia: 25 properties in China and Japan, for a combined total of 8.1 million square feet, with a total expected cost of $748.5 million (approximately 34.2% of the total). |
| We started the development of 143 properties aggregating 35.6 million square feet with a total expected cost at completion of $2.5 billion. These projects either were completed during 2006, as discussed below, or are under development at December 31, 2006, as discussed above. | |
| We completed the development of 102 properties aggregating 27.9 million square feet with a total expected cost of $2.2 billion. Either these projects were under development at December 31, 2005 or development began in 2006. | |
| We contributed or disposed of 70 properties aggregating 15.6 million square feet that were developed or acquired by us in the CDFS business segment, including 15 properties reflected as discontinued operations. These transactions generated proceeds of $1.4 billion, after the deferral of $65.5 million of gains due to our continuing ownership in the entities acquiring the properties. | |
| We acquired 2,242 acres of land for future development for $812.6 million. | |
| We disposed of 851.5 acres of land for total proceeds of $122.5 million. |
10
| We invested $74.1 million in CDFS joint ventures operating in North America ($17.6 million) and Asia ($56.5 million). See Note 4 to our Consolidated Financial Statements in Item 8 for more information on our investments. |
11
12
13
14
15
16
| changes in the general economic climate; | |
| 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. |
| 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 we may not be able to obtain land on which to develop or 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 make the project profitable. |
17
18
19
20
21
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23
Rentable |
Investment |
|||||||||||||||||||||||
No. of |
Percentage |
Square |
Before |
|||||||||||||||||||||
Bldgs. | Leased (1) | Footage | Depreciation | Encumbrances (2) | ||||||||||||||||||||
Operating properties owned in
the property operations segment at December 31, 2006
(dollars and rentable square footage in thousands):
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||||||||||||||||||||||||
Distribution
properties:
|
||||||||||||||||||||||||
North America by
Market (3):
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||||||||||||||||||||||||
United States:
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||||||||||||||||||||||||
Atlanta, Georgia
|
83 | 89.52% | 11,728 | $ | 404,119 | $ | 33,715 | |||||||||||||||||
Austin, Texas
|
24 | 100.00% | 1,532 | 61,810 | | |||||||||||||||||||
Charlotte, North Carolina
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32 | 83.49% | 4,282 | 139,598 | 39,246 | |||||||||||||||||||
Chicago, Illinois
|
88 | 86.02% | 17,943 | 922,002 | 172,282 | |||||||||||||||||||
Cincinnati, Ohio
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39 | 95.40% | 4,814 | 138,275 | 25,131 | |||||||||||||||||||
Columbus, Ohio
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32 | 88.62% | 5,925 | 218,449 | 33,888 | |||||||||||||||||||
Dallas/Fort Worth, Texas
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109 | 91.99% | 14,519 | 587,484 | 70,863 | |||||||||||||||||||
Denver, Colorado
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35 | 94.97% | 5,562 | 259,356 | 71,609 | |||||||||||||||||||
El Paso, Texas
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16 | 81.39% | 2,051 | 63,339 | 411 | |||||||||||||||||||
Houston, Texas
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82 | 95.99% | 7,778 | 261,496 | | |||||||||||||||||||
I-81 Corridor, Pennsylvania
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12 | 93.93% | 3,735 | 190,638 | 11,361 | |||||||||||||||||||
Indianapolis, Indiana
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32 | 95.15% | 3,376 | 120,918 | | |||||||||||||||||||
Las Vegas, Nevada
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18 | 88.01% | 2,314 | 108,405 | 11,354 | |||||||||||||||||||
Louisville, Kentucky
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10 | 100.00% | 2,502 | 82,231 | 18,021 | |||||||||||||||||||
Memphis, Tennessee
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42 | 79.93% | 6,170 | 170,704 | | |||||||||||||||||||
Nashville, Tennessee
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38 | 91.62% | 4,093 | 109,779 | | |||||||||||||||||||
New Jersey
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38 | 94.29% | 7,959 | 486,537 | 49,956 | |||||||||||||||||||
Orlando, Florida
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20 | 96.01% | 1,902 | 80,821 | 3,341 | |||||||||||||||||||
Phoenix, Arizona
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33 | 93.72% | 2,700 | 125,389 | 14,357 | |||||||||||||||||||
Portland, Oregon
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28 | 92.77% | 2,451 | 139,287 | 23,678 | |||||||||||||||||||
Reno, Nevada
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21 | 100.00% | 2,897 | 115,088 | | |||||||||||||||||||
Salt Lake City, Utah
|
5 | 83.56% | 853 | 31,605 | | |||||||||||||||||||
San Antonio, Texas
|
54 | 90.37% | 4,408 | 149,597 | | |||||||||||||||||||
San Diego, California
|
13 | 96.97% | 188 | 26,176 | | |||||||||||||||||||
San Francisco (Central
Valley), California
|
15 | 98.14% | 3,965 | 175,787 | 25,779 | |||||||||||||||||||
San Francisco (East Bay),
California
|
57 | 98.69% | 4,901 | 307,540 | 96,053 | |||||||||||||||||||
San Francisco (South Bay),
California
|
84 | 90.69% | 5,516 | 460,650 | 89,176 |
24
Rentable |
Investment |
|||||||||||||||||||||||
No. of |
Percentage |
Square |
Before |
|||||||||||||||||||||
Bldgs. | Leased (1) | Footage | Depreciation | Encumbrances (2) | ||||||||||||||||||||
Seattle, Washington
|
9 | 99.50% | 1,036 | $ | 46,851 | $ | 327 | |||||||||||||||||
South Florida
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14 | 98.37% | 1,288 | 78,884 | 6,928 | |||||||||||||||||||
Southern California
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95 | 94.47% | 20,121 | 1,542,755 | 464,741 | |||||||||||||||||||
St. Louis, Missouri
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13 | 90.00% | 1,252 | 42,020 | 4,457 | |||||||||||||||||||
Tampa, Florida
|
56 | 97.01% | 3,649 | 149,576 | 9,771 | |||||||||||||||||||
Washington D.C./Baltimore, Maryland
|
41 | 82.52% | 5,428 | 275,508 | 56,855 | |||||||||||||||||||
Other
|
7 | 97.94% | 1,514 | 35,292 | | |||||||||||||||||||
Subtotal United States
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1,295 | 91.68% | 170,352 | 8,107,966 | 1,333,300 | |||||||||||||||||||
Mexico:
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||||||||||||||||||||||||
Guadalajara
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2 | 91.98% | 423 | 24,855 | | |||||||||||||||||||
Juarez
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11 | 83.97% | 1,123 | 44,385 | | |||||||||||||||||||
Mexico City
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20 | 91.28% | 3,093 | 175,447 | 72,776 | |||||||||||||||||||
Monterrey
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6 | 88.40% | 576 | 20,299 | | |||||||||||||||||||
Reynosa
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16 | 94.28% | 1,923 | 85,264 | | |||||||||||||||||||
Subtotal Mexico
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55 | 90.75% | 7,138 | 350,250 | 72,776 | |||||||||||||||||||
Canada Toronto
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3 | 81.25% | 988 | 62,120 | | |||||||||||||||||||
Subtotal North America
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1,353 | 91.58% | 178,478 | 8,520,336 | 1,406,076 | |||||||||||||||||||
Europe by Country
(22 markets) (4):
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Belgium
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3 | 64.73% | 587 | 33,620 | | |||||||||||||||||||
Czech Republic
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4 | 36.21% | 401 | 28,663 | | |||||||||||||||||||
France
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13 | 46.83% | 3,552 | 190,510 | | |||||||||||||||||||
Germany
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6 | 97.06% | 1,411 | 92,019 | | |||||||||||||||||||
Hungary
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1 | 100.00% | 211 | 10,670 | | |||||||||||||||||||
Italy
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6 | 19.83% | 1,774 | 107,287 | | |||||||||||||||||||
Netherlands
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1 | 0.00% | 197 | 11,679 | | |||||||||||||||||||
Poland
|
15 | 73.02% | 3,474 | 160,040 | | |||||||||||||||||||
Spain
|
1 | 100.00% | 288 | 18,748 | | |||||||||||||||||||
Sweden
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1 | 0.00% | 187 | 14,868 | | |||||||||||||||||||
United Kingdom
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19 | 64.38% | 6,150 | 629,677 | | |||||||||||||||||||
Subtotal Europe
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70 | 59.81% | 18,232 | 1,297,781 | | |||||||||||||||||||
Asia by Country (6
markets) (5):
|
||||||||||||||||||||||||
China
|
14 | 100.00% | 2,436 | 81,455 | | |||||||||||||||||||
Japan
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7 | 93.79% | 4,139 | 496,782 | | |||||||||||||||||||
Korea
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1 | 23.98% | 134 | 14,315 | | |||||||||||||||||||
Singapore
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1 | 100.00% | 150 | 12,580 | | |||||||||||||||||||
Subtotal Asia
|
23 | 94.77% | 6,859 | 605,132 | | |||||||||||||||||||
Total distribution
properties
|
1,446 | 88.85% | 203,569 | $ | 10,423,249 | $ | 1,406,076 | |||||||||||||||||
Retail properties (4
markets)
|
27 | 97.62% | 1,105 | $ | 305,188 | $ | 27,597 | |||||||||||||||||
Total operating properties
owned in the property operations segment at December 31,
2006
|
1,473 | 88.89% | 204,674 | $ | 10,728,437 | $ | 1,433,673 | |||||||||||||||||
25
Properties Under Development | ||||||||||||||||||||||||
Land Held for |
Rentable |
|||||||||||||||||||||||
Development |
No. of |
Square |
Total Expected |
|||||||||||||||||||||
Acreage | Investment | Bldgs. | Footage | Investment | Cost (6) | |||||||||||||||||||
Land held for development and
properties under development at December 31, 2006 (dollars
and rentable square footage in thousands):
|
||||||||||||||||||||||||
North America by
Market:
|
||||||||||||||||||||||||
United States:
|
||||||||||||||||||||||||
Atlanta, Georgia
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489.4 | $ | 32,509 | | | $ | | $ | | |||||||||||||||
Austin, Texas
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25.3 | 6,048 | 5 | 224 | 26,050 | 38,146 | ||||||||||||||||||
Charlotte, North Carolina
|
29.0 | 4,076 | | | | | ||||||||||||||||||
Chicago, Illinois
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399.3 | 54,544 | 1 | 750 | 22,483 | 26,924 | ||||||||||||||||||
Cincinnati, Ohio
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40.0 | 3,349 | 1 | 737 | 19,201 | 26,112 | ||||||||||||||||||
Columbus, Ohio
|
154.9 | 6,301 | 1 | 524 | 15,914 | 17,807 | ||||||||||||||||||
Dallas / Fort Worth, Texas
|
322.2 | 28,413 | 3 | 1,333 | 13,563 | 42,825 | ||||||||||||||||||
Denver, Colorado
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17.0 | 2,101 | | | | | ||||||||||||||||||
El Paso, Texas
|
73.4 | 4,429 | | | | | ||||||||||||||||||
Houston, Texas
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150.8 | 13,443 | 1 | 324 | 5,815 | 14,744 | ||||||||||||||||||
I-81 Corridor, Pennsylvania
|
278.5 | 32,237 | 1 | 930 | 12,735 | 46,841 | ||||||||||||||||||
Indianapolis, Indiana
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92.7 | 5,021 | | | | | ||||||||||||||||||
Las Vegas, Nevada
|
2.1 | 275 | | | | | ||||||||||||||||||
Louisville, Kentucky
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42.5 | 2,887 | 1 | 273 | 3,549 | 10,528 | ||||||||||||||||||
Memphis, Tennessee
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159.5 | 12,658 | 2 | 978 | 7,706 | 32,244 | ||||||||||||||||||
Nashville, Tennessee
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44.8 | 1,641 | | | | | ||||||||||||||||||
New Jersey
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211.0 | 98,299 | 2 | 379 | 7,534 | 26,906 | ||||||||||||||||||
Orlando, Florida
|
| | 1 | 112 | 5,666 | 5,797 | ||||||||||||||||||
Portland, Oregon
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45.9 | 12,001 | 1 | 72 | 3,076 | 4,457 | ||||||||||||||||||
Reno, Nevada
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6.2 | 577 | 1 | 602 | 11,861 | 24,110 | ||||||||||||||||||
Salt Lake City, Utah
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9.6 | 216 | | | | | ||||||||||||||||||
San Antonio, Texas
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7.7 | 497 | 4 | 285 | 3,608 | 14,860 | ||||||||||||||||||
San Francisco (Central
Valley), California
|
996.7 | 31,186 | 2 | 692 | 3,279 | 35,132 | ||||||||||||||||||
San Francisco (South Bay),
California
|
27.2 | 14,929 | | | | | ||||||||||||||||||
Seattle, Washington
|
10.6 | 2,309 | | | | | ||||||||||||||||||
Southern California
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369.7 | 131,171 | 2 | 706 | 14,662 | 42,963 | ||||||||||||||||||
South Florida
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17.5 | 10,933 | | | | | ||||||||||||||||||
Tampa, Florida
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32.8 | 2,005 | 1 | 215 | 6,181 | 11,380 | ||||||||||||||||||
Washington D.C./Baltimore, Maryland
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82.6 | 10,905 | 3 | 303 | 11,055 | 39,015 | ||||||||||||||||||
Mexico:
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Guadalajara
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58.5 | 17,973 | 1 | 224 | 3,334 | 10,665 | ||||||||||||||||||
Juarez
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13.1 | 2,691 | 3 | 233 | 7,777 | 10,704 | ||||||||||||||||||
Mexico City
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111.8 | 37,202 | 2 | 633 | 19,612 | 34,582 | ||||||||||||||||||
Monterrey
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193.9 | 28,822 | 2 | 314 | 7,463 | 14,143 | ||||||||||||||||||
Reynosa
|
114.8 | 9,665 | | | | | ||||||||||||||||||
Canada Toronto
|
16.6 | 6,676 | 3 | 814 | 24,186 | 67,003 | ||||||||||||||||||
Subtotal North America
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4,647.6 | 627,989 | 44 | 11,657 | 256,310 | 597,888 | ||||||||||||||||||
Europe by Country
(19 total markets):
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Belgium
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20.6 | 4,667 | | | | | ||||||||||||||||||
Czech Republic
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73.3 | 15,805 | 2 | 554 | 9,798 | 39,914 | ||||||||||||||||||
France
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186.2 | 24,343 | 2 | 473 | 14,066 | 25,498 | ||||||||||||||||||
Germany
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54.7 | 22,368 | 4 | 699 | 40,898 | 66,482 |
26
Properties Under Development | ||||||||||||||||||||||||
Land Held for |
Rentable |
|||||||||||||||||||||||
Development |
No. of |
Square |
Total Expected |
|||||||||||||||||||||
Acreage | Investment | Bldgs. | Footage | Investment | Cost (6) | |||||||||||||||||||
Hungary
|
103.9 | 11,947 | 3 | 595 | 13,738 | 35,255 | ||||||||||||||||||
Italy
|
80.4 | 30,133 | | | | | ||||||||||||||||||
Netherlands
|
8.1 | 3,671 | 3 | 667 | 19,454 | 46,122 | ||||||||||||||||||
Poland
|
98.8 | 37,311 | 17 | 3,595 | 86,856 | 226,588 | ||||||||||||||||||
Romania
|
114.7 | 19,145 | 2 | 578 | 19,419 | 33,747 | ||||||||||||||||||
Spain
|
61.6 | 16,456 | 2 | 612 | 6,167 | 30,034 | ||||||||||||||||||
Sweden
|
| | 1 | 222 | 21,634 | 22,170 | ||||||||||||||||||
United Kingdom
|
594.5 | 345,920 | 9 | 2,335 | 157,422 | 318,149 | ||||||||||||||||||
Subtotal Europe
|
1,396.8 | 531,766 | 45 | 10,330 | 389,452 | 843,959 | ||||||||||||||||||
Asia by Country (7
total markets):
|
||||||||||||||||||||||||
China
|
82.6 | 16,206 | 17 | 2,862 | 33,430 | 83,085 | ||||||||||||||||||
Japan
|
48.6 | 204,500 | 8 | 5,189 | 285,650 | 665,457 | ||||||||||||||||||
Korea
|
28.2 | 16,620 | | | | | ||||||||||||||||||
Subtotal Asia
|
159.4 | 237,326 | 25 | 8,051 | 319,080 | 748,542 | ||||||||||||||||||
Total land held for development
and properties under development in the CDFS business segment at
December 31, 2006
|
6,203.8 | $ | 1,397,081 | 114 | 30,038 | $ | 964,842 | $ | 2,190,389 | |||||||||||||||
Investment |
||||
Before Depreciation |
||||
(in thousands) | ||||
Distribution
properties (3)(4)(5)
|
$ | 10,423,249 | ||
Retail properties
|
305,188 | |||
Land subject to ground leases and
other (7)
|
472,412 | |||
Properties under development
|
964,842 | |||
Land held for development
|
1,397,081 | |||
Other investments (8)
|
391,227 | |||
Total
|
$ | 13,953,999 | ||
(1) | Represents the percentage leased at December 31, 2006. Operating properties at December 31, 2006 include recently completed development properties that may be in the initial lease-up phase, including 91 properties aggregating 25.3 million square feet that were completed in 2006. The inclusion of properties in the initial lease-up phase can reduce the overall leased percentage. | |
(2) | Certain properties are pledged as security under our secured debt and assessment bonds at December 31, 2006. 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 $45.3 million of encumbrances related to other real estate assets not included in the property operations 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 114 properties aggregating 25.4 million square feet at a total investment of $1,190.7 million that were developed or acquired in the CDFS business segment and are pending contribution to a property fund or sale to a third party. |
27
(4) | In Europe, includes 69 properties aggregating 17.6 million square feet at a total investment of $1,273.3 million that were developed or acquired in the CDFS business segment and are pending contribution to a property fund or sale to a third party. | |
(5) | In Asia, includes 22 properties aggregating 6.8 million square feet at a total investment of $597.0 million that were developed or acquired in the CDFS business segment and are pending contribution to a property fund. | |
(6) | Represents the total expected cost at completion for properties under development, including the cost of land, fees, permits, payments to contractors, architectural and engineering fees and interest, project management costs and other appropriate costs to be capitalized during construction, rather than actual costs incurred to date. | |
(7) | Amounts represent investments of $422.7 million in land subject to ground leases, $20.0 million in office properties and an investment of $29.7 million in railway depots. | |
(8) | 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 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. |
28
Rentable |
||||||||||||||||||||
No. of |
No. of |
Square |
Percentage |
Entitys |
||||||||||||||||
Bldgs. | Markets | Footage | Leased | Investment (1) | ||||||||||||||||
North America:
|
||||||||||||||||||||
ProLogis California
|
81 | 1 | 14,211 | 99.01 | % | $ | 695,447 | |||||||||||||
ProLogis North American Properties
Fund I
|
36 | 16 | 9,406 | 95.52 | % | 381,206 | ||||||||||||||
ProLogis North American Properties
Fund V
|
154 | 31 | 36,106 | 97.59 | % | 1,531,045 | ||||||||||||||
ProLogis North American Properties
Fund VI
|
22 | 7 | 8,648 | 96.62 | % | 512,172 | ||||||||||||||
ProLogis North American Properties
Fund VII
|
29 | 8 | 6,055 | 86.10 | % | 388,832 | ||||||||||||||
ProLogis North American Properties
Fund VIII
|
24 | 9 | 3,064 | 93.94 | % | 191,825 | ||||||||||||||
ProLogis North American Properties
Fund IX
|
20 | 7 | 3,439 | 92.01 | % | 194,351 | ||||||||||||||
ProLogis North American Properties
Fund X
|
29 | 10 | 4,191 | 79.54 | % | 220,022 | ||||||||||||||
ProLogis North American Properties
Fund XI
|
14 | 3 | 4,315 | 98.78 | % | 230,402 | ||||||||||||||
ProLogis North American Industrial
Fund
|
126 | 27 | 21,218 | 98.48 | % | 1,200,655 | ||||||||||||||
Total North America
|
535 | 37 | (2) | 110,653 | 96.15 | % | 5,545,957 | |||||||||||||
Europe:
|
||||||||||||||||||||
ProLogis European Properties
|
277 | 27 | 58,114 | 96.90 | % | 4,826,246 | ||||||||||||||
Asia:
|
||||||||||||||||||||
ProLogis Japan Properties
Fund I
|
18 | 3 | 7,424 | 99.45 | % | 1,183,701 | ||||||||||||||
ProLogis Japan Properties
Fund II
|
13 | 4 | 5,082 | 99.86 | % | 718,366 | ||||||||||||||
Total Asia
|
31 | 5 | (3) | 12,506 | 99.62 | % | 1,902,067 | |||||||||||||
Total property funds
|
843 | 69 | 181,273 | 96.63 | % | $ | 12,274,270 | |||||||||||||
(1) | Investment represents 100% of the carrying value of the properties, before depreciation, of each entity at December 31, 2006, except with respect to ProLogis North American Properties Fund XI. We acquired our ownership interest in this entity in 2004, and therefore, in accordance with purchase accounting, the investment represents 100% of the fair value of the operating properties owned by these entities at that time, adjusted for subsequent activity. | |
(2) | Represents the total number of markets in North America on a combined basis. | |
(3) | Represents the total number of markets in Asia on a combined basis. |
29
Effective Weighted |
Third |
|||||||||||
Ownership Percentage | Total Assets | Party Debt | ||||||||||
Industrial CDFS Joint Ventures:
|
||||||||||||
North America
|
50 | % | $ | 66,595 | $ | 12,568 | ||||||
Europe
|
50 | % | 18,708 | | ||||||||
Asia
|
50 | % | 179,590 | | ||||||||
Total Industrial CDFS Joint
Ventures
|
$ | 264,893 | $ | 12,568 | ||||||||
Type of |
Effective Weighted |
Third |
||||||||||||
Real Estate | Ownership Percentage | Total Assets | Party Debt | |||||||||||
Non-Industrial CDFS Joint Ventures:
|
||||||||||||||
North America
|
Residential | 50 | % | $ | 107,438 | $ | 5,878 | |||||||
Asia
|
Retail | 30 | % | 549,338 | 410,872 | |||||||||
Total Non-Industrial CDFS Joint
Ventures
|
$ | 656,776 | $ | 416,750 | ||||||||||
ITEM 3. | Legal Proceedings |
ITEM 4. | Submission of Matters to a Vote of Security Holders |
30
ITEM 5. | Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
High Sale |
Low Sale |
Per Common |
||||||||||
Price | Price | Share Distribution | ||||||||||
2005:
|
||||||||||||
First Quarter
|
$ | 43.50 | $ | 36.67 | $ | 0.37 | ||||||
Second Quarter
|
42.34 | 36.50 | 0.37 | |||||||||
Third Quarter
|
46.41 | 40.12 | 0.37 | |||||||||
Fourth Quarter
|
47.61 | 39.81 | 0.37 | |||||||||
2006:
|
||||||||||||
First Quarter
|
56.31 | 46.29 | 0.40 | |||||||||
Second Quarter
|
53.85 | 46.66 | 0.40 | |||||||||
Third Quarter
|
58.86 | 52.05 | 0.40 | |||||||||
Fourth Quarter
|
65.81 | 56.07 | 0.40 | |||||||||
2007:
|
||||||||||||
First Quarter (through February 22)
|
$ | 71.64 | $ | 59.02 | $ | 0.46 |
31
Years Ended December 31, | ||||||||
2006 | 2005 | |||||||
Series C Preferred Shares
|
$ | 4.27 | $ | 4.27 | ||||
Series F Preferred Shares
|
$ | 1.69 | $ | 1.69 | ||||
Series G Preferred Shares
|
$ | 1.69 | $ | 1.69 |
32
ITEM 6. | Selected Financial Data |
Years Ended December 31, | ||||||||||||||||||||
2006 | 2005 (1) | 2004 | 2003 | 2002 | ||||||||||||||||
Operating Data:
|
||||||||||||||||||||
Total revenues
|
$ | 2,464 | $ | 1,834 | $ | 1,852 | $ | 1,457 | $ | 1,489 | ||||||||||
Total expenses
|
$ | 1,699 | $ | 1,404 | $ | 1,502 | $ | 1,129 | $ | 1,137 | ||||||||||
Operating income
|
$ | 765 | $ | 430 | $ | 350 | $ | 328 | $ | 352 | ||||||||||
Interest expense
|
$ | 294 | $ | 178 | $ | 153 | $ | 154 | $ | 152 | ||||||||||
Earnings from continuing operations
|
$ | 718 | $ | 306 | $ | 220 | $ | 237 | $ | 235 | ||||||||||
Discontinued operations (2)
|
$ | 156 | $ | 90 | $ | 13 | $ | 14 | $ | 8 | ||||||||||
Net earnings
|
$ | 874 | $ | 396 | $ | 233 | $ | 251 | $ | 243 | ||||||||||
Net earnings attributable to
common shares
|
$ | 849 | $ | 371 | $ | 203 | $ | 212 | $ | 216 | ||||||||||
Net earnings per share
attributable to common shares Basic:
|
||||||||||||||||||||
Continuing operations
|
$ | 2.81 | $ | 1.38 | $ | 1.04 | $ | 1.10 | $ | 1.10 | ||||||||||
Discontinued operations
|
0.64 | 0.44 | 0.07 | 0.08 | 0.04 | |||||||||||||||
Net earnings per share
attributable to common shares Basic
|
$ | 3.45 | $ | 1.82 | $ | 1.11 | $ | 1.18 | $ | 1.14 | ||||||||||
Net earnings per share
attributable to common shares Diluted:
|
||||||||||||||||||||
Continuing operations
|
$ | 2.71 | $ | 1.34 | $ | 1.02 | $ | 1.09 | $ | 0.81 | ||||||||||
Discontinued operations
|
0.61 | 0.42 | 0.06 | 0.07 | 0.03 | |||||||||||||||
Net earnings per share
attributable to common shares Diluted
|
$ | 3.32 | $ | 1.76 | $ | 1.08 | $ | 1.16 | $ | 0.84 | ||||||||||
Weighted average common shares
outstanding:
|
||||||||||||||||||||
Basic
|
246 | 203 | 182 | 179 | 178 | |||||||||||||||
Diluted
|
257 | 214 | 192 | 187 | 185 | |||||||||||||||
Common Share
Distributions:
|
||||||||||||||||||||
Common share cash distributions
paid
|
$ | 393 | $ | 297 | $ | 266 | $ | 258 | $ | 252 | ||||||||||
Common share distributions paid
per share
|
$ | 1.60 | $ | 1.48 | $ | 1.46 | $ | 1.44 | $ | 1.42 | ||||||||||
FFO (3):
|
||||||||||||||||||||
Reconciliation of net earnings to
FFO:
|
||||||||||||||||||||
Net earnings attributable to
common shares
|
$ | 849 | $ | 371 | $ | 203 | $ | 212 | $ | 216 | ||||||||||
Total NAREIT defined adjustments
|
149 | 161 | 196 | 159 | 178 | |||||||||||||||
Total our defined adjustments
|
(53 | ) | (2 | ) | 1 | 29 | (1 | ) | ||||||||||||
FFO attributable to common shares
as defined by us
|
$ | 945 | $ | 530 | $ | 400 | $ | 400 | $ | 393 | ||||||||||
Cash Flow Data:
|
||||||||||||||||||||
Net cash provided by operating
activities
|
$ | 721 | $ | 499 | $ | 516 | $ | 367 | $ | 441 | ||||||||||
Net cash used in investing
activities
|
$ | (2,103 | ) | $ | (2,233 | ) | $ | (652 | ) | $ | (115 | ) | $ | (159 | ) | |||||
Net cash provided by (used in)
financing activities
|
$ | 1,645 | $ | 1,713 | $ | 37 | $ | (31 | ) | $ | (200 | ) |
33
December 31, | ||||||||||||||||||||
2006 | 2005 (1) | 2004 | 2003 | 2002 | ||||||||||||||||
Financial Position:
|
||||||||||||||||||||
Real estate owned, excluding land
held for development, before depreciation
|
$ | 12,557 | $ | 10,830 | $ | 5,738 | $ | 5,343 | $ | 5,009 | ||||||||||
Land held for development
|
$ | 1,397 | $ | 1,045 | $ | 596 | $ | 511 | $ | 387 | ||||||||||
Investments in and advances to
unconsolidated investees
|
$ | 1,300 | $ | 1,050 | $ | 909 | $ | 677 | $ | 809 | ||||||||||
Total assets
|
$ | 15,904 | $ | 13,126 | $ | 7,098 | $ | 6,367 | $ | 5,911 | ||||||||||
Total debt
|
$ | 8,387 | $ | 6,678 | $ | 3,414 | $ | 2,991 | $ | 2,732 | ||||||||||
Total liabilities
|
$ | 9,453 | $ | 7,580 | $ | 3,929 | $ | 3,271 | $ | 2,995 | ||||||||||
Minority interest
|
$ | 52 | $ | 58 | $ | 67 | $ | 37 | $ | 42 | ||||||||||
Total shareholders equity
|
$ | 6,399 | $ | 5,488 | $ | 3,102 | $ | 3,059 | $ | 2,874 | ||||||||||
Number of common shares outstanding
|
251 | 244 | 186 | 180 | 178 |
(1) | On September 15, 2005, we completed the Catellus Merger with an aggregate purchase price of $5.3 billion. See Note 3 to our Consolidated Financial Statements in Item 8 for additional information. | |
(2) | Discontinued operations include income attributable to assets disposed of and net gains recognized on the disposition of assets to third parties. See Note 8 to our Consolidated Financial Statements in Item 8 for additional information. Amounts are net of losses 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. |
ITEM 7. | Managements Discussion and Analysis of Financial Condition and Results of Operations |
34
| We earn rent from our customers under long-term operating leases, including reimbursements of certain operating costs, in our distribution and retail properties that we own directly in North America, Europe and Asia. We expect to grow our revenue through the selective acquisition of properties and increases in occupancy rates and rental rates in our existing properties. Our strategy is to achieve these increases in occupancy and rental rates primarily through continued focus on our customers global needs for distribution space in the three continents in which we operate and use of the ProLogis Operating System. |
| We recognize our proportionate share of the earnings or losses from our investments in unconsolidated property funds 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 property funds and interest earned on advances to the property funds in this segment. We earn fees for services provided to the property funds, such as property management, asset management, acquisition, financing and development fees. We may earn incentives based on the return provided to the fund partners. We expect growth in income recognized to come from newly created property funds and growth in existing property funds. The growth in the existing property funds is expected to come primarily from additional properties the funds will acquire, generally from us, and increased rental revenues in the property funds due, in part, to our leasing and property management efforts from our property operations segment. |
| We recognize income primarily from the contributions of developed, rehabilitated and repositioned properties to the property funds and from dispositions to third parties. In addition, we: (i) earn fees from our customers or other third parties for development activities that we provide on their behalf; (ii) recognize interest income on notes receivable related to asset dispositions; (iii) recognize net gains from the disposition of land parcels; and (iv) recognize our proportionate share of the earnings or losses generated by development joint ventures in which we have an investment. We expect increases in this segment to come primarily from the continued development of high-quality distribution and retail properties in our key markets in North America, Europe and Asia, resulting in the contribution to property funds or sale to third parties. In addition, we expect to increase our land and other mixed-use development activities for development management fees and sales to third parties. |
35
| In September 2006, PEPR completed an IPO on the Euronext Amsterdam stock exchange in which the selling unitholders offered 49.8 million ordinary units. As the manager of the property fund, we were entitled to an incentive return based on the internal rate of return that the pre-IPO unitholders earned. The final incentive return was determined and recognized in the fourth quarter of 2006 as $109.2 million. The return was paid to us by an initial allocation of ordinary units, which increased our investment by $68.6 million and our ownership interest to 24.0%, with the balance received in cash. In addition, we were previously obligated to the pre-IPO unitholders of PEPR under a tax indemnification agreement related to properties contributed to PEPR prior to its IPO. Based on the average closing price of the ordinary units of PEPR during the 30-day post-IPO period, we are no longer obligated for indemnification with respect to those properties. Therefore, we recognized a deferred tax benefit of $36.8 million related to the reversal of this obligation in the fourth quarter of 2006. |
| During 2006, we generated net proceeds of $1.3 billion from contributions of CDFS properties and sales of land, excluding discontinued operations. This includes contributions to our recently formed property funds in Japan and North America and is after deferral of $65.5 million of gains due to our continuing ownership in the property funds. |
36
| We generated net proceeds of $176.0 million, after deferral of $18.6 million of gains, and recognized net gains of $81.5 million on the contribution of 39 non-CDFS properties to two of the property funds in 2006. |
| During 2006, we disposed of 89 CDFS and non-CDFS properties to third parties that are included in discontinued operations, which generated net proceeds of $777.5 million and resulted in the recognition of $137.2 million of gains. |
| We acquired 13.5 million square feet of operating properties for an aggregate purchase price of $735.4 million, primarily to be rehabilitated and/or repositioned for future contribution to a property fund or, in certain circumstances, to be held by us for long-term investment. |
| In 2006, we started development on projects with a total expected cost at completion of $2.5 billion and completed development projects with a total expected cost of $2.2 billion. We also acquired 2,242 acres of land for future development for $812.6 million. |
| On January 4, 2006, we purchased the 80% ownership interests in Funds II-IV held by our fund partner. In March 2006, we contributed substantially all of the assets and associated liabilities we obtained in this acquisition to the North American Industrial Fund. In connection with this transaction, we recognized $59.1 million and $12.5 million of income in our fund management and CDFS business segments, respectively. See further discussion below and in Note 4 to our Consolidated Financial Statements in Item 8. |
| We invested $74.1 million in CDFS joint ventures operating in North America and Asia. These joint ventures primarily develop and operate distribution and retail properties. |
| During 2006, we issued $1.9 billion of senior and other notes. |
| In June 2006, we increased our borrowing capacity on our global senior credit facility (Global Line) from $2.6 billion to $3.4 billion. |
| Our Board approved an increase in our annual distribution in 2007 to $1.84 per common share, from $1.60 per common share, or an increase of 15.0%. The common share distribution is declared quarterly and may be adjusted at the discretion of the Board. |
37
38
December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Net earnings attributable to
common shares (in millions)
|
$ | 849.0 | $ | 370.7 | $ | 202.8 | ||||||
Net earnings per share
attributable to common shares Basic
|
$ | 3.45 | $ | 1.82 | $ | 1.11 | ||||||
Net earnings per share
attributable to common shares Diluted
|
$ | 3.32 | $ | 1.76 | $ | 1.08 |
39
December 31, | ||||||||||||||||||||||||
2006 | 2005 | 2004 | ||||||||||||||||||||||
Number of |
Square |
Number of |
Square |
Number of |
Square |
|||||||||||||||||||
Reportable Business Segment
|
Properties | Feet | Properties | Feet | Properties | Feet | ||||||||||||||||||
Property operations (1)
|
1,473 | 204,674 | 1,461 | 186,663 | 1,228 | 133,630 | ||||||||||||||||||
Fund management
|
843 | 181,273 | 752 | 159,769 | 708 | 149,141 | ||||||||||||||||||
CDFS business (2)
|
32 | 5,474 | 23 | 3,283 | 10 | 1,538 | ||||||||||||||||||
Totals
|
2,348 | 391,421 | 2,236 | 349,715 | 1,946 | 284,309 | ||||||||||||||||||
(1) | Our operating portfolio includes properties that were developed or acquired in our CDFS business segment and are pending contribution to a property fund or disposition to a third party as follows (square feet in thousands): |
Number of Properties | Square Feet | |||||||
2006
|
205 | 49,792 | ||||||
2005
|
124 | 29,383 | ||||||
2004
|
90 | 17,959 |
(2) | Only includes distribution properties owned by the CDFS joint ventures. We include our wholly owned CDFS properties in the property operations segment (see above). |
| Net operating income generated by the same store portfolio (defined for the same store analysis as rental income, excluding termination and renegotiation fees, less rental expenses) increased 3.1% in 2006 over |
40
2005, due to a 3.3% increase in rental income, partially offset by a 4.2% increase in rental expenses. The increase in rental expenses was primarily driven by increases in property insurance and property taxes, which are largely recovered from our customers as rental recoveries included in rental income. For 2005, the net operating income of the same store portfolio increased by 1.5% over 2004. Rental income increased 2.0% in 2005 and rental expenses increased 3.9% in 2005, both over 2004. |
| Average occupancy in the same store portfolio increased 2.6% in 2006 over 2005. This compares with an increase of 2.2% in average occupancy in 2005 over 2004. |
| The same store portfolios rental rates, associated with leasing activity for space that has been previously leased by us, increased by 2.6% in 2006 over 2005. In 2005, the rental rates in the same store portfolio decreased by 1.5% from 2004. |
41
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Rental income
|
$ | 885,733 | $ | 589,531 | $ | 509,490 | ||||||
Rental expenses
|
225,432 | 159,184 | 131,238 | |||||||||
Total net operating
income property operations segment
|
$ | 660,301 | $ | 430,347 | $ | 378,252 | ||||||
42
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
ProLogis North American property
funds (1)
|
$ | 117,532 | $ | 56,348 | $ | 48,037 | ||||||
ProLogis European
Properties (2)
|
167,227 | 44,002 | 37,886 | |||||||||
ProLogis Japan property
funds (3)
|
20,225 | 12,662 | 7,754 | |||||||||
Total net operating
income fund management segment
|
$ | 304,984 | $ | 113,012 | $ | 93,677 | ||||||
(1) | Represents the income earned by us from our investments in property funds in North America. We had interests in 10, 12 and 13 funds at December 31, 2006, 2005 and 2004, respectively. Our ownership interests ranged from 11.3% to 50.0% at December 31, 2006. These property funds on a combined basis owned 535, 471 and 465 properties at December 31, 2006, 2005 and 2004, respectively. | |
In January 2006, we purchased the 80% ownership interests held by our fund partner in Funds II-IV 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 Funds II-IV upon termination. | ||
On September 30, 2005, we purchased the remaining 80% interest in ProLogis North American Properties Fund XII and therefore the assets and earnings are now included in our property operations segment. | ||
(2) | Represents the income earned by us from our investment in one property fund, previously referred to as ProLogis European Properties Fund. Since its IPO in September 2006, as discussed earlier, it is now referred to as ProLogis European Properties or PEPR. PEPR has acquired properties, primarily from us, and increased its portfolio size since it began operations in 1999. PEPR owned 277, 263 and 230 properties at December 31, 2006, 2005 and 2004, respectively. Our ownership interest in PEPR was 24.0%, 21.0% and 21.8% at December 31, 2006, 2005 and 2004, respectively. In connection with the IPO in 2006, we recognized $109.2 million in an incentive return based on the internal rate of return that the pre-IPO unit holders earned. During 2006, PEPR incurred professional fees and other expenses related to the completion of its IPO, which resulted in a decrease of approximately $8.9 million in the earnings we recognized. | |
(3) | Amounts represent our 20% ownership interest in two property funds in Japan. ProLogis Japan Properties Fund I increased its portfolio to 18 properties at December 31, 2006 and 2005 from 13 properties at December 31, 2004. In September 2005, we formed a second property fund in Japan, ProLogis Japan Properties Fund II. During 2006, the fund acquired its first 13 properties, six of which were contributed by us. |
43
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Disposition proceeds, prior to
deferral (1)
|
$ | 1,337,278 | $ | 1,190,264 | $ | 1,322,084 | ||||||
Contingent proceeds realized
|
| | 5,871 | |||||||||
Proceeds deferred and not
recognized (2)
|
(65,542 | ) | (52,770 | ) | (43,433 | ) | ||||||
Recognition of previously deferred
amounts (2)
|
15,105 | 2,963 | 4,143 | |||||||||
Cost of dispositions (1)
|
(993,926 | ) | (917,782 | ) | (1,111,698 | ) | ||||||
Net gains
|
292,915 | 222,675 | 176,967 | |||||||||
Development management and other
income (3)
|
37,420 | 25,464 | 2,698 | |||||||||
Interest income on long-term notes
receivable (4)
|
16,730 | 6,781 | | |||||||||
Earnings from CDFS joint
ventures (5)
|
44,974 | 5,671 | 189 | |||||||||
Other expenses and charges (6)
|
(12,554 | ) | (7,983 | ) | (5,519 | ) | ||||||
Total net operating
income CDFS business segment
|
$ | 379,485 | $ | 252,608 | $ | 174,335 | ||||||
CDFS transactions recognized as
discontinued operations (7):
|
||||||||||||
Disposition proceeds
|
$ | 245,500 | $ | 100,494 | $ | 241,875 | ||||||
Cost of dispositions
|
(211,986 | ) | (89,878 | ) | (209,156 | ) | ||||||
Net CDFS gains in discontinued
operations
|
$ | 33,514 | $ | 10,616 | $ | 32,719 | ||||||
(1) | During 2006, we contributed 55 buildings to the property funds (30 in North America, 19 in Europe and six in Japan), compared with 42 buildings contributed in 2005 (20 in North America, 19 in Europe and three in Japan), and compared with 78 buildings contributed in 2004 (43 in North America, 32 in Europe and three in Japan). In addition, we recognized net gains of $24.6 million, $14.5 million and $26.1 million from the disposition of land parcels during 2006, 2005 and 2004, respectively. |
44
(2) | When we contribute a property to a property fund in which we have an ownership interest, we defer a portion of the proceeds from the computation of the gain resulting from the contribution, based on our continuing ownership interest in the contributed property that arises due to our ownership interest in the property fund that acquires the property. We defer this portion of the proceeds by recognizing a reduction to our investment in the respective property fund. We adjust our proportionate share of earnings or losses that we recognize under the equity method from the property fund in later periods to reflect the property funds depreciation expense as if the depreciation expense was computed on our lower basis in the contributed property rather than on the property funds basis in the contributed property. If a loss results when a property is contributed to a property fund, the entire loss is recognized. | |
When a property that we originally contributed to a property fund is disposed of to a third party by the property fund, we recognize in earnings the net amount of proceeds we had previously deferred in the period that the disposition to the third party occurs, in addition to our proportionate share of the net gain or loss recognized by the property fund. Further, during periods when our ownership interest in a property fund decreases, we recognize gains to the extent that previously deferred proceeds are recognized to coincide with our new ownership interest in the property fund, including $12.5 million related to the termination of Funds II-IV recognized in the first quarter of 2006. | ||
(3) | Amounts include fees we earned for the performance of development activities. The increases in both 2006 and 2005, over the prior years, are due primarily to development management activities undertaken since the Catellus Merger and increased development management activity in Europe. | |
(4) | Amounts represent interest income earned on notes receivable related to previous property sales that were acquired through the Catellus Merger. | |
(5) | Represents the net earnings we recognized under the equity method from our investments in CDFS joint ventures. The increase in 2006 is due primarily to earnings recognized in our investments in joint ventures acquired in connection with the Catellus Merger. Included in the earnings for 2006 was $35.0 million, representing our proportionate share of the earnings of a CDFS joint venture, LAAFB JV. As our investment in LAAFB JV is held in a taxable subsidiary, we also recognized $27.0 million of current income tax expense and a deferred tax benefit of $12.4 million (see further discussion in Income Taxes below). | |
(6) | Includes land holding costs and charges for previously capitalized pursuit costs related to potential CDFS business segment projects when the acquisition is no longer probable. | |
(7) | Includes 15 CDFS business properties aggregating 1.9 million square feet, eight CDFS business properties aggregating 1.1 million square feet and 10 CDFS business properties aggregating 2.3 million square feet that were sold to third parties during 2006, 2005 and 2004, respectively, that met the criteria to be presented as discontinued operations. |
| In North America, in 2006, we acquired 895 acres of land for future potential development in the United States and Mexico. In 2005, we started our first developments in Canada and as part of the Catellus Merger, we acquired 2,500 acres of land for future potential development in North America in our existing markets and also acquired interests in several entities that engage in land and commercial development activities in North America, all of which we believe will provide additional CDFS business opportunities. |
45
| In Europe, during 2006, we acquired 1,096 acres of land for future potential development. This included land acquired in the United Kingdom to support more than 3.5 million square feet of distribution development in the East and West Midlands. | |
| In Asia, we believe demand for state-of-the-art distribution properties will continue to provide opportunities for us in the CDFS business segment. In China, we are positioning ourselves to meet what we believe will be significant future demand for distribution space due to the expected growth in manufacturing and consumer demand for goods. In both China and Japan, the CDFS business opportunities available to us will be limited if we are unable to acquire adequate land parcels for development. |
46
47
48
| development of properties directly and additional investment in joint ventures in the CDFS business segment; | |
| acquisitions of properties in the CDFS business segment; | |
| acquisitions of land for future development in the CDFS business segment; | |
| direct acquisitions of operating properties and/or portfolios of operating properties in key distribution markets for direct, long-term investment in the property operations segment; | |
| capital expenditures on properties; and | |
| scheduled principal and interest payments and repayment of debt that is scheduled to mature. |
| property operations; | |
| fees and incentives earned for services performed on behalf of the property funds; | |
| proceeds from the contributions of properties to property funds (existing property funds and property funds that may be formed in the future); | |
| proceeds from the sale of certain properties, including properties that are classified as held for sale; | |
| proceeds from the disposition of land parcels and properties to third parties; | |
| borrowing capacity under the Global Line or other credit facilities; | |
| assumption of debt in connection with acquisitions; and | |
| proceeds from the issuance of equity or debt securities, including sales under various common share plans. |
49
| Investments in real estate required cash of $4.1 billion in 2006, $2.6 billion in 2005 and $1.7 billion in 2004. These amounts include the acquisition of operating properties (74 properties, 25 properties and 31 properties with an aggregate purchase price of $735.4 million, $453.9 million and $322.3 million in 2006, 2005 and 2004, respectively); acquisitions of land for future development; costs for current and future development projects; and recurring capital expenditures and tenant improvements on existing operating properties. At December 31, 2006, we had 114 properties aggregating 30.0 million square feet under development, with a total expected investment of $2.2 billion. | |
| Invested cash in new and existing unconsolidated investees of $217.9 million, $16.7 million and $63.5 million in 2006, 2005 and 2004, respectively. These additional investments were primarily in the North American Industrial Fund and CDFS joint ventures in China, including $42.2 million that was escrowed in 2006 for future potential investments in a CDFS joint venture that develops retail properties, subject to the attainment of certain performance criteria. In January 2006, we invested $55.0 million in a preferred interest in ProLogis North American Properties Fund V, which we sold in August 2006, as discussed below. | |
| Generated net cash from contributions and dispositions of properties and land parcels of $2.1 billion, $1.5 billion and $1.4 billion in 2006, 2005 and 2004, respectively. See further discussion in Results of Operations CDFS Segment. | |
| Received proceeds from unconsolidated investees as a return of investment of $146.2 million, $48.7 million and $53.4 million in 2006, 2005 and 2004, respectively (including $42.0 million from LAAFB JV and $55.0 million related to the sale of a preferred interest in ProLogis North American Properties Fund V, both of which occurred in 2006). |
50
| Invested cash of $259.2 million in connection with the purchase of our fund partners ownership interests in Funds II-IV during the first quarter of 2006. | |
| Invested cash of $113.9 million related to an acquisition that closed in February 2007. See Note 20 to our Consolidated Financial Statements in Item 8. | |
| Generated net cash proceeds from payments on notes receivable related to dispositions of assets of $73.7 million, $60.0 million and zero in 2006, 2005 and 2004, respectively. | |
| Used $1.3 billion of cash (net of Catellus cash on the merger date) as partial consideration related to the Catellus Merger in 2005. | |
| Net cash payment of $333.5 million was made in 2004 associated with the Keystone transaction. |
| Issued $1.9 billion of senior and other notes and repaid $250.0 million of maturing senior notes, resulting in proceeds of $1.7 billion during 2006. Received proceeds from issuance of other debt of $375.0 million for 2006 (net of $135.0 million of secured debt that was paid off prior to maturity). In 2005, we received proceeds from the issuance of senior notes of $890.0 million and proceeds from borrowings on credit facilities and short-term borrowings of $1.3 billion, which were used primarily for the cash consideration for the Catellus Merger and repayment of $106.4 million of debt assumed in the Catellus Merger. In 2004, we received proceeds from the issuance of senior notes of $420.6 million and proceeds from borrowings on credit facilities and short-term $210.8 million. | |
| Distributions paid to holders of common shares were $393.3 million, $297.4 million and $266.1 million in 2006, 2005 and 2004, respectively. Dividends paid on preferred shares were $19.1 million, $25.4 million and $25.7 million in 2006, 2005 and 2004, respectively. | |
| Generated proceeds from sales and issuances of common shares of $358.0 million, $45.6 million and $146.8 million in 2006, 2005 and 2004, respectively. This includes $320.8 million received for the issuance of 5.4 million common shares under our Controlled Equity Offering Program. | |
| Redeemed preferred shares in 2004 for $125.0 million. |
51
Third Party |
Weighted Average |
Our |
||||||||||||||
Total Assets | Debt (1) (2) | Interest Rate | Ownership | |||||||||||||
ProLogis California
|
$ | 608.6 | $ | 325.0 | 7.5 | % | 50.0 | % | ||||||||
ProLogis North American Properties
Fund I
|
333.3 | 242.3 | 7.6 | % | 41.3 | % | ||||||||||
ProLogis North American Properties
Fund V
|
2,517.1 | 827.2 | 5.4 | % | 11.3 | % | ||||||||||
ProLogis North American Properties
Fund VI
|
508.4 | 307.0 | 5.4 | % | 20.0 | % | ||||||||||
ProLogis North American Properties
Fund VII
|
382.8 | 229.0 | 5.5 | % | 20.0 | % | ||||||||||
ProLogis North American Properties
Fund VIII
|
191.5 | 112.0 | 5.3 | % | 20.0 | % | ||||||||||
ProLogis North American Properties
Fund IX
|
191.8 | 122.1 | 5.7 | % | 20.0 | % | ||||||||||
ProLogis North American Properties
Fund X
|
214.5 | 135.0 | 5.7 | % | 20.0 | % | ||||||||||
ProLogis North American Properties
Fund XI
|
228.4 | 66.1 | 4.5 | % | 20.0 | % | ||||||||||
ProLogis North American Industrial
Fund
|
1,244.3 | 748.1 | 5.4 | % | 20.0 | % | ||||||||||
ProLogis European Properties
|
4,856.0 | 2,615.6 | 5.3 | % | 24.0 | % | ||||||||||
ProLogis Japan Properties
Fund I
|
1,215.5 | 528.7 | 1.5 | % | 20.0 | % | ||||||||||
ProLogis Japan Properties
Fund II
|
742.8 | 375.5 | 2.0 | % | 20.0 | % | ||||||||||
Total property funds
|
$ | 13,235.0 | $ | 6,633.6 | ||||||||||||
(1) | As of December 31, 2006, we had guaranteed $15.0 million related to borrowings of ProLogis North American Properties Fund V, which was repaid in January 2007 with proceeds from the issuance of secured debt that we do not guarantee. |
(2) | The approximate principal payments due on the third party debt of the property funds during each of the years in the five year period ending December 31, 2011 and thereafter are as follows: 2007 $976.0 million; 2008 $392.0 million; 2009 $1,268.8 million; 2010 $1,255.7 million; 2011 $522.8 million; and thereafter $2,218.3 million. |
52
Payments Due By Period | ||||||||||||||||||||
Less than |
1 to 3 |
3 to 5 |
More than |
|||||||||||||||||
Total | 1 year | years | years | 5 years | ||||||||||||||||
Long-term debt obligations
|
$ | 5,871 | $ | 543 | $ | 1,095 | $ | 1,078 | $ | 3,155 | ||||||||||
Interest on long-term debt
obligations
|
2,006 | 334 | 560 | 441 | 671 | |||||||||||||||
Unfunded commitments on
development projects (1)
|
1,226 | 1,226 | | | | |||||||||||||||
Amounts due on credit facilities
(2)
|
2,463 | | | 2,463 | | |||||||||||||||
Interest on lines of credit and
short-term borrowings (2)
|
329 | 88 | 174 | 67 | | |||||||||||||||
Totals
|
$ | 11,895 | $ | 2,191 | $ | 1,829 | $ | 4,049 | $ | 3,826 | ||||||||||
(1) | We had properties under development at December 31, 2006 with a total expected investment of $2.2 billion. The unfunded commitments presented include all costs necessary to place the property into service, including the costs of tenant improvements and marketing and leasing costs, not only those costs that we are obligated to fund under construction contracts. | |
(2) | The maturity date of the credit agreements assumes that we exercise our option to extend. |
53
54
(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 risks. |
| The current income tax expenses that are excluded from our defined FFO measure represent the taxes that are payable. |
55
| 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 distribution 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 measure 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 measure does 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 measure 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 amount. Our FFO measure is limited in that it does not reflect the current period changes in these net assets that result from periodic foreign currency exchange rate movements. |
56
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
FFO:
|
||||||||||||
Reconciliation of net earnings to
FFO:
|
||||||||||||
Net earnings attributable to
common shares
|
$ | 848,951 | $ | 370,747 | $ | 202,813 | ||||||
Add (deduct) NAREIT defined
adjustments:
|
||||||||||||
Real estate related depreciation
and amortization
|
283,701 | 184,792 | 158,344 | |||||||||
Additional CDFS proceeds recognized
|
466 | | | |||||||||
Gains recognized on dispositions
of certain non-CDFS business assets and other
|
(81,470 | ) | | (6,236 | ) | |||||||
Reconciling items attributable to
discontinued operations:
|
||||||||||||
Gains recognized on dispositions
of non-CDFS business assets
|
(103,729 | ) | (86,444 | ) | (1,718 | ) | ||||||
Real estate related depreciation
and amortization
|
5,315 | 11,399 | 6,351 | |||||||||
Totals discontinued operations
|
(98,414 | ) | (75,045 | ) | 4,633 | |||||||
Our share of reconciling items
from unconsolidated investees:
|
||||||||||||
Real estate related depreciation
and amortization
|
68,151 | 57,766 | 42,635 | |||||||||
(Gains) losses on dispositions of
non-CDFS business assets
|
(7,124 | ) | (1,114 | ) | 601 | |||||||
Other amortization items
|
(16,000 | ) | (5,134 | ) | (3,498 | ) | ||||||
Totals unconsolidated investees
|
45,027 | 51,518 | 39,738 | |||||||||
Totals NAREIT defined adjustments
|
149,310 | 161,265 | 196,479 | |||||||||
Subtotals NAREIT
defined FFO
|
998,261 | 532,012 | 399,292 | |||||||||
Add (deduct) our defined
adjustments:
|
||||||||||||
Foreign currency exchange gains,
net
|
(19,555 | ) | (14,065 | ) | (16,590 | ) | ||||||
Current income tax expense
|
23,191 | | | |||||||||
Deferred income tax (benefit)
expense
|
(53,722 | ) | 12,045 | 18,692 | ||||||||
Reconciling items attributable to
discontinued operations deferred income tax benefit
|
| (213 | ) | (1,075 | ) | |||||||
Our share of reconciling items
from unconsolidated investees:
|
||||||||||||
Foreign currency exchange (gains)
expenses/losses, net
|
(45 | ) | 298 | 443 | ||||||||
Deferred income tax (benefit)
expense
|
(2,982 | ) | 395 | (359 | ) | |||||||
Totals unconsolidated investees
|
(3,027 | ) | 693 | 84 | ||||||||
Totals our defined adjustments
|
(53,113 | ) | (1,540 | ) | 1,111 | |||||||
FFO attributable to common shares
as defined by us
|
$ | 945,148 | $ | 530,472 | $ | 400,403 | ||||||
ITEM 7A. | Quantitative and Qualitative Disclosure About Market Risk |
57
58
59
ITEM 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
60
61
Page | ||||
ProLogis:
|
||||
63 | ||||
65 | ||||
66 | ||||
67 | ||||
68 | ||||
69 | ||||
117 | ||||
118 |
62
63
64
2006 | 2005 | 2004 | ||||||||||
Revenues:
|
||||||||||||
Rental income
|
$ | 927,719 | $ | 600,869 | $ | 509,490 | ||||||
CDFS disposition proceeds
|
1,286,841 | 1,140,457 | 1,288,665 | |||||||||
Property management and other fees
and incentives
|
211,929 | 66,934 | 50,778 | |||||||||
Development management and other
income
|
37,420 | 25,464 | 2,698 | |||||||||
Total revenues
|
2,463,909 | 1,833,724 | 1,851,631 | |||||||||
Expenses:
|
||||||||||||
Rental expenses
|
239,545 | 161,680 | 131,238 | |||||||||
Cost of CDFS dispositions
|
993,926 | 917,782 | 1,111,698 | |||||||||
General and administrative
|
156,889 | 107,164 | 84,861 | |||||||||
Depreciation and amortization
|
293,027 | 191,945 | 161,968 | |||||||||
Merger integration expenses
|
2,630 | 12,152 | | |||||||||
Relocation expenses
|
93 | 4,451 | 6,794 | |||||||||
Other expenses
|
13,013 | 8,633 | 5,519 | |||||||||
Total expenses
|
1,699,123 | 1,403,807 | 1,502,078 | |||||||||
Operating income
|
764,786 | 429,917 | 349,553 | |||||||||
Other income (expense):
|
||||||||||||
Earnings from unconsolidated
property funds
|
93,055 | 46,078 | 42,899 | |||||||||
Earnings (losses) from CDFS joint
ventures and other unconsolidated investees
|
50,703 | 6,421 | (801 | ) | ||||||||
Interest expense
|
(294,403 | ) | (177,562 | ) | (152,551 | ) | ||||||
Interest income on long-term notes
receivable
|
16,730 | 6,781 | | |||||||||
Interest and other income, net
|
18,248 | 10,724 | 5,721 | |||||||||
Total other income (expense)
|
(115,667 | ) | (107,558 | ) | (104,732 | ) | ||||||
Earnings before minority interest
|
649,119 | 322,359 | 244,821 | |||||||||
Minority interest
|
3,457 | 5,243 | 4,875 | |||||||||
Earnings before certain net gains
|
645,662 | 317,116 | 239,946 | |||||||||
Gains recognized on dispositions of
certain non-CDFS business assets and other
|
81,470 | | 9,400 | |||||||||
Foreign currency exchange gains, net
|
21,086 | 15,979 | 14,686 | |||||||||
Earnings before income taxes
|
748,218 | 333,095 | 264,032 | |||||||||
Income taxes:
|
||||||||||||
Current income tax expense
|
84,250 | 14,847 | 24,870 | |||||||||
Deferred income tax (benefit)
expense
|
(53,722 | ) | 12,045 | 18,692 | ||||||||
Total income taxes
|
30,528 | 26,892 | 43,562 | |||||||||
Earnings from continuing operations
|
717,690 | 306,203 | 220,470 | |||||||||
Discontinued operations:
|
||||||||||||
Income attributable to disposed
properties and assets held for sale
|
19,434 | 18,050 | 14,728 | |||||||||
Losses related to
temperature-controlled distribution assets
|
| (25,150 | ) | (36,671 | ) | |||||||
Gains recognized on dispositions:
|
||||||||||||
Non-CDFS business assets
|
103,729 | 86,444 | 1,549 | |||||||||
CDFS business assets
|
33,514 | 10,616 | 32,719 | |||||||||
Total discontinued operations
|
156,677 | 89,960 | 12,325 | |||||||||
Net earnings
|
874,367 | 396,163 | 232,795 | |||||||||
Less preferred share dividends
|
25,416 | 25,416 | 25,746 | |||||||||
Less excess of redemption values
over carrying values of preferred shares redeemed
|
| | 4,236 | |||||||||
Net earnings attributable to common
shares
|
$ | 848,951 | $ | 370,747 | $ | 202,813 | ||||||
Weighted average common shares
outstanding Basic
|
245,952 | 203,337 | 182,226 | |||||||||
Weighted average common shares
outstanding Diluted
|
256,852 | 213,713 | 191,801 | |||||||||
Net earnings per share attributable
to common shares Basic:
|
||||||||||||
Continuing operations
|
$ | 2.81 | $ | 1.38 | $ | 1.04 | ||||||
Discontinued operations
|
0.64 | 0.44 | 0.07 | |||||||||
Net earnings per share attributable
to common shares Basic
|
$ | 3.45 | $ | 1.82 | $ | 1.11 | ||||||
Net earnings per share attributable
to common shares Diluted:
|
||||||||||||
Continuing operations
|
$ | 2.71 | $ | 1.34 | $ | 1.02 | ||||||
Discontinued operations
|
0.61 | 0.42 | 0.06 | |||||||||
Net earnings per share attributable
to common shares Diluted
|
$ | 3.32 | $ | 1.76 | $ | 1.08 | ||||||
Distributions per common share
|
$ | 1.60 | $ | 1.48 | $ | 1.46 | ||||||
65
December 31, | ||||||||
2006 | 2005 | |||||||
ASSETS
|
||||||||
Real estate
|
$ | 13,953,999 | $ | 11,875,130 | ||||
Less accumulated depreciation
|
1,280,206 | 1,118,547 | ||||||
12,673,793 | 10,756,583 | |||||||
Investments in and advances to
unconsolidated investees
|
1,299,697 | 1,049,743 | ||||||
Cash and cash equivalents
|
475,791 | 203,800 | ||||||
Accounts and notes receivable
|
439,791 | 327,214 | ||||||
Other assets
|
957,295 | 788,840 | ||||||
Discontinued
operations assets held for sale
|
57,158 | | ||||||
Total assets
|
$ | 15,903,525 | $ | 13,126,180 | ||||
LIABILITIES AND
SHAREHOLDERS EQUITY
|
||||||||
Liabilities:
|
||||||||
Debt
|
$ | 8,386,886 | $ | 6,677,880 | ||||
Accounts payable and accrued
expenses
|
518,651 | 344,423 | ||||||
Other liabilities
|
546,129 | 557,210 | ||||||
Discontinued
operations assets held for sale
|
1,012 | | ||||||
Total liabilities
|
9,452,678 | 7,579,513 | ||||||
Minority interest
|
52,268 | 58,644 | ||||||
Shareholders equity:
|
||||||||
Series C preferred shares at
stated liquidation preference of $50.00 per share;
$0.01 par value; 2,000 shares issued and outstanding
at December 31, 2006 and 2005
|
100,000 | 100,000 | ||||||
Series F preferred shares at
stated liquidation preference of $25.00 per share;
$0.01 par value; 5,000 shares issued and outstanding
at December 31, 2006 and 2005
|
125,000 | 125,000 | ||||||
Series G preferred shares at
stated liquidation preference of $25.00 per share;
$0.01 par value; 5,000 shares issued and outstanding
at December 31, 2006 and 2005
|
125,000 | 125,000 | ||||||
Common shares; $0.01 par
value; 250,912 shares issued and outstanding at
December 31, 2006 and 243,781 shares issued and
outstanding at December 31, 2005
|
2,509 | 2,438 | ||||||
Additional paid-in capital
|
6,000,119 | 5,606,017 | ||||||
Accumulated other comprehensive
income
|
216,922 | 149,586 | ||||||
Distributions in excess of net
earnings
|
(170,971 | ) | (620,018 | ) | ||||
Total shareholders equity
|
6,398,579 | 5,488,023 | ||||||
Total liabilities and
shareholders equity
|
$ | 15,903,525 | $ | 13,126,180 | ||||
66
2006 | 2005 | 2004 | ||||||||||
Common shares number of
shares at beginning of year
|
243,781 | 185,789 | 180,183 | |||||||||
Issuance of common shares in
connection with the Catellus Merger
|
| 55,889 | | |||||||||
Issuances of common shares under
common share plans
|
6,951 | 2,092 | 5,590 | |||||||||
Conversions of limited partnership
units
|
180 | 11 | 16 | |||||||||
Common shares number of
shares at end of year
|
250,912 | 243,781 | 185,789 | |||||||||
Common shares par value
at beginning of year
|
$ | 2,438 | $ | 1,858 | $ | 1,802 | ||||||
Issuance of common shares in
connection with the Catellus Merger
|
| 559 | | |||||||||
Issuances of common shares under
common share plans
|
69 | 21 | 56 | |||||||||
Conversions of limited partnership
units
|
2 | | | |||||||||
Common shares par value
at end of year
|
$ | 2,509 | $ | 2,438 | $ | 1,858 | ||||||
Preferred shares at stated
liquidation preference at beginning of year
|
$ | 350,000 | $ | 350,000 | $ | 475,000 | ||||||
Redemption of Series D
preferred shares
|
| | (125,000 | ) | ||||||||
Preferred shares at stated
liquidation preference at end of year
|
$ | 350,000 | $ | 350,000 | $ | 350,000 | ||||||
Additional paid-in capital at
beginning of year
|
$ | 5,606,017 | $ | 3,249,576 | $ | 3,073,959 | ||||||
Issuance of common shares in
connection with the Catellus Merger
|
| 2,285,029 | | |||||||||
Issuances of common shares under
common share plans
|
357,448 | 43,126 | 148,248 | |||||||||
Conversions of limited partnership
units
|
6,475 | 150 | 869 | |||||||||
Excess of redemption values over
carrying values of preferred shares redeemed
|
| | 4,236 | |||||||||
Cost of issuing preferred shares
|
| | (473 | ) | ||||||||
Cost of issuing common shares
|
(76 | ) | (1,395 | ) | (157 | ) | ||||||
Change in receivable from timing
differences on equity transactions
|
244 | 2,494 | (1,365 | ) | ||||||||
Cost of share-based compensation
awards
|
30,011 | 27,037 | 24,259 | |||||||||
Additional paid-in capital at end
of year
|
$ | 6,000,119 | $ | 5,606,017 | $ | 3,249,576 | ||||||
Accumulated other comprehensive
income at beginning of year
|
$ | 149,586 | $ | 194,445 | $ | 138,235 | ||||||
Foreign currency translation gains
(losses), net
|
70,777 | (70,076 | ) | 63,276 | ||||||||
Unrealized (losses) gains on
derivative contracts, net
|
(3,441 | ) | 25,217 | (7,066 | ) | |||||||
Accumulated other comprehensive
income at end of year
|
$ | 216,922 | $ | 149,586 | $ | 194,445 | ||||||
Distributions in excess of net
earnings at beginning of year
|
$ | (620,018 | ) | $ | (693,386 | ) | $ | (630,064 | ) | |||
Net earnings
|
874,367 | 396,163 | 232,795 | |||||||||
Preferred share dividends
|
(25,416 | ) | (25,416 | ) | (25,746 | ) | ||||||
Excess of redemption values over
carrying values of preferred shares redeemed
|
| | (4,236 | ) | ||||||||
Common share distributions
|
(399,904 | ) | (297,379 | ) | (266,135 | ) | ||||||
Distributions in excess of net
earnings at end of year
|
$ | (170,971 | ) | $ | (620,018 | ) | $ | (693,386 | ) | |||
Total shareholders equity at
end of year
|
$ | 6,398,579 | $ | 5,488,023 | $ | 3,102,493 | ||||||
Comprehensive income attributable
to common shares:
|
||||||||||||
Net earnings
|
$ | 874,367 | $ | 396,163 | $ | 232,795 | ||||||
Preferred share dividends
|
(25,416 | ) | (25,416 | ) | (25,746 | ) | ||||||
Excess of redemption values over
carrying values of preferred shares redeemed
|
| | (4,236 | ) | ||||||||
Foreign currency translation gains
(losses), net
|
70,777 | (70,076 | ) | 63,276 | ||||||||
(Losses) gains on derivative
contracts, net
|
(3,441 | ) | 25,217 | (7,066 | ) | |||||||
Comprehensive income attributable
to common shares
|
$ | 916,287 | $ | 325,888 | $ | 259,023 | ||||||
67
2006 | 2005 | 2004 | ||||||||||
Operating activities:
|
||||||||||||
Net earnings
|
$ | 874,367 | $ | 396,163 | $ | 232,795 | ||||||
Minority interest share in earnings
|
3,457 | 5,243 | 4,875 | |||||||||
Adjustments to reconcile net
earnings to net cash provided by operating activities:
|
||||||||||||
Straight-lined rents
|
(36,418 | ) | (11,411 | ) | (9,654 | ) | ||||||
Cost of share-based compensation
awards
|
21,567 | 22,615 | 15,290 | |||||||||
Depreciation and amortization
|
298,342 | 204,378 | 174,606 | |||||||||
Cumulative translation losses and
impairment charge on assets held for sale
|
| 26,864 | 50,582 | |||||||||
Equity in earnings from
unconsolidated investees
|
(143,758 | ) | (52,499 | ) | (42,098 | ) | ||||||
Distributions from and changes in
operating receivables of unconsolidated investees
|
99,062 | 47,514 | 34,452 | |||||||||
Amortization of deferred loan costs
and net premium on debt
|
(6,366 | ) | 1,615 | 5,741 | ||||||||
Gains recognized on dispositions of
non-CDFS business assets and investments in property funds, net
|
(185,199 | ) | (86,444 | ) | (10,949 | ) | ||||||
Adjustments to foreign currency
exchange amounts recognized
|
(18,774 | ) | (10,288 | ) | (10,477 | ) | ||||||
Deferred income tax (benefit)
expense
|
(53,722 | ) | 12,045 | 18,692 | ||||||||
Increase in accounts and notes
receivable and other assets
|
(203,918 | ) | (54,091 | ) | (64,582 | ) | ||||||
Increase (decrease) in accounts
payable and accrued expenses and other liabilities
|
72,201 | (2,986 | ) | 117,102 | ||||||||
Net cash provided by operating
activities
|
720,841 | 498,718 | 516,375 | |||||||||
Investing activities:
|
||||||||||||
Real estate investments
|
(3,729,313 | ) | (2,468,396 | ) | (1,659,209 | ) | ||||||
Purchase of ownership interests in
property funds
|
(259,248 | ) | | | ||||||||
Tenant improvements and lease
commissions on previously leased space
|
(66,787 | ) | (53,919 | ) | (46,693 | ) | ||||||
Recurring capital expenditures
|
(29,437 | ) | (26,989 | ) | (24,561 | ) | ||||||
Cash consideration paid in Catellus
Merger in 2005 and Keystone Transaction in 2004, net of cash
acquired
|
| (1,292,644 | ) | (510,560 | ) | |||||||
Cash received associated with the
Keystone Transaction
|
| | 177,106 | |||||||||
Proceeds from dispositions of real
estate assets
|
2,095,231 | 1,516,614 | 1,405,420 | |||||||||
Proceeds from dispositions of
investments in unconsolidated investees
|
| | 13,209 | |||||||||
Advances on notes receivable
|
(115,417 | ) | | | ||||||||
Proceeds from repayments of notes
receivable
|
73,723 | 59,991 | | |||||||||
Increase in restricted cash for
potential investment
|
(42,174 | ) | | | ||||||||
Investments in unconsolidated
investees
|
(175,677 | ) | (16,726 | ) | (63,528 | ) | ||||||
Return of investment from
unconsolidated investees
|
146,206 | 48,652 | 53,361 | |||||||||
Adjustments to cash balances
resulting from a reporting change
|
| | 3,284 | |||||||||
Net cash used in investing
activities
|
(2,102,893 | ) | (2,233,417 | ) | (652,171 | ) | ||||||
Financing activities:
|
||||||||||||
Net proceeds from sales and
issuances of common shares under various common share plans
|
358,038 | 45,641 | 146,782 | |||||||||
Redemptions of preferred shares
|
| | (125,000 | ) | ||||||||
Distributions paid on common shares
|
(393,317 | ) | (297,379 | ) | (266,135 | ) | ||||||
Minority interest redemptions and
distributions
|
(11,576 | ) | (13,953 | ) | (7,685 | ) | ||||||
Dividends paid on preferred shares
|
(19,062 | ) | (25,416 | ) | (25,746 | ) | ||||||
Debt and equity issuance costs paid
|
(13,840 | ) | (8,112 | ) | (4,507 | ) | ||||||
Repayment of debt assumed in
Catellus Merger
|
| (106,356 | ) | | ||||||||
Net proceeds from lines of credit
and short-term borrowings
|
368,158 | 1,348,023 | 210,784 | |||||||||
Proceeds from issuance of senior
and other notes and secured debt
|
1,945,325 | 890,011 | 420,573 | |||||||||
Payments on senior notes, secured
debt and assessment bonds
|
(588,844 | ) | (119,067 | ) | (312,465 | ) | ||||||
Net cash provided by financing
activities
|
1,644,882 | 1,713,392 | 36,601 | |||||||||
Effect of exchange rate changes on
cash
|
9,161 | (11,422 | ) | 4,221 | ||||||||
Net increase (decrease) in cash and
cash equivalents
|
271,991 | (32,729 | ) | (94,974 | ) | |||||||
Cash and cash equivalents,
beginning of year
|
203,800 | 236,529 | 331,503 | |||||||||
Cash and cash equivalents, end of
year
|
$ | 475,791 | $ | 203,800 | $ | 236,529 | ||||||
68
1. | Description of Business: |
2. | Summary of Significant Accounting Policies: |
(i) | the form of our ownership interest; | |
(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. |
69
70
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Gains from remeasurement of
certain intercompany and third party debt, net
|
$ | 36,025 | $ | 11,316 | $ | 11,075 | ||||||
Gains (losses) from the settlement
of certain intercompany and third party debt, net (1)
|
1,843 | (4,418 | ) | 4,065 | ||||||||
Transaction gains (losses), net
|
(2,068 | ) | (638 | ) | 144 | |||||||
Derivative financial
instruments (2):
|
||||||||||||
Expense associated with contracts
settled during the period
|
(1,274 | ) | (1,028 | ) | (2,048 | ) | ||||||
Mark-to-market
(losses) gains on outstanding contracts, net
|
(15,977 | ) | | 1,450 | ||||||||
Gains realized at settlement of
contracts (1)
|
2,537 | 10,747 | | |||||||||
Totals
|
$ | 21,086 | $ | 15,979 | $ | 14,686 | ||||||
(1) | At the time certain debt balances are settled, remeasurement gains or losses that have been recognized in results of operations as unrealized are reversed and the cumulative foreign currency exchange gain or loss realized with respect to the settled balance is recognized in our results of operations as a realized gain or loss. During 2006, 2005 and 2004, we recognized gains of $6.2 million, losses of $7.2 million and gains of $4.1 million, respectively, due to the settlement of intercompany loans denominated in British pounds sterling. In addition, during 2006 and 2005, we recognized gains of $2.4 million and $6.1 million, respectively (with no gains in 2004), associated with derivative contracts that settled during the period and were designed to manage the foreign currency fluctuations of these intercompany loans. | |
(2) | We enter into foreign currency put option contracts related to our operations in Europe and Japan. These put option contracts do not qualify for hedge accounting treatment. Accordingly, the cost of the contract is capitalized at the contracts inception and we mark the derivative to market as of the end of each subsequent reporting period and the related gains or losses are recorded in our earnings. Upon settlement of the contract, the mark-to-market adjustment is reversed, the total cost of the contract is expensed and any proceeds received are recognized as a realized gain. |
71
72
| 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; |
73
| the value of costs to obtain tenants, primarily leasing commissions. These costs are recorded in other assets; | |
| 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 term of the acquired 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 to expense over the remaining term of the contract. |
74
75
76
3. | Mergers and Acquisitions: |
77
4. | Unconsolidated Investees: |
December 31, | ||||||||
2006 | 2005 | |||||||
Property funds
|
$ | 981,840 | $ | 755,320 | ||||
CDFS joint ventures and other
unconsolidated investees
|
317,857 | 294,423 | ||||||
Totals
|
$ | 1,299,697 | $ | 1,049,743 | ||||
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Earnings from unconsolidated
property funds:
|
||||||||||||
North America
|
$ | 59,732 | $ | 24,224 | $ | 25,532 | ||||||
Europe
|
21,605 | 13,938 | 12,550 | |||||||||
Asia
|
11,718 | 7,916 | 4,817 | |||||||||
Total earnings from unconsolidated
property funds
|
$ | 93,055 | $ | 46,078 | $ | 42,899 | ||||||
Property management and other fees
and incentives:
|
||||||||||||
North America
|
$ | 57,800 | $ | 32,124 | $ | 22,505 | ||||||
Europe
|
145,622 | 30,064 | 25,336 | |||||||||
Asia
|
8,507 | 4,746 | 2,937 | |||||||||
Total property management and
other fees and incentives
|
$ | 211,929 | $ | 66,934 | $ | 50,778 | ||||||
78
CDFS disposition proceeds (1)
|
$ | 12,492 | ||
Property management and other fees
and incentives (2)
|
$ | 21,958 | ||
Earnings from unconsolidated
property funds (3)
|
$ | 37,113 |
(1) | Represents the recognition of proceeds that we had previously deferred as part of CDFS proceeds upon the initial contributions of the properties to Funds II-IV. | |
(2) | Represents an incentive return we earned due to certain return levels achieved by our fund partner upon the termination of Funds II-IV. | |
(3) | Represents our proportionate share of the gain on termination recognized by Funds II-IV. |
Square |
||||||||||||||||||||||||
Number of |
feet |
|||||||||||||||||||||||
properties |
(in |
Ownership |
Investment in |
|||||||||||||||||||||
owned | millions) | Percentage | and advances to | |||||||||||||||||||||
Fund Names
|
2006 | 2006 | 2006 | 2005 | 2006 | 2005 | ||||||||||||||||||
ProLogis California (ProLogis
California I LLC ) (1)
|
81 | 14.2 | 50.0% | 50.0% | $ | 112,915 | $ | 115,743 | ||||||||||||||||
ProLogis North American Properties Fund I (ProLogis North American Properties Fund I LLC)(1) | 36 | 9.4 | 41.3% | 41.3% | 30,902 | 33,241 | ||||||||||||||||||
ProLogis North American Properties Fund II IV (2) | | | | 20.0% | | 12,410 | ||||||||||||||||||
ProLogis North American Properties Fund V (3) | 154 | 36.2 | 11.3% | 11.3% | 53,331 | 53,104 | ||||||||||||||||||
ProLogis North American Properties Fund VI (Allagash Property Trust) (1) | 22 | 8.6 | 20.0% | 20.0% | 39,149 | 42,227 | ||||||||||||||||||
ProLogis North American Properties Fund VII (Brazos Property Trust) (1) | 29 | 6.1 | 20.0% | 20.0% | 31,816 | 32,543 | ||||||||||||||||||
ProLogis North American Properties Fund VIII (Cimmaron Property Trust) (1) | 24 | 3.1 | 20.0% | 20.0% | 15,397 | 15,602 | ||||||||||||||||||
ProLogis North American Properties Fund IX (Deerfield Property Trust) (1) | 20 | 3.4 | 20.0% | 20.0% | 14,076 | 14,274 | ||||||||||||||||||
ProLogis North American Properties Fund X (Elkhorn Property Trust) (1) | 29 | 4.2 | 20.0% | 20.0% | 15,399 | 15,968 | ||||||||||||||||||
ProLogis North American Properties Fund XI (KPJV, LLP) (1) | 14 | 4.3 | 20.0% | 20.0% | 31,871 | 33,094 | ||||||||||||||||||
ProLogis North American Industrial Fund (4) | 126 | 21.2 | 20.0% | | 72,053 | | ||||||||||||||||||
PEPR (ProLogis European Properties) (5) | 277 | 58.1 | 24.0% | 21.0% | 430,761 | 283,435 | ||||||||||||||||||
ProLogis Japan Properties Fund I (PLD/RECO Japan TMK Property Trust) (1) | 18 | 7.4 | 20.0% | 20.0% | 87,705 | 103,679 | ||||||||||||||||||
ProLogis Japan Properties Fund II (ProLogis Japan Properties Trust) (1)(6) | 13 | 5.1 | 20.0% | | 46,465 | | ||||||||||||||||||
Totals | 843 | 181.3 | $ | 981,840 | $ | 755,320 | ||||||||||||||||||
79
(1) | We have one fund partner in each of these property funds. | |
(2) | As discussed above, on January 4, 2006, we purchased the remaining 80% ownership interests of our fund partner in each of these property funds and subsequently contributed substantially all the assets and associated liabilities into the North American Industrial Fund. | |
(3) | We refer to the combined entities in which we have ownership interests (ProLogis-Macquarie Fund and the management company, as discussed below) as one property fund named ProLogis North American Properties Fund V. |
| Our ownership interest is held directly or indirectly by us, Macquarie ProLogis Trust (MPR), a publicly traded listed property trust in Australia and Macquarie Bank Limited (Macquarie Bank). We and a United States subsidiary of Macquarie Bank each have a 50% ownership interest in a company that was formed to act as manager of the ProLogis-Macquarie Fund. | |
| At December 31, 2006, we had guaranteed $15.0 million of borrowings to ProLogis North American Properties Fund V outstanding on a term loan that was repaid in January 2007 with proceeds from the issuance of secured debt which we do not guarantee. At December 31, 2005, we had guaranteed $12.5 million of borrowings of ProLogis North American Properties Fund V outstanding on a term loan that was repaid in 2006. | |
| On January 9, 2006, a preferred unit holder in a subsidiary of ProLogis North American Properties Fund V exercised its option to put its interest to us for $55.0 million, which we acquired. We had an agreement with ProLogis North American Properties Fund V that enabled us to put this interest to the fund at the same price after June 30, 2006. On August 4, 2006, we exercised our option and received payment from ProLogis North American Properties Fund V. | |
| During 2006, we contributed 20 properties for aggregate proceeds of $132.4 million to ProLogis North American Properties Fund V. |
(4) | In February 2006, we formed the North American Industrial Fund, with ten institutional investors, which will primarily own distribution properties in major distribution markets throughout the United States and Canada. We refer to the combined entities in which we have ownership interests 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. We are committed to offer to contribute to substantially all of our stabilized distribution properties developed in Canada and the United States to the North American Industrial Fund. The North American Industrial Fund has equity commitments, which expire in February 2009, aggregating approximately $1.5 billion from third party investors, of which $1.1 billion was unfunded at December 31, 2006. During 2006, we contributed 49 buildings for aggregate proceeds of $451.8 million to the North American Industrial Fund in addition to the assets that were acquired from Funds II-IV, as discussed above. | |
(5) | During 2006, prior to PEPRs IPO, we contributed 19 properties to PEPR for aggregate proceeds of $419.6 million. In connection with PEPRs IPO, we entered into a property contribution agreement under which we are committed to offer to contribute to PEPR certain stabilized properties having an aggregate contribution value of 200 million (the currency equivalent of $263.6 million at December 31, 2006), in specified markets in Europe through September 30, 2007, subject to the property meeting certain leasing and other criteria. As of December 31, 2006, we had not contributed any properties under this commitment. | |
(6) | ProLogis Japan Properties Fund II was formed on September 1, 2005. We are committed to offer to contribute all of the properties that we develop and stabilize in Japan through August 2008 to this property fund, subject to the property meeting certain leasing and other criteria. ProLogis Japan Properties Fund II has an equity commitment of $600.0 million from our fund partner, which expires in August 2008, of |
80
which $408.4 million was unfunded at December 31, 2006. During the year ended December 31, 2006, we contributed six properties to this property fund for aggregate proceeds of $405.5 million and the property fund acquired seven properties from third parties. |
2006 | ||||||||||||||||
North |
||||||||||||||||
America | Europe | Asia | Total | |||||||||||||
Revenues
|
$ | 494.6 | $ | 414.4 | $ | 120.9 | $ | 1,029.9 | ||||||||
Net earnings (1)
|
$ | 266.2 | $ | 88.2 | $ | 47.7 | $ | 402.1 | ||||||||
Total assets
|
$ | 6,420.7 | $ | 4,856.0 | $ | 1,958.3 | $ | 13,235.0 | ||||||||
Amounts due to us
|
$ | 6.7 | $ | 14.0 | $ | 75.2 | $ | 95.9 | ||||||||
Third party debt (2)
|
$ | 3,113.8 | $ | 2,615.6 | $ | 904.2 | $ | 6,633.6 | ||||||||
Total liabilities
|
$ | 4,360.8 | $ | 2,968.0 | $ | 1,054.2 | $ | 8,383.0 | ||||||||
Equity
|
$ | 2,054.2 | $ | 1,881.4 | $ | 904.1 | $ | 4,839.7 | ||||||||
Our weighted average ownership at
end of period (3)
|
23.1% | 24.0% | 20.0% | 23.0% | ||||||||||||
Our investment balance (4)
|
$ | 416.8 | $ | 430.8 | $ | 134.2 | $ | 981.8 | ||||||||
Deferred proceeds, net of
amortization (5)
|
$ | 112.8 | $ | 123.7 | $ | 66.2 | $ | 302.7 |
2005 | ||||||||||||||||
North |
||||||||||||||||
America | Europe | Asia | Total | |||||||||||||
Revenues
|
$ | 489.9 | $ | 368.6 | $ | 70.7 | $ | 929.2 | ||||||||
Net earnings
|
$ | 99.3 | $ | 54.0 | $ | 32.9 | $ | 186.2 | ||||||||
Total assets
|
$ | 4,786.6 | $ | 4,052.0 | $ | 1,230.1 | $ | 10,068.7 | ||||||||
Amounts due to us
|
$ | 9.0 | $ | 15.7 | $ | 71.3 | $ | 96.0 | ||||||||
Third party debt (2)
|
$ | 2,690.7 | $ | 1,991.2 | $ | 535.1 | $ | 5,217.0 | ||||||||
Total liabilities
|
$ | 2,921.0 | $ | 2,409.6 | $ | 639.8 | $ | 5,970.4 | ||||||||
Equity
|
$ | 1,864.1 | $ | 1,637.9 | $ | 590.3 | $ | 4,092.3 | ||||||||
Our weighted average ownership at
end of period (3)
|
23.5% | 21.0% | 20.0% | 22.1% | ||||||||||||
Our investment balance (4)
|
$ | 368.2 | $ | 283.4 | $ | 103.7 | $ | 755.3 | ||||||||
Deferred proceeds, net of
amortization (5)
|
$ | 77.7 | $ | 105.5 | $ | 44.1 | $ | 227.3 |
(1) | Included in net earnings for Europe are expenses of approximately $43.3 million related to the costs to complete PEPRs IPO, as this was an offering of existing units and no new capital was raised by PEPR. Included in net earnings for North America is $185.7 million representing the net gain recognized by the Funds II-IV upon termination in the first quarter of 2006. | |
(2) | As of December 31, 2006 and 2005, we had guaranteed $15.0 million and $12.5 million, respectively, related to borrowings of ProLogis North American Properties Fund V, both of which were repaid with proceeds from the issuance of secured debt that we do not guarantee. | |
(3) | 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. | |
(4) | The difference between our percentage ownership interest of the property funds equity and our investment balance results 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 |
81
property (see below); (ii) recording additional costs associated with our investment in the property fund; and (iii) advances to the property funds. | ||
(5) | This amount is recorded as a reduction to our investment and represents the proceeds that are deferred when we contribute a property to a property fund due to our continuing ownership in the property. |
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
North America
|
$ | 45,651 | $ | 4,178 | $ | (2,079) | ||||||
Europe
|
2,097 | 1,186 | 1,201 | |||||||||
Asia
|
2,955 | 1,057 | 77 | |||||||||
Total earnings (losses) from CDFS
joint ventures and other unconsolidated investees
|
$ | 50,703 | $ | 6,421 | $ | (801 | ) | |||||
2006 | 2005 | |||||||
CDFS joint ventures:
|
||||||||
United States (1)
|
$ | 75,197 | $ | 113,008 | ||||
Europe (2)
|
8,499 | 12,238 | ||||||
China (3)
|
119,614 | 57,165 | ||||||
Total CDFS joint ventures
|
$ | 203,310 | $ | 182,411 | ||||
Other investees:
|
||||||||
Operating joint ventures (4)
|
$ | 88,104 | $ | 84,731 | ||||
Other
|
26,443 | 27,281 | ||||||
Total other investees
|
$ | 114,547 | $ | 112,012 | ||||
Total
|
$ | 317,857 | $ | 294,423 | ||||
(1) | Includes a 50% interest in one multi-use development entity, two residential development entities and two entities that own or are developing distribution properties. |
82
(2) | Includes investments in joint ventures that own land for future development of distribution properties and develop distribution properties. | |
(3) | Includes investments in joint ventures that own distribution properties that were acquired from third parties or developed by the joint venture, and that also develop distribution properties. In September 2006, we invested in an entity in China that we present on a consolidated basis. This entity has an investment interest ($41.7 million at December 31, 2006) in an entity that primarily owns and develops retail properties and is accounted for under the equity method of accounting. As part of this transaction, we may be required to invest up to $42.2 million of additional equity based on the attainment of certain performance criteria. This amount was deposited in escrow and is included in other assets in our Consolidated Balance Sheet at December 31, 2006. In addition, we have a commitment to provide a financial guarantee for up to 600 million renminbi (the currency equivalent of $76.9 million at December 31, 2006). As of December 31, 2006, we have not been required to provide any guarantees. | |
(4) | Includes investments acquired in connection with the Catellus Merger, consisting primarily of a 25.16% interest in an entity that owns and operates a hotel property, a 38.75% interest in an entity that owns and operates the parking lot adjacent to the hotel property and a 66.67% interest in an entity that owns and operates office properties. |
5. | Long-Term Compensation: |
83
Weighted |
||||||||||||
Average |
||||||||||||
Number of |
Expiration |
Remaining Life |
||||||||||
Options | Exercise Price | Date | (in years) | |||||||||
Outside Trustees Plan
|
110,000 | $19.75 - $43.80 | 2009-2015 | 5.6 | ||||||||
Incentive Plan:
|
||||||||||||
1997 grants
|
133,581 | $21.22 | 2007 | 0.7 | ||||||||
1998 grants
|
662,105 | $20.94 - $21.09 | 2008 | 1.9 | ||||||||
1999 grants
|
651,409 | $17.19 - $18.63 | 2009 | 2.7 | ||||||||
2000 grants
|
645,586 | $21.75 - $24.25 | 2010 | 3.7 | ||||||||
2001 grants
|
529,625 | $20.67 - $22.02 | 2011 | 4.7 | ||||||||
2002 grants
|
985,074 | $22.98 - $24.76 | 2007, 2012 | 5.4 | ||||||||
2003 grants
|
1,205,295 | $24.90 - $31.26 | 2013 | 6.7 | ||||||||
2004 grants
|
1,610,138 | $29.41 - $41.50 | 2014 | 7.7 | ||||||||
2005 grants
|
1,067,210 | $40.86 - $45.46 | 2015 | 8.9 | ||||||||
2006 grants
|
864,030 | $53.07 - $59.92 | 2016 | 10.0 | ||||||||
Total
|
8,464,053 | 6.2 | ||||||||||
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, 2006
|
8,873,820 | $ | 29.19 | |||||||||||||||||
Granted
|
864,030 | 59.73 | ||||||||||||||||||
Exercised
|
(1,159,663 | ) | 27.05 | |||||||||||||||||
Forfeited
|
(114,134 | ) | 36.71 | |||||||||||||||||
Balance at December 31, 2006
|
8,464,053 | $ | 32.50 | 5,523,080 | $ | 26.20 | 5.0 | |||||||||||||
Weighted-Average |
||||||||
Number of |
Grant-Date |
|||||||
Shares | Fair Value | |||||||
Balance at January 1, 2006
|
3,897,954 | $ | 5.22 | |||||
Granted
|
864,030 | 10.40 | ||||||
Vested
|
(1,706,877 | ) | 4.52 | |||||
Forfeited
|
(114,134 | ) | 5.40 | |||||
Balance at December 31, 2006
|
2,940,973 | $ | 7.14 | |||||
84
85
Shares Outstanding | ||||||||||||
Number of |
Weighted Average |
Number of |
||||||||||
Shares | Original Value | Vested Shares | ||||||||||
Balance at January 1, 2006
|
1,792,335 | $ | 36.74 | 645,025 | ||||||||
Granted
|
791,976 | 56.02 | ||||||||||
Exercised
|
(292,703 | ) | 31.02 | |||||||||
Forfeited
|
(26,732 | ) | 48.62 | |||||||||
Balance at December 31, 2006
|
2,264,876 | $ | 44.08 | 808,544 | ||||||||
Weighted-Average |
||||||||
Number of |
Grant-Date |
|||||||
Shares | Fair Value | |||||||
Balance at January 1, 2006
|
1,147,310 | $ | 42.22 | |||||
Granted
|
791,976 | 56.02 | ||||||
Vested
|
(456,222 | ) | 39.97 | |||||
Forfeited
|
(26,732 | ) | 48.62 | |||||
Balance at December 31, 2006
|
1,456,332 | $ | 50.31 | |||||
86
2005 | 2004 | |||||||
Net earnings attributable to
common shares:
|
||||||||
As reported
|
$ | 370,747 | $ | 202,813 | ||||
Pro forma
|
$ | 373,074 | $ | 206,429 | ||||
Net earnings per share
attributable to common shares:
|
||||||||
As reported Basic
|
$ | 1.82 | $ | 1.11 | ||||
As reported Diluted
|
$ | 1.76 | $ | 1.08 | ||||
Pro forma Basic
|
$ | 1.83 | $ | 1.13 | ||||
Pro forma Diluted
|
$ | 1.77 | $ | 1.10 |
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Risk-free interest rate
|
4.51% | 4.33% | 3.82% | |||||||||
Dividend yield
|
3.40% | 3.92% | 4.27% | |||||||||
Volatility
|
19.46% | 20.33% | 20.52% | |||||||||
Weighted average option life
|
5.8 years | 5.9 years | 6.25 years |
87
6. | Minority Interest: |
2006 | 2005 | |||||||||||||||||||||||
# of |
# of |
|||||||||||||||||||||||
Entities | Balance | Minority Interest | Entities | Balance | Minority Interest | |||||||||||||||||||
North America (1)(2)(3)
|
6 | $ | 38,112 | 1-31 | % | 7 | $ | 57,746 | 1-31 | % | ||||||||||||||
China
|
4 | 14,156 | 20-40 | % | 1 | 898 | 20 | % | ||||||||||||||||
$ | 52,268 | $ | 58,644 | |||||||||||||||||||||
(1) | At December 31, 2006 and 2005, an aggregate of 5,138,809 and 5,410,578, respectively, limited partnership units held by minority interest holders are convertible into 5,139,799 and 5,411,567, respectively, common shares. Certain of the limited partnerships units are owned by our Chief Executive Officer. See Note 15. | |
(2) | As of December 31, 2006 and 2005, there were 4,658,700 and 5,400,675, respectively, of the outstanding limited partnership units that were entitled to receive cumulative preferential quarterly cash distributions equal to the quarterly distributions paid on common shares. | |
(3) | Certain properties owned by these partnerships cannot be sold, prior to the occurrence of certain events, without the consent of the limited partners, other than in tax-deferred exchanges. The partnership agreement provides that a minimum level of debt must be maintained within the partnership, which can include intercompany debt to us. |
7. | Income Taxes: |
88
2006 | 2005 | 2004 | ||||||||||
Domestic
|
$ | 353,409 | $ | 91,316 | $ | 90,207 | ||||||
International
|
394,809 | 241,779 | 173,825 | |||||||||
Total
|
$ | 748,218 | $ | 333,095 | $ | 264,032 | ||||||
2006 | 2005 | 2004 | ||||||||||
Current income tax
expense
|
||||||||||||
Federal
|
$ | 49,900 | $ | 3,379 | $ | 2,598 | ||||||
Non-U.S.
|
20,254 | 10,547 | 21,830 | |||||||||
State and local
|
14,096 | 921 | 442 | |||||||||
Total Current
|
84,250 | 14,847 | 24,870 | |||||||||
Deferred income tax (benefit)
expense
|
||||||||||||
Federal
|
(26,382 | ) | 5,726 | 7,310 | ||||||||
Non-U.S.
|
(27,340 | ) | 6,319 | 11,382 | ||||||||
Total Deferred
|
(53,722 | ) | 12,045 | 18,692 | ||||||||
Total income taxes
|
$ | 30,528 | $ | 26,892 | $ | 43,562 | ||||||
89
90
2006 | 2005 | |||||||
Deferred income tax assets:
|
||||||||
Net operating loss
carryforwards (1)
|
$ | 13,759 | $ | 19,492 | ||||
Basis difference real
estate properties
|
8,132 | 10,664 | ||||||
AMT credit carryforward
|
796 | 413 | ||||||
Other temporary
differences
|
16,371 | 780 | ||||||
Total deferred income tax assets
|
39,058 | 31,349 | ||||||
Valuation allowance
|
(1,711 | ) | (1,000 | ) | ||||
Net deferred income tax assets
|
37,347 | 30,349 | ||||||
Deferred income tax liabilities:
|
||||||||
Basis difference real
estate properties
|
(7,944 | ) | | |||||
Built-in gains real
estate properties
|
(47,621 | ) | (48,090 | ) | ||||
Basis difference
equity investees
|
(9,246 | ) | (32,258 | ) | ||||
Built-in gains equity
investees
|
(22,781 | ) | (23,614 | ) | ||||
Indemnification liabilities
|
(5,916 | ) | (28,383 | ) | ||||
Other temporary
differences
|
(25,527 | ) | (24,454 | ) | ||||
Total deferred income tax
liabilities
|
(119,035 | ) | (156,799 | ) | ||||
Net deferred income tax liabilities
|
$ | (81,688 | ) | $ | (126,450 | ) | ||
(1) | At December 31, 2006, we have net operating loss (NOL) carryforwards for U.S. federal income tax purposes and various international jurisdictions of approximately $25.0 million and $11.1 million, respectively. If not utilized, the U.S. NOLs expire between 2019 and 2024 and the international NOLs expire in 2011. |
8. | Discontinued Operations: |
2006 | 2005 | 2004 | ||||||||||
Rental income
|
$ | 45,343 | $ | 48,661 | $ | 37,458 | ||||||
Rental expenses
|
(19,720 | ) | (18,135 | ) | (11,154 | ) | ||||||
Depreciation and amortization
|
(5,315 | ) | (11,399 | ) | (10,792 | ) | ||||||
Interest expense
|
(874 | ) | (1,077 | ) | (784 | ) | ||||||
Income attributable to disposed
properties and assets held for sale
|
$ | 19,434 | $ | 18,050 | $ | 14,728 | ||||||
91
2006 | 2005 | 2004 | ||||||||||
Non-CDFS business assets:
|
||||||||||||
Number of properties
|
74 | 64 | 10 | |||||||||
Net proceeds from dispositions
|
$ | 531,969 | $ | 335,610 | $ | 23,122 | ||||||
Net gains from dispositions
|
$ | 103,729 | $ | 86,444 | $ | 1,549 | ||||||
CDFS business assets:
|
||||||||||||
Number of properties
|
15 | 8 | 10 | |||||||||
Net proceeds from dispositions
|
$ | 245,500 | $ | 100,494 | $ | 241,875 | ||||||
Net gains from dispositions
|
$ | 33,514 | $ | 10,616 | $ | 32,719 |
92
9. | Distributions and Dividends: |
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Per common share:
|
||||||||||||
Ordinary income
|
$ | 0.95 | $ | 0.99 | $ | 0.94 | ||||||
Qualified dividend
|
0.04 | 0.07 | | |||||||||
Capital gains
|
| 0.15 | 0.17 | |||||||||
Return of capital
|
0.61 | 0.27 | 0.35 | |||||||||
Total distribution
|
$ | 1.60 | $ | 1.48 | $ | 1.46 | ||||||
Per preferred share
Series C:
|
||||||||||||
Ordinary income
|
$ | 4.10 | $ | 3.49 | $ | 3.62 | ||||||
Qualified dividend
|
0.17 | 0.24 | | |||||||||
Capital gains
|
| 0.54 | 0.65 | |||||||||
Total dividend
|
$ | 4.27 | $ | 4.27 | $ | 4.27 | ||||||
Per preferred share
Series F:
|
||||||||||||
Ordinary income
|
$ | 1.62 | $ | 1.38 | $ | 1.43 | ||||||
Qualified dividend
|
0.07 | 0.09 | | |||||||||
Capital gains
|
| 0.22 | 0.26 | |||||||||
Total dividend
|
$ | 1.69 | $ | 1.69 | $ | 1.69 | ||||||
Per preferred share
Series G:
|
||||||||||||
Ordinary income
|
$ | 1.62 | $ | 1.38 | $ | 1.43 | ||||||
Qualified dividend
|
0.07 | 0.09 | | |||||||||
Capital gains
|
| 0.22 | 0.26 | |||||||||
Total dividend
|
$ | 1.69 | $ | 1.69 | $ | 1.69 | ||||||
93
10. | Earnings Per Common Share: |
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Net earnings attributable to
common shares
|
$ | 848,951 | $ | 370,747 | $ | 202,813 | ||||||
Minority interest share in earnings
|
3,457 | 5,243 | 4,875 | |||||||||
Adjusted net earnings attributable
to common shares
|
$ | 852,408 | $ | 375,990 | $ | 207,688 | ||||||
Weighted average common shares
outstanding Basic
|
245,952 | 203,337 | 182,226 | |||||||||
Incremental weighted average
effect of conversion of limited partnership units
|
5,198 | 5,540 | 5,035 | |||||||||
Incremental weighted average
effect of potentially dilutive instruments (1)
|
5,702 | 4,836 | 4,540 | |||||||||
Weighted average common shares
outstanding Diluted
|
256,852 | 213,713 | 191,801 | |||||||||
Net earnings per share
attributable to common shares Basic
|
$ | 3.45 | $ | 1.82 | $ | 1.11 | ||||||
Net earnings per share
attributable to common shares Diluted
|
$ | 3.32 | $ | 1.76 | $ | 1.08 | ||||||
(1) | Total weighted average potentially dilutive instruments outstanding (in thousands) were 10,909, 10,783 and 11,356 for 2006, 2005 and 2004, respectively. Of the total potentially dilutive instruments, 25, 103 and 553 (in thousands) were antidilutive for 2006, 2005 and 2004, respectively. |
94
11. | Real Estate: |
December 31, | ||||||||
2006 | 2005 | |||||||
Distribution operating properties
(1):
|
||||||||
Improved land
|
$ | 2,227,953 | $ | 1,774,923 | ||||
Buildings and improvements
|
8,195,296 | 6,955,983 | ||||||
Retail operating properties (2):
|
||||||||
Improved land
|
77,808 | 66,848 | ||||||
Buildings and improvements
|
227,380 | 221,405 | ||||||
Land subject to ground leases and
other (3)
|
472,412 | 792,668 | ||||||
Properties under development,
including cost of land (4)
|
964,842 | 884,345 | ||||||
Land held for development (5)
|
1,397,081 | 1,045,042 | ||||||
Other investments (6)
|
391,227 | 133,916 | ||||||
Total real estate assets
|
13,953,999 | 11,875,130 | ||||||
Less accumulated depreciation
|
1,280,206 | 1,118,547 | ||||||
Net real estate assets
|
$ | 12,673,793 | $ | 10,756,583 | ||||
(1) | At December 31, 2006 and 2005, we had 1,446 and 1,432 distribution operating properties consisting of 203.6 million square feet and 185.6 million square feet, respectively. |
(2) | At December 31, 2006 and 2005, we had 27 and 29 retail operating properties consisting of 1.1 million square feet at both periods. |
(3) | At December 31, 2006 and 2005, we held land subject to ground leases as well as railway depots and office properties. Also at December 31, 2005, we owned a hotel property and several office properties that were sold during 2006. |
(4) | Properties under development consisted of 114 properties aggregating 30.0 million square feet at December 31, 2006 and 72 properties aggregating 23.2 million square feet at December 31, 2005. Our total expected investment upon completion of the properties under development at December 31, 2006 is approximately $2.2 billion. |
(5) | Land held for future development consisted of 6,204 and 6,568 acres at December 31, 2006 and 2005, 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; (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. |
95
Number of |
Aggregate |
Aggregate |
||||||||||||||
Properties | Square Feet | Purchase Price | Debt Assumed | |||||||||||||
2006
|
74 | 13,529 | $ | 735,427 | $ | 87,919 | ||||||||||
2005
|
13 | 3,783 | $ | 170,744 | $ | 19,919 | ||||||||||
2004
|
22 | 4,774 | $ | 195,703 | $ | |
2007
|
$ | 688,808 | ||
2008
|
595,381 | |||
2009
|
474,156 | |||
2010
|
372,744 | |||
2011
|
268,743 | |||
Thereafter
|
1,028,298 | |||
$ | 3,428,130 | |||
96
12. | Other Assets and Other Liabilities: |
2006 | 2005 | |||||||
Goodwill
|
$ | 254,192 | $ | 229,444 | ||||
Value added taxes receivable
|
215,712 | 161,237 | ||||||
Rent leveling asset and above
market leases
|
105,478 | 93,863 | ||||||
Leasing commissions
|
98,296 | 108,556 | ||||||
Non-qualified savings plan assets
|
48,579 | 43,895 | ||||||
Fixed assets
|
28,623 | 25,037 | ||||||
Loan fees
|
35,715 | 28,149 | ||||||
Performance escrow
|
42,174 | | ||||||
Other
|
128,526 | 98,659 | ||||||
Totals
|
$ | 957,295 | $ | 788,840 | ||||
2006 | 2005 | |||||||
Tax liabilities
|
$ | 160,929 | $ | 151,796 | ||||
Deferred income taxes
|
81,688 | 126,450 | ||||||
Tenant security deposits
|
79,378 | 51,889 | ||||||
Unearned rents
|
40,788 | 33,837 | ||||||
Non-qualified savings plan
liabilities
|
37,180 | 44,315 | ||||||
Value added taxes payable
|
34,896 | 59,335 | ||||||
Disposition costs
|
33,009 | 27,814 | ||||||
Below market leases
|
18,155 | 25,528 | ||||||
Other
|
60,106 | 36,246 | ||||||
Totals
|
$ | 546,129 | $ | 557,210 | ||||
Amortization |
Net Charge to |
|||||||
Expense | Rental Income | |||||||
2007
|
$ | 36,325 | $ | 12,066 | ||||
2008
|
27,657 | 14,356 | ||||||
2009
|
11,367 | 12,981 | ||||||
2010
|
7,936 | 13,467 | ||||||
2011
|
5,187 | 7,415 | ||||||
Thereafter
|
9,824 | 27,038 | ||||||
Total
|
$ | 98,296 | $ | 87,323 | ||||
97
13. | Debt: |
2006 | 2005 | |||||||
Unsecured lines of credit and
short-term borrowings
|
$ | 2,462,796 | $ | 2,240,054 | ||||
Senior and other notes
|
4,445,092 | 2,759,675 | ||||||
Secured debt
|
1,445,021 | 1,643,586 | ||||||
Assessment bonds
|
33,977 | 34,565 | ||||||
Totals
|
$ | 8,386,886 | $ | 6,677,880 | ||||
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Weighted average daily interest
rate (1)
|
3.03% | 2.77% | 2.08% | |||||||||
Borrowings outstanding at
December 31
|
$ | 2,462.8 | $ | 1,850.1 | $ | 912.3 | ||||||
Weighted average daily borrowings
|
$ | 2,294.7 | $ | 1,278.2 | $ | 930.0 | ||||||
Maximum borrowings outstanding at
any month end
|
$ | 2,760.8 | $ | 1,850.1 | $ | 1,036.5 | ||||||
Aggregate borrowing capacity of
all lines of credit at December 31
|
$ | 3,529.3 | $ | 2,589.9 | $ | 1,832.2 | ||||||
Outstanding letters of credit
under the lines of credit
|
$ | 129.1 | $ | 98.0 | $ | 35.3 | ||||||
Aggregate remaining capacity
available to us on all lines of credit at December 31
|
$ | 937.4 | $ | 641.8 | $ | 884.6 |
98
Principal |
Coupon |
|||||||
Maturity Date
|
Balance | Rate | ||||||
June 22, 2007 (1)(13)
|
$ | 6,550 | floating | |||||
November 20, 2007 (1)
|
135,000 | 7.25% | ||||||
December 11, 2007 (1)(13)
|
287,848 | floating | ||||||
December 19, 2007 (1)(13)
|
7,553 | floating | ||||||
April 15, 2008 (1)
|
250,000 | 7.10% | ||||||
May 15, 2008 (2)
|
50,000 | 7.95% | ||||||
March 1, 2009 (3)
|
56,250 | 8.72% | ||||||
May 15, 2009 (4)
|
28,125 | 7.88% | ||||||
August 24, 2009 (1)(5)
|
250,000 | floating | ||||||
November 20, 2009 (1)
|
25,000 | 7.30% | ||||||
November 15, 2010 (1)(6)
|
500,000 | 5.25% | ||||||
April 13, 2011 (1)(7)
|
461,230 | 4.38% | ||||||
April 1, 2012 (1)(8)
|
450,000 | 5.50% | ||||||
March 1, 2013 (1)
|
300,000 | 5.50% | ||||||
February 1, 2015 (9)
|
100,000 | 7.81% | ||||||
March 1, 2015 (10)
|
50,000 | 9.34% | ||||||
November 15, 2015 (1)(6)
|
400,000 | 5.63% | ||||||
April 1, 2016 (1)(8)
|
400,000 | 5.75% | ||||||
May 15, 2016 (11)
|
50,000 | 8.65% | ||||||
November 15, 2016 (1)(12)
|
550,000 | 5.63% | ||||||
July 1, 2017 (1)
|
100,000 | 7.63% | ||||||
Total par value
|
$ | 4,457,556 | ||||||
Less: discount, net
|
12,464 | |||||||
Total principal balance, net
|
$ | 4,445,092 | ||||||
(1) | Principal due at maturity. | |
(2) | Annual principal payments of $25.0 million are due on May 15th of each year through 2008. | |
(3) | Annual principal payments of $18.8 million are due on March 1st of each year through 2009. | |
(4) | Annual principal payments of $9.4 million are due on May 15th of each year through 2009. | |
(5) | On August 24, 2006, we issued $250.0 million of senior notes. Interest on the notes accrues at a variable rate based on LIBOR plus a margin (5.62% at December 31, 2006). We utilized the net proceeds of $250.0 million to repay borrowings under our Global Line and other general corporate purposes. | |
(6) | In July 2006, we completed the exchange and registration of these senior notes that were issued in a private placement in 2005. | |
(7) | In 2004, we issued 350.0 million senior notes (the currency equivalent of approximately $420.6 million at the date of issuance). |
99
(8) | On March 27, 2006, we issued $450.0 million of 5.5% senior notes and $400.0 million of 5.75% senior notes. We received net proceeds of $838.7 million that were used to repay borrowings under our Global Line, the bridge facility from the Catellus Merger and other general corporate purposes. | |
(9) | Beginning on February 1, 2010, and through February 1, 2015, requires annual principal payments ranging from $10.0 million to $20.0 million. | |
(10) | Beginning on March 1, 2010, and through March 1, 2015, requires annual principal payments ranging from $5.0 million to $12.5 million. | |
(11) | Beginning on May 15, 2010, and through May 15, 2016, requires annual principal payments ranging from $5.0 million to $12.5 million. | |
(12) | On November 14, 2006, we issued $550.0 million of 5.625% senior notes. We received net proceeds of $543.5 million that were used to repay borrowings under our Global Line and other general corporate purposes. | |
(13) | On June 19, 2006 and December 7, 2006, we issued ¥780.5 million and ¥35.2 billion, respectively, in TMK bonds (the currency equivalent of approximately $312.9 million at issue date). TMK bonds are a financing vehicle in Japan for special purpose companies known as TMKs. TMK bonds are not secured by properties, but do contain restrictions on the TMKs ability to incur additional debt or to use property associated with the loan as security for another loan. The net proceeds were used to repay borrowings under our Global Line. These bonds will be repaid and refinanced by the ProLogis Japan Properties Fund II when we contribute the related properties to the property fund. |
100
Balloon |
||||||||||||||||
Periodic |
Payment |
|||||||||||||||
Interest |
Payment |
Principal |
Due at |
|||||||||||||
Maturity Date
|
Rate (1) | Date | Balance | Maturity | ||||||||||||
November 11, 2008
|
5.96 | % | (2 | ) | $ | 65,894 | $ | 60,646 | ||||||||
November 11, 2008
|
6.01 | % | (2 | ) | 301,035 | $ | 276,065 | |||||||||
April 1, 2012
|
7.05 | % | (2 | ) | 254,386 | $ | 196,462 | |||||||||
August 1, 2015
|
5.47 | % | (2 | ) | 135,780 | $ | 111,690 | |||||||||
April 12, 2016
|
7.25 | % | (2 | ) | 213,557 | $ | 150,373 | |||||||||
April 1, 2024
|
7.58 | % | (2 | ) | 197,063 | $ | 127,187 | |||||||||
Various
|
(3 | ) | (3 | ) | 277,306 | (3 | ) | |||||||||
Total secured debt (4)
|
$ | 1,445,021 | ||||||||||||||
(1) | The weighted average annual interest rate for the total mortgage notes was 7.0% for the year ended December 31, 2006. | |
(2) | Monthly amortization with a balloon payment due at maturity. | |
(3) | Includes 32 mortgage notes with interest rates ranging from 4.12% to 9.68%, maturing from 2007 to 2018, primarily requiring monthly amortization with a balloon payment at maturity. | |
(4) | The mortgage notes are secured by 291 real estate properties with an aggregate undepreciated cost of $3.2 billion at December 31, 2006. |
101
2007
|
$ | 542,597 | ||
2008
|
716,621 | |||
2009
|
377,495 | |||
2010
|
564,455 | |||
2011
|
515,262 | |||
Thereafter
|
3,155,067 | |||
Total principal due
|
5,871,497 | |||
Add: premium, net
|
52,593 | |||
Total carrying value
|
$ | 5,924,090 | ||
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Gross interest expense (1)
|
$ | 398,066 | $ | 239,832 | $ | 183,946 | ||||||
(Premium) discount recognized, net
|
(12,564 | ) | (3,980 | ) | 252 | |||||||
Amortization of deferred loan costs
|
6,198 | 5,595 | 5,741 | |||||||||
391,700 | 241,447 | 189,939 | ||||||||||
Less: capitalized amounts
|
97,297 | 63,885 | 37,388 | |||||||||
Net interest expense
|
$ | 294,403 | $ | 177,562 | $ | 152,551 | ||||||
(1) | Includes the stated interest on the debt instrument plus applicable fees. The amount of interest paid in cash, net of amounts capitalized, for the years ended December 31, 2006, 2005 and 2004 was $288.2 million, $168.0 million, and $134.9 million, respectively. |
14. | Shareholders Equity: |
102
| 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: Allows us to sell up to 7.4 million common shares through two designated agents who earn a fee up to 2.25% of the gross proceeds, as agreed on a transaction-by-transaction basis. As of December 31, 2006, we have approximately 0.4 million shares available under this plan. | |
| The Incentive Plan and Outside Trustees Plan: Certain of our employees and outside trustees participate in these share-based compensation plans that provide compensation, generally in the form of common shares. See Note 5 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, 2006, we have approximately 4.8 million shares available under this plan. |
2006 | 2005 | 2004 | ||||||||||||||||||||||
Shares | Proceeds | Shares | Proceeds | Shares | Proceeds | |||||||||||||||||||
1999 Dividend Reinvestment Plan
|
69 | $ | 3,738 | 412 | $ | 16,197 | 1,021 | $ | 35,410 | |||||||||||||||
Controlled Equity Offering Program
|
5,383 | 320,786 | 225 | 8,267 | 1,430 | 53,321 | ||||||||||||||||||
Incentive Plan and Outside
Trustees Plan
|
1,460 | 31,350 | 1,425 | 17,664 | 3,096 | 58,444 | ||||||||||||||||||
Employee Share Plan
|
39 | 1,643 | 30 | 1,019 | 43 | 1,129 | ||||||||||||||||||
Total
|
6,951 | $ | 357,517 | 2,092 | $ | 43,147 | 5,590 | $ | 148,304 | |||||||||||||||
103
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 |
15. | Related Party Transactions: |
104
16. | Financial Instruments: |
Foreign Currency |
Foreign Currency |
Interest |
||||||||||
Put Options (1) | Forwards (2) | Rate Swaps (3) | ||||||||||
Notional amounts at
January 1, 2004
|
$ | 57.9 | $ | 47.4 | $ | 94.7 | ||||||
New contracts
|
19.6 | 71.8 | 190.9 | |||||||||
Settled contracts
|
(77.5 | ) | (119.2 | ) | (235.6 | ) | ||||||
Notional amounts at
December 31, 2004
|
| | 50.0 | |||||||||
New contracts
|
98.0 | 669.5 | 650.0 | |||||||||
Settled contracts
|
(98.0 | ) | (669.5 | ) | (700.0 | ) | ||||||
Notional amounts at
December 31, 2005
|
| | | |||||||||
New contracts
|
169.3 | 900.3 | 350.0 | |||||||||
Settled contracts
|
(114.6 | ) | (239.3 | ) | (350.0 | ) | ||||||
Notional amounts at
December 31, 2006
|
$ | 54.7 | $ | 661.0 | $ | | ||||||
(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. The notional amounts of the put option contracts represent |
105
$17.5 million on euro option contracts, $13.5 million on pound sterling option contracts and $23.7 million on yen option contracts at December 31, 2006. |
These contracts generally do not qualify for hedge accounting treatment and are marked-to-market through earnings at the end of each period. Upon expiration of the contract, the mark-to-market adjustment is reversed, the total cost of the contract is expensed and any proceeds are recognized as a gain. On various put option contracts, we recognized net expense of $1.5 million in 2006, net gains of $3.6 million in 2005 and net expense of $0.6 million in 2004, which included no mark-to-market gains in 2006 and 2005 and $1.5 million of mark-to-market gains in 2004. | |
(2) | The 2006 and 2005 forward currency forward contracts were designed to manage the foreign currency fluctuations of an intercompany loan denominated in pounds sterling, and allowed us to sell pounds sterling 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 intercompany loans. We recognized a net loss of $13.3 million in 2006 and a net gain of $6.1 million in 2005, which included mark-to-market losses of $15.7 million in 2006 and no mark-to-market gains or losses in 2005. |
The 2004 foreign currency forward contracts were designated as a net investment hedge of certain of our investments in Europe and allowed us to sell euro at a fixed exchange rate to the U.S. dollar. These contracts qualified for hedge accounting treatment and we recognized the total increase in value of the contracts of $1.7 million in other comprehensive income in shareholders equity in 2004 upon settlement of the contracts. The value of these contracts will remain in other comprehensive income until the investment is substantially sold. | |
(3) | During 2006 and 2005, we entered into several contracts with a total notional amount of $350.0 million and $650.0 million, respectively, associated with an anticipated debt issuance. All of these 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 (see Note 13). All of the contracts were settled as of December 31, 2006 and we recognized a decrease in value of $13.1 million and an increase in value of $20.7 million associated with these contracts in other comprehensive income as of December 31, 2006 and 2005, respectively. 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. |
In July 2004, we entered into forward-starting interest rate swap contracts, with a total notional amount of $100 million, related to the anticipated issuance of debt. One contract was terminated in August 2004 and we recognized $0.3 million of expense upon termination. As of December 31, 2004, the anticipated transaction had not been completed. We recognized a mark-to-market adjustment of $1.1 million in other comprehensive income in shareholders equity at December 31, 2004, which represented the decrease in value of the outstanding contract. | |
In 2003 and 2004, we entered into forward-starting interest rate swap contracts related to the anticipated issuance of debt. The contracts, designated as cash flow hedges, allowed us to fix a portion of the interest rate associated with the seven-year Euro Notes that were issued in April 2004 (see Note 13). These contracts qualified for hedge accounting treatment. We recognized a total decrease in value of $5.6 million in other comprehensive income in shareholders equity upon settlement of the contracts that is being amortized to interest expense as interest payments are made on the Euro Notes. | |
We amortized a net amount of $1.5 million, related to the above forward-starting interest rate swap contracts, from other comprehensive income as a reduction to interest expense during 2006 and we will amortize a total of $0.3 million as a reduction to interest expense during 2007. |
106
December 31, | ||||||||||||||||
2006 | 2005 | |||||||||||||||
Carrying |
Carrying |
|||||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||
Senior and other notes
|
$ | 4,445,092 | $ | 4,507,182 | $ | 2,759,675 | $ | 2,866,796 | ||||||||
Secured debt and assessment bonds:
|
||||||||||||||||
Secured debt
|
$ | 1,445,021 | $ | 1,497,790 | $ | 1,643,586 | $ | 1,686,157 | ||||||||
Assessment bonds
|
33,977 | 34,495 | 34,565 | 36,513 | ||||||||||||
Total secured debt and assessment
bonds
|
$ | 1,478,998 | $ | 1,532,285 | $ | 1,678,151 | $ | 1,722,670 | ||||||||
Derivative financial instruments:
|
||||||||||||||||
Foreign currency forwards
|
$ | (15,664 | ) | $ | (15,664 | ) | $ | | $ | | ||||||
Foreign currency put options
|
249 | 249 | | | ||||||||||||
Total derivative financial
instruments
|
$ | (15,415 | ) | $ | (15,415 | ) | $ | | $ | | ||||||
107
17. | Commitments and Contingencies: |
108
18. | Business Segments: |
| 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. Included in this segment are properties we developed and properties we acquired and rehabilitated or repositioned within the CDFS business segment with the intention of contributing the property to a property fund or selling to a third party. The costs of our property management function for both our direct-owned portfolio and the properties owned by the property funds and managed by us are all reported in rental expenses in the property operations segment. Our operations in the property operations business segment are in North America (Canada, Mexico and the United States), Europe (properties are located in Belgium, the Czech Republic, France, Germany, Hungary, Italy, the Netherlands, Poland, Spain, Sweden and the United Kingdom and are generally pending contribution to a property fund or sale to a third party) and Asia (properties are located in China, Japan, Korea, and Singapore and are generally pending contribution to a property fund or sale to a third party). | |
| Fund management representing the long-term investment management of property funds and the properties they own. We recognize our proportionate share of the earnings or losses from our investments in unconsolidated property funds 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 property funds and interest earned on advances to the property funds, if any. We utilize our leasing and property management expertise to efficiently manage the properties and the funds, and we report the costs as part of rental expenses in the property operations segment. Each investment in a property fund 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 fund management segment are in North America (Mexico and the United States), Europe (Belgium, the Czech Republic, France, Germany, Hungary, Italy, the Netherlands, Poland, Spain, Sweden, and the United Kingdom), and Asia (Japan). | |
| CDFS business primarily encompasses our development of real estate properties that are subsequently contributed to a property fund in which we have an ownership interest and act as manager, or |
109
sold to third parties. Additionally, we acquire properties with the intent to rehabilitate and/or reposition the property in the CDFS business segment prior to being contributed to a property fund. We engage in mixed-use development activities generally with the intention of selling the land or completed projects to third parties. We also have investments in several unconsolidated entities that perform development activities and we include our proportionate share of their earnings or losses in this segment. Additionally, we include fees earned for development activities performed on behalf of customers or third parties, interest income earned on notes receivable related to asset sales and gains on the disposition of land parcels when our development plans no longer include the parcels. 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 are in North America (Canada, Mexico and the United States), in Europe (Belgium, the Czech Republic, France, Germany, Hungary, Italy, the Netherlands, Poland, Romania, Spain, Sweden and the United Kingdom) and in Asia (China, Japan and Korea). |
110
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Revenues (1):
|
||||||||||||
Property operations (2):
|
||||||||||||
North America
|
$ | 818,211 | $ | 566,293 | $ | 495,509 | ||||||
Europe
|
35,619 | 10,334 | 8,512 | |||||||||
Asia
|
31,903 | 12,904 | 5,469 | |||||||||
Total property operations segment
|
885,733 | 589,531 | 509,490 | |||||||||
Fund management (3):
|
||||||||||||
North America
|
117,532 | 56,348 | 48,037 | |||||||||
Europe
|
167,227 | 44,002 | 37,886 | |||||||||
Asia
|
20,225 | 12,662 | 7,754 | |||||||||
Total fund management segment
|
304,984 | 113,012 | 93,677 | |||||||||
CDFS business (4):
|
||||||||||||
North America
|
549,181 | 291,750 | 398,154 | |||||||||
Europe
|
451,154 | 383,179 | 675,908 | |||||||||
Asia
|
385,630 | 503,444 | 217,490 | |||||||||
Total CDFS business segment
|
1,385,965 | 1,178,373 | 1,291,552 | |||||||||
Total segment revenue
|
2,576,682 | 1,880,916 | 1,894,719 | |||||||||
Other North America
|
41,986 | 11,338 | | |||||||||
Reconciling item (5)
|
(154,759 | ) | (58,530 | ) | (43,088 | ) | ||||||
Total revenues
|
$ | 2,463,909 | $ | 1,833,724 | $ | 1,851,631 | ||||||
111
Years Ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Net operating income:
|
||||||||||||
Property operations (6):
|
||||||||||||
North America
|
$ | 607,025 | $ | 413,489 | $ | 370,734 | ||||||
Europe
|
24,961 | 6,162 | 3,176 | |||||||||
Asia
|
28,315 | 10,696 | 4,342 | |||||||||
Total property operations segment
|
660,301 | 430,347 | 378,252 | |||||||||
Fund management (3):
|
||||||||||||
North America
|
117,532 | 56,348 | 48,037 | |||||||||
Europe
|
167,227 | 44,002 | 37,886 | |||||||||
Asia
|
20,225 | 12,662 | 7,754 | |||||||||
Total fund management segment
|
304,984 | 113,012 | 93,677 | |||||||||
CDFS business (7)(8):
|
||||||||||||
North America
|
176,699 | 70,250 | 46,467 | |||||||||
Europe
|
108,079 | 71,329 | 93,032 | |||||||||
Asia
|
94,707 | 111,029 | 34,836 | |||||||||
Total CDFS business segment
|
379,485 | 252,608 | 174,335 | |||||||||
Total segment net operating income
|
1,344,770 | 795,967 | 646,264 | |||||||||
Other North America
|
27,873 | 8,842 | | |||||||||
Reconciling items:
|
||||||||||||
Earnings (losses) from other
unconsolidated investees
|
5,729 | 750 | (990 | ) | ||||||||
General and administrative expenses
|
(156,889 | ) | (107,164 | ) | (84,861 | ) | ||||||
Depreciation and amortization
expense
|
(293,027 | ) | (191,945 | ) | (161,968 | ) | ||||||
Merger integration and relocation
expenses
|
(2,723 | ) | (16,603 | ) | (6,794 | ) | ||||||
Other expenses
|
(459 | ) | (650 | ) | | |||||||
Interest expense
|
(294,403 | ) | (177,562 | ) | (152,551 | ) | ||||||
Interest and other income, net
|
18,248 | 10,724 | 5,721 | |||||||||
Total reconciling items
|
(723,524 | ) | (482,450 | ) | (401,443 | ) | ||||||
Total earnings before minority
interest
|
$ | 649,119 | $ | 322,359 | $ | 244,821 | ||||||
112
December 31, | ||||||||
2006 | 2005 | |||||||
Assets (9):
|
||||||||
Property operations (10):
|
||||||||
North America (11)
|
$ | 7,960,432 | $ | 7,530,062 | ||||
Europe
|
1,295,207 | 673,342 | ||||||
Asia
|
633,623 | 106,069 | ||||||
Total property operations segment
|
9,889,262 | 8,309,473 | ||||||
Fund management (12):
|
||||||||
North America
|
416,909 | 368,206 | ||||||
Europe
|
430,761 | 283,435 | ||||||
Asia
|
134,170 | 103,679 | ||||||
Total fund management segment
|
981,840 | 755,320 | ||||||
CDFS business (13):
|
||||||||
North America
|
1,312,883 | 1,142,319 | ||||||
Europe (11)
|
1,456,064 | 1,062,338 | ||||||
Asia
|
802,464 | 535,190 | ||||||
Total CDFS business segment
|
3,571,411 | 2,739,847 | ||||||
Total segment assets
|
14,442,513 | 11,804,640 | ||||||
Other North America
|
488,987 | 901,281 | ||||||
Reconciling items:
|
||||||||
Investments in and advances to
other unconsolidated investees
|
114,547 | 27,281 | ||||||
Cash and cash equivalents
|
475,791 | 203,800 | ||||||
Accounts and notes receivable
|
129,880 | 38,864 | ||||||
Other assets
|
194,649 | 150,314 | ||||||
Discontinued
operations assets held for sale
|
57,158 | | ||||||
Total reconciling items
|
972,025 | 420,259 | ||||||
Total assets
|
$ | 15,903,525 | $ | 13,126,180 | ||||
(1) | Includes revenues attributable to the United States for the years ended December 31, 2006, 2005 and 2004 of $1,484.8 million, $861.8 million and $905.7 million, respectively. |
(2) | Includes rental income of our distribution and retail properties. |
(3) | Includes fund management fees and incentive revenue and our share of the earnings or losses recognized under the equity method from our investment in unconsolidated property funds along with interest earned on advances to the property funds, if any. |
(4) | Includes proceeds received on CDFS property dispositions, fees earned from customers and third parties for development activities, interest income on long-term notes receivable related to asset dispositions and our share of earnings or losses recognized under the equity method from our investment in CDFS joint ventures. |
113
(5) | Amount represents the earnings or losses recognized under the equity method from our investments in unconsolidated property funds and CDFS joint ventures and interest income on long-term notes receivable related to asset dispositions. These items are not presented as a component of revenues in our Consolidated Statements of Earnings. |
(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. | |
(7) | Includes net gains or losses associated on CDFS property dispositions, fees earned from customers and third parties for development activities, interest income on long-term notes receivable related to asset dispositions, and our share of earnings or losses recognized under the equity method from our investment in CDFS joint ventures, 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) | Excludes a net gain of $33.5 million, $10.6 million and $32.7 million for the years ended December 31, 2006, 2005 and 2004, respectively, associated with CDFS properties sold to third parties and presented as discontinued operations in our Consolidated Statements of Earnings. See Note 8. | |
(9) | Includes long-lived assets attributable to the United States as of December 31, 2006 and 2005 of $9.1 billion and $8.8 billion, respectively. |
(10) | Includes properties that were developed or acquired in the CDFS business segment that have not yet been contributed or sold of $3.1 billion and $1.4 billion for the years ended December 31, 2006 and 2005, respectively. | |
(11) | Goodwill of $200.4 million and $173.2 million as of December 31, 2006 and 2005, respectively was attributable to the property operations segment and $53.8 million and $56.2 million as of December 31, 2006 and 2005, respectively, was attributable to the CDFS business segment. | |
(12) | Represents our investments in and advances to the property funds. | |
(13) | Represents primarily land held for development, properties under development, other real estate investments, investments in CDFS joint ventures, and notes receivable related to asset dispositions. |
19. | Supplemental Cash Flow Information: |
| We received $128.0 million, $74.5 million and $115.5 million of equity interests in property funds from the contribution of properties to these property funds during 2006, 2005 and 2004, respectively. | |
| 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 4 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. See Note 4 for further discussion of this transaction. | |
| In connection with the purchase in 2006 of the 80% ownership interests held by our fund partner in Funds II-IV, we assumed $418.0 million of secured debt (which was later assumed by the North American Industrial Fund). See Note 4 for further discussion of this transaction. |
114
| Limited partnership units aggregating $6.5 million, $0.1 million and $0.9 million were converted into common shares in 2006, 2005 and 2004, respectively. | |
| During 2006, 2005, and 2004, we capitalized portions of the total cost of our share-based compensation awards of $8.4 million, $4.6 million and $7.4 million, respectively, to the investment basis of our real estate and other assets. | |
| As partial consideration for certain property contributions, we received: (i) $1.9 million, $32.6 million and $23.4 million in the form of notes receivable from ProLogis North American Properties Fund V in 2006, 2005 and 2004, respectively, (all of which has been paid); (ii) a $50.9 million note from a third party in 2005 (which was outstanding at December 31, 2005 and repaid during 2006); and (iii) the assumption of an outstanding mortgage note in the amount of $14.5 million from ProLogis North American Properties Fund VII in 2005. | |
| 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. | |
| We assumed $141.6 million and $35.0 million of secured debt in 2006 and 2005, respectively, and operating receivables and liabilities of $19.0 million and $22.6 million, respectively, in 2006 in connection with the acquisition of properties. | |
| We recognized net foreign currency translation adjustments of $115.8 million in gains, $67.8 million in losses, and $46.3 million in gains in 2006, 2005 and 2004, respectively. |
20. | Subsequent Events: |
| We purchased the industrial business of Parkridge Holdings Limited (Parkridge) for £284.4 million ($556.9 million). We paid net cash of approximately £67.4 million ($131.9 million), issued 4.8 million of our common shares (valued at $64.364 per share) and assumed debt payable to certain of our consolidated subsidiaries and certain other liabilities of £58.2 million ($113.9 million) and £1.7 million ($3.4 million), respectively. The notes, in the amount of £58.2 million, were issued by us in November 2006 to certain affiliates of Parkridge to finance the buyout of a Parkridge joint venture partner, the payoff of existing debt and fund other development costs that were incurred between the time of valuation and the closing of the transaction, and are included in Accounts and Notes Receivable in our Consolidated Balance Sheet at December 31, 2006. We may be required to make additional payments (primarily through the issuance of our common shares) of approximately £52.3 million ($102.4 million) upon the successful completion of pending land entitlements in the United Kingdom. | |
| We made an investment in Parkridges mixed-use and retail development business for £71.3 million ($139.7 million) paid in cash, which represents a 25% interest. | |
| Included in the acquisition of Parkridges industrial business was a 50% interest in a Central European distribution development joint venture. In a separate transaction, we acquired the remaining 50% interest in this joint venture from Parkridges partner for 345.2 million ($450.2 million) in cash, which includes 246.3 million ($321.2 million) of debt that was paid at closing. |
115
The cash portion of the acquisition was funded with borrowings under our Global Line and a new $600.0 million multi-currency senior credit facility. The new senior facility has similar terms as the Global Line (as discussed in Note 13), except it bears interest at a variable rate based on LIBOR plus a margin. |
21. | Selected Quarterly Financial Data (Unaudited): |
Three Months Ended, | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
2006:
|
||||||||||||||||
Total revenues
|
$ | 571,115 | $ | 687,397 | $ | 580,476 | $ | 624,921 | ||||||||
Operating income
|
$ | 163,692 | $ | 170,260 | $ | 174,720 | $ | 256,114 | ||||||||
Earnings from continuing operations
|
$ | 160,307 | $ | 125,878 | $ | 123,510 | $ | 307,995 | ||||||||
Net earnings attributable to
common shares
|
$ | 183,159 | $ | 168,397 | $ | 166,305 | $ | 331,090 | ||||||||
Net earnings per share
attributable to common shares Basic (1)
|
$ | .75 | $ | .69 | $ | .68 | $ | 1.33 | ||||||||
Net earnings per share
attributable to common shares Diluted (1)
|
$ | .72 | $ | .66 | $ | .65 | $ | 1.28 | ||||||||
2005:
|
||||||||||||||||
Total revenues
|
$ | 427,591 | $ | 465,404 | $ | 525,906 | $ | 414,823 | ||||||||
Operating income
|
$ | 94,251 | $ | 118,336 | $ | 117,269 | $ | 100,061 | ||||||||
Earnings from continuing operations
|
$ | 67,709 | $ | 93,622 | $ | 87,740 | $ | 57,132 | ||||||||
Net earnings attributable to
common shares
|
$ | 55,074 | $ | 77,169 | $ | 129,402 | $ | 109,102 | ||||||||
Net earnings per share
attributable to common shares Basic (1)
|
$ | 0.30 | $ | 0.41 | $ | 0.66 | $ | 0.45 | ||||||||
Net earnings per share
attributable to common shares Diluted (1)
|
$ | 0.29 | $ | 0.40 | $ | 0.63 | $ | 0.43 | ||||||||
(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. |
116
117
Initial Cost to |
Gross Amounts At Which Carried |
|||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
|||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | ||||||||||||||||||
(In thousands, as applicable) | ||||||||||||||||||||||||||||
Industrial Operating
Properties (d)
|
||||||||||||||||||||||||||||
North American
Markets:
|
||||||||||||||||||||||||||||
United States:
|
||||||||||||||||||||||||||||
Atlanta, Georgia
|
||||||||||||||||||||||||||||
Atlanta NE Distribution Center
|
8 | (e) | 5,582 | 3,047 | 27,059 | 6,276 | 29,412 | 35,688 | (10,862 | ) | 1996, 1997 | |||||||||||||||||
Atlanta West Distribution Center
|
18 | (e) | 10,336 | 48,444 | 14,025 | 10,147 | 62,658 | 72,805 | (18,353 | ) | 1994, 1996, 2005, 2006 | |||||||||||||||||
Berkeley Lake Dist Ctr
|
1 | 2,178 | 8,712 | 155 | 2,209 | 8,836 | 11,045 | (160 | ) | 2006 | ||||||||||||||||||
Carter-Pacific Business Center
|
3 | 556 | 3,151 | 1,467 | 556 | 4,618 | 5,174 | (1,990 | ) | 1995 | ||||||||||||||||||
Cedars Distribution Center
|
1 | 1,366 | 7,739 | 3,069 | 1,692 | 10,482 | 12,174 | (2,862 | ) | 1999 | ||||||||||||||||||
Douglas Hill Distribution Center (d)
|
5 | 16,647 | 46,825 | 30,461 | 16,647 | 77,286 | 93,933 | (1,689 | ) | 2005, 2006 | ||||||||||||||||||
Greenwood Ind Park (d)
|
1 | 3,989 | | 17,426 | 3,989 | 17,426 | 21,415 | | 2006 | |||||||||||||||||||
Horizon Dist Ctr
|
1 | 2,846 | 11,385 | | 2,846 | 11,385 | 14,231 | (206 | ) | 2006 | ||||||||||||||||||
International Airport Industrial
Center
|
9 | 2,939 | 14,146 | 7,925 | 2,972 | 22,038 | 25,010 | (8,748 | ) | 1994, 1995 | ||||||||||||||||||
LaGrange Distribution Center
|
1 | 174 | 986 | 727 | 174 | 1,713 | 1,887 | (821 | ) | 1994 | ||||||||||||||||||
Midland Dist Ctr
|
1 | 1,919 | 7,679 | | 1,919 | 7,679 | 9,598 | (139 | ) | 2006 | ||||||||||||||||||
Northeast Industrial Center
|
4 | 1,109 | 6,283 | 2,888 | 1,050 | 9,230 | 10,280 | (4,211 | ) | 1996 | ||||||||||||||||||
Northmont Industrial Center
|
1 | 566 | 3,209 | 1,057 | 566 | 4,266 | 4,832 | (1,861 | ) | 1994 | ||||||||||||||||||
Peachtree Commerce Business Center
|
5 | 1,519 | 7,253 | 1,752 | 1,519 | 9,005 | 10,524 | (2,478 | ) | 1994, 2006 | ||||||||||||||||||
Piedmont Court Distribution Center
|
2 | 885 | 5,013 | 2,553 | 885 | 7,566 | 8,451 | (3,274 | ) | 1997 | ||||||||||||||||||
Plaza Industrial Center
|
1 | 66 | 372 | 192 | 66 | 564 | 630 | (244 | ) | 1995 | ||||||||||||||||||
Pleasantdale Industrial Center
|
2 | 541 | 3,184 | 1,155 | 541 | 4,339 | 4,880 | (1,871 | ) | 1995 | ||||||||||||||||||
Riverside Distribution Center
|
3 | 2,533 | 13,336 | 2,575 | 2,556 | 15,888 | 18,444 | (4,275 | ) | 1999 | ||||||||||||||||||
South Royal Distribution Center
|
1 | 356 | 2,019 | 58 | 356 | 2,077 | 2,433 | | 2002 | |||||||||||||||||||
Tradeport Distribution Center
|
3 | (e) | 1,464 | 4,563 | 7,312 | 1,479 | 11,860 | 13,339 | (4,919 | ) | 1994, 1996 | |||||||||||||||||
Weaver Distribution Center
|
2 | 935 | 5,182 | 1,499 | 935 | 6,681 | 7,616 | (2,960 | ) | 1995 | ||||||||||||||||||
Westfork Industrial Center
|
10 | (e) | 2,483 | 14,115 | 3,132 | 2,442 | 17,288 | 19,730 | (6,864 | ) | 1995 | |||||||||||||||||
Total Atlanta, Georgia
|
83 | 60,989 | 216,643 | 126,487 | 61,822 | 342,297 | 404,119 | (78,787 | ) | |||||||||||||||||||
Austin, Texas
|
||||||||||||||||||||||||||||
Corridor Park Corporate Center
|
6 | 1,652 | 1,681 | 15,449 | 2,113 | 16,669 | 18,782 | (6,944 | ) | 1995, 1996 | ||||||||||||||||||
Montopolis Distribution Center
|
1 | 580 | 3,384 | 1,342 | 580 | 4,726 | 5,306 | (2,297 | ) | 1994 | ||||||||||||||||||
Rutland Distribution Center
|
2 | 460 | 2,617 | 899 | 462 | 3,514 | 3,976 | (1,460 | ) | 1993 | ||||||||||||||||||
Southpark Corporate Center
|
5 | 1,137 | | 8,636 | 1,137 | 8,636 | 9,773 | (3,601 | ) | 1994, 1995 | ||||||||||||||||||
Walnut Creek Corporate Center
|
10 | 2,171 | 2,632 | 19,170 | 2,225 | 21,748 | 23,973 | (8,554 | ) | 1994, 1995, 1996 | ||||||||||||||||||
Total Austin, Texas
|
24 | 6,000 | 10,314 | 45,496 | 6,517 | 55,293 | 61,810 | (22,856 | ) | |||||||||||||||||||
Charlotte, North Carolina
|
||||||||||||||||||||||||||||
Barringer Industrial Center
|
3 | 308 | 1,746 | 1,101 | 308 | 2,847 | 3,155 | (1,205 | ) | 1994 | ||||||||||||||||||
Bond Distribution Center
|
2 | 905 | 5,126 | 1,684 | 905 | 6,810 | 7,715 | (2,911 | ) | 1994 | ||||||||||||||||||
Carowinds Distribution Center
|
1 | 3,600 | 20,400 | | 3,600 | 20,400 | 24,000 | (5,242 | ) | 1999 | ||||||||||||||||||
Charlotte Commerce Center
|
10 | (e) | 4,341 | 24,954 | 8,131 | 4,342 | 33,084 | 37,426 | (15,265 | ) | 1994 | |||||||||||||||||
Charlotte Distribution Center
|
9 | (e) | 4,578 | | 26,578 | 6,096 | 25,060 | 31,156 | (9,557 | ) | 1995, 1996, 1997, 1998 | |||||||||||||||||
Interstate North Business Park (d)
|
3 | 948 | 3,030 | 4,057 | 947 | 7,088 | 8,035 | (1,551 | ) | 1997, 2006 | ||||||||||||||||||
Northpark Distribution Center
|
2 | (e) | 1,183 | 6,707 | 1,988 | 1,184 | 8,694 | 9,878 | (3,056 | ) | 1994, 1998 | |||||||||||||||||
West Pointe Bus Ctr (d)
|
2 | 4,851 | | 13,382 | 4,851 | 13,382 | 18,233 | | 2006 | |||||||||||||||||||
Total Charlotte, North Carolina
|
32 | 20,714 | 61,963 | 56,921 | 22,233 | 117,365 | 139,598 | (38,787 | ) | |||||||||||||||||||
118
PROLOGIS |
||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
||||||||||||||||||||||||||||
December 31, 2006 |
||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
|||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
|||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | ||||||||||||||||||
(In thousands, as applicable) | ||||||||||||||||||||||||||||
Chicago, Illinois
|
||||||||||||||||||||||||||||
Addison Distribution Center
|
1 | 646 | 3,662 | 784 | 640 | 4,452 | 5,092 | (1,678 | ) | 1997 | ||||||||||||||||||
Alsip Distribution Center
|
2 | 2,093 | 11,859 | 8,252 | 2,549 | 19,655 | 22,204 | (9,269 | ) | 1997, 1999 | ||||||||||||||||||
Arlington Heights Dist Ctr
|
1 | 831 | 3,326 | 20 | 831 | 3,346 | 4,177 | | 2006 | |||||||||||||||||||
Bedford Park Industrial Center
|
1 | 941 | 4,907 | 817 | 941 | 5,724 | 6,665 | (246 | ) | 2005 | ||||||||||||||||||
Bensenville Distribution Center
|
2 | 1,668 | 9,448 | 5,307 | 1,667 | 14,756 | 16,423 | (6,769 | ) | 1997 | ||||||||||||||||||
Bolingbrook Distribution Center (d)
|
6 | 16,178 | 73,755 | 2,444 | 16,177 | 76,200 | 92,377 | (7,360 | ) | 1999, 2003, 2006 | ||||||||||||||||||
Des Plaines Distribution Center
|
3 | 2,158 | 12,232 | 4,813 | 2,159 | 17,044 | 19,203 | (6,776 | ) | 1995, 1996 | ||||||||||||||||||
Elk Grove Distribution Center (d)
|
27 | 25,298 | 114,010 | 16,651 | 25,198 | 130,761 | 155,959 | (21,105 | ) |
1995, 1996, 1997, 1998, 1999, 2006 |
||||||||||||||||||
Elmhurst Distribution Center
|
1 | 713 | 4,043 | 929 | 713 | 4,972 | 5,685 | (1,663 | ) | 1997 | ||||||||||||||||||
Glendale Heights Distribution Center
|
3 | 3,903 | 22,119 | 1,913 | 3,903 | 24,032 | 27,935 | (6,223 | ) | 1999 | ||||||||||||||||||
Glenview Distribution Center
|
2 | 1,156 | 6,550 | 1,318 | 1,156 | 7,868 | 9,024 | (2,700 | ) | 1996, 1999 | ||||||||||||||||||
Gurnee Distribution Center (d)
|
2 | (e) | 1,847 | 10,466 | 296 | 1,847 | 10,762 | 12,609 | | 2005 | ||||||||||||||||||
I-294 Distribution Center (d)
|
1 | 858 | | 7,096 | 858 | 7,096 | 7,954 | | 2005 | |||||||||||||||||||
I-80 Morris (d)
|
1 | 4,690 | | 19,869 | 4,690 | 19,869 | 24,559 | | 2006 | |||||||||||||||||||
Itasca Distribution Center
|
3 | 1,613 | 9,143 | 1,094 | 1,613 | 10,237 | 11,850 | (3,381 | ) | 1996, 1997, 1998 | ||||||||||||||||||
Lombard Distribution Center
|
1 | 1,170 | 6,630 | 309 | 1,170 | 6,939 | 8,109 | (1,864 | ) | 1999 | ||||||||||||||||||
Minooka Distribution Center
|
1 | (e) | 10,403 | 27,247 | 15,275 | 10,403 | 42,522 | 52,925 | (1,806 | ) | 2005 | |||||||||||||||||
Mitchell Distribution Center
|
1 | 1,236 | 7,004 | 1,894 | 1,236 | 8,898 | 10,134 | (3,728 | ) | 1996 | ||||||||||||||||||
North Avenue Distribution Center
|
2 | 3,201 | | 8,996 | 2,047 | 10,150 | 12,197 | (3,387 | ) | 1997, 1998 | ||||||||||||||||||
Northlake Distribution Center
|
1 | 372 | 2,106 | 737 | 372 | 2,843 | 3,215 | (1,003 | ) | 1996 | ||||||||||||||||||
Pleasant Prairie Distribution Center
|
1 | 1,314 | 7,450 | 2,396 | 1,315 | 9,845 | 11,160 | (2,052 | ) | 1999 | ||||||||||||||||||
ProLogis Park 57
|
1 | 686 | 3,885 | 1,313 | 686 | 5,198 | 5,884 | (618 | ) | 2004 | ||||||||||||||||||
Romeoville Distribution Center
|
6 | (e) | 23,731 | 96,764 | 451 | 23,731 | 97,215 | 120,946 | (5,632 | ) | 1999, 2005 | |||||||||||||||||
South Holland Distribution Center
|
2 | 1,156 | 6,550 | 883 | 1,156 | 7,433 | 8,589 | (2,111 | ) | 1999 | ||||||||||||||||||
West Chicago Distribution Center
|
1 | 3,125 | 12,499 | 21 | 3,125 | 12,520 | 15,645 | (504 | ) | 2005 | ||||||||||||||||||
Woodale Distribution Center
|
1 | 263 | 1,490 | 413 | 263 | 1,903 | 2,166 | (680 | ) | 1997 | ||||||||||||||||||
Woodridge Distribution Center
|
14 | (e) | 49,508 | 198,032 | 1,776 | 49,508 | 199,808 | 249,316 | (8,563 | ) | 2005 | |||||||||||||||||
Total Chicago, Illinois
|
88 | 160,758 | 655,177 | 106,067 | 159,954 | 762,048 | 922,002 | (99,118 | ) | |||||||||||||||||||
Cincinnati, Ohio
|
||||||||||||||||||||||||||||
Airpark Distribution Center
|
2 | (e) | 1,128 | | 11,785 | 1,716 | 11,197 | 12,913 | (4,130 | ) | 1996 | |||||||||||||||||
Capital Distribution Center I
|
4 | 1,750 | 9,922 | 3,710 | 1,751 | 13,631 | 15,382 | (5,878 | ) | 1994 | ||||||||||||||||||
Capital Distribution Center II
|
5 | (e) | 1,953 | 11,067 | 4,209 | 1,953 | 15,276 | 17,229 | (6,753 | ) | 1994 | |||||||||||||||||
Capital Industrial Center I
|
10 | 1,039 | 5,885 | 4,497 | 1,105 | 10,316 | 11,421 | (4,549 | ) | 1994, 1995 | ||||||||||||||||||
Constitution Distribution Center
|
1 | 1,465 | 8,301 | 598 | 1,465 | 8,899 | 10,364 | (2,316 | ) | 1999 | ||||||||||||||||||
Dues Drive Distribution Center
|
1 | 921 | 5,218 | 1,807 | 921 | 7,025 | 7,946 | (362 | ) | 2003 | ||||||||||||||||||
Empire Distribution Center
|
3 | (e) | 529 | 2,995 | 2,180 | 529 | 5,175 | 5,704 | (2,126 | ) | 1995 | |||||||||||||||||
Enterprise Distribution Center
|
1 | 1,275 | 7,222 | 35 | 1,275 | 7,257 | 8,532 | (50 | ) | 2005 | ||||||||||||||||||
Fairfield Business Center
|
1 | 348 | 1,971 | 591 | 381 | 2,529 | 2,910 | (244 | ) | 2004 | ||||||||||||||||||
Fairfield Commerce Center (d)
|
1 | 1,558 | 8,831 | 1,256 | 1,558 | 10,087 | 11,645 | | 2004 | |||||||||||||||||||
Fairfield Distribution Center
|
1 | 586 | 3,319 | 1,074 | 586 | 4,393 | 4,979 | (15 | ) | 2002 | ||||||||||||||||||
Mosteller Distribution Center (d)
|
1 | 473 | 2,678 | 1,029 | 483 | 3,697 | 4,180 | | 2004 | |||||||||||||||||||
Production Distribution Center
|
2 | 717 | 2,717 | 2,702 | 824 | 5,312 | 6,136 | (1,654 | ) | 1994, 1998 | ||||||||||||||||||
Sharonville Distribution Center
|
3 | (e) | 1,761 | | 12,351 | 2,424 | 11,688 | 14,112 | (2,994 | ) | 1997, 1998 | |||||||||||||||||
Springdale Commerce Center
|
3 | 421 | 2,384 | 2,017 | 421 | 4,401 | 4,822 | (1,875 | ) | 1996 | ||||||||||||||||||
Total Cincinnati, Ohio
|
39 | 15,924 | 72,510 | 49,841 | 17,392 | 120,883 | 138,275 | (32,946 | ) | |||||||||||||||||||
119
PROLOGIS |
||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
||||||||||||||||||||||||||||
December 31, 2006 |
||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
|||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
|||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | ||||||||||||||||||
(In thousands, as applicable) | ||||||||||||||||||||||||||||
Columbus, Ohio
|
||||||||||||||||||||||||||||
Brookham Distribution Center
|
2 | 5,964 | 23,858 | 1,378 | 5,965 | 25,235 | 31,200 | (1,040 | ) | 2005 | ||||||||||||||||||
Canal Pointe Distribution Center
|
1 | 1,237 | 7,013 | 1,816 | 1,268 | 8,798 | 10,066 | (1,865 | ) | 1999 | ||||||||||||||||||
Capital Park South Distribution
Center
|
3 | (e) | 1,588 | | 23,888 | 1,980 | 23,496 | 25,476 | (8,212 | ) | 1996 | |||||||||||||||||
Charter Street Distribution Center
|
1 | (e) | 1,245 | 7,055 | 301 | 1,245 | 7,356 | 8,601 | (1,864 | ) | 1999 | |||||||||||||||||
Columbus West Industrial Center
|
1 | 295 | 1,899 | 682 | 295 | 2,581 | 2,876 | (1,105 | ) | 1995 | ||||||||||||||||||
Corporate Park West (d)
|
3 | (e) | 1,079 | 6,117 | 3,138 | 1,080 | 9,254 | 10,334 | (1,935 | ) | 1996, 2004 | |||||||||||||||||
Etna Dist Ctr (d)
|
1 | 1,633 | | 16,217 | 1,633 | 16,217 | 17,850 | | 2006 | |||||||||||||||||||
Fisher Distribution Center
|
1 | (e) | 1,197 | 6,785 | 2,423 | 1,197 | 9,208 | 10,405 | (4,312 | ) | 1995 | |||||||||||||||||
Foreign Trade Center I
|
5 | (e) | 6,527 | 36,989 | 5,287 | 6,992 | 41,811 | 48,803 | (10,896 | ) | 1999 | |||||||||||||||||
McCormick Distribution Center
|
5 | (e) | 1,664 | 9,429 | 5,226 | 1,664 | 14,655 | 16,319 | (5,881 | ) | 1994 | |||||||||||||||||
New World Distribution Center
|
1 | 207 | 1,173 | 1,913 | 207 | 3,086 | 3,293 | (1,576 | ) | 1994 | ||||||||||||||||||
South Park Distribution Center
|
2 | (e) | 3,344 | 15,182 | 279 | 3,343 | 15,462 | 18,805 | (2,035 | ) | 1999, 2005 | |||||||||||||||||
Westbelt Business Center
|
5 | 2,271 | 9,862 | 990 | 2,242 | 10,881 | 13,123 | (1,427 | ) | 1998, 2006 | ||||||||||||||||||
Wingate Distribution Center
|
1 | 152 | 859 | 287 | 152 | 1,146 | 1,298 | (398 | ) | 1994 | ||||||||||||||||||
Total Columbus, Ohio
|
32 | 28,403 | 126,221 | 63,825 | 29,263 | 189,186 | 218,449 | (42,546 | ) | |||||||||||||||||||
Dallas/Fort Worth, Texas
|
||||||||||||||||||||||||||||
Alliance Distribution Center
|
1 | (e) | 3,653 | 14,613 | | 3,653 | 14,613 | 18,266 | (629 | ) | 2005 | |||||||||||||||||
Carter Industrial Center
|
1 | 334 | | 2,412 | 334 | 2,412 | 2,746 | (958 | ) | 1996 | ||||||||||||||||||
Centerport Distribution Center
|
1 | 1,250 | 7,082 | 445 | 1,250 | 7,527 | 8,777 | (1,946 | ) | 1999 | ||||||||||||||||||
Dallas Corporate Center
|
10 | 5,161 | | 32,280 | 5,460 | 31,981 | 37,441 | (10,902 | ) | 1996, 1997, 1998, 1999 | ||||||||||||||||||
Enterprise Distribution Center
|
3 | 2,719 | 15,410 | 549 | 2,719 | 15,959 | 18,678 | (3,994 | ) | 1999 | ||||||||||||||||||
Freeport Corp Ctr (d)
|
1 | 555 | | 3,925 | 555 | 3,925 | 4,480 | | 2006 | |||||||||||||||||||
Freeport Distribution Center
|
4 | 1,393 | 5,549 | 4,870 | 1,440 | 10,372 | 11,812 | (3,423 | ) | 1996, 1997, 1998 | ||||||||||||||||||
Great Southwest Distribution Center
|
38 | (e) | 39,449 | 173,329 | 14,530 | 37,983 | 189,325 | 227,308 | (30,662 | ) |
1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2005 |
|||||||||||||||||
Lone Star Distribution Center
|
1 | 512 | 2,896 | 1,242 | 511 | 4,139 | 4,650 | (1,319 | ) | 1996 | ||||||||||||||||||
Northgate Distribution Center
|
8 | (e) | 12,928 | 57,757 | 5,626 | 13,809 | 62,502 | 76,311 | (7,907 | ) | 1994, 1999, 2005 | |||||||||||||||||
Pinnacle Park Distribution Center
(d)(f)
|
1 | 5,058 | | 19,929 | 3,880 | 21,107 | 24,987 | (2,890 | ) | 2001 | ||||||||||||||||||
Plano Distribution Center
|
7 | 3,915 | 22,186 | 1,854 | 3,915 | 24,040 | 27,955 | (6,143 | ) | 1999 | ||||||||||||||||||
Redbird Distribution Center
|
2 | 1,095 | 6,212 | 1,461 | 1,096 | 7,672 | 8,768 | (2,340 | ) | 1994, 1999 | ||||||||||||||||||
Royal Distribution Center
|
1 | 811 | 4,598 | 565 | 811 | 5,163 | 5,974 | (923 | ) | 2001 | ||||||||||||||||||
Stemmons Distribution Center
|
1 | 272 | 1,544 | 655 | 272 | 2,199 | 2,471 | (890 | ) | 1995 | ||||||||||||||||||
Stemmons Industrial Center
|
11 | 1,820 | 11,705 | 4,345 | 1,819 | 16,051 | 17,870 | (6,260 | ) | 1994, 1995, 1996, 1999 | ||||||||||||||||||
Trinity Mills Distribution Center
|
7 | 4,453 | 27,346 | 2,322 | 4,405 | 29,716 | 34,121 | (9,044 | ) | 1996, 1999, 2001 | ||||||||||||||||||
Valwood Business Center
|
6 | (e) | 4,661 | 21,823 | 1,078 | 4,538 | 23,024 | 27,562 | (2,570 | ) | 2001, 2006 | |||||||||||||||||
Valwood Distribution Center
|
5 | 3,811 | 21,341 | 2,155 | 3,810 | 23,497 | 27,307 | (6,036 | ) | 1999 | ||||||||||||||||||
Total Dallas/Fort Worth, Texas
|
109 | 93,850 | 393,391 | 100,243 | 92,260 | 495,224 | 587,484 | (98,836 | ) | |||||||||||||||||||
Denver, Colorado
|
||||||||||||||||||||||||||||
Denver Business Center
|
6 | 1,507 | 8,302 | 9,007 | 1,506 | 17,310 | 18,816 | (6,829 | ) | 1992, 1994, 1996, 2002 | ||||||||||||||||||
Havana Distribution Center
|
1 | 401 | 2,281 | 788 | 401 | 3,069 | 3,470 | (1,661 | ) | 1993 | ||||||||||||||||||
Moline Distribution Center
|
1 | 327 | 1,850 | 799 | 327 | 2,649 | 2,976 | (1,153 | ) | 1994 | ||||||||||||||||||
Moncrieff Distribution Center
|
1 | 314 | 2,493 | 1,086 | 314 | 3,579 | 3,893 | (1,712 | ) | 1992 | ||||||||||||||||||
Pagosa Distribution Center
|
1 | 406 | 2,322 | 951 | 406 | 3,273 | 3,679 | (1,571 | ) | 1993 | ||||||||||||||||||
ProLogis Park 70 (d)
|
1 | 2,128 | | 11,335 | 2,252 | 11,211 | 13,463 | (158 | ) | 2005 | ||||||||||||||||||
Stapleton Business Center
|
12 | (e) | 34,634 | 139,256 | 1,478 | 34,635 | 140,733 | 175,368 | (6,072 | ) | 2005 |
120
PROLOGIS |
||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
||||||||||||||||||||||||||||
December 31, 2006 |
||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
|||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
|||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | ||||||||||||||||||
(In thousands, as applicable) | ||||||||||||||||||||||||||||
Upland Distribution Center I
|
6 | 808 | 4,421 | 11,533 | 821 | 15,941 | 16,762 | (7,144 | ) | 1992, 1994, 1995 | ||||||||||||||||||
Upland Distribution Center II
|
6 | 2,456 | 13,946 | 4,527 | 2,489 | 18,440 | 20,929 | (8,499 | ) | 1993, 1994 | ||||||||||||||||||
Total Denver, Colorado
|
35 | 42,981 | 174,871 | 41,504 | 43,151 | 216,205 | 259,356 | (34,799 | ) | |||||||||||||||||||
El Paso, Texas
|
||||||||||||||||||||||||||||
Billy the Kid Distribution Center
|
1 | 273 | 1,547 | 1,148 | 273 | 2,695 | 2,968 | (1,062 | ) | 1994 | ||||||||||||||||||
Goodyear Distribution Center
|
1 | 511 | 2,899 | 775 | 511 | 3,674 | 4,185 | (1,318 | ) | 1991 | ||||||||||||||||||
Northwestern Corporate Center
|
5 | 981 | | 18,421 | 2,168 | 17,234 | 19,402 | (5,616 | ) | 1992, 1993, 1994, 1997 | ||||||||||||||||||
Pan American Distribution Center
|
1 | 196 | 1,110 | 999 | 196 | 2,109 | 2,305 | (116 | ) | 2002 | ||||||||||||||||||
Vista Corporate Center
|
4 | 1,945 | | 11,993 | 1,946 | 11,992 | 13,938 | (4,708 | ) | 1994, 1995, 1996 | ||||||||||||||||||
Vista Del Sol Industrial Center
|
4 | 996 | | 19,545 | 2,056 | 18,485 | 20,541 | (6,387 | ) | 1995, 1997, 1998 | ||||||||||||||||||
Total El Paso, Texas
|
16 | 4,902 | 5,556 | 52,881 | 7,150 | 56,189 | 63,339 | (19,207 | ) | |||||||||||||||||||
Houston, Texas
|
||||||||||||||||||||||||||||
Blalock Distribution Center
|
2 | 595 | 3,370 | 992 | 595 | 4,362 | 4,957 | (422 | ) | 2002 | ||||||||||||||||||
Brittmore Distribution Center
|
2 | 1,838 | 10,417 | 1,037 | 1,838 | 11,454 | 13,292 | (3,433 | ) | 1999 | ||||||||||||||||||
Crosstimbers Distribution Center
|
1 | 359 | 2,035 | 1,120 | 359 | 3,155 | 3,514 | (1,217 | ) | 1994 | ||||||||||||||||||
Hempstead Distribution Center
|
3 | 1,013 | 5,740 | 1,840 | 1,013 | 7,580 | 8,593 | (3,339 | ) | 1994 | ||||||||||||||||||
Hobby Business Park
|
1 | 721 | 2,885 | 81 | 721 | 2,966 | 3,687 | (127 | ) | 2005 | ||||||||||||||||||
Jersey Village Corp Ctr (d)
|
1 | 1,056 | | 6,746 | 1,056 | 6,746 | 7,802 | | 2006 | |||||||||||||||||||
Kempwood Business Center
|
4 | 1,746 | 9,894 | 1,695 | 1,746 | 11,589 | 13,335 | (2,665 | ) | 2001 | ||||||||||||||||||
Northpark Dist Ctr (d)
|
1 | 1,148 | 4,591 | 104 | 1,148 | 4,695 | 5,843 | | 2006 | |||||||||||||||||||
Perimeter Distribution Center
|
2 | 813 | 4,604 | 944 | 813 | 5,548 | 6,361 | (1,589 | ) | 1999 | ||||||||||||||||||
Pine Forest Business Center
|
12 | 4,111 | 22,356 | 5,751 | 4,111 | 28,107 | 32,218 | (11,059 | ) | 1993, 1995 | ||||||||||||||||||
Pine North Distribution Center
|
2 | 847 | 4,800 | 645 | 847 | 5,445 | 6,292 | (1,650 | ) | 1999 | ||||||||||||||||||
Pine Timbers Distribution Center
|
2 | 2,956 | 16,750 | 2,625 | 2,956 | 19,375 | 22,331 | (5,897 | ) | 1999 | ||||||||||||||||||
Pinemont Distribution Center
|
2 | 642 | 3,636 | 572 | 642 | 4,208 | 4,850 | (1,272 | ) | 1999 | ||||||||||||||||||
Post Oak Business Center
|
15 | 3,005 | 15,378 | 7,143 | 3,005 | 22,521 | 25,526 | (10,119 | ) | 1993, 1994, 1996 | ||||||||||||||||||
Post Oak Distribution Center
|
7 | 2,115 | 12,017 | 5,675 | 2,039 | 17,768 | 19,807 | (8,836 | ) | 1993, 1994 | ||||||||||||||||||
South Loop Distribution Center
|
5 | 1,051 | 5,964 | 3,802 | 1,052 | 9,765 | 10,817 | (4,555 | ) | 1994 | ||||||||||||||||||
Southland Distribution Center
|
1 | 1,209 | 6,849 | 894 | 1,209 | 7,743 | 8,952 | (387 | ) | 2002 | ||||||||||||||||||
Sugarland Corporate Center (d)
|
1 | 452 | | 2,970 | 452 | 2,970 | 3,422 | | 2005 | |||||||||||||||||||
West by Northwest Industrial Center
(d)
|
17 | 4,916 | 7,980 | 42,581 | 5,019 | 50,458 | 55,477 | (17,339 | ) |
1993, 1994, 1995, 1996, 1997, 1998, 2006 |
||||||||||||||||||
White Street Distribution Center
|
1 | 469 | 2,656 | 1,295 | 469 | 3,951 | 4,420 | (1,342 | ) | 1995 | ||||||||||||||||||
Total Houston, Texas
|
82 | 31,062 | 141,922 | 88,512 | 31,090 | 230,406 | 261,496 | (75,248 | ) | |||||||||||||||||||
I-81 Corridor, Pennsylvania
|
||||||||||||||||||||||||||||
Harrisburg Distribution Center
|
1 | 2,243 | 12,572 | 672 | 2,243 | 13,244 | 15,487 | (1,030 | ) | 2004 | ||||||||||||||||||
Harrisburg Industrial Center
|
1 | 782 | 6,190 | 856 | 782 | 7,046 | 7,828 | (859 | ) | 2002 | ||||||||||||||||||
Kraft Distribution Center
|
1 | 2,457 | 13,920 | 70 | 2,457 | 13,990 | 16,447 | (3,586 | ) | 1999 | ||||||||||||||||||
Lehigh Valley Distribution Center
|
6 | 9,387 | 52,723 | 1,391 | 9,387 | 54,114 | 63,501 | (4,301 | ) | 2004 | ||||||||||||||||||
Middleton Distribution Center
|
1 | (e) | 4,190 | 23,478 | 272 | 4,190 | 23,750 | 27,940 | (1,881 | ) | 2004 | |||||||||||||||||
Northport Industrial Center
|
1 | 395 | 21,707 | 2,785 | 1,869 | 23,018 | 24,887 | (2,699 | ) | 2002 | ||||||||||||||||||
Quakertown Dist Ctr (d)
|
1 | 6,966 | | 27,582 | 6,966 | 27,582 | 34,548 | | 2006 | |||||||||||||||||||
Total I-81 Corridor, Pennsylvania
|
12 | 26,420 | 130,590 | 33,628 | 27,894 | 162,744 | 190,638 | (14,356 | ) | |||||||||||||||||||
121
PROLOGIS |
||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
||||||||||||||||||||||||||||
December 31, 2006 |
||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
|||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
|||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | ||||||||||||||||||
(In thousands, as applicable) | ||||||||||||||||||||||||||||
Indianapolis, Indiana
|
||||||||||||||||||||||||||||
Airport Business Center
|
2 | 600 | 3,406 | 5,682 | 934 | 8,754 | 9,688 | (2,299 | ) | 1999 | ||||||||||||||||||
Eastside Distribution Center
|
2 | 1,204 | 6,820 | 1,234 | 1,275 | 7,983 | 9,258 | (2,274 | ) | 1995, 1999 | ||||||||||||||||||
Logo Court Distribution Center
|
1 | 3,352 | 18,678 | 316 | 3,352 | 18,994 | 22,346 | (1,504 | ) | 2004 | ||||||||||||||||||
North by Northeast Distribution
Center
|
1 | 1,058 | | 7,221 | 1,059 | 7,220 | 8,279 | (2,557 | ) | 1995 | ||||||||||||||||||
Park 100 Industrial Center
|
14 | 4,948 | 28,691 | 8,793 | 4,900 | 37,532 | 42,432 | (14,476 | ) | 1994, 1995 | ||||||||||||||||||
Park Fletcher Distribution Center
|
9 | 2,687 | 15,224 | 5,793 | 2,785 | 20,919 | 23,704 | (8,250 | ) | 1994, 1995, 1996 | ||||||||||||||||||
Shadeland Industrial Center
|
3 | 428 | 2,431 | 2,352 | 429 | 4,782 | 5,211 | (1,893 | ) | 1995 | ||||||||||||||||||
Total Indianapolis, Indiana
|
32 | 14,277 | 75,250 | 31,391 | 14,734 | 106,184 | 120,918 | (33,253 | ) | |||||||||||||||||||
Las Vegas, Nevada
|
||||||||||||||||||||||||||||
Black Mountain Distribution Center
|
2 | 1,108 | | 7,407 | 1,206 | 7,309 | 8,515 | (2,424 | ) | 1997 | ||||||||||||||||||
Cameron Business Center
|
1 | (e) | 1,634 | 9,256 | 251 | 1,634 | 9,507 | 11,141 | (2,484 | ) | 1999 | |||||||||||||||||
Hughes Airport Center
|
1 | 876 | | 3,277 | 910 | 3,243 | 4,153 | (1,220 | ) | 1994 | ||||||||||||||||||
Las Vegas Corporate Center (d)
|
8 | (g) | 6,468 | | 32,849 | 6,555 | 32,762 | 39,317 | (8,585 | ) | 1994, 1995, 1996, 1997, 2006 | |||||||||||||||||
Placid Street Distribution Center
|
1 | (e) | 2,620 | 14,848 | 52 | 2,620 | 14,900 | 17,520 | (3,845 | ) | 1999 | |||||||||||||||||
South Arville Center
|
1 | 1,440 | 8,160 | 225 | 1,440 | 8,385 | 9,825 | (2,172 | ) | 1999 | ||||||||||||||||||
West One Business Center
|
4 | 2,468 | 13,985 | 1,481 | 2,468 | 15,466 | 17,934 | (5,698 | ) | 1996 | ||||||||||||||||||
Total Las Vegas, Nevada
|
18 | 16,614 | 46,249 | 45,542 | 16,833 | 91,572 | 108,405 | (26,428 | ) | |||||||||||||||||||
Louisville, Kentucky
|
||||||||||||||||||||||||||||
Airpark Commerce Center
|
4 | 1,583 | 8,971 | 5,485 | 1,583 | 14,456 | 16,039 | (6,201 | ) | 1998 | ||||||||||||||||||
Cedar Grove Distribution Center
|
1 | (e) | 3,775 | 15,098 | 9 | 3,775 | 15,107 | 18,882 | (651 | ) | 2005 | |||||||||||||||||
Commerce Crossings Distribution
Center
|
1 | (e) | 1,912 | 7,649 | | 1,912 | 7,649 | 9,561 | (329 | ) | 2005 | |||||||||||||||||
I-65 Meyer Distribution Center (d)
|
1 | 2,801 | | 13,413 | 2,801 | 13,413 | 16,214 | | 2006 | |||||||||||||||||||
Louisville Distribution Center
|
2 | 680 | 3,402 | 4,631 | 689 | 8,024 | 8,713 | (2,638 | ) | 1995, 1998 | ||||||||||||||||||
Riverport Distribution Center
|
1 | (e) | 1,515 | 8,585 | 2,722 | 1,515 | 11,307 | 12,822 | (2,336 | ) | 1999 | |||||||||||||||||
Total Louisville, Kentucky
|
10 | 12,266 | 43,705 | 26,260 | 12,275 | 69,956 | 82,231 | (12,155 | ) | |||||||||||||||||||
Memphis, Tennessee
|
||||||||||||||||||||||||||||
Airport Distribution Center
|
18 | 6,536 | 36,998 | 10,968 | 6,536 | 47,966 | 54,502 | (18,461 | ) | 1995, 1996, 1999 | ||||||||||||||||||
Centerpointe Distribution Center
|
3 | 2,497 | 14,151 | 1,843 | 2,497 | 15,994 | 18,491 | (3,627 | ) | 2001 | ||||||||||||||||||
Delp Distribution Center
|
10 | 4,886 | 27,687 | 7,546 | 4,886 | 35,233 | 40,119 | (13,472 | ) | 1995, 1997, 1999 | ||||||||||||||||||
Fred Jones Distribution Center
|
1 | 125 | 707 | 267 | 125 | 974 | 1,099 | (447 | ) | 1994 | ||||||||||||||||||
Memphis Distribution Center
|
1 | 480 | 2,723 | 338 | 481 | 3,060 | 3,541 | (430 | ) | 2002 | ||||||||||||||||||
Olive Branch Distribution Center
|
2 | 2,892 | 16,389 | 2,028 | 2,892 | 18,417 | 21,309 | (5,064 | ) | 1999 | ||||||||||||||||||
Raines Distribution Center
|
1 | 1,635 | 9,264 | 3,980 | 1,635 | 13,244 | 14,879 | (5,832 | ) | 1998 | ||||||||||||||||||
Southpark Distribution Center
|
1 | 859 | 4,866 | 465 | 859 | 5,331 | 6,190 | (217 | ) | 2003 | ||||||||||||||||||
Southwide Industrial Center
|
4 | 725 | 4,105 | 1,351 | 724 | 5,457 | 6,181 | (1,445 | ) | 1999 | ||||||||||||||||||
Willow Lake Distribution Center
|
1 | 613 | 3,474 | 306 | 613 | 3,780 | 4,393 | (1,064 | ) | 1999 | ||||||||||||||||||
Total Memphis, Tennessee
|
42 | 21,248 | 120,364 | 29,092 | 21,248 | 149,456 | 170,704 | (50,059 | ) | |||||||||||||||||||
Nashville, Tennessee
|
||||||||||||||||||||||||||||
Bakertown Distribution Center
|
2 | 463 | 2,626 | 680 | 463 | 3,306 | 3,769 | (1,387 | ) | 1995 | ||||||||||||||||||
I-40 Industrial Center
|
4 | 1,711 | 9,698 | 1,358 | 1,712 | 11,055 | 12,767 | (3,767 | ) | 1995, 1996, 1999 |
122
PROLOGIS |
||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
||||||||||||||||||||||||||||
December 31, 2006 |
||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
|||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
|||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | ||||||||||||||||||
(In thousands, as applicable) | ||||||||||||||||||||||||||||
Interchange City Distribution
Center (d)
|
17 | 8,107 | 38,553 | 14,204 | 8,862 | 52,002 | 60,864 | (11,661 | ) |
1994, 1995, 1996, 1997, 1998, 2001, 2003 |
||||||||||||||||||
Space Park South Distribution Center
|
15 | 3,499 | 19,830 | 9,050 | 3,499 | 28,880 | 32,379 | (12,838 | ) | 1994 | ||||||||||||||||||
Total Nashville, Tennessee
|
38 | 13,780 | 70,707 | 25,292 | 14,536 | 95,243 | 109,779 | (29,653 | ) | |||||||||||||||||||
New Jersey
|
||||||||||||||||||||||||||||
Bellmawr Distribution Center
|
1 | 212 | 1,197 | 391 | 211 | 1,589 | 1,800 | (455 | ) | 1999 | ||||||||||||||||||
Brunswick Distribution Center
|
2 | 870 | 4,928 | 2,158 | 870 | 7,086 | 7,956 | (3,339 | ) | 1997 | ||||||||||||||||||
Chester Distribution Center
|
1 | 548 | 5,320 | | 548 | 5,320 | 5,868 | (2,805 | ) | 2002 | ||||||||||||||||||
Clearview Distribution Center
|
1 | 2,232 | 12,648 | 525 | 2,232 | 13,173 | 15,405 | (4,696 | ) | 1996 | ||||||||||||||||||
Clifton Business Center
|
1 | 2,014 | 11,317 | | 2,014 | 11,317 | 13,331 | (488 | ) | 2005 | ||||||||||||||||||
Exit 10 Distribution Center
|
6 | 22,738 | 126,961 | | 22,738 | 126,961 | 149,699 | (5,475 | ) | 2005 | ||||||||||||||||||
Exit 8A Distribution Center (d)
|
2 | (e) | 20,558 | 44,103 | 25,680 | 20,718 | 69,623 | 90,341 | (1,912 | ) | 2005 | |||||||||||||||||
Kilmer Distribution Center
|
4 | (e) | 2,526 | 14,313 | 2,708 | 2,526 | 17,021 | 19,547 | (6,150 | ) | 1996 | |||||||||||||||||
Meadowland Distribution Center
|
5 | (e) | 12,526 | 80,219 | | 12,526 | 80,219 | 92,745 | (19,485 | ) | 2002, 2005 | |||||||||||||||||
Meadowland Industrial Center
|
8 | (e) | 5,676 | 32,167 | 15,460 | 5,677 | 47,626 | 53,303 | (22,904 | ) | 1996, 1997, 1998 | |||||||||||||||||
Mt. Laurel Distribution Center
|
3 | 826 | 4,679 | 1,472 | 826 | 6,151 | 6,977 | (1,586 | ) | 1999 | ||||||||||||||||||
Pennsauken Distribution Center
|
3 | 376 | 2,132 | 391 | 384 | 2,515 | 2,899 | (731 | ) | 1999 | ||||||||||||||||||
Port Reading Business Park (d)
|
1 | 4,138 | | 22,528 | 4,138 | 22,528 | 26,666 | | 2005 | |||||||||||||||||||
38 | 75,240 | 339,984 | 71,313 | 75,408 | 411,129 | 486,537 | (70,026 | ) | ||||||||||||||||||||
Orlando, Florida
|
||||||||||||||||||||||||||||
33rd Street Industrial Center
|
9 | 1,980 | 11,237 | 3,844 | 1,980 | 15,081 | 17,061 | (6,084 | ) | 1994, 1995, 1996 | ||||||||||||||||||
Chancellor Distribution Center
|
1 | 380 | 2,156 | 1,256 | 380 | 3,412 | 3,792 | (1,520 | ) | 1994 | ||||||||||||||||||
Consulate Distribution Center
|
3 | 4,148 | 23,617 | 963 | 4,148 | 24,580 | 28,728 | (6,420 | ) | 1999 | ||||||||||||||||||
La Quinta Distribution Center
|
1 | 354 | 2,006 | 1,664 | 354 | 3,670 | 4,024 | (1,456 | ) | 1994 | ||||||||||||||||||
Orlando Central Park
|
3 | 1,378 | | 10,054 | 1,871 | 9,561 | 11,432 | (2,866 | ) | 1997, 1998 | ||||||||||||||||||
Orlando Corporate Center (d)
|
1 | 959 | | 6,430 | 959 | 6,430 | 7,389 | | 2006 | |||||||||||||||||||
Princeton Oaks Distribution Center
|
1 | (e) | 900 | 5,100 | 22 | 900 | 5,122 | 6,022 | (1,317 | ) | 1999 | |||||||||||||||||
Titusville Industrial Center
|
1 | 283 | 1,603 | 487 | 283 | 2,090 | 2,373 | (780 | ) | 1994 | ||||||||||||||||||
Total Orlando, Florida
|
20 | 10,382 | 45,719 | 24,720 | 10,875 | 69,946 | 80,821 | (20,443 | ) | |||||||||||||||||||
Phoenix, Arizona
|
||||||||||||||||||||||||||||
24th Street Industrial Center
|
2 | 503 | 2,852 | 1,437 | 561 | 4,231 | 4,792 | (2,077 | ) | 1994 | ||||||||||||||||||
Alameda Distribution Center
|
2 | (e) | 3,872 | 14,358 | 1,326 | 3,872 | 15,684 | 19,556 | (667 | ) | 2005 | |||||||||||||||||
Buckeye Road Industrial Center
|
2 | 1,236 | 4,988 | 72 | 1,236 | 5,060 | 6,296 | (221 | ) | 2005 | ||||||||||||||||||
Hohokam 10 Industrial Center
|
6 | 4,258 | 7,467 | 13,179 | 4,258 | 20,646 | 24,904 | (6,887 | ) | 1996, 1999 | ||||||||||||||||||
I-10 West Business Center
|
3 | 263 | 1,525 | 684 | 263 | 2,209 | 2,472 | (1,042 | ) | 1993 | ||||||||||||||||||
Kyrene Commons Distribution Center
|
3 | 2,369 | 5,475 | 559 | 1,093 | 7,310 | 8,403 | (2,682 | ) | 1992, 1998, 1999 | ||||||||||||||||||
Kyrene Commons South Distribution
Center
|
2 | 1,096 | | 5,972 | 1,163 | 5,905 | 7,068 | (1,742 | ) | 1998 | ||||||||||||||||||
Martin Van Buren Distribution Center
|
6 | 572 | 3,285 | 1,729 | 572 | 5,014 | 5,586 | (2,344 | ) | 1993, 1994 | ||||||||||||||||||
Papago Distribution Center
|
3 | 4,828 | 20,017 | 741 | 4,829 | 20,757 | 25,586 | (1,972 | ) | 1994, 2005 | ||||||||||||||||||
Roosevelt Distribution Center
|
1 | (e) | 1,766 | 7,065 | | 1,766 | 7,065 | 8,831 | (304 | ) | 2005 | |||||||||||||||||
University Dr Distribution Center
|
1 | 683 | 2,735 | 16 | 683 | 2,751 | 3,434 | (118 | ) | 2005 | ||||||||||||||||||
Watkins Distribution Center
|
1 | 242 | 1,375 | 478 | 243 | 1,852 | 2,095 | (736 | ) | 1995 | ||||||||||||||||||
Wilson Drive Distribution Center
|
1 | (e) | 1,273 | 5,093 | | 1,273 | 5,093 | 6,366 | (219 | ) | 2005 | |||||||||||||||||
Total Phoenix, Arizona
|
33 | 22,961 | 76,235 | 26,193 | 21,812 | 103,577 | 125,389 | (21,011 | ) | |||||||||||||||||||
123
PROLOGIS |
||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
||||||||||||||||||||||||||||
December 31, 2006 |
||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
|||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
|||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | ||||||||||||||||||
(In thousands, as applicable) | ||||||||||||||||||||||||||||
Portland, Oregon
|
||||||||||||||||||||||||||||
Argyle Distribution Center
|
3 | 946 | 5,388 | 1,094 | 946 | 6,482 | 7,428 | (2,986 | ) | 1993 | ||||||||||||||||||
Columbia Distribution Center
|
2 | 550 | 3,121 | 1,009 | 551 | 4,129 | 4,680 | (1,747 | ) | 1994 | ||||||||||||||||||
PDX Corp Ctr North Phase II (d)
|
2 | (g) | 4,103 | | 8,477 | 4,103 | 8,477 | 12,580 | | 2006 | ||||||||||||||||||
PDX Corporate Center East
|
2 | (g) | 1,785 | | 7,072 | 2,100 | 6,757 | 8,857 | (2,257 | ) | 1997 | |||||||||||||||||
PDX Corporate Center North
|
7 | (g) | 2,405 | | 11,944 | 2,542 | 11,807 | 14,349 | (4,560 | ) | 1995, 1996 | |||||||||||||||||
Southshore Corporate Center (d)
|
6 | (e)(g) | 14,846 | 52,299 | 7,760 | 15,058 | 59,847 | 74,905 | (1,886 | ) | 2005, 2006 | |||||||||||||||||
Wilsonville Corporate Center
|
6 | 2,963 | | 13,525 | 2,964 | 13,524 | 16,488 | (5,300 | ) | 1995, 1996 | ||||||||||||||||||
Total Portland, Oregon
|
28 | 27,598 | 60,808 | 50,881 | 28,264 | 111,023 | 139,287 | (18,736 | ) | |||||||||||||||||||
Reno, Nevada
|
||||||||||||||||||||||||||||
Golden Valley Distribution Center
|
3 | 2,975 | 13,686 | 10,942 | 4,451 | 23,152 | 27,603 | (3,106 | ) | 1996, 1998, 2005 | ||||||||||||||||||
Meredith Kleppe Business Center
|
5 | 1,573 | 8,949 | 3,359 | 1,573 | 12,308 | 13,881 | (5,245 | ) | 1993 | ||||||||||||||||||
Packer Way Distribution Center
|
2 | 506 | 2,879 | 1,487 | 506 | 4,366 | 4,872 | (2,177 | ) | 1993 | ||||||||||||||||||
Spice Island Distribution Center
|
1 | 435 | 2,466 | 2,285 | 435 | 4,751 | 5,186 | (1,361 | ) | 1996 | ||||||||||||||||||
Vista Industrial Center
|
10 | 9,566 | 40,036 | 13,944 | 9,566 | 53,980 | 63,546 | (12,255 | ) | 1994, 1995, 2001 | ||||||||||||||||||
Total Reno, Nevada
|
21 | 15,055 | 68,016 | 32,017 | 16,531 | 98,557 | 115,088 | (24,144 | ) | |||||||||||||||||||
Salt Lake City, Utah
|
||||||||||||||||||||||||||||
Centennial Distribution Center
|
2 | 1,149 | | 9,151 | 1,149 | 9,151 | 10,300 | (3,560 | ) | 1995 | ||||||||||||||||||
Crossroads Corporate Center (d)
|
1 | 284 | | 7,189 | 926 | 6,547 | 7,473 | | 2005 | |||||||||||||||||||
Salt Lake International
Distribution Center
|
2 | 1,367 | 2,792 | 9,673 | 1,364 | 12,468 | 13,832 | (4,757 | ) | 1994, 1996 | ||||||||||||||||||
Total Salt Lake City, Utah
|
5 | 2,800 | 2,792 | 26,013 | 3,439 | 28,166 | 31,605 | (8,317 | ) | |||||||||||||||||||
San Antonio, Texas
|
||||||||||||||||||||||||||||
10711 Distribution Center
|
2 | 582 | 3,301 | 1,748 | 582 | 5,049 | 5,631 | (2,406 | ) | 1994 | ||||||||||||||||||
City Park East Distribution Center
|
3 | 1,002 | 5,676 | 903 | 1,002 | 6,579 | 7,581 | (276 | ) | 2003 | ||||||||||||||||||
Coliseum Distribution Center (d)
|
3 | 1,547 | 923 | 9,578 | 1,584 | 10,464 | 12,048 | (2,366 | ) | 1994, 2006 | ||||||||||||||||||
Distribution Drive Center
|
1 | 473 | 2,680 | 1,007 | 473 | 3,687 | 4,160 | (1,983 | ) | 1992 | ||||||||||||||||||
I-35 Business Center
|
4 | 663 | 3,773 | 2,277 | 663 | 6,050 | 6,713 | (2,804 | ) | 1993 | ||||||||||||||||||
Macro Distribution Center
|
3 | 1,705 | 9,024 | 1,912 | 1,705 | 10,936 | 12,641 | (604 | ) | 2002 | ||||||||||||||||||
Perrin Creek Corporate Center
|
6 | 1,716 | | 10,386 | 1,634 | 10,468 | 12,102 | (3,876 | ) | 1995, 1996 | ||||||||||||||||||
Rittiman East Ind Park (d)
|
7 | 5,938 | 23,756 | 66 | 5,939 | 23,821 | 29,760 | | 2006 | |||||||||||||||||||
Rittiman West Ind Park (d)
|
2 | 1,237 | 4,950 | 51 | 1,237 | 5,001 | 6,238 | | 2006 | |||||||||||||||||||
San Antonio Distribution
Center I
|
13 | 2,154 | 12,247 | 8,420 | 2,154 | 20,667 | 22,821 | (9,978 | ) | 1992, 1993, 1994 | ||||||||||||||||||
San Antonio Distribution
Center II
|
3 | 945 | | 6,615 | 885 | 6,675 | 7,560 | (2,799 | ) | 1994 | ||||||||||||||||||
San Antonio Distribution
Center III
|
4 | 1,176 | 6,571 | 3,105 | 1,176 | 9,676 | 10,852 | (3,875 | ) | 1996 | ||||||||||||||||||
Tri-County Dist Ctr (d)
|
1 | 950 | | 7,634 | 950 | 7,634 | 8,584 | | 2006 | |||||||||||||||||||
Woodlake Distribution Center
|
2 | 248 | 1,405 | 1,253 | 248 | 2,658 | 2,906 | (1,089 | ) | 1994 | ||||||||||||||||||
Total San Antonio, Texas
|
54 | 20,336 | 74,306 | 54,955 | 20,232 | 129,365 | 149,597 | (32,056 | ) | |||||||||||||||||||
San Diego, California
|
||||||||||||||||||||||||||||
San Diego Industrial Center
|
13 | 8,685 | 16,128 | 1,363 | 8,684 | 17,492 | 26,176 | (702 | ) | 2005 | ||||||||||||||||||
Total San Diego, California
|
13 | 8,685 | 16,128 | 1,363 | 8,684 | 17,492 | 26,176 | (702 | ) | |||||||||||||||||||
San Francisco (Central
Valley), California
|
||||||||||||||||||||||||||||
Central Valley Distribution Center
(d)
|
4 | 6,935 | 34,316 | 4,551 | 6,935 | 38,867 | 45,802 | (7,201 | ) | 1999, 2002, 2003 | ||||||||||||||||||
Central Valley Industrial Center
|
4 | (e)(g) | 11,418 | 48,726 | 5,912 | 11,868 | 54,188 | 66,056 | (8,657 | ) | 1999, 2002, 2005 | |||||||||||||||||
Manteca Distribution Center
|
1 | (e) | 9,280 | 27,841 | 55 | 9,280 | 27,896 | 37,176 | (1,203 | ) | 2005 |
124
PROLOGIS |
||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
||||||||||||||||||||||||||||
December 31, 2006 |
||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
|||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
|||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | ||||||||||||||||||
(In thousands, as applicable) | ||||||||||||||||||||||||||||
Patterson Pass Business Center
|
5 | 2,496 | 4,885 | 9,764 | 2,496 | 14,649 | 17,145 | (5,334 | ) | 1993, 1997, 1998 | ||||||||||||||||||
Tracy Distribution Center (d)
|
1 | 2,802 | 6,539 | 267 | 2,802 | 6,806 | 9,608 | | 2004 | |||||||||||||||||||
Total Central Valley, California
|
15 | 32,931 | 122,307 | 20,549 | 33,381 | 142,406 | 175,787 | (22,395 | ) | |||||||||||||||||||
San Francisco (East Bay),
California
|
||||||||||||||||||||||||||||
Alvarado Business Center
|
10 | (e) | 20,739 | 62,595 | 523 | 20,739 | 63,118 | 83,857 | (2,710 | ) | 2005 | |||||||||||||||||
Barrington Business Center
|
3 | 1,741 | 9,863 | 1,352 | 1,741 | 11,215 | 12,956 | (3,019 | ) | 1999 | ||||||||||||||||||
East Bay Industrial Center
|
1 | 531 | 3,009 | 550 | 531 | 3,559 | 4,090 | (1,619 | ) | 1994 | ||||||||||||||||||
Eigenbrodt Way Distribution Center
|
1 | (e) | 393 | 2,228 | 445 | 393 | 2,673 | 3,066 | (1,214 | ) | 1993 | |||||||||||||||||
Hayward Commerce Center
|
4 | 1,933 | 10,955 | 1,859 | 1,933 | 12,814 | 14,747 | (5,476 | ) | 1993 | ||||||||||||||||||
Hayward Commerce Park
|
7 | 1,968 | 11,167 | 3,327 | 1,968 | 14,494 | 16,462 | (6,611 | ) | 1994 | ||||||||||||||||||
Hayward Distribution Center
|
6 | (e) | 2,906 | 19,165 | 4,022 | 3,327 | 22,766 | 26,093 | (10,404 | ) | 1993 | |||||||||||||||||
Hayward Industrial Center
|
13 | (e) | 4,481 | 25,393 | 5,169 | 4,481 | 30,562 | 35,043 | (13,444 | ) | 1993 | |||||||||||||||||
Livermore Distribution Center
|
4 | (e) | 8,992 | 26,976 | 597 | 8,992 | 27,573 | 36,565 | (1,169 | ) | 2005 | |||||||||||||||||
Oakland Industrial Center
|
3 | (e) | 8,234 | 24,704 | 426 | 8,235 | 25,129 | 33,364 | (1,044 | ) | 2005 | |||||||||||||||||
Regatta Business Park
|
2 | (e) | 7,688 | 23,063 | | 7,688 | 23,063 | 30,751 | (993 | ) | 2005 | |||||||||||||||||
San Leandro Distribution Center
|
3 | (e) | 1,387 | 7,862 | 1,297 | 1,387 | 9,159 | 10,546 | (4,171 | ) | 1993 | |||||||||||||||||
Total San Francisco (East
Bay), California
|
57 | 60,993 | 226,980 | 19,567 | 61,415 | 246,125 | 307,540 | (51,874 | ) | |||||||||||||||||||
San Francisco (South Bay),
California
|
||||||||||||||||||||||||||||
Bayside Business Center
|
2 | (g) | 2,088 | | 5,048 | 2,088 | 5,048 | 7,136 | (2,201 | ) | 1996 | |||||||||||||||||
Bayside Corporate Center
|
7 | (g) | 4,365 | | 18,569 | 4,365 | 18,569 | 22,934 | (8,369 | ) | 1995, 1996 | |||||||||||||||||
Bayside Plaza I
|
12 | (g) | 5,212 | 18,008 | 3,499 | 5,216 | 21,503 | 26,719 | (9,333 | ) | 1993 | |||||||||||||||||
Bayside Plaza II
|
2 | (g) | 634 | | 3,380 | 634 | 3,380 | 4,014 | (1,784 | ) | 1994 | |||||||||||||||||
Gateway Corporate Center
|
11 | (g) | 7,575 | 24,746 | 7,329 | 7,575 | 32,075 | 39,650 | (14,524 | ) | 1993, 1996 | |||||||||||||||||
Mowry Business Center
|
4 | 5,933 | | 19,610 | 7,815 | 17,728 | 25,543 | (5,748 | ) | 1997, 1998 | ||||||||||||||||||
Overlook Distribution Center
|
1 | 1,573 | 8,915 | 31 | 1,573 | 8,946 | 10,519 | (2,318 | ) | 1999 | ||||||||||||||||||
Pacific Commons Industrial Center
|
7 | (e)(g) | 30,107 | 90,416 | 329 | 30,107 | 90,745 | 120,852 | (3,894 | ) | 2005 | |||||||||||||||||
Pacific Industrial Center
|
6 | (e) | 21,676 | 65,083 | 4,566 | 25,294 | 66,031 | 91,325 | (2,809 | ) | 2005 | |||||||||||||||||
Shoreline Business Center
|
8 | (g) | 4,328 | 16,101 | 2,222 | 4,328 | 18,323 | 22,651 | (7,771 | ) | 1993 | |||||||||||||||||
Shoreline Business Center II
|
2 | (g) | 922 | | 5,914 | 922 | 5,914 | 6,836 | (2,566 | ) | 1995 | |||||||||||||||||
Spinnaker Business Center
|
12 | (g) | 7,043 | 25,220 | 4,811 | 7,043 | 30,031 | 37,074 | (12,927 | ) | 1993 | |||||||||||||||||
Thornton Business Center
|
5 | 3,988 | 11,706 | 7,240 | 3,989 | 18,945 | 22,934 | (7,194 | ) | 1993, 1996 | ||||||||||||||||||
Trimble Distribution Center
|
5 | 2,836 | 16,067 | 3,560 | 2,836 | 19,627 | 22,463 | (8,529 | ) | 1994 | ||||||||||||||||||
Total San Francisco (South
Bay), California
|
84 | 98,280 | 276,262 | 86,108 | 103,785 | 356,865 | 460,650 | (89,967 | ) | |||||||||||||||||||
Seattle, Washington
|
||||||||||||||||||||||||||||
Andover East Business Center
|
2 | 535 | 3,033 | 611 | 535 | 3,644 | 4,179 | (1,551 | ) | 1994 | ||||||||||||||||||
Fife Corporate Center
|
3 | 4,059 | | 11,401 | 4,209 | 11,251 | 15,460 | (3,955 | ) | 1996 | ||||||||||||||||||
Kent Corporate Center
|
2 | (g) | 2,882 | 1,987 | 9,950 | 3,276 | 11,543 | 14,819 | (4,668 | ) | 1995 | |||||||||||||||||
Van Dorens Distribution Center
|
2 | (g) | 2,473 | | 9,920 | 3,111 | 9,282 | 12,393 | (3,570 | ) | 1995, 1997 | |||||||||||||||||
Total Seattle, Washington
|
9 | 9,949 | 5,020 | 31,882 | 11,131 | 35,720 | 46,851 | (13,744 | ) | |||||||||||||||||||
South Florida
|
||||||||||||||||||||||||||||
Airport West Distribution Center
|
2 | 1,253 | 3,825 | 3,281 | 1,974 | 6,385 | 8,359 | (2,023 | ) | 1995, 1998 | ||||||||||||||||||
Boca Dist Ctr
|
1 | 1,474 | 5,918 | | 1,474 | 5,918 | 7,392 | (90 | ) | 2006 | ||||||||||||||||||
CenterPort Distribution Center
|
3 | 2,083 | 11,806 | 666 | 2,083 | 12,472 | 14,555 | (3,426 | ) | 1999 | ||||||||||||||||||
Copans Distribution Center
|
2 | 504 | 2,857 | 535 | 504 | 3,392 | 3,896 | (1,254 | ) | 1997, 1998 | ||||||||||||||||||
Dade Distribution Center
|
1 | 2,589 | 14,670 | | 2,589 | 14,670 | 17,259 | (713 | ) | 2005 |
125
PROLOGIS |
|||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
|||||||||||||||||||||||||||||
December 31, 2006 |
|||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
||||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
|||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | |||||||||||||||||||
(In thousands, as applicable) | |||||||||||||||||||||||||||||
North Andrews Distribution Center
|
1 | 698 | 3,956 | 101 | 698 | 4,057 | 4,755 | (1,654 | ) | 1994 | |||||||||||||||||||
Port Lauderdale Distribution Center
|
2 | 896 | | 8,341 | 2,205 | 7,032 | 9,237 | (1,827 | ) | 1997 | |||||||||||||||||||
ProLogis Park I-595
|
2 | (e) | 1,998 | 11,326 | 107 | 1,999 | 11,432 | 13,431 | (1,511 | ) | 2003 | ||||||||||||||||||
Total South Florida
|
14 | 11,495 | 54,358 | 13,031 | 13,526 | 65,358 | 78,884 | (12,498 | ) | ||||||||||||||||||||
Southern California
|
|||||||||||||||||||||||||||||
Anaheim Industrial Center
|
13 | (e) | 32,275 | 59,983 | 140 | 32,275 | 60,123 | 92,398 | (2,587 | ) | 2005 | ||||||||||||||||||
California Commerce Center
|
1 | (e) | 4,201 | 7,802 | 66 | 4,201 | 7,868 | 12,069 | (337 | ) | 2005 | ||||||||||||||||||
Crossroads Business Park (d)
|
8 | (e) | 56,343 | 95,951 | 9,725 | 56,344 | 105,675 | 162,019 | (4,133 | ) | 2005, 2006 | ||||||||||||||||||
Fullerton Industrial Center
|
2 | (e) | 8,238 | 15,300 | 14 | 8,239 | 15,313 | 23,552 | (659 | ) | 2005 | ||||||||||||||||||
Industry Distribution Center
|
7 | (e)(g) | 50,268 | 93,355 | 341 | 50,268 | 93,696 | 143,964 | (4,041 | ) | 2005 | ||||||||||||||||||
Inland Empire Distribution Center
(d)
|
7 | (e) | 52,379 | 84,275 | 36,165 | 53,134 | 119,685 | 172,819 | (6,267 | ) | 1999, 2005 | ||||||||||||||||||
Kaiser Distribution Center
|
7 | (e)(g) | 120,885 | 224,599 | 1 | 120,886 | 224,599 | 345,485 | (9,520 | ) | 2005 | ||||||||||||||||||
Los Angeles Industrial Center
|
2 | (e) | 3,777 | 7,015 | | 3,777 | 7,015 | 10,792 | (302 | ) | 2005 | ||||||||||||||||||
Mid Counties Industrial Center
|
14 | (e) | 45,864 | 87,107 | 7,900 | 45,830 | 95,041 | 140,871 | (3,563 | ) | 2005, 2006 | ||||||||||||||||||
Mill Street Spec Distribution
Center (d)
|
1 | 1,232 | 31,842 | 1,268 | 1,232 | 33,110 | 34,342 | | 2005 | ||||||||||||||||||||
Orange Industrial Center
|
2 | (e) | 5,930 | 11,014 | | 5,930 | 11,014 | 16,944 | (474 | ) | 2005 | ||||||||||||||||||
Rancho Cucamonga Distribution Center
|
6 | (e)(g) | 51,283 | 95,241 | 33 | 51,283 | 95,274 | 146,557 | (4,101 | ) | 2005 | ||||||||||||||||||
Redlands Commerce Center (d)
|
1 | 14,173 | | 16,924 | 13,813 | 17,284 | 31,097 | | 2005 | ||||||||||||||||||||
Redlands Dist Ctr (d)
|
3 | 18,176 | 43,423 | 20,704 | 18,176 | 64,127 | 82,303 | | 2006 | ||||||||||||||||||||
Santa Ana Distribution Center
|
2 | (e) | 4,318 | 8,019 | 31 | 4,318 | 8,050 | 12,368 | (345 | ) | 2005 | ||||||||||||||||||
South Bay Distribution Center
|
2 | (e) | 9,907 | 18,398 | | 9,907 | 18,398 | 28,305 | (792 | ) | 2005 | ||||||||||||||||||
Tustin Industrial Center
|
2 | (e) | 4,553 | 8,456 | 46 | 4,553 | 8,502 | 13,055 | (365 | ) | 2005 | ||||||||||||||||||
Vernon Distribution Center
|
15 | (e) | 25,439 | 47,250 | 1,126 | 25,441 | 48,374 | 73,815 | (2,042 | ) | 2005 | ||||||||||||||||||
Total Southern California
|
95 | 509,241 | 939,030 | 94,484 | 509,607 | 1,033,148 | 1,542,755 | (39,528 | ) | ||||||||||||||||||||
St. Louis, Missouri
|
|||||||||||||||||||||||||||||
Earth City Industrial Center
|
8 | (e) | 3,375 | 19,144 | 6,726 | 3,375 | 25,870 | 29,245 | (9,581 | ) | 1997, 1998 | ||||||||||||||||||
Hazelwood Distribution Center
|
2 | 847 | 4,802 | 759 | 847 | 5,561 | 6,408 | (1,559 | ) | 1997, 1999 | |||||||||||||||||||
Westport Distribution Center
|
3 | 761 | 4,310 | 1,296 | 761 | 5,606 | 6,367 | (1,897 | ) | 1997 | |||||||||||||||||||
Total St. Louis, Missouri
|
13 | 4,983 | 28,256 | 8,781 | 4,983 | 37,037 | 42,020 | (13,037 | ) | ||||||||||||||||||||
Tampa, Florida
|
|||||||||||||||||||||||||||||
Adamo Distribution Center
|
6 | 2,105 | 11,930 | 1,743 | 2,105 | 13,673 | 15,778 | (2,833 | ) | 1995, 2001 | |||||||||||||||||||
Commerce Park Distribution Center
|
4 | 811 | 4,597 | 1,384 | 811 | 5,981 | 6,792 | (2,850 | ) | 1994 | |||||||||||||||||||
Eastwood Distribution Center
|
1 | 122 | 690 | 127 | 122 | 817 | 939 | (365 | ) | 1994 | |||||||||||||||||||
Lakeland Distribution Center
|
1 | 938 | 5,313 | 1,261 | 938 | 6,574 | 7,512 | (2,681 | ) | 1994 | |||||||||||||||||||
Lakeland Interstate Bus Park (d)
|
1 | 1,515 | | 5,855 | 1,515 | 5,855 | 7,370 | | 2006 | ||||||||||||||||||||
Orchid Lake Industrial Center
|
1 | 41 | 235 | 44 | 41 | 279 | 320 | (110 | ) | 1994 | |||||||||||||||||||
Plant City Distribution Center
|
1 | 206 | 1,169 | 268 | 206 | 1,437 | 1,643 | (587 | ) | 1994 | |||||||||||||||||||
Sabal Park Distribution Center
|
8 | (e) | 3,180 | 10,364 | 15,018 | 3,516 | 25,046 | 28,562 | (6,500 | ) | 1996, 1997, 1998, 2002 | ||||||||||||||||||
Silo Bend Distribution Center
|
4 | 2,887 | 16,358 | 3,460 | 2,887 | 19,818 | 22,705 | (8,093 | ) | 1994 | |||||||||||||||||||
Silo Bend Industrial Center
|
1 | 525 | 2,975 | 742 | 525 | 3,717 | 4,242 | (1,562 | ) | 1994 | |||||||||||||||||||
Tampa East Distribution Center
|
10 | 2,700 | 15,302 | 2,896 | 2,541 | 18,357 | 20,898 | (7,983 | ) | 1994 | |||||||||||||||||||
Tampa East Industrial Center
|
2 | 332 | 1,880 | 574 | 332 | 2,454 | 2,786 | (1,057 | ) | 1994 | |||||||||||||||||||
Tampa West Distribution Center
|
13 | 2,995 | 16,829 | 3,883 | 3,040 | 20,667 | 23,707 | (9,061 | ) | 1994, 1995 | |||||||||||||||||||
Tampa West Industrial Center
|
3 | 355 | (9 | ) | 5,976 | 635 | 5,687 | 6,322 | (1,976 | ) | 1996, 1998 | ||||||||||||||||||
Total Tampa, Florida
|
56 | 18,712 | 87,633 | 43,231 | 19,214 | 130,362 | 149,576 | (45,658 | ) | ||||||||||||||||||||
126
PROLOGIS |
|||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
|||||||||||||||||||||||||||||
December 31, 2006 |
|||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
||||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
|||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | |||||||||||||||||||
(In thousands, as applicable) | |||||||||||||||||||||||||||||
Washington D.C./Baltimore, Maryland
|
|||||||||||||||||||||||||||||
1901 Park 100 Drive
|
1 | 2,409 | 7,227 | 8 | 2,409 | 7,235 | 9,644 | (111 | ) | 2006 | |||||||||||||||||||
Airport Commons Distribution Center
|
2 | (e) | 2,320 | | 9,963 | 2,360 | 9,923 | 12,283 | (3,423 | ) | 1997 | ||||||||||||||||||
Ardmore Distribution Center
|
3 | 1,431 | 8,110 | 1,542 | 1,431 | 9,652 | 11,083 | (4,108 | ) | 1994 | |||||||||||||||||||
Ardmore Industrial Center
|
2 | 984 | 5,581 | 1,211 | 985 | 6,791 | 7,776 | (3,078 | ) | 1994 | |||||||||||||||||||
Concorde Industrial Center
|
4 | (e) | 1,538 | 8,717 | 2,518 | 1,538 | 11,235 | 12,773 | (4,616 | ) | 1995 | ||||||||||||||||||
De Soto Business Park
|
5 | 1,774 | 10,055 | 4,880 | 1,774 | 14,935 | 16,709 | (6,766 | ) | 1996 | |||||||||||||||||||
Edgewood Distribution Center (d)
|
1 | 4,244 | 12,732 | 4,497 | 4,244 | 17,229 | 21,473 | | 2005 | ||||||||||||||||||||
Eisenhower Industrial Center
|
3 | (e) | 1,240 | 7,025 | 2,334 | 1,240 | 9,359 | 10,599 | (4,063 | ) | 1994 | ||||||||||||||||||
Fleet Distribution Center
|
8 | (e) | 3,198 | 18,121 | 2,707 | 3,115 | 20,911 | 24,026 | (8,458 | ) | 1996 | ||||||||||||||||||
Gateway Bus Ctr (d)
|
2 | 3,762 | | 9,052 | 3,762 | 9,052 | 12,814 | | 2006 | ||||||||||||||||||||
Gateway Distribution Center
|
2 | 192 | | 4,400 | 831 | 3,761 | 4,592 | (969 | ) | 1998 | |||||||||||||||||||
Hampton Central Distribution Center
|
2 | 1,769 | | 10,374 | 2,251 | 9,892 | 12,143 | (3,161 | ) | 1996, 1997 | |||||||||||||||||||
Hickory Ridge Distribution Center
|
2 | (e) | 15,988 | 47,964 | 7 | 15,988 | 47,971 | 63,959 | (1,744 | ) | 2005 | ||||||||||||||||||
Meadowridge Distribution Center
|
1 | (e) | 1,757 | | 6,159 | 1,902 | 6,014 | 7,916 | (1,520 | ) | 1998 | ||||||||||||||||||
Patapsco Distribution Center
|
1 | 270 | 1,528 | 1,394 | 270 | 2,922 | 3,192 | (1,267 | ) | 1995 | |||||||||||||||||||
White Oak Distribution Center
|
1 | 3,986 | 24,107 | 7 | 3,986 | 24,114 | 28,100 | (3,014 | ) | 2002 | |||||||||||||||||||
Winchester Distribution Center
|
1 | 3,286 | 13,142 | (2 | ) | 3,286 | 13,140 | 16,426 | (566 | ) | 2005 | ||||||||||||||||||
Total Washington D.C./Baltimore,
Maryland
|
41 | 50,148 | 164,309 | 61,051 | 51,372 | 224,136 | 275,508 | (46,864 | ) | ||||||||||||||||||||
Other
|
|||||||||||||||||||||||||||||
Shawnee Distribution Center
|
1 | 2,858 | 11,432 | | 2,858 | 11,432 | 14,290 | (492 | ) | 2005 | |||||||||||||||||||
Stone Fort Distribution Center
|
4 | 2,063 | 11,688 | 2,585 | 2,063 | 14,273 | 16,336 | (5,930 | ) | 1994 | |||||||||||||||||||
Topeka Distribution Center
|
1 | 108 | 430 | 15 | 108 | 445 | 553 | (20 | ) | 2005 | |||||||||||||||||||
Valley Industrial Center
(Brownsville, Texas)
|
1 | 363 | | 3,750 | 363 | 3,750 | 4,113 | (1,081 | ) | 1997 | |||||||||||||||||||
7 | 5,392 | 23,550 | 6,350 | 5,392 | 29,900 | 35,292 | (7,523 | ) | |||||||||||||||||||||
Mexico:
|
|||||||||||||||||||||||||||||
Guadalajara
|
|||||||||||||||||||||||||||||
Cedros-Jalisco Dist Ctr (d)
|
2 | 3,701 | 20,972 | 182 | 3,719 | 21,136 | 24,855 | | 2006 | ||||||||||||||||||||
Total Guadalajara, Mexico
|
2 | 3,701 | 20,972 | 182 | 3,719 | 21,136 | 24,855 | | |||||||||||||||||||||
Juarez
|
|||||||||||||||||||||||||||||
Del Norte Industrial Center
|
1 | 1,041 | 7,827 | 2,385 | 1,381 | 9,872 | 11,253 | (13 | ) | 2002 | |||||||||||||||||||
Independencia Industrial Center (d)
|
2 | 3,214 | | 6,811 | 3,182 | 6,843 | 10,025 | | 2005 | ||||||||||||||||||||
Los Aztecas Industrial Center
|
1 | 148 | 837 | 419 | 33 | 1,371 | 1,404 | (384 | ) | 1999 | |||||||||||||||||||
Ramon Rivera Industrial Center
|
1 | 445 | | 3,353 | 2,246 | 1,552 | 3,798 | (394 | ) | 2000 | |||||||||||||||||||
Rio Bravo Industrial Center
|
1 | 349 | 1,979 | 343 | 410 | 2,261 | 2,671 | (490 | ) | 2001 | |||||||||||||||||||
Salvacar Industrial Center (d)
|
5 | 3,017 | | 12,217 | 3,480 | 11,754 | 15,234 | (1,114 | ) | 1998, 1999, 2000, 2002, 2005 | |||||||||||||||||||
Total Juarez, Mexico
|
11 | 8,214 | 10,643 | 25,528 | 10,732 | 33,653 | 44,385 | (2,395 | ) | ||||||||||||||||||||
Mexico City
|
|||||||||||||||||||||||||||||
Cedros-Tepotzotlan Dist Ctr (d)
|
9 | (e) | 9,809 | 55,582 | 276 | 9,843 | 55,824 | 65,667 | | 2006 | |||||||||||||||||||
JLP Dist Ctr (d)
|
1 | (e) | 1,099 | 6,227 | 32 | 1,104 | 6,254 | 7,358 | | 2006 | |||||||||||||||||||
Nor-T Dist Ctr (d)
|
7 | (e) | 10,960 | 62,106 | 267 | 10,986 | 62,347 | 73,333 | | 2006 | |||||||||||||||||||
Oriente Dist Ctr (d)
|
2 | (e) | 1,425 | 8,073 | 42 | 1,432 | 8,108 | 9,540 | | 2006 | |||||||||||||||||||
Xhala Dist Ctr (d)
|
1 | (e) | 2,920 | 16,546 | 83 | 2,930 | 16,619 | 19,549 | | 2006 | |||||||||||||||||||
Total Mexico City, Mexico
|
20 | 26,213 | 148,534 | 700 | 26,295 | 149,152 | 175,447 | | |||||||||||||||||||||
127
PROLOGIS |
||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
||||||||||||||||||||||||||||
December 31, 2006 |
||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
|||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
|||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | ||||||||||||||||||
(In thousands, as applicable) | ||||||||||||||||||||||||||||
Monterrey
|
||||||||||||||||||||||||||||
Monterrey Industrial Park (d)
|
6 | 4,427 | 3,785 | 12,087 | 4,756 | 15,543 | 20,299 | (3,498 | ) | 1997, 1998, 2005, 2006 | ||||||||||||||||||
Total Monterrey, Mexico
|
6 | 4,427 | 3,785 | 12,087 | 4,756 | 15,543 | 20,299 | (3,498 | ) | |||||||||||||||||||
Reynosa
|
||||||||||||||||||||||||||||
Colonial Industrial Center (d)
|
2 | 943 | 1,574 | 3,098 | 670 | 4,945 | 5,615 | | 1999, 2000 | |||||||||||||||||||
Del Norte Industrial Center
|
2 | 809 | | 7,165 | 1,065 | 6,909 | 7,974 | (2,467 | ) | 1998 | ||||||||||||||||||
Del Norte Industrial Center II
(d)
|
2 | 2,114 | | 14,167 | 2,114 | 14,167 | 16,281 | | 2005, 2006 | |||||||||||||||||||
Pharr Bridge Ind Ctr (d)
|
2 | 1,011 | | 7,485 | 1,011 | 7,485 | 8,496 | | 2006 | |||||||||||||||||||
Pharr Bridge Industrial Center (d)
|
3 | 2,347 | | 14,875 | 2,347 | 14,875 | 17,222 | | 2004, 2005, 2006 | |||||||||||||||||||
Reynosa Industrial Center (d)
|
4 | 1,415 | 921 | 10,492 | 1,856 | 10,972 | 12,828 | (3,158 | ) | 1997, 1998, 1999 | ||||||||||||||||||
Villa Florida Industrial Center(d)
|
1 | 2,527 | 14,314 | 7 | 2,527 | 14,321 | 16,848 | | 2004 | |||||||||||||||||||
Total Reynosa, Mexico
|
16 | 11,166 | 16,809 | 57,289 | 11,590 | 73,674 | 85,264 | (5,625 | ) | |||||||||||||||||||
Canada:
|
||||||||||||||||||||||||||||
Toronto
|
||||||||||||||||||||||||||||
Mississauga Gateway Ctr (d)
|
3 | 16,371 | | 45,749 | 16,372 | 45,748 | 62,120 | | 2006 | |||||||||||||||||||
Total Toronto, Canada
|
3 | 16,371 | | 45,749 | 16,372 | 45,748 | 62,120 | | ||||||||||||||||||||
Subtotal North American Markets
|
1,353 | 1,625,461 | 5,157,869 | 1,737,006 | 1,650,867 | 6,869,469 | 8,520,336 | (1,259,075 | ) | |||||||||||||||||||
European Markets
|
||||||||||||||||||||||||||||
Belgium:
|
||||||||||||||||||||||||||||
Vilvoorde Dist Ctr (d)
|
1 | | | 9,632 | | 9,632 | 9,632 | | 2006 | |||||||||||||||||||
Willebroek Dist Ctr (d)
|
2 | 5,104 | | 18,884 | 5,104 | 18,884 | 23,988 | | 2006 | |||||||||||||||||||
Total Belgium
|
3 | 5,104 | | 28,516 | 5,104 | 28,516 | 33,620 | | ||||||||||||||||||||
Czech Republic:
|
||||||||||||||||||||||||||||
Prague East Distribution Center (d)
|
3 | 3,832 | | 17,425 | 4,043 | 17,214 | 21,257 | | 2005, 2006 | |||||||||||||||||||
Prague West (d)
|
1 | 1,189 | | 6,217 | 1,189 | 6,217 | 7,406 | | 2006 | |||||||||||||||||||
Total Czech Republic
|
4 | 5,021 | | 23,642 | 5,232 | 23,431 | 28,663 | | ||||||||||||||||||||
France:
|
||||||||||||||||||||||||||||
Isle dAbeau Distribution
Center (d)
|
2 | 10,271 | 25,447 | 7,052 | 10,366 | 32,404 | 42,770 | | 2002, 2006 | |||||||||||||||||||
Le Havre Distribution Center (d)
|
3 | 1,398 | | 32,162 | 1,412 | 32,148 | 33,560 | (1,055 | ) | 2003, 2006 | ||||||||||||||||||
Macon Dist Ctr (d)
|
1 | 2,065 | | 22,299 | 2,065 | 22,299 | 24,364 | | 2006 | |||||||||||||||||||
Metz Distribution Center (d)
|
1 | 1,070 | 6,500 | 364 | 1,119 | 6,815 | 7,934 | (489 | ) | 2004 | ||||||||||||||||||
Moissy Cramayel Distribution Center
(d)
|
6 | 4,730 | | 77,152 | 5,906 | 75,976 | 81,882 | | 2005, 2006 | |||||||||||||||||||
Total France
|
13 | 19,534 | 31,947 | 139,029 | 20,868 | 169,642 | 190,510 | (1,544 | ) | |||||||||||||||||||
Germany:
|
||||||||||||||||||||||||||||
Bingen Dist Ctr (d)
|
1 | 3,449 | | 11,796 | 3,449 | 11,796 | 15,245 | | 2006 | |||||||||||||||||||
Dradenau Distribution Center (d)
|
1 | 80 | | 14,425 | | 14,505 | 14,505 | | 2005 | |||||||||||||||||||
Frankfurt Riederhof Distribution
Center (d)
|
1 | 7,320 | | 16,571 | 7,830 | 16,061 | 23,891 | (1,092 | ) | 2003 | ||||||||||||||||||
Krefeld Distribution Center (d)
|
1 | 2,143 | | 11,042 | 2,752 | 10,433 | 13,185 | (921 | ) | 2002 |
128
PROLOGIS |
||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
||||||||||||||||||||||||||||
December 31, 2006 |
||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
|||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
|||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | ||||||||||||||||||
(In thousands, as applicable) | ||||||||||||||||||||||||||||
Malsch Dist Ctr (d)
|
1 | 2,149 | | 7,738 | 2,149 | 7,738 | 9,887 | | 2006 | |||||||||||||||||||
Peine Dist Ctr (d)
|
1 | 2,141 | | 13,165 | 2,141 | 13,165 | 15,306 | | 2006 | |||||||||||||||||||
Total Germany
|
6 | 17,282 | | 74,737 | 18,321 | 73,698 | 92,019 | (2,013 | ) | |||||||||||||||||||
Hungary:
|
||||||||||||||||||||||||||||
Budapest Distribution Center (d)
|
1 | 1,302 | | 9,368 | 1,435 | 9,235 | 10,670 | | 2005 | |||||||||||||||||||
Total Hungary
|
1 | 1,302 | | 9,368 | 1,435 | 9,235 | 10,670 | | ||||||||||||||||||||
Italy:
|
||||||||||||||||||||||||||||
Bologna Dist Ctr (d)
|
1 | 4,413 | | 11,009 | 4,413 | 11,009 | 15,422 | | 2006 | |||||||||||||||||||
Lodi Distribution Center (d)
|
2 | 7,996 | 35,613 | 1,682 | 11,628 | 33,663 | 45,291 | | 2005, 2006 | |||||||||||||||||||
Padua Distribution Center (d)
|
1 | 2,724 | | 11,583 | 3,023 | 11,284 | 14,307 | | 2005 | |||||||||||||||||||
Romentino Distribution Center (d)
|
2 | 3,758 | | 28,509 | 3,758 | 28,509 | 32,267 | | 2006 | |||||||||||||||||||
Total Italy
|
6 | 18,891 | 35,613 | 52,783 | 22,822 | 84,465 | 107,287 | | ||||||||||||||||||||
Netherlands:
|
||||||||||||||||||||||||||||
Venlo Dist. Ctr. (d)
|
1 | 2,750 | | 8,929 | 2,750 | 8,929 | 11,679 | | 2006 | |||||||||||||||||||
Total Netherlands
|
1 | 2,750 | | 8,929 | 2,750 | 8,929 | 11,679 | | ||||||||||||||||||||
Poland:
|
||||||||||||||||||||||||||||
Blonie Distribution Center (d)
|
3 | 3,565 | | 21,935 | 3,711 | 21,789 | 25,500 | | 2005, 2006 | |||||||||||||||||||
Chorzow Dist Ctr (d)
|
3 | 5,868 | | 41,990 | 5,869 | 41,989 | 47,858 | | 2006 | |||||||||||||||||||
Piotrkow Dist Ctr (d)
|
1 | 711 | | 4,761 | 711 | 4,761 | 5,472 | | 2006 | |||||||||||||||||||
Poznan II Distribution Center
(d)
|
3 | 3,792 | | 20,673 | 3,937 | 20,528 | 24,465 | | 2005, 2006 | |||||||||||||||||||
Teresin Distribution Center (d)
|
2 | 2,151 | | 25,421 | 2,376 | 25,196 | 27,572 | (545 | ) | 2004, 2005 | ||||||||||||||||||
Wroclaw Distribution Center (d)
|
3 | 5,847 | | 23,326 | 6,054 | 23,119 | 29,173 | | 2005, 2006 | |||||||||||||||||||
Total Poland
|
15 | 21,934 | | 138,106 | 22,658 | 137,382 | 160,040 | (545 | ) | |||||||||||||||||||
Spain:
|
||||||||||||||||||||||||||||
Penedes Dist Ctr (d)
|
1 | 6,767 | | 11,981 | 6,767 | 11,981 | 18,748 | | 2006 | |||||||||||||||||||
Total Spain
|
1 | 6,767 | | 11,981 | 6,767 | 11,981 | 18,748 | | ||||||||||||||||||||
Sweden:
|
||||||||||||||||||||||||||||
Haninge AB Dist Ctr (d)
|
1 | 1,889 | | 12,979 | 1,889 | 12,979 | 14,868 | | 2006 | |||||||||||||||||||
Total Sweden
|
1 | 1,889 | | 12,979 | 1,889 | 12,979 | 14,868 | | ||||||||||||||||||||
United Kingdom:
|
||||||||||||||||||||||||||||
Ardra Road, Edmonton Distribution
Center (d)
|
1 | 13,715 | | 18,964 | 15,267 | 17,412 | 32,679 | | 2005 | |||||||||||||||||||
Campbell Road Distribution Center
(d)
|
1 | 7,391 | | 19,432 | 11,678 | 15,145 | 26,823 | | 2004 | |||||||||||||||||||
Crewe Dist Ctr (d)
|
1 | 11,643 | | 25,431 | 11,643 | 25,431 | 37,074 | | 2006 | |||||||||||||||||||
Didcot Distribution Center (d)
|
1 | 9,512 | | 13,246 | 10,564 | 12,194 | 22,758 | | 2005 | |||||||||||||||||||
Dunstable Dist Ctr (d)
|
2 | 69,500 | | 52,672 | 69,500 | 52,672 | 122,172 | | 2006 | |||||||||||||||||||
Fort Dunlop Distribution
Center (d)
|
1 | 6,640 | | 1,208 | 7,848 | | 7,848 | | 2001 | |||||||||||||||||||
Hayes Dist Ctr (d)
|
1 | 6,985 | | 8,819 | 6,985 | 8,819 | 15,804 | | 2006 | |||||||||||||||||||
Houghton Main Dist Ctr (d)
|
1 | 8,993 | | 30,474 | 8,993 | 30,474 | 39,467 | | 2006 | |||||||||||||||||||
Kings Lynn Coldstore Distribution
Center
|
1 | 16,435 | 5,325 | 2,707 | 18,462 | 6,005 | 24,467 | (6,026 | ) | 2003 | ||||||||||||||||||
Marston Gate Dist Ctr (d)
|
1 | 2,806 | | 6,595 | 2,806 | 6,595 | 9,401 | | 2006 | |||||||||||||||||||
North Kettering Distribution Center
(d)
|
1 | 28,768 | | 49,443 | 28,768 | 49,443 | 78,211 | | 2006 | |||||||||||||||||||
Peterborough Dist. Ctr. (d)
|
1 | 17,941 | | 37,027 | 17,941 | 37,027 | 54,968 | | 2006 |
129
PROLOGIS |
||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
||||||||||||||||||||||||||||
December 31, 2006 |
||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
|||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
|||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | ||||||||||||||||||
(In thousands, as applicable) | ||||||||||||||||||||||||||||
Stafford Dist Ctr (d)
|
3 | 27,080 | | 46,595 | 27,080 | 46,595 | 73,675 | | 2006 | |||||||||||||||||||
Swindon Dist Ctr (d)
|
1 | 11,994 | | 18,174 | 11,994 | 18,174 | 30,168 | | 2006 | |||||||||||||||||||
Wellingborough Distribution Center
(d)
|
2 | 15,731 | | 38,431 | 16,468 | 37,694 | 54,162 | | 2005, 2006 | |||||||||||||||||||
Total United Kingdom
|
19 | 255,134 | 5,325 | 369,218 | 265,997 | 363,680 | 629,677 | (6,026 | ) | |||||||||||||||||||
Subtotal European Markets
|
70 | 355,608 | 72,885 | 869,288 | 373,843 | 923,938 | 1,297,781 | (10,128 | ) | |||||||||||||||||||
Asian Markets
|
||||||||||||||||||||||||||||
China:
|
||||||||||||||||||||||||||||
Guangzhou Baopu Dist Center (d)
|
5 | 6,738 | 23,190 | 2 | 6,739 | 23,191 | 29,930 | (196 | ) | 2006 | ||||||||||||||||||
Guangzhou Distribution Center (d)
|
1 | 1,067 | | 4,077 | 1,106 | 4,038 | 5,144 | (134 | ) | 2005 | ||||||||||||||||||
ProLogis Park Minghang (d)
|
1 | 741 | 3,633 | | 741 | 3,633 | 4,374 | (40 | ) | 2006 | ||||||||||||||||||
ProLogis Park Puyun (d)
|
2 | 3,538 | | 9,989 | 3,538 | 9,989 | 13,527 | (294 | ) | 2006 | ||||||||||||||||||
Taopu Distribution Center (d)
|
5 | 8,787 | | 19,693 | 8,512 | 19,968 | 28,480 | (835 | ) | 2005, 2006 | ||||||||||||||||||
Total China
|
14 | 20,871 | 26,823 | 33,761 | 20,636 | 60,819 | 81,455 | (1,499 | ) | |||||||||||||||||||
Japan:
|
||||||||||||||||||||||||||||
ProLogis Park Amagasaki (d)
|
1 | 34,499 | | 80,031 | 34,499 | 80,031 | 114,530 | | 2006 | |||||||||||||||||||
ProLogis Park Ichikawa
|
1 | | 8,151 | | | 8,151 | 8,151 | (741 | ) | 2006 | ||||||||||||||||||
ProLogis Park Koshigaya II (d)
|
1 | 19,351 | | 30,795 | 19,351 | 30,795 | 50,146 | | 2006 | |||||||||||||||||||
ProLogis Park Maishima I (d)
|
1 | 18,002 | | 68,495 | 18,002 | 68,495 | 86,497 | | 2006 | |||||||||||||||||||
ProLogis Park Maishima II (d)
|
1 | 16,282 | | 39,547 | 16,282 | 39,547 | 55,829 | | 2006 | |||||||||||||||||||
ProLogis Park Tokyo II (d)
|
1 | 80,131 | | 86,704 | 80,131 | 86,704 | 166,835 | | 2006 | |||||||||||||||||||
ProLogis Park Tsumori (d)
|
1 | 9,281 | 5,513 | | 9,281 | 5,513 | 14,794 | | 2006 | |||||||||||||||||||
Total Japan
|
7 | 177,546 | 13,664 | 305,572 | 177,546 | 319,236 | 496,782 | (741 | ) | |||||||||||||||||||
Korea:
|
||||||||||||||||||||||||||||
ProLogis Park Deokpyung (d)
|
1 | 5,062 | 9,253 | | 5,061 | 9,254 | 14,315 | | 2006 | |||||||||||||||||||
Total Singapore
|
1 | 5,062 | 9,253 | | 5,061 | 9,254 | 14,315 | | ||||||||||||||||||||
Singapore:
|
||||||||||||||||||||||||||||
Changi South Distribution Center (d)
|
1 | | 11,598 | 982 | | 12,580 | 12,580 | (855 | ) | 2004 | ||||||||||||||||||
Total Singapore
|
1 | | 11,598 | 982 | | 12,580 | 12,580 | (855 | ) | |||||||||||||||||||
Subtotal Asian Markets
|
23 | 203,479 | 61,338 | 340,315 | 203,243 | 401,889 | 605,132 | (3,095 | ) | |||||||||||||||||||
Total Industrial Operating
Properties (d)
|
1,446 | 2,184,548 | 5,292,092 | 2,946,609 | 2,227,953 | 8,195,296 | 10,423,249 | (1,272,298 | ) | |||||||||||||||||||
Retail operating
properties
|
||||||||||||||||||||||||||||
Denver, Colorado
|
||||||||||||||||||||||||||||
Belcaro Shopping Center
|
1 | 3,758 | 15,036 | 2 | 3,758 | 15,038 | 18,796 | (485 | ) | 2005 | ||||||||||||||||||
Total Denver, Colorado
|
1 | 3,758 | 15,036 | 2 | 3,758 | 15,038 | 18,796 | (485 | ) | |||||||||||||||||||
130
PROLOGIS |
||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
||||||||||||||||||||||||||||
December 31, 2006 |
||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
|||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
|||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | ||||||||||||||||||
(In thousands, as applicable) | ||||||||||||||||||||||||||||
Los Angeles/Orange County,
California
|
||||||||||||||||||||||||||||
Newport Retail Center
|
1 | 4,478 | 10,450 | | 4,478 | 10,450 | 14,928 | (337 | ) | 2005 | ||||||||||||||||||
Woodland Retail Center
|
3 | 10,376 | 24,208 | 163 | 10,375 | 24,372 | 34,747 | (782 | ) | 2005 | ||||||||||||||||||
Total Los Angeles/Orange County,
California
|
4 | 14,854 | 34,658 | 163 | 14,853 | 34,822 | 49,675 | (1,119 | ) | |||||||||||||||||||
San Francisco (East Bay),
California
|
||||||||||||||||||||||||||||
EB Bridge Shopping Center
|
8 | (e)(g) | 23,041 | 81,693 | 1 | 23,042 | 81,693 | 104,735 | (2,638 | ) | 2005 | |||||||||||||||||
Granada Shopping Center
|
1 | 2,604 | 9,232 | 20 | 2,604 | 9,252 | 11,856 | (298 | ) | 2005 | ||||||||||||||||||
Total San Francisco (East
Bay), California
|
9 | 25,645 | 90,925 | 21 | 25,646 | 90,945 | 116,591 | (2,936 | ) | |||||||||||||||||||
San Francisco (South Bay),
California
|
||||||||||||||||||||||||||||
Pacific Commons Retail Center (d)
|
13 | 27,669 | 62,358 | 30,099 | 33,551 | 86,575 | 120,126 | (1,855 | ) | 2005, 2006 | ||||||||||||||||||
Total San Francisco (South
Bay), California
|
13 | 27,669 | 62,358 | 30,099 | 33,551 | 86,575 | 120,126 | (1,855 | ) | |||||||||||||||||||
Total Retail Operating Properties
|
27 | 71,926 | 202,977 | 30,285 | 77,808 | 227,380 | 305,188 | (6,395 | ) | |||||||||||||||||||
Total Operating Properties
|
1,473 | 2,256,474 | 5,495,069 | 2,976,894 | 2,305,761 | 8,422,676 | 10,728,437 | (1,278,693 | ) | |||||||||||||||||||
Properties Under Development
(o)
|
||||||||||||||||||||||||||||
North American
Markets:
|
||||||||||||||||||||||||||||
United States:
|
||||||||||||||||||||||||||||
Austin, Texas
|
||||||||||||||||||||||||||||
Mueller Regional Retail
|
5 | 12,716 | | 13,334 | 26,050 | | 26,050 | | 2006 | |||||||||||||||||||
Total Austin, Texas
|
5 | 12,716 | | 13,334 | 26,050 | | 26,050 | | ||||||||||||||||||||
Chicago, Illinois
|
||||||||||||||||||||||||||||
I-55 Distributions Center
|
1 | 5,443 | | 17,040 | 22,483 | | 22,483 | | 2006 | |||||||||||||||||||
Total Chicago, Illinois
|
1 | 5,443 | | 17,040 | 22,483 | | 22,483 | | ||||||||||||||||||||
Cincinnati, Ohio
|
||||||||||||||||||||||||||||
Park I-275
|
1 | 6,294 | | 12,907 | 19,201 | | 19,201 | | 2006 | |||||||||||||||||||
Total Cincinnati, Ohio
|
1 | 6,294 | | 12,907 | 19,201 | | 19,201 | | ||||||||||||||||||||
Columbus, Ohio
|
||||||||||||||||||||||||||||
Etna Distribution Center
|
1 | 1,668 | | 14,246 | 15,914 | | 15,914 | | 2006 | |||||||||||||||||||
Total Columbus, Ohio
|
1 | 1,668 | | 14,246 | 15,914 | | 15,914 | | ||||||||||||||||||||
Dallas, Texas
|
||||||||||||||||||||||||||||
Freeport Corporate Center
|
1 | 545 | | 4,202 | 4,747 | | 4,747 | | 2006 | |||||||||||||||||||
Lancaster Distribution Center
|
1 | 2,775 | | 5,981 | 8,756 | 8,756 | 2006 | |||||||||||||||||||||
Northgate Distribution Center
|
1 | | | 60 | 60 | | 60 | | 2006 | |||||||||||||||||||
Total Dallas, Texas
|
3 | 3,320 | | 10,243 | 13,563 | | 13,563 | | ||||||||||||||||||||
Houston, Texas
|
||||||||||||||||||||||||||||
Jersey Village Corporate Center
|
1 | 1,780 | | 4,035 | 5,815 | | 5,815 | | 2006 | |||||||||||||||||||
Total Houston, Texas
|
1 | 1,780 | | 4,035 | 5,815 | | 5,815 | | ||||||||||||||||||||
131
PROLOGIS |
|||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
|||||||||||||||||||||||||||
December 31, 2006 |
|||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
|||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | |||||||||||||||||
(In thousands, as applicable) | |||||||||||||||||||||||||||
I-81 Corridor (E. Pennsylvania)
|
|||||||||||||||||||||||||||
Park 33 Distribution Center
|
1 | 12,113 | | 622 | 12,735 | | 12,735 | | 2006 | ||||||||||||||||||
Total I-81 Corridor (E.
Pennsylvania)
|
1 | 12,113 | | 622 | 12,735 | | 12,735 | | |||||||||||||||||||
Louisville, Kentucky
|
|||||||||||||||||||||||||||
I-65 Meyer Distribution Center
|
1 | 1,671 | | 1,878 | 3,549 | | 3,549 | | 2006 | ||||||||||||||||||
Total Louisville, Kentucky
|
1 | 1,671 | | 1,878 | 3,549 | | 3,549 | | |||||||||||||||||||
Memphis, Tennessee
|
|||||||||||||||||||||||||||
DeSoto Distribution Center
|
2 | 4,992 | | 2,714 | 7,706 | | 7,706 | | 2006 | ||||||||||||||||||
Total Memphis, Tennessee
|
2 | 4,992 | | 2,714 | 7,706 | | 7,706 | | |||||||||||||||||||
New Jersey
|
|||||||||||||||||||||||||||
Stults Distribution Center
|
1 | 829 | | 120 | 949 | | 949 | | 2005 | ||||||||||||||||||
Port Reading Business Park
|
1 | 6,175 | | 410 | 6,585 | 6,585 | 2006 | ||||||||||||||||||||
Total New Jersey
|
2 | 7,004 | | 530 | 7,534 | | 7,534 | | |||||||||||||||||||
Orlando, Florida
|
|||||||||||||||||||||||||||
Orlando Corporate Center
|
1 | 701 | | 4,965 | 5,666 | | 5,666 | | 2005 | ||||||||||||||||||
Total Orlando, Florida
|
1 | 701 | | 4,965 | 5,666 | | 5,666 | | |||||||||||||||||||
Portland, Oregon
|
|||||||||||||||||||||||||||
Clackamas Distribution Center
|
1 | 700 | | 2,376 | 3,076 | | 3,076 | | 2006 | ||||||||||||||||||
Total Portland, Oregon
|
1 | 700 | | 2,376 | 3,076 | | 3,076 | | |||||||||||||||||||
Reno, Nevada
|
|||||||||||||||||||||||||||
Tahoe-Reno Industrial Center
|
1 | 2,813 | | 9,048 | 11,861 | | 11,861 | | 2006 | ||||||||||||||||||
Total Reno, Nevada
|
1 | 2,813 | | 9,048 | 11,861 | | 11,861 | | |||||||||||||||||||
San Antonio, Texas
|
|||||||||||||||||||||||||||
Eisenhauer Distribution Center
|
3 | 1,199 | | 340 | 1,539 | | 1,539 | | 2006 | ||||||||||||||||||
Perrin Creek Corporate Center
|
1 | 241 | | 1,828 | 2,069 | | 2,069 | | 2006 | ||||||||||||||||||
Total San Antonio, Texas
|
4 | 1,440 | | 2,168 | 3,608 | | 3,608 | | |||||||||||||||||||
Central Valley, California
|
|||||||||||||||||||||||||||
Patterson Pass Business Center
|
1 | 1,024 | | 1,840 | 2,864 | | 2,864 | | 2006 | ||||||||||||||||||
Tracy II Distribution Center
|
1 | | | 415 | 415 | | 415 | | 2006 | ||||||||||||||||||
Total Central Valley, California
|
2 | 1,024 | | 2,255 | 3,279 | | 3,279 | | |||||||||||||||||||
Southern California
|
|||||||||||||||||||||||||||
Redlands Distribution Center
|
1 | 12,126 | | 1,103 | 13,229 | | 13,229 | | 2006 | ||||||||||||||||||
Mill Street Distribution Center
|
1 | 580 | | 853 | 1,433 | 1,433 | 2006 | ||||||||||||||||||||
Total Southern California
|
2 | 12,706 | | 1,956 | 14,662 | | 14,662 | | |||||||||||||||||||
Tampa, Florida
|
|||||||||||||||||||||||||||
Sabal Park Distribution Center
|
1 | 877 | | 5,304 | 6,181 | | 6,181 | | 2006 | ||||||||||||||||||
Total Tampa, Florida
|
1 | 877 | | 5,304 | 6,181 | | 6,181 | | |||||||||||||||||||
132
PROLOGIS |
|||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
|||||||||||||||||||||||||||
December 31, 2006 |
|||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
|||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | |||||||||||||||||
(In thousands, as applicable) | |||||||||||||||||||||||||||
Washington D.C./Baltimore
|
|||||||||||||||||||||||||||
Gateway Business Center
|
2 | 4,136 | | 229 | 4,365 | | 4,365 | | 2006 | ||||||||||||||||||
Chesapeake Distribution Center
|
1 | 6,405 | | 285 | 6,690 | 6,690 | 2006 | ||||||||||||||||||||
Total Washington D.C./Baltimore
|
3 | 10,541 | | 514 | 11,055 | | 11,055 | | |||||||||||||||||||
Mexico:
|
|||||||||||||||||||||||||||
Guadalajara
|
|||||||||||||||||||||||||||
El Salto Distribution Center
|
1 | 3,304 | | 30 | 3,334 | | 3,334 | | 2006 | ||||||||||||||||||
Total Guadalajara, Mexico
|
1 | 3,304 | | 30 | 3,334 | | 3,334 | | |||||||||||||||||||
Juarez
|
|||||||||||||||||||||||||||
Independencia Center
|
1 | 1,292 | | 2,342 | 3,634 | | 3,634 | | 2006 | ||||||||||||||||||
Los Aztecas Industrial Center
|
1 | 564 | | 1,464 | 2,028 | 2,028 | 2006 | ||||||||||||||||||||
Ramon Rivera Lara Industrial Center
|
1 | 615 | | 1,500 | 2,115 | 2,115 | 2006 | ||||||||||||||||||||
Total Juarez, Mexico
|
3 | 2,471 | | 5,306 | 7,777 | | 7,777 | | |||||||||||||||||||
Mexico City
|
|||||||||||||||||||||||||||
Cedros-Tepotzotlan Distribution
Center
|
1 | 10,325 | | 3,054 | 13,379 | | 13,379 | | 2006 | ||||||||||||||||||
JLP Distribution Center
|
1 | 5,018 | | 1,215 | 6,233 | 6,233 | 2006 | ||||||||||||||||||||
Total Mexico City, Mexico
|
2 | 15,343 | | 4,269 | 19,612 | | 19,612 | | |||||||||||||||||||
Monterrey
|
|||||||||||||||||||||||||||
Monterrey Airport
|
2 | 3,984 | | 3,479 | 7,463 | | 7,463 | | 2006 | ||||||||||||||||||
Total Monterrey, Mexico
|
2 | 3,984 | | 3,479 | 7,463 | | 7,463 | | |||||||||||||||||||
Canada:
|
|||||||||||||||||||||||||||
Toronto
|
|||||||||||||||||||||||||||
Mississauga Gateway Center
|
3 | 18,038 | | 6,148 | 24,186 | | 24,186 | | 2006 | ||||||||||||||||||
Total Toronto, Canada
|
3 | 18,038 | | 6,148 | 24,186 | | 24,186 | | |||||||||||||||||||
Subtotal North American Markets
|
44 | 130,943 | | 125,367 | 256,310 | | 256,310 | | |||||||||||||||||||
European Markets:
|
|||||||||||||||||||||||||||
Czech Republic:
|
|||||||||||||||||||||||||||
Uzice Distribution Center
|
2 | 5,838 | | 3,960 | 9,798 | | 9,798 | | 2006 | ||||||||||||||||||
Total Czech Republic
|
2 | 5,838 | | 3,960 | 9,798 | | 9,798 | | |||||||||||||||||||
France:
|
|||||||||||||||||||||||||||
Clesud Grans Miramas Distribution
Center
|
1 | 1,314 | | 6,768 | 8,082 | | 8,082 | | 2006 | ||||||||||||||||||
Grenoble Distribution Center
|
1 | 1,121 | | 4,863 | 5,984 | 5,984 | 2006 | ||||||||||||||||||||
Total France
|
2 | 2,435 | | 11,631 | 14,066 | | 14,066 | | |||||||||||||||||||
Germany:
|
|||||||||||||||||||||||||||
Dradenau Distribution Center
|
1 | | | 4,938 | 4,938 | | 4,938 | | 2006 | ||||||||||||||||||
Hassfurt Distribution Center
|
1 | 494 | | 3,120 | 3,614 | | 3,614 | | 2006 | ||||||||||||||||||
Munich Distribution Center
|
2 | 15,700 | | 16,646 | 32,346 | | 32,346 | | 2006 | ||||||||||||||||||
Total Germany
|
4 | 16,194 | | 24,704 | 40,898 | | 40,898 | | |||||||||||||||||||
133
PROLOGIS |
|||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
|||||||||||||||||||||||||||
December 31, 2006 |
|||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
|||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | |||||||||||||||||
(In thousands, as applicable) | |||||||||||||||||||||||||||
Hungary:
|
|||||||||||||||||||||||||||
Budapest Park
|
1 | 1,078 | | 648 | 1,726 | | 1,726 | | 2006 | ||||||||||||||||||
Budapest Park Phase II
|
1 | 1,430 | | 8,518 | 9,948 | | 9,948 | | 2006 | ||||||||||||||||||
Hegyeshalom Distribution Center
|
1 | 116 | | 1,948 | 2,064 | | 2,064 | | 2006 | ||||||||||||||||||
Total Hungary
|
3 | 2,624 | | 11,114 | 13,738 | | 13,738 | | |||||||||||||||||||
Netherlands:
|
|||||||||||||||||||||||||||
Tilburg Distribution Center
|
3 | 11,439 | | 8,015 | 19,454 | | 19,454 | | 2006 | ||||||||||||||||||
Total Netherlands
|
3 | 11,439 | | 8,015 | 19,454 | | 19,454 | | |||||||||||||||||||
Poland:
|
|||||||||||||||||||||||||||
Chorzow Distribution Center
|
4 | 4,966 | | 11,110 | 16,076 | | 16,076 | | 2006 | ||||||||||||||||||
Gdansk Distribution Center
|
2 | 3,000 | | 8,308 | 11,308 | | 11,308 | | 2005, 2006 | ||||||||||||||||||
Janki Distribution Center
|
1 | 3,539 | | 218 | 3,757 | 3,757 | 2006 | ||||||||||||||||||||
Poznan II Distribution Center
|
2 | 3,167 | | 2,899 | 6,066 | 6,066 | 2006 | ||||||||||||||||||||
Warsaw II Distribution Center
|
2 | 2,694 | | 1,442 | 4,136 | 4,136 | 2006 | ||||||||||||||||||||
Warsaw III Distribution Center
|
1 | 2,716 | | 7,608 | 10,324 | 10,324 | 2006 | ||||||||||||||||||||
Wroclaw Distribution Center
|
4 | 10,142 | | 14,601 | 24,743 | | 24,743 | | 2006 | ||||||||||||||||||
Wroclaw II Distribution Center
|
1 | 1,746 | | 8,700 | 10,446 | 10,446 | 2006 | ||||||||||||||||||||
Total Poland
|
17 | 31,970 | | 54,886 | 86,856 | | 86,856 | | |||||||||||||||||||
Romania:
|
|||||||||||||||||||||||||||
Bucharest Distribution Center
|
2 | 3,576 | | 15,843 | 19,419 | | 19,419 | | 2006 | ||||||||||||||||||
Total Romania
|
2 | 3,576 | | 15,843 | 19,419 | | 19,419 | | |||||||||||||||||||
Spain:
|
|||||||||||||||||||||||||||
Massalaves Distribution Center
|
1 | 2,302 | | 185 | 2,487 | | 2,487 | | 2006 | ||||||||||||||||||
Tarancon Distribution Center
|
1 | 3,283 | | 397 | 3,680 | | 3,680 | | 2006 | ||||||||||||||||||
Total Spain
|
2 | 5,585 | | 582 | 6,167 | | 6,167 | | |||||||||||||||||||
Sweden:
|
|||||||||||||||||||||||||||
Gothenburg Distribution Center
|
1 | 3,377 | | 18,257 | 21,634 | | 21,634 | | 2006 | ||||||||||||||||||
Total Sweden
|
1 | 3,377 | | 18,257 | 21,634 | | 21,634 | | |||||||||||||||||||
United Kingdom:
|
|||||||||||||||||||||||||||
Corby Distribution Center
|
1 | 1,914 | | 12,536 | 14,450 | | 14,450 | | 2006 | ||||||||||||||||||
Hayes Distribution Center
|
3 | 21,714 | | 13,614 | 35,328 | | 35,328 | | 2006 | ||||||||||||||||||
Hemel Hempstead
|
1 | 14,928 | | 2,997 | 17,925 | | 17,925 | | 2004 | ||||||||||||||||||
North Kettering Distribution Center
|
1 | 16,579 | | 21,356 | 37,935 | | 37,935 | | 2006 | ||||||||||||||||||
Pineham Distribution Center
|
1 | 16,105 | | 570 | 16,675 | | 16,675 | | 2006 | ||||||||||||||||||
Stafford Distribution Center
|
1 | 9,552 | | 5,304 | 14,856 | | 14,856 | | 2006 | ||||||||||||||||||
Wellingborough Distribution Center
|
1 | 17,582 | | 2,671 | 20,253 | | 20,253 | | 2006 | ||||||||||||||||||
Total United Kingdom
|
9 | 98,374 | | 59,048 | 157,422 | | 157,422 | | |||||||||||||||||||
Subtotal European Markets
|
45 | 181,412 | | 208,040 | 389,452 | | 389,452 | | |||||||||||||||||||
134
PROLOGIS |
||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED
DEPRECIATION (continued) |
||||||||||||||||||||||||||||
December 31, 2006 |
||||||||||||||||||||||||||||
Initial Cost to |
Gross Amounts At Which Carried |
|||||||||||||||||||||||||||
ProLogis |
Costs Capitalized |
as of December 31, 2006 |
Date of |
|||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Accumulated |
Construction/ |
||||||||||||||||||||||
Description
|
Bldgs. | brances | Land | Improvements | To Acquisition | Land | Improvements | Total (a,b) | Depreciation (c) | Acquisition | ||||||||||||||||||
(In thousands, as applicable) | ||||||||||||||||||||||||||||
Asian Markets:
|
||||||||||||||||||||||||||||
China:
|
||||||||||||||||||||||||||||
Beijing Airport Phase I
Distribution Center
|
1 | 2,349 | | 6,305 | 8,654 | | 8,654 | | 2005 | |||||||||||||||||||
ProLogis Park Chongqing
|
1 | 1,294 | | 99 | 1,393 | 1,393 | 2006 | |||||||||||||||||||||
ProLogis Park Minghang
|
4 | 4,732 | | 209 | 4,941 | | 4,941 | | 2006 | |||||||||||||||||||
ProLogis Park TEDA Distribution
Center
|
6 | 3,599 | | 7,503 | 11,102 | | 11,102 | | 2005, 2006 | |||||||||||||||||||
ProLogis Park Yunpu
|
1 | 405 | | 3,146 | 3,551 | 3,551 | 2006 | |||||||||||||||||||||
Sanshan Distribution Center
|
4 | 3,445 | | 344 | 3,789 | | 3,789 | | 2006 | |||||||||||||||||||
Total China
|
17 | 15,824 | | 17,606 | 33,430 | | 33,430 | | ||||||||||||||||||||
Japan:
|
||||||||||||||||||||||||||||
Chiba Distribution Center
|
1 | 21,835 | | 1,132 | 22,967 | | 22,967 | | 2006 | |||||||||||||||||||
ProLogis Park Aichi Distribution
Center
|
1 | 24,787 | | 12,878 | 37,665 | | 37,665 | | 2006 | |||||||||||||||||||
ProLogis Park Ichikawa
|
1 | 22,819 | | 19 | 22,838 | | 22,838 | | 2006 | |||||||||||||||||||
ProLogis Park Narita III
|
1 | 18,391 | | 1,085 | 19,476 | | 19,476 | | 2006 | |||||||||||||||||||
ProLogis Park Osaka II
|
1 | 27,063 | | 61,277 | 88,340 | | 88,340 | | 2006 | |||||||||||||||||||
ProLogis Park Sendai
|
1 | 8,942 | | 10,403 | 19,345 | 19,345 | 2006 | |||||||||||||||||||||
ProLogis Park Sugito II
|
1 | 25,419 | | 41,187 | 66,606 | | 66,606 | | 2006 | |||||||||||||||||||
Tomisato Distribution Center
|
1 | 8,214 | | 199 | 8,413 | | 8,413 | | 2006 | |||||||||||||||||||
Total Japan
|
8 | 157,470 | | 128,180 | 285,650 | | 285,650 | | ||||||||||||||||||||
Subtotal Asian Markets
|
25 | 173,294 | | 145,786 | 319,080 | | 319,080 | | ||||||||||||||||||||
Total Properties Under Development
(o)
|
114 | 485,649 | | 479,193 | 964,842 | | 964,842 | | ||||||||||||||||||||
GRAND TOTAL
|
$ | 2,742,123 | $ | 5,495,069 | $ | 3,456,087 | $ | 3,270,603 | $ | 8,422,676 | $ | 11,693,279 | (1,278,693 | ) | ||||||||||||||
135
Total per Schedule III
|
$ | 11,693,279 | ||
Land held for development
|
1,397,081 | |||
Land subject to ground leases and
other
|
472,412 | (e)(g) | ||
Other investments
|
391,227 | (h) | ||
Total per consolidated balance
sheet
|
$ | 13,953,999 | (i) | |
Total accumulated depreciation per
Schedule III
|
$ | 1,278,693 | ||
Accumulated depreciation on other
investments
|
1,513 | |||
Total per Consolidated Balance
Sheet
|
$ | 1,280,206 | ||
136
2006 | 2005 | 2004 | ||||||||||
Real estate assets:
|
||||||||||||
Balance at beginning of year
|
$ | 11,875,130 | $ | 6,333,731 | $ | 5,854,047 | ||||||
Acquisitions of operating
properties, transfers of development completions from CIP and
improvements to operating properties
|
3,345,394 | 5,414,725 | 1,441,703 | |||||||||
Basis of operating properties
disposed of
|
(1,636,116 | ) | (1,188,407 | ) | (1,253,290 | ) | ||||||
Change in properties under
development balance
|
80,497 | 308,642 | 171,122 | |||||||||
Change in land held for
development balance
|
352,039 | 449,041 | 86,666 | |||||||||
Change in land subject to ground
leases and other
|
(320,256 | ) | ||||||||||
balance
|
538,095 | | ||||||||||
Change in capitalized
preacquisition costs balance
|
257,311 | 19,303 | 33,483 | |||||||||
Balance at end of year
|
$ | 13,953,999 | $ | 11,875,130 | $ | 6,333,731 | ||||||
Accumulated
Depreciation:
|
||||||||||||
Balance at beginning of year
|
$ | 1,118,547 | $ | 989,221 | $ | 847,221 | ||||||
Depreciation expense
|
248,484 | 174,244 | 149,127 | |||||||||
Balances retired upon disposition
of operating properties
|
(86,825 | ) | (44,918 | ) | (7,127 | ) | ||||||
Balance at end of year
|
$ | 1,280,206 | $ | 1,118,547 | $ | 989,221 | ||||||
137
By: |
/s/ JEFFREY
H. SCHWARTZ
|
Signature
|
Title
|
Date
|
||
/s/ JEFFREY
H. SCHWARTZ Jeffrey H. Schwartz |
Chief Executive Officer and Trustee | February 27, 2007 | ||
/s/ WALTER
C. RAKOWICH Walter C. Rakowich |
President, Chief Operating Officer and Trustee | February 27, 2007 | ||
/s/ DESSA
M. BOKIDES Dessa M. Bokides |
Executive Vice President and Chief Financial Officer | February 27, 2007 | ||
/s/ JEFFREY
S. FINNIN Jeffrey S. Finnin |
Senior Vice President and Chief Accounting Officer | February 27, 2007 | ||
/s/ K.
DANE
BROOKSHER K. Dane Brooksher |
Chairman and Trustee | February 27, 2007 | ||
/s/ STEPHEN
L. FEINBERG Stephen L. Feinberg |
Trustee | February 27, 2007 | ||
/s/ GEORGE
L. FOTIADES George L. Fotiades |
Trustee | February 27, 2007 | ||
/s/ CHRISTINE
N. GARVEY Christine N. Garvey |
Trustee | February 27, 2007 | ||
/s/ DONALD
P. JACOBS Donald P. Jacobs |
Trustee | February 27, 2007 | ||
/s/ NELSON
C. RISING Nelson C. Rising |
Trustee | February 27, 2007 | ||
/s/ D.
MICHAEL
STEUERT D. Michael Steuert |
Trustee | February 27, 2007 | ||
/s/ J.
ANDRÉ
TEIXEIRA J. André Teixeira |
Trustee | February 27, 2007 |
138
Signature
|
Title
|
Date
|
||
/s/ WILLIAM
D. ZOLLARS William D. Zollars |
Trustee | February 27, 2007 | ||
/s/ ANDREA
M. ZULBERTI Andrea M. Zulberti |
Trustee | February 27, 2007 |
139
Exhibit |
||||
Number
|
Description
|
|||
1.1
|
| Sales Agreement dates February 27, 2007, between ProLogis and Cantor Fitzgerald & Co. | ||
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
|
| Amended and Restated Bylaws of ProLogis dated March 15, 2005 (incorporated by reference to Exhibit 3.1 to ProLogis Form 8-K filed on March 21, 2005). | ||
3.4
|
| Articles Supplementary Classifying and Designating the Series F Cumulative Redeemable Preferred Shares of Beneficial Interest (incorporated by reference exhibit 4.2 to ProLogis Form 8-K dated December 24, 2003). | ||
3.5
|
| Articles Supplementary Classifying and Designating the Series G Cumulative Redeemable Preferred Shares of Beneficial Interest (incorporated by reference exhibit 4.3 to ProLogis Form 8-K dated December 24, 2003). | ||
3.6
|
| 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). | ||
3.7
|
| 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). | ||
3.8
|
| 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). | ||
3.9
|
| Amendment to Amended and Restated Bylaws, dated as March 15, 2006 (incorporated by reference to exhibit 3.1 to ProLogis Form 8-K filed on March 17, 2006). | ||
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
|
| 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). | ||
4.3
|
| 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). | ||
4.4
|
| 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). | ||
4.5
|
| 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). | ||
4.6
|
| 7.875% Note due May 15, 2009 (incorporated by reference to exhibit 4.4 to ProLogis Form 8-K dated May 9, 1995). | ||
4.7
|
| 7.95% Note due May 15, 2008 (incorporated by reference to exhibit 4.2 to ProLogis Form 10-Q for the quarter ended June 30, 1996). | ||
4.8
|
| 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). | ||
4.9
|
| 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). | ||
4.10
|
| 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). | ||
4.11
|
| Collateral Trust Indenture, dated as of July 22, 1993, between Krauss/Schwartz Properties, Ltd. and NationsBank of Virginia, N.A., as Trustee (incorporated by reference to exhibit 4.10 to ProLogis Form 10-K for the year ended December 31, 1994). |
140
Exhibit |
||||
Number
|
Description
|
|||
4.12
|
| First Supplement Collateral Trust Indenture, dated as of October 28, 1994, among ProLogis Limited Partnership-IV, Krauss/Schwartz Properties, Ltd., and NationsBank of Virginia, N.A., as Trustee (incorporated by reference to exhibit 10.6 to ProLogis Form 10-Q for the quarter ended September 30, 1994). | ||
4.13
|
| 7.625% Note due July 1, 2017 (incorporated by reference to exhibit 4 to ProLogis Form 8-K dated July 11, 1997). | ||
4.14
|
| Form of 7.10% Promissory Note due April 15, 2008 (incorporated by reference to exhibit 4.27 to ProLogis Form 10-K for the year ended December 31, 1999). | ||
4.15
|
| 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). | ||
4.16
|
| 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). | ||
4.17
|
| 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). | ||
4.18
|
| 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). | ||
4.19
|
| 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). | ||
4.20
|
| 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). | ||
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
|
| 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). | ||
10.3
|
| 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). | ||
10.4
|
| 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). | ||
10.5*
|
| Share Option Plan for Outside Trustees (as Amended and Restated Effective September May 18, 2004) (incorporated by reference to exhibit 10.1 to ProLogis Form 8-K dated May 18, 2003). | ||
10.6
|
| 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). | ||
10.7
|
| Amended and Restated Agreement of Limited Partnership of ProLogis Limited Partnership-III, dated as of October 28, 1994, by and among ProLogis, as general partner, and the limited partners set forth therein (incorporated by reference to exhibit 10.3 to ProLogis Form 10-Q for the quarter ended September 30, 1994). | ||
10.8
|
| Amended and Restated Agreement of Limited Partnership of ProLogis Limited Partnership-IV, dated as of October 28,1994, by and among ProLogis IV, Inc., as general partner, and the limited partners set forth therein (incorporated by reference to exhibit 10.4 to ProLogis Form 10-Q for the quarter ended September 30, 1994). |
141
Exhibit |
||||
Number
|
Description
|
|||
10.9
|
| 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). | ||
10.10
|
| Agreement of Limited Partnership of Meridian Realty Partners, L.P. (incorporated by reference to exhibit 99.1 to ProLogis Registration Statement No. 333-86081). | ||
10.11*
|
| 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). | ||
10.12*
|
| 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). | ||
10.13*
|
| Special Equity Agreement between ProLogis and Irving F. Lyons III, dated as of March 5, 2003 (incorporated by reference to exhibit 10.29 to ProLogis Form 10-K for the year ended December 31, 2002). | ||
10.14
|
| 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). | ||
10.15
|
| 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). | ||
10.16
|
| 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). | ||
10.17
|
| 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). | ||
10.18
|
| First Amendment to the Special Equity Agreement dated as of March 5, 2003 by and between ProLogis and Irving F. Lyons III entered into as of September 22, 2005 (incorporated by reference to Exhibit 10.2 to ProLogis Form 8-K filed on September 26, 2005). |
142
Exhibit |
||||
Number
|
Description
|
|||
10.19
|
| 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). | ||
10.20
|
| Forms of Executive Protection Agreements entered into between ProLogis and Jeffrey H. Schwartz and Walter C. Rakowich (incorporated by reference to Exhibit 10.1 to ProLogis Form 8-K filed on March 21, 2005). | ||
10.21
|
| Forms of Executive Protection Agreements entered into between ProLogis and Robert J. Watson, Steven K. Meyer and Edward S. Nekritz (incorporated by reference to Exhibit 10.2 to ProLogis Form 8-K filed on March 21, 2005). | ||
10.22
|
| Forms of Executive Protection Agreements entered into between ProLogis and M. Gordon Keiser, Jr., Paul C. Congelton, Masato Miki, Miki Yamada and Ming Z. Mei (incorporated by reference to Exhibit 10.3 to ProLogis Form 8-K filed on March 21, 2005). | ||
10.23
|
| 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). | ||
10.24
|
| ProLogis 2006 Long-Term Incentive Plan (incorporated by reference to exhibit 10.2 to ProLogis Form 8-K filed on June 2, 2006) | ||
10.25
|
| Amended and Restated Employment Agreement, dated May 26, 2006, entered into between ProLogis and Ted R. Antenucci (incorporated by reference to exhibit 10.1 to ProLogis Form 8-K filed on June 2, 2006). | ||
10.26
|
| Executive Protection Agreement, dated May 31, 2006, entered into between ProLogis and Ted R. Antenucci (incorporated by reference to exhibit 10.3 to ProLogis Form 8-K filed on June 2, 2006). | ||
10.27
|
| Executive Protection Agreement, dated December 21, 2006, entered into between ProLogis and Dessa M. Bokides (incorporated by reference to exhibit 10.1 to ProLogis Form 8-K filed on December 22, 2006). | ||
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. |
143
Exhibit |
||||
Number
|
Description
|
|||
32.1
|
| Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
32.2
|
| Certification of 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, 2001 to 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. |
* | Management Contract or Compensatory Plan or Arrangement |
144