(Mark One)
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x
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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, 2009 | ||
OR
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Maryland (State or other jurisdiction of incorporation or organization) |
74-2604728 (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 |
(Check one)
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þ Large accelerated filer | o Accelerated filer | ||
o Non-accelerated filer (do not check if a smaller reporting company) | o Smaller reporting company |
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Number of |
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Properties | Square Feet | Investment | ||||||||||
(in thousands) | (in thousands) | |||||||||||
Total owned, managed and under development:
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Industrial properties:
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Operating properties
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1,188 | 191,623 | $ | 11,545,501 | ||||||||
Properties under development
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5 | 2,930 | 191,127 | |||||||||
Retail and mixed use properties
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29 | 1,150 | 291,038 | |||||||||
Land held for development
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n/a | n/a | 2,569,343 | |||||||||
Other real estate investments
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n/a | n/a | 618,887 | |||||||||
Total
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1,222 | 195,703 | 15,215,896 | |||||||||
Investment management-industrial properties(1)
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1,379 | 284,262 | 19,913,874 | |||||||||
Total properties owned and under management
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2,601 | 479,965 | $ | 35,129,770 | ||||||||
(1) | Amounts represent the entitys investment in the operating property, not our proportionate share. |
| reduce debt by $2.0 billion; |
| recast our global line of credit; |
| complete the properties under development as of the end of 2008 and focus on leasing our total development portfolio; |
| manage our core portfolio of industrial distribution properties to maintain and improve our net operating income stream from these assets; |
| generate liquidity through contributions of properties to our property funds and through sales of real estate to third parties; and |
| reduce gross general and administrative expenses (G&A) by 20% to 25%. |
4
| retain more of our development assets in order to improve the geographic diversification of our direct owned properties, as most of our planned developments are in international markets; |
| monetize our investment in land of $2.6 billion at December 31, 2009; and |
| continue to focus on staggering and extending our debt maturities. |
5
Investment (before |
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Number |
depreciation) at |
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of Properties | Square Feet | Leased Percentage | December 31, 2009 | |||||||||||||
Industrial and retail properties:
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Core properties
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1,025 | 141,019 | 90.1 | % | $ | 7,436,539 | ||||||||||
Completed development properties
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163 | 50,604 | 62.2 | % | 4,108,962 | |||||||||||
Properties under development
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5 | 2,930 | 100.0 | % | 191,127 | |||||||||||
Retail properties
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27 | 1,014 | 91.5 | % | 251,948 | |||||||||||
Total industrial and retail properties
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1,220 | 195,567 | 83.0 | % | 11,988,576 | |||||||||||
Land held for development
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2,569,343 | |||||||||||||||
Land subject to ground leases and other
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385,222 | |||||||||||||||
Total
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$ | 14,943,141 | ||||||||||||||
6
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| allows us, as the manager of the property funds, to maintain and expand our market presence and customer relationships; |
| allows us to maintain a long-term ownership position in the properties; |
| allows us to earn fees for providing services to the property funds; and |
| provides us an opportunity to earn incentive performance participation income based on the investors returns over a specified period. |
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| local conditions, such as an oversupply of distribution space or a reduction in demand for distribution space in an area; |
| the attractiveness of our properties to potential customers; |
| competition from other available properties; |
| our ability to provide adequate maintenance of, and insurance on, our properties; |
| our ability to control rents and variable operating costs; |
| governmental regulations, including zoning, usage and tax laws and changes in these laws; and |
| potential liability under, and changes in, environmental, zoning and other laws. |
14
| the risk that we may not be able to lease the available space in our recently completed developments at rents that are sufficient to be profitable; |
| the risk that we will seek to sell certain land parcels and we will not be able to find a third party to acquire such land or that the sales price will not allow us to recover our investment, resulting in additional impairment charges; |
| the risk that development opportunities explored by us may be abandoned and the related investment will be impaired; |
| the risk that we may not be able to obtain, or may experience delays in obtaining, all necessary zoning, building, occupancy and other governmental permits and authorizations; |
| the risk that due to the increased cost of land, our activities may not be as profitable; |
| 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 by construction-related labor 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. |
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| difficulties and costs of staffing and managing international operations in certain regions; |
| currency restrictions, which may prevent the transfer of capital and profits to the United States; |
| unexpected changes in regulatory requirements; |
| potentially adverse tax consequences; |
| the responsibility of complying with multiple and potentially conflicting laws, e.g., with respect to corrupt practices, employment and licensing; |
| the impact of regional or country-specific business cycles and economic instability; |
| political instability, civil unrest, drug trafficking, political activism or the continuation or escalation of terrorist or gang activities (particularly with respect to our operations in Mexico); and |
| foreign ownership restrictions with respect to operations in countries. |
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21
Rentable |
Investment |
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No. of |
Percentage |
Square |
Before |
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Bldgs. | Leased (1) | Footage | Depreciation | Encumbrances (2) | ||||||||||||||||
Operating properties owned in the direct owned segment at
December 31, 2009 (dollars and rentable square footage in
thousands):
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Industrial properties:
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North America by Country, by Market (39
markets)(3):
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United States:
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Atlanta, Georgia
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68 | 90.24 | % | 10,523 | $ | 369,616 | $ | 49,123 | ||||||||||||
Austin, Texas
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12 | 98.16 | % | 870 | 34,663 | | ||||||||||||||
Central Valley, California
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12 | 88.23 | % | 4,447 | 240,753 | 9,436 | ||||||||||||||
Charlotte, North Carolina
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31 | 95.95 | % | 3,623 | 119,842 | 35,115 | ||||||||||||||
Chicago, Illinois
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83 | 93.32 | % | 18,354 | 1,007,796 | 158,710 | ||||||||||||||
Cincinnati, Ohio
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21 | 59.95 | % | 3,603 | 109,735 | 22,212 | ||||||||||||||
Columbus, Ohio
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30 | 88.09 | % | 5,873 | 225,940 | 35,388 | ||||||||||||||
Dallas/Fort Worth, Texas
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95 | 89.63 | % | 15,032 | 605,333 | 66,237 | ||||||||||||||
Denver, Colorado
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26 | 92.24 | % | 4,147 | 221,381 | 35,241 | ||||||||||||||
El Paso, Texas
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16 | 93.18 | % | 2,050 | 65,009 | | ||||||||||||||
Houston, Texas
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65 | 98.10 | % | 5,875 | 215,378 | 8,735 | ||||||||||||||
I-81 Corridor, Pennsylvania
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10 | 86.35 | % | 3,737 | 194,234 | | ||||||||||||||
Indianapolis, Indiana
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30 | 88.08 | % | 3,155 | 115,298 | 8,147 | ||||||||||||||
Inland Empire, California
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38 | 89.63 | % | 16,180 | 1,280,686 | 187,045 | ||||||||||||||
Las Vegas, Nevada
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9 | 67.95 | % | 1,074 | 60,671 | 4,380 | ||||||||||||||
Los Angeles, California
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65 | 95.78 | % | 5,464 | 600,135 | 67,459 | ||||||||||||||
Louisville, Kentucky
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12 | 98.67 | % | 3,261 | 112,721 | 3,846 | ||||||||||||||
Memphis, Tennessee
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20 | 90.14 | % | 4,661 | 135,822 | | ||||||||||||||
Nashville, Tennessee
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29 | 97.01 | % | 2,985 | 86,206 | | ||||||||||||||
New Jersey
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34 | 94.90 | % | 6,583 | 426,525 | 86,281 | ||||||||||||||
Orlando, Florida
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17 | 70.96 | % | 1,916 | 99,012 | | ||||||||||||||
Phoenix, Arizona
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31 | 73.11 | % | 2,559 | 121,935 | | ||||||||||||||
Portland, Oregon
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14 | 97.96 | % | 1,635 | 106,514 | 35,748 | ||||||||||||||
Reno, Nevada
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18 | 91.72 | % | 3,213 | 133,946 | 10,576 | ||||||||||||||
San Antonio, Texas
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41 | 93.64 | % | 3,742 | 136,937 | 3,313 | ||||||||||||||
San Francisco (East Bay), California
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46 | 97.63 | % | 4,208 | 280,602 | 47,243 | ||||||||||||||
San Francisco (South Bay), California
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72 | 92.67 | % | 4,447 | 406,884 | 34,078 | ||||||||||||||
Seattle, Washington
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2 | 61.67 | % | 246 | 28,479 | 7,570 | ||||||||||||||
South Florida
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19 | 63.28 | % | 1,732 | 131,678 | 11,553 | ||||||||||||||
St. Louis, Missouri
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6 | 68.91 | % | 686 | 23,115 | | ||||||||||||||
Tampa, Florida
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52 | 86.27 | % | 3,565 | 148,196 | 8,819 | ||||||||||||||
Washington D.C./Baltimore, Maryland
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28 | 83.86 | % | 4,537 | 232,248 | 14,328 | ||||||||||||||
Other
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2 | 80.39 | % | 367 | 19,387 | | ||||||||||||||
Subtotal United States
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1,054 | 89.62 | % | 154,350 | 8,096,677 | 950,583 | ||||||||||||||
Mexico:
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Guadalajara
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2 | 14.32 | % | 269 | 11,783 | | ||||||||||||||
Juarez
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8 | 51.34 | % | 947 | 43,255 | | ||||||||||||||
Mexico City
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9 | 70.49 | % | 2,301 | 127,990 | | ||||||||||||||
Monterrey
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4 | 52.37 | % | 746 | 32,025 | | ||||||||||||||
Reynosa
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4 | 48.84 | % | 607 | 25,687 | | ||||||||||||||
Tijuana
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3 | 74.43 | % | 692 | 34,786 | | ||||||||||||||
Subtotal Mexico
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30 | 60.21 | % | 5,562 | 275,526 | | ||||||||||||||
Canada Toronto
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2 | 20.91 | % | 526 | 43,535 | | ||||||||||||||
Subtotal North America
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1,086 | 88.00 | % | 160,438 | 8,415,738 | 950,583 | ||||||||||||||
Europe by Country (28 markets)(4):
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Czech Republic
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8 | 30.97 | % | 2,115 | 193,666 | | ||||||||||||||
France
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12 | 56.46 | % | 3,056 | 232,464 | | ||||||||||||||
Germany
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13 | 65.31 | % | 2,171 | 170,010 | | ||||||||||||||
Hungary
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4 | 64.59 | % | 1,095 | 63,692 | | ||||||||||||||
Italy
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4 | 17.63 | % | 1,330 | 87,405 | | ||||||||||||||
Netherlands
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1 | 0.00 | % | 273 | 15,131 | |
22
Rentable |
Investment |
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No. of |
Percentage |
Square |
Before |
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Bldgs. | Leased (1) | Footage | Depreciation | Encumbrances (2) | ||||||||||||||||
Poland
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21 | 36.15 | % | 5,181 | 306,520 | | ||||||||||||||
Romania
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4 | 98.22 | % | 1,154 | 56,865 | | ||||||||||||||
Slovakia
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4 | 83.81 | % | 1,245 | 85,661 | | ||||||||||||||
Spain
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3 | 14.67 | % | 891 | 53,716 | | ||||||||||||||
Sweden
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1 | 60.29 | % | 878 | 59,417 | | ||||||||||||||
United Kingdom
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13 | 23.32 | % | 3,162 | 325,768 | | ||||||||||||||
Subtotal Europe
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88 | 45.18 | % | 22,551 | 1,650,315 | | ||||||||||||||
Asia by Country (6 markets)(5):
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Japan
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10 | 71.03 | % | 8,209 | 1,434,650 | 153,818 | ||||||||||||||
Korea
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4 | 100.00 | % | 425 | 44,798 | 5,185 | ||||||||||||||
Subtotal Asia
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14 | 72.45 | % | 8,634 | 1,479,448 | 159,003 | ||||||||||||||
Total industrial properties
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1,188 | 82.70 | % | 191,623 | 11,545,501 | 1,109,586 | ||||||||||||||
Retail properties:
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North America by Country (3 markets):
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United States
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27 | 91.54 | % | 1,014 | 251,948 | 4,194 | ||||||||||||||
Total retail properties
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27 | 91.54 | % | 1,014 | 251,948 | 4,194 | ||||||||||||||
Total operating properties owned in the direct owned segment
at December 31, 2009
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1,215 | 82.75 | % | 192,637 | $ | 11,797,449 | $ | 1,113,780 | ||||||||||||
Properties Under Development | ||||||||||||||||||||||||||||
Rentable |
Total |
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Land Held for Development |
No. of |
Percentage |
Square |
Current |
Expected |
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Acreage | Investment | Bldgs. | Leased (1) | Footage | Investment | Cost (6) | ||||||||||||||||||||||
Land held for development and properties under development at
December 31, 2009 (dollars and rentable square footage in
thousands):
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North America by Country, by Market (37 total
markets):
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United States:
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Atlanta, Georgia
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467 | $ | 37,454 | | | | $ | | $ | | ||||||||||||||||||
Austin, Texas
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10 | 5,475 | | | | | | |||||||||||||||||||||
Central Valley, California
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799 | 23,602 | | | | | | |||||||||||||||||||||
Charlotte, North Carolina
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20 | 3,554 | | | | | | |||||||||||||||||||||
Chicago, Illinois
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739 | 86,876 | | | | | | |||||||||||||||||||||
Cincinnati, Ohio
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76 | 8,182 | | | | | | |||||||||||||||||||||
Columbus, Ohio
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233 | 13,918 | | | | | | |||||||||||||||||||||
Dallas, Texas
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470 | 32,178 | | | | | | |||||||||||||||||||||
Denver, Colorado
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94 | 10,015 | | | | | | |||||||||||||||||||||
East Bay, California
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27 | 25,255 | | | | | | |||||||||||||||||||||
El Paso, Texas
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68 | 4,055 | | | | | | |||||||||||||||||||||
Houston, Texas
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122 | 8,338 | | | | | | |||||||||||||||||||||
Indianapolis, Indiana
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91 | 5,147 | | | | | | |||||||||||||||||||||
Inland Empire, California
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466 | 109,613 | 1 | 100.00 | % | 667 | 18,729 | 57,178 | ||||||||||||||||||||
Jacksonville, Florida
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103 | 18,054 | | | | | | |||||||||||||||||||||
Las Vegas, Nevada
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68 | 34,715 | | | | | | |||||||||||||||||||||
Los Angeles, California
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20 | 41,951 | | | | | | |||||||||||||||||||||
Louisville, Kentucky
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13 | 600 | | | | | | |||||||||||||||||||||
Memphis, Tennessee
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159 | 10,651 | | | | | | |||||||||||||||||||||
Nashville, Tennessee
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280 | 158,815 | | | | | | |||||||||||||||||||||
New Jersey
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16 | 4,195 | | | | | | |||||||||||||||||||||
Norfolk, Virginia
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83 | 10,029 | | | | | | |||||||||||||||||||||
Pennsylvania
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307 | 33,119 | | | | | | |||||||||||||||||||||
Phoenix, Arizona
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148 | 23,755 | | | | | | |||||||||||||||||||||
Portland, Oregon
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23 | 3,172 | | | | | | |||||||||||||||||||||
Reno, Nevada
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178 | 18,459 | | | | | | |||||||||||||||||||||
San Antonio, Texas
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55 | 5,971 | | | | | | |||||||||||||||||||||
South Florida
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82 | 53,631 | | | | | | |||||||||||||||||||||
Tampa, Florida
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43 | 3,695 | | | | | | |||||||||||||||||||||
Washington D.C./Baltimore, Maryland
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137 | 24,050 | | | | | |
23
Properties Under Development | ||||||||||||||||||||||||||||
Rentable |
Total |
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Land Held for Development |
No. of |
Percentage |
Square |
Current |
Expected |
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Acreage | Investment | Bldgs. | Leased (1) | Footage | Investment | Cost (6) | ||||||||||||||||||||||
Mexico:
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Guadalajara
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48 | 14,979 | | | | | | |||||||||||||||||||||
Juarez
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148 | 20,532 | | | | | | |||||||||||||||||||||
Matamoros
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122 | 19,599 | | | | | | |||||||||||||||||||||
Mexico City
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121 | 46,068 | | | | | | |||||||||||||||||||||
Monterrey
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159 | 34,048 | | | | | | |||||||||||||||||||||
Reynosa
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107 | 13,053 | | | | | | |||||||||||||||||||||
Canada Toronto
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173 | 94,298 | | | | | | |||||||||||||||||||||
Subtotal North America
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6,275 | 1,061,101 | 1 | 100.00 | % | 667 | 18,729 | 57,178 | ||||||||||||||||||||
Europe by Country (35 total markets):
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Austria
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33 | 29,401 | | | | | | |||||||||||||||||||||
Belgium
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30 | 13,451 | | | | | | |||||||||||||||||||||
Czech Republic
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367 | 91,655 | | | | | | |||||||||||||||||||||
France
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316 | 79,275 | | | | | | |||||||||||||||||||||
Germany
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261 | 101,879 | | | | | | |||||||||||||||||||||
Hungary
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345 | 86,074 | | | | | | |||||||||||||||||||||
Italy
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73 | 21,801 | | | | | | |||||||||||||||||||||
Netherlands
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38 | 24,725 | 1 | 100.00 | % | 548 | 33,536 | 43,436 | ||||||||||||||||||||
Poland
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948 | 178,623 | | | | | | |||||||||||||||||||||
Romania
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90 | 19,523 | | | | | | |||||||||||||||||||||
Slovakia
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117 | 34,876 | | | | | | |||||||||||||||||||||
Spain
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98 | 67,842 | 1 | 100.00 | % | 861 | 46,741 | 62,758 | ||||||||||||||||||||
Sweden
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6 | 2,139 | | | | | | |||||||||||||||||||||
United Kingdom
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1,237 | 432,368 | 1 | 100.00 | % | 504 | 11,318 | 39,370 | ||||||||||||||||||||
Subtotal Europe
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3,959 | 1,183,632 | 3 | 100.00 | % | 1,913 | 91,595 | 145,564 | ||||||||||||||||||||
Asia by Country (5 total markets):
|
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Japan
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94 | 288,123 | 1 | 100.00 | % | 350 | 80,803 | 92,957 | ||||||||||||||||||||
Korea
|
32 | 36,487 | | | | | | |||||||||||||||||||||
Subtotal Asia
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126 | 324,610 | 1 | 100.00 | % | 350 | 80,803 | 92,957 | ||||||||||||||||||||
Total land held for development and properties under
development in the direct owned segment at December 31,
2009
|
10,360 | $ | 2,569,343 | 5 | 100.00 | % | 2,930 | $ | 191,127 | $ | 295,699 | |||||||||||||||||
Investment |
||||
Before Depreciation |
||||
(in thousands) | ||||
Industrial and retail properties
|
$ | 11,797,449 | ||
Land subject to ground leases and other (7)
|
385,222 | |||
Properties under development
|
191,127 | |||
Land held for development
|
2,569,343 | |||
Mixed use properties
|
39,090 | |||
Other investments (8)
|
233,665 | |||
Total
|
$ | 15,215,896 | ||
(1) | Represents the percentage leased at December 31, 2009. Operating properties at December 31, 2009 include completed development properties that may be in the initial lease-up phase, which reduces the overall leased percentage (see notes 3, 4 and 5 below for information regarding developed properties). | |
(2) | Certain properties are pledged as security under our secured mortgage debt and assessment bonds at December 31, 2009. 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 $1.1 million of encumbrances |
24
related to other real estate assets not included in the direct owned segment. See Schedule III Real Estate and Accumulated Depreciation to our Consolidated Financial Statements in Item 8 for additional identification of the properties pledged. | ||
(3) | In North America, includes 67 completed development properties aggregating 21.3 million square feet at a total investment of $1.1 billion that are 76.1% leased and in our development portfolio. | |
(4) | In Europe, includes 84 completed development properties aggregating 20.9 million square feet at a total investment of $1.5 billion that are 44.1% leased and in our development portfolio. | |
(5) | In Asia, includes 12 completed development properties aggregating 8.4 million square feet at a total investment of $1.5 billion that are 71.8% leased and in our development portfolio. | |
(6) | Represents the total expected cost to complete a property under development and may include the cost of land, fees, permits, payments to contractors, architectural and engineering fees, interest, project management costs and other appropriate costs to be capitalized during construction and also leasing costs, rather than the total actual costs incurred to date. | |
(7) | Amount represents investments of $314.9 million in land subject to ground leases, an investment of $36.1 million in railway depots, an investment of $29.9 million in parking lots and $4.3 million in solar panels. | |
(8) | Other investments include: (i) restricted funds that are held in escrow pending the completion of tax-deferred exchange transactions involving operating properties ($45.6 million); (ii) certain infrastructure costs related to projects we are developing on behalf of others; (iii) costs incurred related to future development projects, including purchase options on land; (iv) costs related to our corporate office buildings, which we occupy; and (v) earnest money deposits associated with potential acquisitions. |
25
Rentable |
||||||||||||||||||||
No. of |
No. of |
Square |
Percentage |
Entitys |
||||||||||||||||
Bldgs. | Markets | Footage | Leased | Investment (1) | ||||||||||||||||
North America:
|
||||||||||||||||||||
Property funds:
|
||||||||||||||||||||
ProLogis California
|
80 | 2 | 14,178 | 94.19 | % | $ | 700,588 | |||||||||||||
ProLogis North American Properties Fund I
|
35 | 16 | 9,033 | 97.04 | % | 376,176 | ||||||||||||||
ProLogis North American Properties Fund VI
|
21 | 6 | 8,384 | 92.70 | % | 507,627 | ||||||||||||||
ProLogis North American Properties Fund VII
|
29 | 8 | 6,205 | 86.36 | % | 399,520 | ||||||||||||||
ProLogis North American Properties Fund VIII
|
24 | 8 | 3,064 | 94.61 | % | 193,718 | ||||||||||||||
ProLogis North American Properties Fund IX
|
19 | 7 | 3,306 | 70.40 | % | 191,626 | ||||||||||||||
ProLogis North American Properties Fund X
|
29 | 9 | 4,191 | 84.67 | % | 224,237 | ||||||||||||||
ProLogis North American Properties Fund XI
|
12 | 2 | 3,616 | 96.80 | % | 181,869 | ||||||||||||||
ProLogis North American Industrial Fund
|
258 | 31 | 49,656 | 94.85 | % | 2,948,285 | ||||||||||||||
ProLogis North American Industrial Fund II
|
148 | 31 | 36,018 | 89.72 | % | 2,170,506 | ||||||||||||||
ProLogis North American Industrial Fund III
|
120 | 7 | 24,693 | 92.10 | % | 1,752,896 | ||||||||||||||
ProLogis Mexico Industrial Fund
|
72 | 11 | 9,144 | 86.41 | % | 573,849 | ||||||||||||||
Property funds
|
847 | 45 | (2) | 171,488 | 91.89 | % | 10,220,897 | |||||||||||||
Industrial joint ventures(3)
|
92 | 13 | 10,021 | 94.47 | % | 444,985 | ||||||||||||||
Total North America
|
939 | 46 | (2) | 181,509 | 92.03 | % | 10,665,882 | |||||||||||||
Europe property funds:
|
||||||||||||||||||||
ProLogis European Properties
|
232 | 28 | 52,978 | 95.80 | % | 4,518,277 | ||||||||||||||
ProLogis European Properties Fund II
|
196 | 30 | 48,041 | 96.80 | % | 4,579,539 | ||||||||||||||
Total Europe
|
428 | 35 | (2) | 101,019 | 96.27 | % | 9,097,816 | |||||||||||||
Asia property funds:
|
||||||||||||||||||||
ProLogis Korea Fund
|
12 | 2 | 1,734 | 97.82 | % | 150,176 | ||||||||||||||
Total Asia
|
12 | 2 | (2) | 1,734 | 97.82 | % | 150,176 | |||||||||||||
Total unconsolidated investees
|
1,379 | 83 | 284,262 | 93.57 | % | $ | 19,913,874 | |||||||||||||
(1) | Investment represents 100% of the carrying value of the properties, before depreciation, of each entity at December 31, 2009. | |
(2) | Represents the total number of markets in each continent on a combined basis. | |
(3) | Includes 90 properties that we manage but do not account for under the equity method. |
26
High Sale |
Low Sale |
Per Common Share |
||||||||||
Price | Price | Cash Distribution | ||||||||||
2008:
|
||||||||||||
First Quarter
|
$ | 64.00 | $ | 51.04 | $ | 0.5175 | ||||||
Second Quarter
|
66.51 | 53.42 | 0.5175 | |||||||||
Third Quarter
|
54.89 | 34.61 | 0.5175 | |||||||||
Fourth Quarter
|
39.85 | 2.20 | 0.5175 | |||||||||
2009:
|
||||||||||||
First Quarter
|
$ | 16.68 | $ | 4.87 | $ | 0.25 | ||||||
Second Quarter
|
9.77 | 6.10 | 0.15 | |||||||||
Third Quarter
|
13.30 | 6.54 | 0.15 | |||||||||
Fourth Quarter
|
15.04 | 10.76 | 0.15 | |||||||||
2010:
|
||||||||||||
First Quarter (through February 19)
|
$ | 14.12 | $ | 11.32 | $ | 0.15 | (1) |
(1) | Declared on February 1, 2010 and payable on February 26, 2010 to holders of record on February 12, 2010. |
27
Years Ended December 31, | ||||||||
2009 | 2008 | |||||||
Series C Preferred Shares
|
$ | 4.27 | $ | 4.27 | ||||
Series F Preferred Shares
|
$ | 1.69 | $ | 1.69 | ||||
Series G Preferred Shares
|
$ | 1.69 | $ | 1.69 |
28
Years Ended December 31, | ||||||||||||||||||||
2009 | 2008 (1) | 2007 (1) | 2006 | 2005 | ||||||||||||||||
Operating Data:
|
||||||||||||||||||||
Total revenues (2)
|
$ | 1,223 | $ | 5,566 | $ | 6,106 | $ | 2,362 | $ | 1,748 | ||||||||||
Total expenses
|
$ | 1,177 | $ | 4,989 | $ | 5,007 | $ | 1,636 | $ | 1,355 | ||||||||||
Operating income (2)
|
$ | 46 | $ | 577 | $ | 1,099 | $ | 726 | $ | 393 | ||||||||||
Interest expense
|
$ | 373 | $ | 385 | $ | 390 | $ | 296 | $ | 177 | ||||||||||
Earnings (loss) from continuing operations (3)
|
$ | (265 | ) | $ | (282 | ) | $ | 929 | $ | 679 | $ | 272 | ||||||||
Discontinued operations (4)
|
$ | 289 | $ | (168 | ) | $ | 129 | $ | 199 | $ | 129 | |||||||||
Consolidated net earnings (loss)
|
$ | 24 | $ | (450 | ) | $ | 1,058 | $ | 878 | $ | 401 | |||||||||
Net earnings (loss) attributable to common shares
|
$ | (3 | ) | $ | (479 | ) | $ | 1,028 | $ | 849 | $ | 371 | ||||||||
Net earnings (loss) per share attributable to common
shares Basic:
|
||||||||||||||||||||
Continuing operations
|
$ | (0.73 | ) | $ | (1.18 | ) | $ | 3.50 | $ | 2.64 | $ | 1.19 | ||||||||
Discontinued operations
|
0.72 | (0.64 | ) | 0.50 | 0.81 | 0.63 | ||||||||||||||
Net earnings (loss) per share attributable to common
shares Basic (3)
|
$ | (0.01 | ) | $ | (1.82 | ) | $ | 4.00 | $ | 3.45 | $ | 1.82 | ||||||||
Net earnings (loss) per share attributable to common
shares Diluted:
|
||||||||||||||||||||
Continuing operations
|
$ | (0.73 | ) | $ | (1.18 | ) | $ | 3.38 | $ | 2.55 | $ | 1.16 | ||||||||
Discontinued operations
|
0.72 | (0.64 | ) | 0.48 | 0.77 | 0.60 | ||||||||||||||
Net earnings (loss) per share attributable to common
shares Diluted (3)
|
$ | (0.01 | ) | $ | (1.82 | ) | $ | 3.86 | $ | 3.32 | $ | 1.76 | ||||||||
Weighted average common shares outstanding:
|
||||||||||||||||||||
Basic
|
403 | 263 | 257 | 246 | 203 | |||||||||||||||
Diluted
|
403 | 263 | 267 | 257 | 214 | |||||||||||||||
Common Share Distributions:
|
||||||||||||||||||||
Common share cash distributions paid
|
$ | 272 | $ | 543 | $ | 473 | $ | 393 | $ | 297 | ||||||||||
Common share distributions paid per share
|
$ | 0.70 | $ | 2.07 | $ | 1.84 | $ | 1.60 | $ | 1.48 | ||||||||||
FFO (5):
|
||||||||||||||||||||
Reconciliation of net earnings to FFO:
|
||||||||||||||||||||
Net earnings (loss) attributable to common shares
|
$ | (3 | ) | $ | (479 | ) | $ | 1,028 | $ | 849 | $ | 371 | ||||||||
Total NAREIT defined adjustments
|
213 | 449 | 150 | 149 | 161 | |||||||||||||||
Total our defined adjustments
|
(71 | ) | 164 | 28 | (53 | ) | (2 | ) | ||||||||||||
FFO attributable to common shares as defined by ProLogis,
including significant non-cash items
|
139 | 134 | 1,206 | 945 | 530 | |||||||||||||||
Add (deduct) significant non-cash items:
|
||||||||||||||||||||
Impairment of real estate properties
|
331 | 275 | | | | |||||||||||||||
Impairment of goodwill and other assets
|
164 | 321 | | | | |||||||||||||||
Impairment (net gain) related to disposed assets
China operations
|
(3 | ) | 198 | | | | ||||||||||||||
Gain on early extinguishment of debt
|
(172 | ) | (91 | ) | | | | |||||||||||||
Losses related to temperature-controlled distribution assets
|
| | | | 25 | |||||||||||||||
Our share of the loss/impairment recorded by an unconsolidated
investee
|
| 108 | | | | |||||||||||||||
Our share of certain losses recognized by the property funds, net
|
9 | | | | | |||||||||||||||
FFO attributable to common shares as defined by ProLogis,
excluding significant non-cash items
|
$ | 468 | $ | 945 | $ | 1,206 | $ | 945 | $ | 555 | ||||||||||
Cash Flow Data:
|
||||||||||||||||||||
Net cash provided by operating activities (2)
|
$ | 116 | $ | 884 | $ | 1,233 | $ | 687 | $ | 488 | ||||||||||
Net cash provided by (used in) investing activities
|
$ | 1,208 | $ | (1,343 | ) | $ | (4,079 | ) | $ | (2,069 | ) | $ | (2,223 | ) | ||||||
Net cash provided by (used in) financing activities
|
$ | (1,463 | ) | $ | 358 | $ | 2,742 | $ | 1,645 | $ | 1,713 |
As of December 31, | ||||||||||||||||||||
2009 | 2008 (1) | 2007 (1) | 2006 | 2005 | ||||||||||||||||
Financial Position:
|
||||||||||||||||||||
Real estate owned, excluding land held for development, before
depreciation
|
$ | 12,647 | $ | 13,243 | $ | 14,428 | $ | 12,500 | $ | 10,830 | ||||||||||
Land held for development
|
$ | 2,569 | $ | 2,483 | $ | 2,153 | $ | 1,397 | $ | 1,045 | ||||||||||
Investments in and advances to unconsolidated investees
|
$ | 2,152 | $ | 2,270 | $ | 2,345 | $ | 1,300 | $ | 1,050 | ||||||||||
Total assets
|
$ | 16,885 | $ | 19,269 | $ | 19,724 | $ | 15,904 | $ | 13,126 | ||||||||||
Total debt
|
$ | 7,978 | $ | 10,711 | $ | 10,217 | $ | 8,387 | $ | 6,678 | ||||||||||
Total liabilities
|
$ | 8,878 | $ | 12,511 | $ | 11,920 | $ | 9,453 | $ | 7,580 | ||||||||||
Noncontrolling interests
|
$ | 20 | $ | 20 | $ | 79 | $ | 52 | $ | 58 | ||||||||||
ProLogis shareholders equity
|
$ | 7,987 | $ | 6,738 | $ | 7,725 | $ | 6,399 | $ | 5,488 | ||||||||||
Number of common shares outstanding
|
474 | 267 | 258 | 251 | 244 |
(1) | Effective January 1, 2009, we adopted a new accounting standard related to our convertible debt that resulted in the restatement of 2008 and 2007 amounts. See Note 2 to our Consolidated Financial Statements in Item 8 for more information. |
29
(2) | Changes in global economic conditions in late 2008 resulted in changes to our business strategy, including the elimination of our CDFS segment. During 2009, we contributed and sold certain properties. However, they are now reflected as net gains, rather than revenues, in our Consolidated Statements of Operations and as cash provided by investing activities, rather than operating. See our Consolidated Financial Statements in Item 8 for more information. | |
(3) | During 2009, we recognized impairment charges of $331.6 million on certain of our real estate properties, $143.6 million on certain of our unconsolidated investments, and $20.0 million related to other assets. During 2008, we recognized impairment charges of $274.7 million on certain of our real estate properties, $175.4 million related to goodwill, $113.7 million on certain of our unconsolidated investments, $31.5 million related to other assets, and our share of impairment charges recorded by an unconsolidated investee of $108.2 million. See our Consolidated Financial Statements in Item 8 for more information. | |
(4) | Discontinued operations include income (loss) attributable to assets held for sale and disposed properties, net gains recognized on the disposition of properties to third parties and, in 2008, an impairment charge of $198.2 million as a result of our sale in February 2009 of our China operations. Amounts in 2005 include impairment charges related to temperature controlled distribution assets of $25.2 million. | |
(5) | 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. |
30
| Direct Owned Segment-We earn rent from our customers, including reimbursements of certain operating costs, under long-term operating leases for the properties that we own. The revenue in this segment has decreased due to contribution of properties to property funds and a decrease in rental rates on turnover, offset partially with increases in occupancy levels within our development portfolio. Rental revenues generated by the lease-up of newly developed properties have not been adequate to offset the loss of rental revenues from the decrease in the property portfolio. We expect our total revenues from this segment to increase slightly in 2010 through increases in occupied square feet predominantly in our development portfolio, offset partially with decreases from contributions of properties we made in 2009 or may make in 2010. We anticipate the increases in occupied square feet to come from leases that were signed in 2009, but have not commenced occupancy, and future leasing activity in 2010. Our development portfolio, including completed development properties and those currently under development, was 64.3% leased at December 31, 2009 and 41.4% leased at December 31, 2008. Our intent is to hold the properties in our direct owned segment for long-term investment, including the development of new properties utilizing our existing land. However, we may contribute certain properties to a property fund or sell land or properties to third parties, depending on market conditions and liquidity needs. |
| Investment Management Segment We recognize our proportionate share of the earnings or losses from our investments in unconsolidated property funds and certain joint ventures that are accounted for under the equity method. In addition, we recognize fees and incentives earned for services performed on behalf of these and other entities. We provide services to these entities, which may include property management, asset management, leasing, acquisition, financing and development. We may also earn incentives from our property funds depending on the return provided to the fund partners over a specified period. |
| reduce debt by $2.0 billion; |
| recast our global line of credit; |
| complete the properties under development as of the end of 2008 and focus on leasing our total development portfolio; |
| manage our core portfolio of industrial distribution properties to maintain and improve our net operating income stream from these assets; |
| generate liquidity through contributions of properties to our property funds and through sales of real estate to third parties; and |
| reduce gross G&A by 20% to 25%. |
31
| In August 2009, we amended and restated our global line of credit (Global Line), extending the maturity to August 2012 and reducing the size of our aggregate commitments to $2.25 billion (subject to currency fluctuations), after October 2010. |
| On October 1, 2009, pursuant to a consent solicitation and to support our objective of simplifying our debt structure, we amended certain covenants and events of default related to certain of our senior notes. |
| During 2009, we issued five- and ten-year senior notes for a total of $950.0 million. |
| During 2009, we closed on $499.9 million of secured mortgage debt in five separate transactions. |
| In 2009, we repurchased certain senior and other notes and secured mortgage debt that resulted in the recognition of a gain of $172.3 million and reduced our debt obligations by $242.1 million. |
| On April 14, 2009, we completed a public offering of 174.8 million common shares at a price of $6.60 per share and received net proceeds of $1.1 billion (Equity Offering). |
| During the third quarter, we generated net proceeds of $325.1 million from the issuance of 29.8 million common shares under our at-the-market equity issuance program, after payment of $6.9 million of commissions to the sales agent. |
| We generated $1.3 billion of cash from the sale of our China operations ($845.5 million) and our investments in the Japan property funds ($500.0 million) in the first quarter of 2009. We entered into a sale agreement in December 2008, at which time we recorded an impairment charge of $198.2 million on our China operations and classified the assets and liabilities as held for sale. |
| In connection with the sale of our investments in the Japan property funds, we recognized a net gain of $180.2 million and $20.5 million of current income tax expense. The gain is reflected as CDFS proceeds as it represents the recognition of previously deferred gains on the contributions of properties to the property funds based on our ownership interest in the property fund at the time of original contributions. |
| During 2009, we generated aggregate proceeds of $1.5 billion from the contribution of 43 properties to ProLogis European Properties Fund II, and the sale of land parcels and 140 properties to third parties. |
| We reduced our gross G&A by 26.5% in 2009 from 2008, through various cost savings initiatives, including a RIF program. |
| We executed leasing in our development portfolio in 2009, including completed properties and properties under development, increasing the leased percentage to 64.3% at December 31, 2009 from 41.4% at the beginning of the year. |
| retain more of our development assets in order to improve the geographic diversification of our direct owned properties as most of our planned developments are in international markets; |
32
| monetize our investment in land of $2.6 billion at December 31, 2009; and |
| continue to focus on staggering and extending our debt maturities. |
Years Ended December 31, | Percentage Change | ||||||||||||||||||
2009 | 2008 | 2007 | 2009 vs 2008 | 2008 vs 2007 | |||||||||||||||
Net operating income direct owned segment
|
$ | 606,561 | $ | 634,542 | $ | 734,707 | (4 | )% | (14)% | ||||||||||
Net operating income investment management segment
|
122,694 | 15,680 | 162,003 | 682 | % | (90)% | |||||||||||||
Net operating income CDFS business segment
|
180,237 | 654,746 | 763,695 | (72 | )% | (14)% | |||||||||||||
General and administrative expenses
|
(180,486 | ) | (177,350 | ) | (170,398 | ) | 2 | % | 4% | ||||||||||
Reduction in workforce
|
(11,745 | ) | (23,131 | ) | | (49 | )% | N/A | |||||||||||
Impairment of real estate properties
|
(331,592 | ) | (274,705 | ) | (12,600 | ) | 21 | % | 2,080% | ||||||||||
Depreciation and amortization expense
|
(315,807 | ) | (317,315 | ) | (286,279 | ) | | 11% | |||||||||||
Earnings from certain other unconsolidated investees, net
|
4,712 | 8,796 | 7,794 | (46 | )% | 13% | |||||||||||||
Interest expense
|
(373,305 | ) | (385,065 | ) | (389,844 | ) | (3 | )% | (1)% | ||||||||||
Impairment of goodwill and other assets
|
(163,644 | ) | (320,636 | ) | | (49 | )% | N/A | |||||||||||
Other income (expense), net
|
(39,809 | ) | 16,063 | 31,686 | (348 | )% | (49)% | ||||||||||||
Net gains on dispositions of real estate properties
|
35,262 | 11,668 | 146,667 | 202 | % | (92)% | |||||||||||||
Foreign currency exchange gains (losses), net
|
35,626 | (148,281 | ) | 8,132 | 124 | % | (1,923)% | ||||||||||||
Gain on early extinguishment of debt
|
172,258 | 90,719 | | 90 | % | N/A | |||||||||||||
Income tax expense
|
(5,975 | ) | (68,011 | ) | (66,855 | ) | (91 | )% | 2% | ||||||||||
Earnings (loss) from continuing operations
|
$ | (265,013 | ) | $ | (282,280 | ) | $ | 928,708 | (6 | )% | (130)% | ||||||||
33
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Rental and other income
|
$ | 900,082 | $ | 939,507 | $ | 996,340 | ||||||
Rental and other expenses
|
293,521 | 304,965 | 261,633 | |||||||||
Total net operating income - direct owned segment
|
$ | 606,561 | $ | 634,542 | $ | 734,707 | ||||||
2009 | 2008 | |||||||||||||||||||||||
Number of |
Number of |
|||||||||||||||||||||||
Properties | Square Feet | Leased % | Properties | Square Feet | Leased % | |||||||||||||||||||
Core industrial properties
|
1,025 | 141,019 | 90.1 | % | 1,157 | 154,947 | 92.2 | % | ||||||||||||||||
Retail properties
|
27 | 1,014 | 91.5 | % | 34 | 1,404 | 94.5 | % | ||||||||||||||||
Subtotal non-development properties
|
1,052 | 142,033 | 90.1 | % | 1,191 | 156,351 | 92.2 | % | ||||||||||||||||
Completed development properties (1)
|
163 | 50,604 | 62.2 | % | 140 | 40,763 | 43.5 | % | ||||||||||||||||
Total
|
1,215 | 192,637 | 82.8 | % | 1,331 | 197,114 | 82.1 | % | ||||||||||||||||
(1) | Included at December 31, 2009 are 51 properties with 14.7 million square feet on which development was completed in 2009. Included as of December 31, 2008 are 42 properties with 9.0 million square feet that were contributed to PEPF II during 2009 and therefore, are no longer in our portfolio as of December 31, 2009. The leased percentage fluctuates based on the composition of properties. |
34
2009 | 2008 | 2007 | ||||||||||
Unconsolidated property funds:
|
||||||||||||
North America (1)
|
$ | 29,996 | $ | 40,982 | $ | 50,140 | ||||||
Europe (2)
|
67,651 | (60,488 | ) | 90,617 | ||||||||
Asia (3)
|
6,188 | 30,640 | 24,467 | |||||||||
Other (4)
|
18,859 | 4,546 | (3,221 | ) | ||||||||
Total net operating income - investment management
segment
|
$ | 122,694 | $ | 15,680 | $ | 162,003 | ||||||
35
(1) | Represents the income earned by us from our investments in 12 property funds in North America. Our ownership interests ranged from 20% to 50% at December 31, 2009. These property funds on a combined basis owned 847, 854 and 777 properties that were 91.9%, 94.7% and 96.1% leased at December 31, 2009, 2008 and 2007, respectively. The fluctuation in properties is primarily due to contributions we made to two of the funds (North American Industrial Fund and Mexico Industrial Fund) in 2007 and 2008, offset by the sale of properties to third parties by certain funds in 2009. | |
Included in 2009 are $15.8 million of expenses that represent our share of deferred tax expense recognized by the Mexico Industrial Fund and $6.3 million of losses that represents our share of realized and unrealized losses that were recognized by certain of the property funds related to derivative contracts that no longer met the requirements for hedge accounting. These expenses are offset by $7.2 million that represents our share of the gain from the early extinguishment of debt by the North American Industrial Fund. | ||
Included in 2008 are $28.2 million of losses that relate to the change in value and settlement of derivative contracts. | ||
(2) | Represents the income earned by us from our investments in two property funds in Europe, PEPR and PEPF II. On a combined basis, these funds owned 428, 399 and 288 properties that were 96.3%, 97.6% and 97.7% leased at December 31, 2009, 2008 and 2007, respectively. The increase in properties for all three years is due primarily to contributions we made to PEPF II, offset somewhat by the sale of properties by PEPR to third parties. | |
Our common ownership interest in PEPR and PEPF II was 24.8% and 32.1%, respectively, at December 31, 2009. At December 31, 2008, our ownership interest in PEPR was 24.9% and our ownership interest in PEPF II included our direct ownership interest of 34.3% and our indirect 2.6% interest through our ownership in PEPR. | ||
Included in 2008 are $108.2 million of losses representing our share of losses recognized by PEPR on the sale of its 20% investment in PEPF II to us and an impairment charge related to the sale of its remaining 10% interest. In February 2009, PEPR sold its 10% interest to a third party, which decreased our ownership interest in PEPF II to 34.3%. | ||
(3) | Represents the income earned by us from our 20% ownership interest in one property fund in South Korea and two property funds in Japan through February 2009, at which time we sold our investments in Japan. These property funds on a combined basis owned 12, 83 and 66 properties that were 97.8%, 99.6% and 99.3% leased at December 31, 2009, 2008 and 2007. | |
(4) | Includes property management fees from joint ventures and other entities offset by investment management expenses. 2009 includes fees earned from the Japan property funds after February 2009 through July 2009 and, in connection with the termination of the property management agreement for these properties, we earned a termination fee of $16.3 million. |
36
37
2009 | 2008 | 2007 | ||||||||||
Gross G&A
|
$ | 294,598 | $ | 400,648 | $ | 359,792 | ||||||
Reclassed to discontinued operations, net of capitalized amounts
|
(1,305 | ) | (21,721 | ) | (11,354 | ) | ||||||
Reported as rental expenses
|
(19,446 | ) | (25,306 | ) | (27,460 | ) | ||||||
Reported as investment management expenses
|
(43,416 | ) | (50,761 | ) | (33,948 | ) | ||||||
Capitalized amounts
|
(49,945 | ) | (125,510 | ) | (116,632 | ) | ||||||
Reported as net G&A
|
$ | 180,486 | $ | 177,350 | $ | 170,398 | ||||||
38
2009 | 2008 | 2007 | ||||||||||
Interest expense
|
$ | 382,899 | $ | 477,933 | $ | 487,410 | ||||||
Amortization of discount, net
|
67,542 | 63,676 | 15,952 | |||||||||
Amortization of deferred loan costs
|
17,069 | 12,238 | 10,362 | |||||||||
Interest expense before capitalization
|
467,510 | 553,847 | 513,724 | |||||||||
Capitalized amounts
|
(94,205 | ) | (168,782 | ) | (123,880 | ) | ||||||
Net interest expense
|
$ | 373,305 | $ | 385,065 | $ | 389,844 | ||||||
39
40
41
December 31, | ||||||||||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||||||||||
Number of |
Square |
Number of |
Square |
Number of |
Square |
|||||||||||||||||||
Reportable Business Segment
|
Properties | Feet | Properties | Feet | Properties | Feet | ||||||||||||||||||
Direct Owned
|
1,215 | 192,637 | 1,331 | 197,114 | 1,409 | 208,530 | ||||||||||||||||||
Investment Management
|
1,289 | 274,617 | 1,339 | 297,665 | 1,170 | 250,951 | ||||||||||||||||||
Totals
|
2,504 | 467,254 | 2,670 | 494,779 | 2,579 | 459,481 | ||||||||||||||||||
42
Three Months Ended | ||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Full Year | ||||||||||||||||
2009
|
||||||||||||||||||||
Rental income
|
$ | 216,662 | $ | 225,455 | $ | 221,616 | $ | 227,362 | $ | 891,095 | ||||||||||
Rental expenses
|
66,974 | 69,154 | 68,233 | 65,595 | 269,956 | |||||||||||||||
Net operating income
|
$ | 149,688 | $ | 156,301 | $ | 153,383 | $ | 161,767 | $ | 621,139 | ||||||||||
2008
|
||||||||||||||||||||
Rental income
|
$ | 241,663 | $ | 234,689 | $ | 222,102 | $ | 215,196 | $ | 913,650 | ||||||||||
Rental expenses
|
77,639 | 72,014 | 67,343 | 60,324 | 277,320 | |||||||||||||||
Net operating income
|
$ | 164,024 | $ | 162,675 | $ | 154,759 | $ | 154,872 | $ | 636,330 | ||||||||||
For the Three Months Ended |
||||||||||||
December 31, |
Percentage |
|||||||||||
2009 | 2008 | Change | ||||||||||
Rental Income (1)(2)
|
||||||||||||
Consolidated:
|
||||||||||||
Rental income per our Consolidated Statements of Operations
(see above)
|
$ | 227,362 | $ | 215,196 | ||||||||
Adjustments to derive same store results:
|
||||||||||||
Rental income of properties not in the same store
portfolio properties developed and acquired during
the period and land subject to ground leases
|
(31,703 | ) | (15,144 | ) | ||||||||
Effect of changes in foreign currency exchange rates and other
|
(1,803 | ) | 2,869 | |||||||||
Unconsolidated investees :
|
||||||||||||
Rental income of properties managed by us and owned by our
unconsolidated investees
|
395,410 | 386,907 | ||||||||||
Same store portfolio rental income (2)(3)
|
589,266 | 589,828 | (0.10 | )% | ||||||||
Less completed development properties (4)
|
(49,644 | ) | (35,425 | ) | ||||||||
Adjusted same store portfolio rental income (2)(3)(4)
|
$ | 539,622 | $ | 554,403 | (2.67 | )% | ||||||
Rental Expenses (1)(5)
|
||||||||||||
Consolidated:
|
||||||||||||
Rental expenses per our Consolidated Statements of Operations
(see above)
|
$ | 65,595 | $ | 60,324 | ||||||||
Adjustments to derive same store results:
|
||||||||||||
Rental expenses of properties not in the same store
portfolio properties developed and acquired during
the period and land subject to ground leases
|
(15,220 | ) | (7,959 | ) | ||||||||
Effect of changes in foreign currency exchange rates and other
|
5,596 | 4,773 | ||||||||||
Unconsolidated investees :
|
||||||||||||
Rental expenses of properties managed by us and owned by our
unconsolidated investees
|
94,727 | 84,659 | ||||||||||
Same store portfolio rental expenses (3)(5)
|
150,698 | 141,797 | 6.28 | % | ||||||||
Less completed development properties (4)
|
(19,325 | ) | (13,320 | ) | ||||||||
Adjusted same store portfolio rental expenses
(3)(4)(5)
|
$ | 131,373 | $ | 128,477 | 2.25 | % | ||||||
43
For the Three Months Ended |
||||||||||||
December 31, |
Percentage |
|||||||||||
2009 | 2008 | Change | ||||||||||
Net Operating Income (1)
|
||||||||||||
Consolidated:
|
||||||||||||
Net operating income per our Consolidated Statements of
Operations (see above)
|
$ | 161,767 | $ | 154,872 | ||||||||
Adjustments to derive same store results:
|
||||||||||||
Net operating income of properties not in the same store
portfolio properties developed and acquired during
the period and land subject to ground leases
|
(16,483 | ) | (7,185 | ) | ||||||||
Effect of changes in foreign currency exchange rates and other
|
(7,399 | ) | (1,904 | ) | ||||||||
Unconsolidated investees :
|
||||||||||||
Net operating income of properties managed by us and owned by
our unconsolidated investees
|
300,683 | 302,248 | ||||||||||
Same store portfolio net operating income (3)
|
438,568 | 448,031 | (2.11 | )% | ||||||||
Less completed development properties (4)
|
(30,319 | ) | (22,105 | ) | ||||||||
Adjusted same store portfolio rental expenses (3)(4)
|
$ | 408,249 | $ | 425,926 | (4.15 | )% | ||||||
(1) | As discussed above, our same store portfolio aggregates industrial and retail properties from our consolidated portfolio and industrial properties owned by the unconsolidated investees (accounted for on the equity method) that are managed by us. During the periods presented, certain properties owned by us were contributed to a property fund and are included in the same store portfolio on an aggregate basis. Neither our consolidated results nor that of the unconsolidated investees, when viewed individually, would be comparable on a same store basis due to the changes in composition of the respective portfolios from period to period (for example, the results of a contributed property would be included in our consolidated results through the contribution date and in the results of the unconsolidated investee subsequent to the contribution date). | |
(2) | Rental income in the same store portfolio includes straight-line rents and rental recoveries, as well as base rent. We exclude the net termination and renegotiation fees from our same store rental income to allow us to evaluate the growth or decline in each propertys rental income without regard to items that are not indicative of the propertys recurring operating performance. Net termination and renegotiation fees represent the gross fee negotiated to allow a customer to terminate or renegotiate their lease, offset by the write-off of the asset recognized due to the adjustment to straight-line rents over the lease term. The adjustments to remove these items are included as effect of changes in foreign currency exchange rates and other in the tables above. | |
(3) | These amounts include rental income, rental expenses and net operating income of both our consolidated industrial and retail properties and those industrial properties owned by our unconsolidated investees (accounted for on the equity method) and managed by us. | |
(4) | The same store portfolio results include the benefit of leasing in certain of our completed development properties that meet our definition. We have also presented the results for the adjusted same store portfolio, for core properties only, by excluding the 156 completed development properties in operation that we owned as of October 1, 2008 and that are still included in the same store portfolio (either owned by us or our unconsolidated investees that we manage). | |
(5) | Rental expenses in the same store portfolio include the direct operating expenses of the property such as property taxes, insurance, utilities, etc. In addition, we include an allocation of the property management expenses for our direct-owned properties based on the property management fee that is provided for in the individual management agreements under which our wholly owned management companies provides property management services to each property (generally, the fee is based on a percentage of revenues). On consolidation, the management fee income earned by the management company and the management fee expense recognized by the properties are eliminated and the actual costs of providing property management services are recognized as part of our consolidated rental expenses. These expenses fluctuate based |
44
on the level of properties included in the same store portfolio and any adjustment is included as effect of changes in foreign currency exchange rates and other in the above table. |
generated cash through contributions of
properties to the unconsolidated property funds or sales of
assets to third parties;
|
During 2009, we received $1.3 billion in proceeds from
the sale of our China operations and investments in the Japan
property funds. In addition, we generated $1.5 billion in
proceeds during 2009 from the contributions of properties to the
property funds and sales of land and properties to third parties.
|
|
repurchased our senior notes and
convertible notes at a discount and extinguished certain secured
mortgage debt prior to maturity;
|
We purchased $1.2 billion notional amount of portions of
several series of senior and other notes and extinguished $227.0
million of secured mortgage debt during 2009. This resulted in
the reduction of $242.1 million in debt and a gain of $172.3
million in 2009.
|
|
recasted our Global Line and simplified
our debt structure;
|
In August 2009, we amended and extended our Global Line,
and in October 2009 we amended the financial covenants of our
senior notes --both discussed below.
|
|
issued equity;
|
In April 2009, we completed the Equity Offering that
resulted in net proceeds to us of $1.1 billion. During 2009, we
generated net proceeds of $325.1 million through the issuance of
29.8 million common shares under our at-the-market equity
issuance program.
|
|
reduced cash needs;
|
We halted early-stage infrastructure on development
projects and implemented G&A cost savings initiatives and a
RIF program with a target to reduce gross G&A in 2009 by
20% to 25%. Our gross G&A in 2009 was 26.5% lower than 2008.
|
|
and lowered our common share
distribution.
|
We reduced our annual distributions on our common shares
in 2009 from $542.8 million to $271.8 million.
|
45
| We issued $350.0 million of 7.625% senior notes due August 2014, at 99.489% of par, for an all-in-rate of 7.75%. |
| We issued $600.0 million of 7.375% senior notes due October 2019, at 99.728% of par value for an all-in-rate of 7.414%. |
| We closed on $499.9 million in secured mortgage debt, which includes $101.8 million at 6.5% due July 2014, $245.5 million at 7.55% due July 2019, ¥4.3 billion of 4.09% TMK bonds ($44.4 million) that matures in June 2012, and ¥10.0 billion of 2.74% TMK bonds ($108.2 million) that matures in December 2012. Both TMK bonds have variable interest rates, but were fixed using derivative swap contracts. TMK bonds are a financing vehicle in Japan for special purpose companies known as TMKs. |
Borrowing base
|
$ | 3,907.7 | ||
Borrowing capacity (1)
|
$ | 2,149.2 | ||
Less:
|
||||
Borrowings outstanding
|
736.6 | |||
Outstanding letters of credit
|
99.3 | |||
Debt due within one year
|
232.9 | |||
Current availability
|
$ | 1,080.4 | ||
(1) | Borrowing capacity represents 55% of the borrowing base related to the Global Line. |
46
| completion of the development and leasing of the properties in our development portfolio (a); |
| selective development of new operating properties, that are generally pre-leased, for long-term investment utilizing our existing land; |
| repayment of debt, including payments on our credit facilities or opportunistic repurchases of convertible, senior or other notes; |
| scheduled principal payments in 2010 of $232.9 million; |
| capital expenditures and leasing costs on properties; |
| investments in current or future unconsolidated property funds, including the purchase of additional common units in PEPR (at this time, we do not intend to increase our equity ownership of PEPR beyond 33.33 percent) and our expected remaining capital commitments of $280.0 million (b); and |
| depending on market conditions, direct acquisition of operating properties and/or portfolios of operating properties in key distribution markets for direct, long-term investment. |
| available cash balances ($34.4 million at December 31, 2009); |
| property operations; |
| fees and incentives earned for services performed on behalf of the property funds and distributions received from the property funds; |
| proceeds from the disposition of properties or land parcels to third parties; |
47
| cash proceeds from the contributions of properties to property funds; |
| borrowing capacity under existing credit facilities ($1.1 billion available as of December 31, 2009), other future facilities or borrowing arrangements; |
| proceeds from the issuance of equity securities, including sales under our at-the-market equity issuance program, under which we have 10.2 million common shares remaining; and |
| proceeds from the issuance of debt securities, including secured mortgage debt. |
48
NAIF (1) | Mexico (2) | PEPF II (3) | ||||||||||||||||||||||||||
Fund |
Fund |
ProLogis |
ProLogis |
Fund |
||||||||||||||||||||||||
ProLogis | Partners | ProLogis | Partners | Series A | Series B | Partners | ||||||||||||||||||||||
Remaining equity commitments at December 31, 2008 (4)
|
$ | 72.5 | $ | 211.7 | $ | 44.3 | $ | 246.7 | | 295.9 | | 272.2 | | 857.4 | ||||||||||||||
Capital called for the repayment of debt
|
(54.1 | ) | (174.2 | ) | | | | | | |||||||||||||||||||
Capital called for the acquisition of properties from us
|
| | | | | (108.5 | ) | (341.6 | ) | |||||||||||||||||||
Remaining equity commitments at December 31, 2009 (local
currency)
|
$ | 18.4 | $ | 37.5 | $ | 44.3 | $ | 246.7 | | 295.9 | | 163.7 | | 515.8 | ||||||||||||||
Remaining equity commitments at December 31, 2009
(in U.S. dollars) |
$ | 18.4 | $ | 37.5 | $ | 44.3 | $ | 246.7 | $ | 424.5 | $ | 234.9 | $ | 739.8 | ||||||||||||||
Expiration date for remaining commitments
|
Feb 2010 | Aug 2010 | Aug 2010 |
(1) | During 2009, the ProLogis North American Industrial Fund called capital to repay borrowings outstanding under its credit facility and to repay certain secured mortgage debt, which resulted in a gain on early extinguishment of $31.1 million. In February 2010, the property fund called $23.2 million of capital, including $0.8 million in cash from ProLogis, to acquire one property from us. The remaining equity commitments expire at the end of February 2010. | |
(2) | ProLogis Mexico Industrial Fund may use the remaining equity commitments to pay down existing debt or other liabilities, including amounts due to us, or to make acquisitions of properties from us or third parties depending on market conditions and other factors. | |
(3) | PEPF IIs equity commitments are denominated in euro. The ProLogis commitments include a commitment on the Series B units we acquired from PEPR in December 2008 that we are required to fund with cash. During 2009, we contributed 43 properties to PEPF II for gross proceeds of $643.7 million that were financed by PEPF II with all equity, including our co-investment of $152.7 million in cash under this commitment. We did not make any contributions in 2009 under the Series A commitment. We are not required to fund the remaining Series A commitment in cash and we anticipate it will expire unused. | |
(4) | Excludes commitments related to the ProLogis Korea Fund as the agreements were amended and there are no longer any remaining commitments. |
49
| In 2009, we received $1.3 billion in proceeds from the sale of our China operations and our property fund interests in Japan. The proceeds were used to pay down borrowings on our credit facilities. |
| We generated net cash from contributions and dispositions of properties and land parcels of $1.5 billion, $4.5 billion and $3.6 billion in 2009, 2008 and 2007, respectively. |
| We invested $1.3 billion in real estate during the year ended December 31, 2009, $5.6 billion for the same period in 2008, and $5.3 billion for the same period in 2007, excluding Macquarie ProLogis Trust (MPR), which owned 88.7% of a property fund, and Parkridge Holdings Limited (Parkridge) acquisitions (see below). The real estate investment amounts include costs for current and future development projects; the acquisition of operating properties (25 properties and 41 properties with an aggregate purchase price of $324.0 million and $351.6 million in 2008 and 2007, respectively); acquisitions of land or land use rights for future development; and recurring capital expenditures and tenant improvements on existing operating properties. At December 31, 2009, we had 5 properties aggregating 2.9 million square feet under development, with a total expected investment of $295.7 million. |
| We invested cash of $401.4 million, $329.6 million and $661.8 million in 2009, 2008 and 2007, respectively, in unconsolidated investees in connection with property contributions we made, repayment of debt by the investees and two new preferred investments in existing property funds. In 2009, our investments principally include $152.7 million in PEPF II, $59.4 million in PEPR, $85.0 million in North American Industrial Fund II and $54.1 million in the North American Industrial Fund. In 2008, our investments principally include $167.3 million in PEPF II and $68.5 million in joint ventures operating in China. In 2007, our investments principally include $100.0 million in ProLogis North American Industrial Fund II (discussed below), $360.0 million in ProLogis North American Industrial Fund III, and excludes the initial investment in the Parkridge retail business, which is detailed separately. |
| We received distributions from unconsolidated investees as a return of investment of $78.1 million, $127.0 million and $50.2 million in 2009, 2008 and 2007, respectively. |
| We generated net cash proceeds from payments on notes receivable of $10.7 million, $4.2 million, and $97.4 million in 2009, 2008 and 2007, respectively. |
| In February 2007, we purchased the industrial business and made a 25% investment in the retail business of Parkridge. The total purchase price was $1.3 billion of which we paid cash of $733.9 million and the balance in common shares or assumption of liabilities. |
| On July 11, 2007, we completed the acquisition of MPR for total consideration of approximately $2.0 billion, consisting of $1.2 billion of cash and the assumption of debt and other liabilities of $0.8 billion. The cash portion was financed by the issuance of a $473.1 million term loan and a $646.2 million convertible loan with an affiliate of Citigroup. On August 27, 2007, when Citigroup converted $546.2 million of the convertible loan into equity of a newly created property fund, ProLogis |
50
North American Industrial Fund II, we made a $100.0 million cash equity contribution to the property fund, which it used to repay the remaining balance on the convertible loan. |
| In April 2009, we closed on the Equity Offering and received net proceeds of $1.1 billion. In addition to the Equity Offering, we generated proceeds from the sale and issuance of common shares of $337.4 million, $222.2 million and $46.9 million in 2009, 2008 and 2007, respectively. The proceeds in 2009 include $331.9 million from our at-the-market equity issuance program. |
| In 2009, we purchased and extinguished $1.5 billion original principal amount of our senior, convertible senior and other notes, along with certain secured mortgage debt, for a total of $1.2 billion. In 2008, we purchased and extinguished $309.7 million original principal amount of our senior notes for a total of $216.8 million. |
| In 2009, we issued $950.0 million of senior notes and closed on $499.9 million of secured mortgage debt, which includes ¥14.3 billion in TMK bonds. In 2008, we issued $550.0 million convertible senior notes and $600.0 million of senior notes. In 2007, we issued $2.4 billion convertible senior notes and $781.8 million of senior notes. |
| During 2007, we received proceeds of $1.1 billion and $600.1 million under facilities used to partially finance the MPR and Parkridge acquisitions, respectively (see Note 5 and Note 6 to our Consolidated Financial Statements in Item 8). |
| We had net payments on our credit facilities of $2.4 billion and $431.5 million in 2009 and 2007, respectively and net borrowings of $743.9 million in 2008. |
| We had net payments on our other debt of $351.8 million, $985.2 million and $1.2 billion for the years ended December 31, 2009, 2008 and 2007, respectively. |
| We paid distributions to holders of common shares of $271.8 million, $542.8 million and $472.6 million in 2009, 2008 and 2007, respectively. We paid dividends on preferred shares of $25.4 million, $25.4 million and $31.8 million in 2009, 2008 and 2007, respectively. |
51
2010 | 2011 | 2012 | 2013 | 2014 | Thereafter | Discount | Total (1) | |||||||||||||||||||||||||
ProLogis California LLC
|
$ | | $ | | $ | | $ | | $ | 137.5 | $ | 172.5 | $ | | $ | 310.0 | ||||||||||||||||
ProLogis North American Properties Fund I (2)
|
122.7 | 111.8 | | | | | | 234.5 | ||||||||||||||||||||||||
ProLogis North American Properties
Fund VI-X
|
1.9 | 2.2 | 871.0 | 12.4 | | | | 887.5 | ||||||||||||||||||||||||
ProLogis North American Properties Fund XI
|
42.9 | 0.6 | 0.7 | 0.4 | | | (0.1 | ) | 44.5 | |||||||||||||||||||||||
ProLogis North American Industrial Fund (3)
|
| | 52.0 | 80.0 | | 1,112.2 | | 1,244.2 | ||||||||||||||||||||||||
ProLogis North American Industrial Fund II (4)
|
157.5 | | 154.0 | 64.0 | 566.3 | 391.2 | (9.5 | ) | 1,323.5 | |||||||||||||||||||||||
ProLogis North American Industrial Fund III (5)
|
2.4 | 120.7 | 94.3 | 385.6 | 146.5 | 280.0 | (2.6 | ) | 1,026.9 | |||||||||||||||||||||||
ProLogis Mexico Industrial Fund (6)
|
| | 99.1 | 170.0 | | | | 269.1 | ||||||||||||||||||||||||
ProLogis European Properties (7)
|
664.9 | | 384.1 | 453.8 | 847.9 | | | 2,350.7 | ||||||||||||||||||||||||
ProLogis European Properties Fund II (8)
|
627.1 | | 160.0 | 517.6 | 243.7 | 49.8 | | 1,598.2 | ||||||||||||||||||||||||
ProLogis Korea Fund
|
| 16.0 | 32.1 | | | | | 48.1 | ||||||||||||||||||||||||
Total property funds
|
$ | 1,619.4 | $ | 251.3 | $ | 1,847.3 | $ | 1,683.8 | $ | 1,941.9 | $ | 2,005.7 | $ | (12.2 | ) | $ | 9,337.2 | |||||||||||||||
(1) | As of December 31, 2009, we had not guaranteed any of the third party debt. See note (4) below. In our role as the manager of the property funds, we work with the property funds to refinance their maturing debt. We are in various stages of discussions with banks on extending or refinancing the 2010 maturities. As noted below, a majority of the 2010 maturities have been substantially addressed. There can be no assurance that the property funds will be able to refinance any maturing indebtedness at terms as favorable as the maturing debt, or at all. If the property funds are unable to refinance the maturing indebtedness with newly issued debt, they may be able to otherwise obtain funds by capital contributions from us and our fund partners, or by selling assets. Certain of the property funds also have credit facilities, which may be used to obtain funds. Generally, the property funds issue long-term debt and utilize the proceeds to repay borrowings under the credit facilities. Information on remaining equity commitments of the property funds is presented above. | |
(2) | The debt included in 2010 maturities is due December 2010. The property fund is in discussions about a re-financing or extending the term of this debt. | |
(3) | ProLogis North American Industrial Fund has a $50.0 million credit facility that matures July 17, 2010, and was completely available at December 31, 2009. | |
(4) | We have pledged properties we own directly, valued at approximately $275.0 million, to serve as additional collateral on a loan payable to an affiliate of our fund partner that is due in 2014 and outstanding derivative contracts. Of the $157.5 million due in 2010, $85.0 million matures in June and the remaining amount matures in September. The property fund has a loan commitment for $71.0 million of new secured mortgage debt with a seven year maturity and a commitment to refinance $81 million with the current lender for five years. The remaining balance will be paid with cash. | |
(5) | During the first quarter of 2009, we and our fund partner each loaned the property fund $25.4 million that is payable with operating cash flow, matures at dissolution of the partnership and bears interest at LIBOR plus 8%. The outstanding balance at December 31, 2009 was $22.6 million and is not included in the maturities above as it is not third party debt. | |
(6) | In addition to its existing third party debt, this property fund has a note payable to us for $14.3 million at December 31, 2009. | |
(7) | PEPR has three credit facilities with aggregate borrowing capacity of 867 million (approximately $1.2 billion). As of December 31, 2009, two facilities had outstanding borrowings of $535.0 million due December 2010 and another facility had outstanding borrowings of $384.1 million due December 2012. The aggregate remaining capacity at December 31, 2009 was $325.6 million. In January 2010, PEPR issued 392.7 million ($553.3 million) of secured mortgage debt due 2014, the proceeds of which were used to repay outstanding debt that was scheduled to mature in 2010, including a portion of the credit facility. |
52
(8) | As of December 31, 2009, PEPF II had a 600 million credit facility (approximately $860.6 million) due May 2010, under which $627.1 million was outstanding and $233.5 million was available to borrow under this facility. In January 2010, PEPF II issued 181 million ($255.0 million) of secured mortgage debt due 2014; the proceeds of which were used to pay down the outstanding balance on the credit facility that is scheduled to mature in 2010. In February 2010, PEPF II decreased the commitments under the facility to 300 million. |
Payments Due By Period | ||||||||||||||||||||
Less than |
1 to 3 |
3 to 5 |
More than |
|||||||||||||||||
Total | 1 year | years | years | 5 years | ||||||||||||||||
Debt obligations, other than credit facilities
|
$ | 7,420 | $ | 233 | $ | 1,758 | $ | 2,011 | $ | 3,418 | ||||||||||
Interest on debt obligations, other than credit facilities
|
2,262 | 373 | 674 | 513 | 702 | |||||||||||||||
Unfunded commitments on development projects (1)
|
104 | 104 | | | | |||||||||||||||
Unfunded capital commitments to unconsolidated investees (2)
|
280 | 280 | | | | |||||||||||||||
Amounts due on credit facilities
|
737 | | 737 | | | |||||||||||||||
Interest on lines of credit
|
45 | 17 | 28 | | | |||||||||||||||
Tax liabilities (3)
|
65 | 16 | 48 | 1 | | |||||||||||||||
Totals
|
$ | 10,913 | $ | 1,023 | $ | 3,245 | $ | 2,525 | $ | 4,120 | ||||||||||
(1) | We had properties under development at December 31, 2009 with a total expected investment of $295.7 million. The unfunded commitments presented include not only those costs that we are obligated to fund under construction contracts, but all costs necessary to place the property into service, including the costs of tenant improvements, marketing and leasing costs. | |
(2) | Generally, we fulfill our equity commitment with a portion of the proceeds from properties we contribute to the property fund. However, to the extent a property fund acquires properties from a third party or requires cash to pay-off debt or has other cash needs, we may be required to contribute our proportionate share of the equity component in cash to the property fund. See discussion above in - Off-Balance Sheet Arrangements. | |
(3) | These amounts represent an estimate of our income tax liabilities, including an estimate of the period of settlement. See Note 15 to our Consolidated Financial Statements in Item 8. |
53
54
55
56
(i) | historical cost accounting for real estate assets in accordance with GAAP assumes, through depreciation charges, that the value of real estate assets diminishes predictably over time. NAREIT stated in its White Paper on FFO since real estate asset values have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Consequently, NAREITs definition of FFO reflects the fact that real estate, as an asset class, generally appreciates over time and depreciation charges required by GAAP do not reflect the underlying economic realities. |
(ii) | REITs were created as a legal form of organization in order to encourage public ownership of real estate as an asset class through investment in firms that were in the business of long-term ownership and management of real estate. The exclusion, in NAREITs definition of FFO, of gains and losses from the sales of previously depreciated operating real estate assets allows investors and analysts to readily identify the operating results of the long-term assets that form the core of a REITs activity and assists in comparing those operating results between periods. We include the gains and losses from dispositions of land, development properties and properties acquired in our CDFS business segment, as well as our proportionate share of the gains and losses from dispositions recognized by the property funds, in our definition of FFO. |
(i) | deferred income tax benefits and deferred income tax expenses recognized by our subsidiaries; |
57
(ii) | current income tax expense related to acquired tax liabilities that were recorded as deferred tax liabilities in an acquisition, to the extent the expense is offset with a deferred income tax benefit in GAAP earnings that is excluded from our defined FFO measure; |
(iii) | certain foreign currency exchange gains and losses resulting from certain debt transactions between us and our foreign consolidated subsidiaries and our foreign unconsolidated investees; |
(iv) | foreign currency exchange gains and losses from the remeasurement (based on current foreign currency exchange rates) of certain third party debt of our foreign consolidated subsidiaries and our foreign unconsolidated investees; and |
(v) | mark-to-market adjustments associated with derivative financial instruments utilized to manage foreign currency and interest rate risks. |
(i) | impairment charges related to the sale of our China operations; |
(ii) | impairment charges of goodwill; and |
(iii) | our share of the losses recognized by PEPR on the sale of its investment in PEPF II. |
58
(i) | impairment charges of completed development properties that we contributed or expect to contribute to a property fund; |
(ii) | impairment charges of land or other real estate properties that we sold or expect to sell; |
(iii) | impairment charges of other non-real estate assets, including equity investments; |
(iv) | our share of impairment charges of real estate that is sold or expected to be sold by an unconsolidated investee; and |
(v) | gains from the early extinguishment of debt. |
59
| The current income tax expenses that are excluded from our defined FFO measures represent the taxes that are payable. |
| Depreciation and amortization of real estate assets are economic costs that are excluded from FFO. FFO is limited, as it does not reflect the cash requirements that may be necessary for future replacements of the real estate assets. Further, the amortization of capital expenditures and leasing costs necessary to maintain the operating performance of industrial properties are not reflected in FFO. |
| Gains or losses from property dispositions represent changes in the value of the disposed properties. By excluding these gains and losses, FFO does not capture realized changes in the value of disposed properties arising from changes in market conditions. |
| The deferred income tax benefits and expenses that are excluded from our defined FFO measures result from the creation of a deferred income tax asset or liability that may have to be settled at some future point. Our defined FFO measures do not currently reflect any income or expense that may result from such settlement. |
| The foreign currency exchange gains and losses that are excluded from our defined FFO measures are generally recognized based on movements in foreign currency exchange rates through a specific point in time. The ultimate settlement of our foreign currency-denominated net assets is indefinite as to timing and amount. Our FFO measures are limited in that they do not reflect the current period changes in these net assets that result from periodic foreign currency exchange rate movements. |
| The non-cash impairment charges that we exclude from our FFO, excluding significant non-cash items, have been or may be realized as a loss in the future upon the ultimate disposition of the related real estate properties or other assets through the form of lower cash proceeds. |
60
| The gains on extinguishment of debt that we exclude from our FFO, excluding significant non-cash items, provides a benefit to us as we are settling our debt at less than our future obligation. |
61
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
FFO:
|
||||||||||||
Reconciliation of net earnings to FFO:
|
||||||||||||
Net earnings (loss) attributable to common shares
|
$ | (2,650 | ) | $ | (479,226 | ) | $ | 1,027,635 | ||||
Add (deduct) NAREIT defined adjustments:
|
||||||||||||
Real estate related depreciation and amortization
|
299,910 | 300,983 | 275,397 | |||||||||
Adjustments to gains on dispositions for depreciation
|
(5,387 | ) | (2,866 | ) | (6,196 | ) | ||||||
Gains on dispositions of non-development/non-CDFS properties
|
(4,937 | ) | (11,620 | ) | (146,667 | ) | ||||||
Reconciling items attributable to discontinued operations:
|
||||||||||||
Gains on dispositions of non-development/non-CDFS properties
|
(220,815 | ) | (9,718 | ) | (52,776 | ) | ||||||
Real estate related depreciation and amortization
|
11,319 | 33,661 | 25,588 | |||||||||
Total discontinued operations
|
(209,496 | ) | 23,943 | (27,188 | ) | |||||||
Our share of reconciling items from unconsolidated investees:
|
||||||||||||
Real estate related depreciation and amortization
|
154,315 | 155,067 | 99,026 | |||||||||
Adjustment to on dispositions for depreciation
|
(9,569 | ) | (492 | ) | (35,672 | ) | ||||||
Other amortization items
|
(11,775 | ) | (15,840 | ) | (8,731 | ) | ||||||
Total unconsolidated investees
|
132,971 | 138,735 | 54,623 | |||||||||
Total NAREIT defined adjustments
|
213,061 | 449,175 | 149,969 | |||||||||
Subtotal NAREIT defined FFO
|
210,411 | (30,051 | ) | 1,177,604 | ||||||||
Add (deduct) our defined adjustments:
|
||||||||||||
Foreign currency exchange losses (gains), net
|
(58,128 | ) | 144,364 | 16,384 | ||||||||
Current income tax expense
|
3,658 | 9,656 | 3,038 | |||||||||
Deferred income tax expense (benefit)
|
(23,299 | ) | 4,073 | 550 | ||||||||
Our share of reconciling items from unconsolidated investees:
|
||||||||||||
Foreign currency exchange losses (gains), net
|
(1,737 | ) | 2,331 | 1,823 | ||||||||
Unrealized losses (gains) on derivative contracts, net
|
(7,561 | ) | 23,005 | | ||||||||
Deferred income tax expense (benefit)
|
15,541 | (19,538 | ) | 6,327 | ||||||||
Total unconsolidated investees
|
6,243 | 5,798 | 8,150 | |||||||||
Total our defined adjustments
|
(71,526 | ) | 163,891 | 28,122 | ||||||||
FFO, including significant non-cash items, attributable to
common shares, as defined by us
|
138,885 | 133,840 | 1,205,726 | |||||||||
Impairment of goodwill and other assets
|
163,644 | 320,636 | | |||||||||
Impairment related to assets held for sale (gain on
sale) China operations
|
(3,315 | ) | 198,236 | | ||||||||
Impairment of real estate properties
|
331,592 | 274,705 | | |||||||||
Our share of the loss/impairment recorded by PEPR
|
| 108,195 | | |||||||||
Our share of certain losses recognized by the property funds, net
|
9,240 | | | |||||||||
Gain on early extinguishment of debt
|
(172,258 | ) | (90,719 | ) | | |||||||
FFO, excluding significant non-cash items, attributable to
common shares, as defined by us
|
$ | 467,788 | $ | 944,893 | $ | 1,205,726 | ||||||
62
63
64
65
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ProLogis:
|
||||
67 | ||||
69 | ||||
70 | ||||
71 | ||||
72 | ||||
73 | ||||
74 | ||||
132 | ||||
133 |
66
67
68
December 31, | ||||||||
2009 | 2008 | |||||||
ASSETS
|
||||||||
Real estate
|
$ | 15,215,896 | $ | 15,725,272 | ||||
Less accumulated depreciation
|
1,671,100 | 1,583,299 | ||||||
13,544,796 | 14,141,973 | |||||||
Investments in and advances to unconsolidated investees
|
2,151,723 | 2,269,993 | ||||||
Cash and cash equivalents
|
34,362 | 174,636 | ||||||
Accounts and notes receivable
|
136,754 | 244,778 | ||||||
Other assets
|
1,017,780 | 1,126,993 | ||||||
Discontinued operations-assets held for sale
|
| 1,310,754 | ||||||
Total assets
|
$ | 16,885,415 | $ | 19,269,127 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||
Liabilities:
|
||||||||
Debt
|
$ | 7,977,778 | $ | 10,711,368 | ||||
Accounts payable and accrued expenses
|
455,919 | 658,868 | ||||||
Other liabilities
|
444,432 | 751,238 | ||||||
Discontinued operations assets held for sale
|
| 389,884 | ||||||
Total liabilities
|
8,878,129 | 12,511,358 | ||||||
Equity:
|
||||||||
ProLogis shareholders equity:
|
||||||||
Series C preferred shares at stated liquidation preference
of $50 per share; $0.01 par value; 2,000 shares issued
and outstanding at December 31, 2009 and 2008
|
100,000 | 100,000 | ||||||
Series F preferred shares at stated liquidation preference
of $25 per share; $0.01 par value; 5,000 shares issued
and outstanding at December 31, 2009 and 2008
|
125,000 | 125,000 | ||||||
Series G preferred shares at stated liquidation preference
of $25 per share; $0.01 par value; 5,000 shares issued
and outstanding at December 31, 2009 and 2008
|
125,000 | 125,000 | ||||||
Common shares; $0.01 par value; 474,162 shares issued
and outstanding at December 31, 2009 and
267,005 shares issued and outstanding at December 31,
2008
|
4,742 | 2,670 | ||||||
Additional paid-in capital
|
8,524,867 | 7,070,108 | ||||||
Accumulated other comprehensive income (loss)
|
42,298 | (29,374 | ) | |||||
Distributions in excess of net earnings
|
(934,583 | ) | (655,513 | ) | ||||
Total ProLogis shareholders equity
|
7,987,324 | 6,737,891 | ||||||
Noncontrolling interests
|
19,962 | 19,878 | ||||||
Total equity
|
8,007,286 | 6,757,769 | ||||||
Total liabilities and equity
|
$ | 16,885,415 | $ | 19,269,127 | ||||
69
2009 | 2008 | 2007 | ||||||||||
Revenues:
|
||||||||||||
Rental income
|
$ | 891,095 | $ | 913,650 | $ | 970,018 | ||||||
Property management and other fees and incentives
|
142,763 | 131,011 | 104,719 | |||||||||
CDFS disposition proceeds:
|
||||||||||||
Developed and repositioned properties
|
180,237 | 4,206,446 | 2,530,377 | |||||||||
Acquired property portfolios
|
| 289,019 | 2,475,035 | |||||||||
Development management and other income
|
8,987 | 25,857 | 26,322 | |||||||||
Total revenues
|
1,223,082 | 5,565,983 | 6,106,471 | |||||||||
Expenses:
|
||||||||||||
Rental expenses
|
269,956 | 277,320 | 249,713 | |||||||||
Investment management expenses
|
43,416 | 50,761 | 33,948 | |||||||||
Cost of CDFS dispositions:
|
||||||||||||
Developed and repositioned properties
|
| 3,551,700 | 1,835,291 | |||||||||
Acquired property portfolios
|
| 289,019 | 2,406,426 | |||||||||
General and administrative
|
180,486 | 177,350 | 170,398 | |||||||||
Reduction in workforce
|
11,745 | 23,131 | | |||||||||
Impairment of real estate properties
|
331,592 | 274,705 | 12,600 | |||||||||
Depreciation and amortization
|
315,807 | 317,315 | 286,279 | |||||||||
Other expenses
|
24,025 | 28,104 | 12,363 | |||||||||
Total expenses
|
1,177,027 | 4,989,405 | 5,007,018 | |||||||||
Operating income
|
46,055 | 576,578 | 1,099,453 | |||||||||
Other income (expense):
|
||||||||||||
Earnings (loss) from unconsolidated property funds, net
|
24,908 | (69,116 | ) | 94,453 | ||||||||
Earnings from other unconsolidated investees, net
|
3,151 | 13,342 | 4,573 | |||||||||
Interest expense
|
(373,305 | ) | (385,065 | ) | (389,844 | ) | ||||||
Impairment of goodwill and other assets
|
(163,644 | ) | (320,636 | ) | | |||||||
Other income (expense), net
|
(39,349 | ) | 16,522 | 32,129 | ||||||||
Net gains on dispositions of real estate properties
|
35,262 | 11,668 | 146,667 | |||||||||
Foreign currency exchange gains (losses), net
|
35,626 | (148,281 | ) | 8,132 | ||||||||
Gain on early extinguishment of debt
|
172,258 | 90,719 | | |||||||||
Total other income (expense)
|
(305,093 | ) | (790,847 | ) | (103,890 | ) | ||||||
Earnings (loss) before income taxes
|
(259,038 | ) | (214,269 | ) | 995,563 | |||||||
Current income tax expense
|
29,262 | 63,441 | 66,339 | |||||||||
Deferred income tax expense (benefit)
|
(23,287 | ) | 4,570 | 516 | ||||||||
Total income taxes
|
5,975 | 68,011 | 66,855 | |||||||||
Earnings (loss) from continuing operations
|
(265,013 | ) | (282,280 | ) | 928,708 | |||||||
Discontinued operations:
|
||||||||||||
Income attributable to disposed properties, net
|
24,163 | 11,049 | 47,667 | |||||||||
Net gain (impairment) related to disposed
assets - China operations
|
3,315 | (198,236 | ) | | ||||||||
Net gains on dispositions:
|
||||||||||||
Non-development properties
|
220,815 | 9,718 | 52,776 | |||||||||
Development properties and land subject to ground leases
|
40,649 | 9,783 | 28,721 | |||||||||
Total discontinued operations
|
288,942 | (167,686 | ) | 129,164 | ||||||||
Consolidated net earnings (loss)
|
23,929 | (449,966 | ) | 1,057,872 | ||||||||
Net earnings attributable to noncontrolling interests
|
(1,156 | ) | (3,837 | ) | (4,814 | ) | ||||||
Net earnings (loss) attributable to controlling interests
|
22,773 | (453,803 | ) | 1,053,058 | ||||||||
Less preferred share dividends
|
25,423 | 25,423 | 25,423 | |||||||||
Net earnings (loss) attributable to common shares
|
$ | (2,650 | ) | $ | (479,226 | ) | $ | 1,027,635 | ||||
70
2009 | 2008 | 2007 | ||||||||||
Weighted average common shares outstanding Basic
|
403,149 | 262,729 | 256,873 | |||||||||
Weighted average common shares outstanding Diluted
|
403,149 | 262,729 | 267,226 | |||||||||
Net earnings (loss) per share attributable to common
shares Basic:
|
||||||||||||
Continuing operations
|
$ | (0.73 | ) | $ | (1.18 | ) | $ | 3.50 | ||||
Discontinued operations
|
0.72 | (0.64 | ) | 0.50 | ||||||||
Net earnings (loss) per share attributable to common
shares Basic
|
$ | (0.01 | ) | $ | (1.82 | ) | $ | 4.00 | ||||
Net earnings (loss) per share attributable to common
shares Diluted:
|
||||||||||||
Continuing operations
|
$ | (0.73 | ) | $ | (1.18 | ) | $ | 3.38 | ||||
Discontinued operations
|
0.72 | (0.64 | ) | 0.48 | ||||||||
Net earnings (loss) per share attributable to common
shares Diluted
|
$ | (0.01 | ) | $ | (1.82 | ) | $ | 3.86 | ||||
Distributions per common share
|
$ | 0.70 | $ | 2.07 | $ | 1.84 | ||||||
2009 | 2008 | 2007 | ||||||||||
Net earnings (loss) attributable to controlling interests
|
$ | 22,773 | $ | (453,803 | ) | $ | 1,053,058 | |||||
Comprehensive income (loss):
|
||||||||||||
Foreign currency translation gains (losses), net
|
59,888 | (279,568 | ) | 90,015 | ||||||||
Unrealized gains (losses) on derivative contracts, net
|
11,784 | (25,128 | ) | (31,615 | ) | |||||||
Comprehensive income (loss) attributable to common shares
|
$ | 94,445 | $ | (758,499 | ) | $ | 1,111,458 | |||||
71
Common Shares |
Accumulated |
Distributions |
||||||||||||||||||||||||||||||
Number |
Additional |
Other |
in Excess of |
Non- |
||||||||||||||||||||||||||||
Preferred |
of |
Paid-in |
Comprehensive |
Net |
controlling |
|||||||||||||||||||||||||||
Stock | Shares | Amount | Capital | Income (Loss) | Earnings | Interests | Total | |||||||||||||||||||||||||
Balance as of January 1, 2007
|
$ | 350,000 | 250,912 | $ | 2,509 | $ | 6,000,119 | $ | 216,922 | $ | (170,971 | ) | $ | 52,268 | $ | 6,450,847 | ||||||||||||||||
Effect of adoption of new accounting standards
|
| | | 310,575 | | (30,554 | ) | | 280,021 | |||||||||||||||||||||||
Consolidated net earnings
|
| | | | | 1,074,340 | 6,003 | 1,080,343 | ||||||||||||||||||||||||
Issuances of common shares in connection with acquisitions
|
| 4,781 | 48 | 339,449 | | | | 339,497 | ||||||||||||||||||||||||
Issuances of common shares under common share plans, net of
issuance costs
|
| 1,891 | 19 | 37,558 | | | | 37,577 | ||||||||||||||||||||||||
Non controlling issuances (conversions), net
|
| 128 | 1 | 4,444 | | | 28,766 | 33,211 | ||||||||||||||||||||||||
Foreign currency translation gains, net
|
| | | | 90,015 | | 1,180 | 91,195 | ||||||||||||||||||||||||
Unrealized gains/amortization on derivative contracts, net
|
| | | | (31,615 | ) | | | (31,615 | ) | ||||||||||||||||||||||
Cost of share-based compensation awards
|
| | | 30,903 | | | | 30,903 | ||||||||||||||||||||||||
Distributions
|
| | | | | (498,073 | ) | (9,556 | ) | (507,629 | ) | |||||||||||||||||||||
Balance as of December 31, 2007
|
$ | 350,000 | 257,712 | $ | 2,577 | $ | 6,723,048 | $ | 275,322 | $ | 374,742 | $ | 78,661 | $ | 7,804,350 | |||||||||||||||||
Effect of adoption of new accounting standard
|
| | | 70,918 | | (47,030 | ) | | 23,888 | |||||||||||||||||||||||
Consolidated net earnings (loss)
|
| | | | | (406,773 | ) | 3,837 | (402,936 | ) | ||||||||||||||||||||||
Issuances of common shares under common share plans, net of
issuance costs
|
| 5,381 | 54 | 218,926 | | | | 218,980 | ||||||||||||||||||||||||
Non controlling issuances (conversions), net
|
| 3,912 | 39 | 17,126 | | | (12,942 | ) | 4,223 | |||||||||||||||||||||||
Foreign currency translation gains, net
|
| | | | (279,568 | ) | | 96 | (279,472 | ) | ||||||||||||||||||||||
Unrealized gains/amortization on derivative contracts, net
|
| | | | (25,128 | ) | | | (25,128 | ) | ||||||||||||||||||||||
Cost of share-based compensation awards
|
| | | 40,090 | | | | 40,090 | ||||||||||||||||||||||||
Distributions
|
| | | | | (576,452 | ) | (9,129 | ) | (585,581 | ) | |||||||||||||||||||||
Reclassification of non-controlling interests to held for sale
|
| | | | | | (40,645 | ) | (40,645 | ) | ||||||||||||||||||||||
Balance as of December 31, 2008
|
$ | 350,000 | 267,005 | $ | 2,670 | $ | 7,070,108 | $ | (29,374 | ) | $ | (655,513 | ) | $ | 19,878 | $ | 6,757,769 | |||||||||||||||
Consolidated net earnings
|
| | | | | 22,773 | 1,156 | 23,929 | ||||||||||||||||||||||||
Issuances of common shares in Equity Offering, net of issuance
costs
|
| 174,800 | 1,748 | 1,105,272 | | | | 1,107,020 | ||||||||||||||||||||||||
Issuances of common shares under common share plans, net of
issuance costs
|
| 31,943 | 320 | 324,909 | | | | 325,229 | ||||||||||||||||||||||||
Non controlling issuances (conversions), net
|
| 414 | 4 | 1,483 | | | (1,386 | ) | 101 | |||||||||||||||||||||||
Foreign currency translation gains, net
|
| | | | 59,888 | | 1,937 | 61,825 | ||||||||||||||||||||||||
Unrealized gains/amortization on derivative contracts, net
|
| | | | 11,784 | | | 11,784 | ||||||||||||||||||||||||
Cost of share-based compensation awards
|
| | | 23,095 | | | | 23,095 | ||||||||||||||||||||||||
Distributions
|
| | | | | (301,843 | ) | (1,623 | ) | (303,466 | ) | |||||||||||||||||||||
Balance as of December 31, 2009
|
$ | 350,000 | 474,162 | $ | 4,742 | $ | 8,524,867 | $ | 42,298 | $ | (934,583 | ) | $ | 19,962 | $ | 8,007,286 | ||||||||||||||||
72
2009 | 2008 | 2007 | ||||||||||
Operating activities:
|
||||||||||||
Net earnings (loss) attributable to controlling interests
|
$ | 22,773 | $ | (453,803 | ) | $ | 1,053,058 | |||||
Adjustments to reconcile net earnings (loss) to net cash
provided by operating activities:
|
||||||||||||
Noncontrolling interests share in earnings (loss), net
|
1,300 | (6,231 | ) | 6,003 | ||||||||
Straight-lined rents
|
(38,997 | ) | (34,063 | ) | (44,403 | ) | ||||||
Cost of share-based compensation awards
|
17,242 | 28,321 | 23,934 | |||||||||
Depreciation and amortization
|
327,126 | 350,976 | 311,867 | |||||||||
Equity in earnings from unconsolidated investees
|
(28,861 | ) | 71,956 | (105,618 | ) | |||||||
Changes in operating receivables and distributions from
unconsolidated investees
|
69,656 | 19,956 | 74,348 | |||||||||
Amortization of deferred loan costs
|
17,069 | 12,239 | 10,362 | |||||||||
Amortization of debt discount, net
|
67,542 | 63,676 | 15,952 | |||||||||
Debt related expenses
|
14,547 | | | |||||||||
Impairment of goodwill and other assets
|
163,644 | 320,636 | | |||||||||
Impairment related to assets held for sale China
operations
|
| 198,236 | | |||||||||
Impairment of real estate properties
|
331,592 | 274,705 | 13,259 | |||||||||
Gains on dispositions of assets included in discontinued
operations
|
(264,779 | ) | (19,501 | ) | (28,721 | ) | ||||||
Gains recognized on disposition of investments in Japan property
funds
|
(180,237 | ) | | | ||||||||
Gains recognized on property dispositions, net
|
(35,262 | ) | (11,668 | ) | (199,443 | ) | ||||||
Gain on early extinguishment of debt
|
(172,258 | ) | (90,719 | ) | | |||||||
Unrealized foreign currency exchange losses (gains), net
|
(58,128 | ) | 144,364 | 16,229 | ||||||||
Deferred income tax expense (benefit)
|
(23,299 | ) | 4,072 | 550 | ||||||||
Decrease (increase) in accounts and notes receivable and other
assets
|
100,253 | 87,551 | (130,821 | ) | ||||||||
(Decrease) increase in accounts payable and accrued expenses and
other liabilities
|
(214,921 | ) | (76,472 | ) | 216,338 | |||||||
Net cash provided by operating activities
|
116,002 | 884,231 | 1,232,894 | |||||||||
Investing activities:
|
||||||||||||
Real estate investments
|
(1,268,743 | ) | (5,523,402 | ) | (5,240,809 | ) | ||||||
Tenant improvements and lease commissions on previously leased
space
|
(49,783 | ) | (58,076 | ) | (67,317 | ) | ||||||
Non-development capital expenditures
|
(26,506 | ) | (36,902 | ) | (37,948 | ) | ||||||
Cash consideration paid in Parkridge acquisition, net of cash
acquired
|
| | (700,812 | ) | ||||||||
Purchase of Macquarie ProLogis Trust (MPR), net of
cash acquired
|
| | (1,137,028 | ) | ||||||||
Investments in and advances to unconsolidated investees
|
(401,386 | ) | (329,553 | ) | (661,796 | ) | ||||||
Proceeds from disposition of investments in Japan property funds
|
500,000 | | | |||||||||
Return of investment from unconsolidated investees
|
78,079 | 126,983 | 50,243 | |||||||||
Proceeds from dispositions of real estate assets
China operations
|
845,468 | | | |||||||||
Proceeds from dispositions of real estate assets
|
1,520,519 | 4,474,228 | 3,618,622 | |||||||||
Advances on notes receivable
|
| | (18,270 | ) | ||||||||
Proceeds from repayment of notes receivable
|
10,722 | 4,200 | 115,620 | |||||||||
Net cash provided by (used in) investing activities
|
1,208,370 | (1,342,522 | ) | (4,079,495 | ) | |||||||
Financing activities:
|
||||||||||||
Proceeds from sales and issuances of common shares
|
1,491,137 | 222,162 | 46,855 | |||||||||
Distributions paid on common shares
|
(271,845 | ) | (542,792 | ) | (472,645 | ) | ||||||
Dividends paid on preferred shares
|
(25,416 | ) | (25,423 | ) | (31,781 | ) | ||||||
Noncontrolling interest (distributions) contributions, net
|
(1,548 | ) | 23,827 | (9,341 | ) | |||||||
Debt and equity issuance costs paid
|
(125,190 | ) | (12,121 | ) | (15,830 | ) | ||||||
Net (payments on) proceeds from credit facilities
|
(2,400,194 | ) | 743,934 | (431,506 | ) | |||||||
Repurchase of senior and other notes and extinguishment of
secured mortgage debt
|
(1,226,658 | ) | (216,805 | ) | | |||||||
Proceeds from issuance of debt to finance MPR and Parkridge
acquisitions
|
| | 1,719,453 | |||||||||
Proceeds from issuance of senior notes and secured mortgage debt
|
1,448,871 | 1,150,544 | 3,110,818 | |||||||||
Payments on senior notes, secured mortgage debt and assessment
bonds
|
(351,793 | ) | (985,223 | ) | (1,174,335 | ) | ||||||
Net cash (used in) provided by financing activities
|
(1,462,636 | ) | 358,103 | 2,741,688 | ||||||||
Effect of foreign currency exchange rate changes on cash
|
(2,010 | ) | (13,950 | ) | 29,032 | |||||||
Net decrease in cash and cash equivalents
|
(140,274 | ) | (114,138 | ) | (75,881 | ) | ||||||
Cash and cash equivalents, beginning of year
|
174,636 | 399,910 | 475,791 | |||||||||
Cash and cash equivalents, assets held for sale
|
| (111,136 | ) | | ||||||||
Cash and cash equivalents, end of year
|
$ | 34,362 | $ | 174,636 | $ | 399,910 | ||||||
73
1. | Description of Business: |
2. | Summary of Significant Accounting Policies: |
(i) | the form of our ownership interest and legal structure; | |
(ii) | our representation on the entitys governing body; | |
(iii) | the size of our investment (including loans); | |
(iv) | estimates of future cash flows; | |
(v) | our ability to participate in policy making decisions, including but not limited to, the acquisition or disposition of investment properties and the incurrence or refinancing of debt; | |
(vi) | the rights of other investors to participate in the decision making process; and | |
(vii) | the ability for other partners or owners to replace us as manager and/or liquidate the venture, if applicable. |
74
75
the
fair value of the buildings as if vacant;
|
The fair value allocated to land is generally based on
relevant market data.
|
|
the
market value of above and below market leases based upon our
best estimate of current market rents;
|
The value of each lease is recorded in either other
assets or other liabilities, as appropriate.
|
|
the
value of costs to obtain tenants, primarily leasing commissions;
|
These costs are recorded in other assets.
|
|
the
value of debt based on quoted market rates for the same or
similar issues, or by discounting future cash flows using rates
currently available for debt with similar terms and maturities;
|
Any discount or premium is included in the principal
amount.
|
|
the
value of any management contracts by discounting future expected
cash flows under these contracts; and
|
||
the
value of all other assumed assets and liabilities based on the
best information available.
|
| Above and below market leases are charged to rental income over the average remaining estimated life of the lease. |
| Leasing commissions are charged to amortization expense over the average remaining estimated life of the lease. | |
| Debt discount or premium is charged to interest expense using the effective interest method over the remaining term of the related debt. | |
| Management contracts are charged against income over the remaining term of the contract. |
76
(i) | for real estate properties that we intend to hold long-term, including land held for development, properties currently under development and operating buildings, recoverability is assessed based on the estimated future net rental income from operating the property; | |
(ii) | for land parcels we intend to sell, recoverability is assessed based on estimated fair value, less costs to sell; | |
(iii) | for real estate properties currently under development and operating buildings we intend to sell, recoverability is assessed based on proceeds from disposition that are estimated based on future net rental income of the property and expected market capitalization rates; and |
77
(iv) | for costs incurred related to the potential acquisition of land or development of a real estate property, recoverability is assessed based on the probability that the acquisition or development is likely to occur as of the measurement date. |
78
As of December 31, 2008 | ||||||||||||
As Reported | Adjustments | As Adjusted | ||||||||||
Consolidated Balance Sheet:
|
||||||||||||
Net investments in real estate assets
|
$ | 15,706,172 | $ | 19,100 | $ | 15,725,272 | ||||||
Other assets
|
$ | 1,129,182 | $ | (2,189 | ) | $ | 1,126,993 | |||||
Debt
|
$ | 11,007,636 | $ | (296,268 | ) | $ | 10,711,368 | |||||
Additional paid-in capital
|
$ | 6,688,615 | $ | 381,493 | $ | 7,070,108 | ||||||
Distributions in excess of net earnings
|
$ | (587,199 | ) | $ | (68,314 | ) | $ | (655,513 | ) |
79
For the Year Ended December 31, 2008 | ||||||||||||
As Reported | Adjustments | As Adjusted | ||||||||||
(before 2009 discontinued |
||||||||||||
operations adjustment) | ||||||||||||
Consolidated Statements of Operations:
|
||||||||||||
Cost of CDFS dispositions
|
$ | 3,836,519 | $ | 4,200 | $ | 3,840,719 | ||||||
Interest expense, net of capitalization
|
$ | 341,305 | $ | 42,830 | $ | 384,135 | ||||||
Net loss attributable to controlling interests
|
$ | (406,773 | ) | $ | (47,030 | ) | $ | (453,803 | ) | |||
Net loss per share attributable to common shares
|
||||||||||||
Basic
|
$ | (1.65 | ) | $ | (0.17 | ) | $ | (1.82 | ) | |||
Net loss per share attributable to common shares
|
||||||||||||
Diluted
|
$ | (1.65 | ) | $ | (0.17 | ) | $ | (1.82 | ) |
For the Year Ended December 31, 2007 | ||||||||||||
As Reported | Adjustments | As Adjusted | ||||||||||
(before 2009 discontinued |
||||||||||||
operations adjustment) | ||||||||||||
Consolidated Statements of Operations:
|
||||||||||||
Cost of CDFS dispositions
|
$ | 4,241,700 | $ | 17 | $ | 4,241,717 | ||||||
Interest expense, net of capitalization
|
$ | 368,512 | $ | 21,265 | $ | 389,777 | ||||||
Net earnings attributable to controlling interests
|
$ | 1,074,340 | $ | (21,282 | ) | $ | 1,053,058 | |||||
Net earnings per share attributable to common shares
Basic
|
$ | 4.08 | $ | (0.08 | ) | $ | 4.00 | |||||
Net earnings per share attributable to common shares
Diluted
|
$ | 3.94 | $ | (0.08 | ) | $ | 3.86 |
80
81
82
| Level 1 Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. | |
| Level 2 Observable inputs, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |
| Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
83
3. | Sale of China Operations and Property Fund Interest in Japan |
84
4. | Real Estate: |
December 31, | ||||||||
2009 | 2008 | |||||||
Industrial properties (1):
|
||||||||
Improved land
|
$ | 2,625,885 | $ | 2,413,840 | ||||
Buildings and improvements
|
8,919,616 | 8,542,116 | ||||||
Retail and mixed use properties (2):
|
||||||||
Improved land
|
74,511 | 81,117 | ||||||
Buildings and improvements
|
216,527 | 277,875 | ||||||
Properties under development, including cost of land (3)
|
191,127 | 1,181,344 | ||||||
Land held for development (4)
|
2,569,343 | 2,482,582 | ||||||
Land subject to ground leases and other (5)
|
385,222 | 425,001 | ||||||
Other investments (6)
|
233,665 | 321,397 | ||||||
Total real estate assets
|
15,215,896 | 15,725,272 | ||||||
Less accumulated depreciation
|
1,671,100 | 1,583,299 | ||||||
Net real estate assets
|
$ | 13,544,796 | $ | 14,141,973 | ||||
(1) | At December 31, 2009 and 2008, we had 1,188 and 1,297 distribution properties consisting of 191.6 million square feet and 195.7 million square feet, respectively. | |
(2) | At December 31, 2009 and 2008, we had 29 and 34 retail properties consisting of 1.2 million square feet and 1.4 million square feet, respectively. We also owned two office properties with aggregate cost of $39.1 million at December 31, 2009 and one office property with a cost of $7.9 million at December 31, 2008. | |
(3) | Properties under development consisted of 5 properties aggregating 2.9 million square feet at December 31, 2009 and 65 properties aggregating 19.8 million square feet at December 31, 2008. Our total expected investment upon completion of the properties under development at December 31, 2009 was $295.7 million, including development and leasing costs. | |
(4) | Land held for development consisted of 10,360 acres and 10,134 acres at December 31, 2009 and 2008, respectively, and includes land parcels that we may develop or sell depending on market conditions and other factors. | |
(5) | At December 31, 2009 and 2008, amount represents investments of $314.9 million and $367.9 million in land we own and lease to our customers under long-term ground leases, an investment of $36.1 million and $35.3 million in railway depots and $29.9 million and $21.8 million in parking lots, respectively. At December 31, 2009, this amount also includes $4.3 million in solar panels. | |
(6) | Other investments include: (i) restricted funds that are held in escrow pending the completion of tax-deferred exchange transactions involving operating properties ($45.6 million and $9.0 million at December 31, 2009 and 2008, respectively); (ii) certain infrastructure costs related to projects we are developing on behalf of others; (iii) costs incurred related to future development projects, including purchase options on land; (iv) costs related to our corporate office buildings, which we occupy; and (v) earnest money deposits associated with potential acquisitions. |
85
Number of |
Aggregate |
Aggregate |
||||||||||||||
Properties | Square Feet | Purchase Price | Debt Assumed | |||||||||||||
2008
|
25 | 5,812 | $ | 324,029 | $ | 6,599 | ||||||||||
2007
|
41 | 7,347 | $ | 351,639 | $ | 27,305 |
86
2010
|
$ | 673,599 | ||
2011
|
605,827 | |||
2012
|
495,619 | |||
2013
|
389,026 | |||
2014
|
298,730 | |||
Thereafter
|
1,705,610 | |||
$ | 4,168,411 | |||
5. | Acquisitions: |
6. | Unconsolidated Investees: |
December 31, | ||||||||
2009 | 2008 | |||||||
Property funds
|
$ | 1,876,650 | $ | 1,957,977 | ||||
Other investees
|
275,073 | 312,016 | ||||||
Totals
|
$ | 2,151,723 | $ | 2,269,993 | ||||
87
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Earnings (loss) from unconsolidated property funds:
|
||||||||||||
North America
|
$ | (12,085 | ) | $ | 3,271 | $ | 17,161 | |||||
Europe
|
33,141 | (94,429 | ) | 60,913 | ||||||||
Asia
|
3,852 | 22,042 | 16,379 | |||||||||
Total earnings (loss) from unconsolidated property funds
|
$ | 24,908 | $ | (69,116 | ) | $ | 94,453 | |||||
Property management and other fees and incentives:
|
||||||||||||
North America
|
$ | 63,413 | $ | 61,753 | $ | 47,164 | ||||||
Europe
|
50,814 | 51,969 | 43,752 | |||||||||
Asia
|
2,542 | 17,289 | 13,803 | |||||||||
Total property management and other fees and incentives
|
$ | 116,769 | $ | 131,011 | $ | 104,719 | ||||||
88
As of December 31, | ||||||||||||||||||||||||
Square |
||||||||||||||||||||||||
Number of |
feet |
Investment in |
||||||||||||||||||||||
properties |
(in |
Ownership |
and advances to |
|||||||||||||||||||||
owned | millions) | Percentage | (In thousands) | |||||||||||||||||||||
Fund Names
|
2009 | 2009 | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||
ProLogis California (ProLogis California I LLC ) (1)
|
80 | 14.2 | 50.0 | % | 50.0 | % | $ | 94,498 | $ | 102,685 | ||||||||||||||
ProLogis North American Properties Fund I ( ProLogis North
American Properties Fund I LLC) (1)
|
35 | 9.0 | 41.3 | % | 41.3 | % | 21,295 | 25,018 | ||||||||||||||||
ProLogis North American Properties Fund VI (Allagash
Property Trust) (1)
|
21 | 8.4 | 20.0 | % | 20.0 | % | 34,424 | 35,659 | ||||||||||||||||
ProLogis North American Properties Fund VII (Brazos
Property Trust) (1)
|
29 | 6.2 | 20.0 | % | 20.0 | % | 32,289 | 32,679 | ||||||||||||||||
ProLogis North American Properties Fund VIII (Cimmaron
Property Trust) (1)
|
24 | 3.1 | 20.0 | % | 20.0 | % | 12,283 | 13,281 | ||||||||||||||||
ProLogis North American Properties Fund IX (Deerfield
Property Trust) (1) (2)
|
19 | 3.3 | 20.0 | % | 20.0 | % | | 13,375 | ||||||||||||||||
ProLogis North American Properties Fund X (Elkhorn Property
Trust) (1) (2)
|
29 | 4.2 | 20.0 | % | 20.0 | % | | 15,567 | ||||||||||||||||
ProLogis North American Properties Fund XI (KPJV,
LLP) (1)
|
12 | 3.6 | 20.0 | % | 20.0 | % | 22,115 | 28,322 | ||||||||||||||||
ProLogis North American Industrial Fund (3)
|
258 | 49.7 | 23.0 | % | 23.1 | % | 241,988 | 191,088 | ||||||||||||||||
ProLogis North American Industrial Fund II (ProLogis NA2
LP) (1) (4)
|
148 | 36.0 | 37.0 | % | 36.9 | % | 336,511 | 265,575 | ||||||||||||||||
ProLogis North American Industrial Fund III (ProLogis NA3
LP) (1)
|
120 | 24.7 | 20.0 | % | 20.0 | % | 140,047 | 122,148 | ||||||||||||||||
ProLogis Mexico Industrial Fund (ProLogis MX
Fund LP) (5)
|
72 | 9.1 | 24.2 | % | 24.2 | % | 74,754 | 96,320 | ||||||||||||||||
PEPR (ProLogis European Properties) (6)
|
232 | 53.0 | 24.8 | % | 24.9 | % | 383,389 | 321,984 | ||||||||||||||||
PEPF II (ProLogis European Properties II) (7)
|
196 | 48.0 | 32.1 | % | 36.9 | % | 461,631 | 312,600 | ||||||||||||||||
ProLogis Korea Fund (ProLogis Korea Properties Trust) (1)
|
12 | 1.7 | 20.0 | % | 20.0 | % | 21,426 | 21,867 | ||||||||||||||||
ProLogis Japan properties funds (1) (8)
|
| | | 20.0 | % | | 359,809 | |||||||||||||||||
Totals
|
1,287 | 274.2 | $ | 1,876,650 | $ | 1,957,977 | ||||||||||||||||||
(1) | We have one fund partner in each of these property funds. | |
(2) | During 2009, we recognized an aggregate impairment charge of $28.5 million, representing the carrying value of our investments in ProLogis North American Properties Fund IX and X. We recorded the impairment charge due to recent events, which indicated that we may not be able to recover our investment balances. The impairment charge was included in Impairment of Goodwill and Other Assets in our Consolidated Statements of Operations. | |
(3) | We refer to the combined entities in which we have ownership interests with ten institutional investors as one property fund named ProLogis North American Industrial Fund. Our ownership percentage is based on our levels of ownership interest in these different entities. During 2009, we made capital contributions of $54.1 million, representing our share of the additional capital called by this property fund to repay outstanding borrowings on its credit facilities and secured mortgage debt. | |
(4) | In July 2007, we acquired all of the units in Macquarie ProLogis Trust, an Australian listed property trust (MPR) which had an 88.7% ownership interest in ProLogis North American Properties Fund V. The total consideration was approximately $2.0 billion consisting of cash in the amount of $1.2 billion and assumed liabilities of $0.8 billion. We entered into foreign currency forward contracts to economically hedge the purchase price of MPR. As this type of contract does not qualify for hedge accounting treatment, we |
89
recognized gains of $26.6 million in 2007 when the contract settled that are included in Foreign Currency Exchange Gains (Losses), Net in our Consolidated Statements of Operations. | ||
As a result of the MPR acquisition, we owned 100% and consolidated the results of the assets for approximately two months in 2007, at which time the lender converted certain of the bridge debt into equity of a new property fund, ProLogis North American Industrial Fund II, in which we have a 37.0% equity interest at December 31, 2009. Upon conversion by the lender in the third quarter of 2007, we recognized net gains of $68.6 million that are reflected in proceeds from and costs of CDFS Acquired Property Portfolios in our Consolidated Statements of Operations. | ||
On July 1, 2009, we and our fund partner amended a loan agreement and the governing documents of this property fund. The property fund extended the term of a $411.3 million loan payable to an affiliate of our fund partner, which was scheduled to mature in July 2009, until 2014 with an option for an additional extension until 2016. As part of the restructuring, we made an $85.0 million cash capital contribution to the property fund and we may be required to make an additional cash contribution in the future of up to $25.0 million for the repayment of debt or other obligations. In addition, we pledged properties we own directly, valued at approximately $275.0 million, to serve as additional collateral on the loan and related interest rate swap contract. As a result, we are entitled to receive a 10% preferred distribution on all new contributions paid out of operating cash flow prior to other distributions. Upon liquidation of the property fund, we are entitled to receive a 10% preferred return per annum on our initial equity investment and the return of our total investment prior to any other distributions. | ||
(5) | We refer to the combined entities in which we have ownership interests as one property fund named ProLogis Mexico Industrial Fund, which was formed with several institutional investors in September 2007. During 2008, we loaned this property fund $153.1 million that was used to repay bridge financing that had matured and for a portion of the costs related to a third party acquisition. Through December 31, 2009 and 2008, the fund had repaid $138.7 million and $137.9 million, respectively, of this loan primarily with proceeds obtained from third party financing. The loan bears interest at LIBOR plus a margin and is payable upon demand. | |
(6) | In December 2008, we purchased units in PEPF II from PEPR that represented a 20% interest for 43 million ($61.1 million) and assumed 348 million of PEPRs future equity commitments related to these units. The units were purchased at a discount to net asset value due to PEPRs near-term liquidity needs. In January 2009, PEPR received offers for their remaining 10.4% interest in PEPF II for 10.5 million. As a result of the sale of units to us and the impairment of their remaining ownership (based on offers received), PEPR recognized a total loss of 310.9 million ($434.3 million) in 2008. Our share of this loss, reflected as Earnings (Loss) from Unconsolidated Property Funds in our Consolidated Statements of Operations, was $108.2 million. | |
In December 2009, PEPR issued 61 million of preferred units with a 10.5% dividend that were offered to its current investors. We invested 41.6 million ($59.4 million) in 7.0 million preferred units that are included in our investment balance. The preferred units are convertible into common units at a rate of one for one at our option. PEPR has the option to redeem the units after seven years or in certain limited circumstances. | ||
(7) | PEPF II was formed with several third party investors in July 2007. From July 2007 through December 2008, we owned approximately 24% of PEPF II, which included an indirect interest through PEPRs 30% interest. Our ownership interest has changed based on PEPRs sale of its 10.4% interest in PEPF II in January 2009 and due to the contributions of properties we made to PEPR II in 2009. | |
(8) | On February 9, 2009, we sold our interests in the Japan property funds (see Note 3). |
90
NAIF (1) | Mexico (2) | PEPF II (3) | ||||||||||||||||||||||||||
Fund |
Fund |
ProLogis |
ProLogis |
Fund |
||||||||||||||||||||||||
ProLogis | Partners | ProLogis | Partners | Series A | Series B | Partners | ||||||||||||||||||||||
Remaining equity commitments at December 31, 2008 (4)
|
$ | 72.5 | $ | 211.7 | $ | 44.3 | $ | 246.7 | | 295.9 | | 272.2 | | 857.4 | ||||||||||||||
Capital called for the repayment of debt
|
(54.1 | ) | (174.2 | ) | | | | | | |||||||||||||||||||
Capital called for the acquisition of properties from us
|
| | | | | (108.5 | ) | (341.6 | ) | |||||||||||||||||||
Remaining equity commitments at December 31, 2009 (local
currency)
|
$ | 18.4 | $ | 37.5 | $ | 44.3 | $ | 246.7 | | 295.9 | | 163.7 | | 515.8 | ||||||||||||||
Remaining equity commitments at December 31, 2009 (in U.S.
dollars)
|
$ | 18.4 | $ | 37.5 | $ | 44.3 | $ | 246.7 | $ | 424.5 | $ | 234.9 | $ | 739.8 | ||||||||||||||
Expiration date for remaining commitments
|
Feb 2010 | Aug 2010 | Aug 2010 |
(1) | During 2009, the ProLogis North American Industrial Fund called capital to repay borrowings outstanding under its credit facility and to repay certain secured mortgage debt, which resulted in a gain on early extinguishment of $31.1 million. In February 2010, the property fund called $23.2 million of capital, including $0.8 million in cash from ProLogis, to acquire one property from us. The remaining equity commitments expire at the end of February 2010. | |
(2) | ProLogis Mexico Industrial Fund may use the remaining equity commitments to pay down existing debt or other liabilities, including amounts due to us, or to make acquisitions of properties from us or third parties depending on market conditions and other factors. | |
(3) | PEPF IIs equity commitments are denominated in euro. The ProLogis commitments include a commitment on the Series B units we acquired from PEPR in December 2008 that we are required to fund with cash. During 2009, we contributed 43 properties to PEPF II for gross proceeds of $643.7 million that were financed by PEPF II with all equity, including our co-investment of $152.7 million in cash under this commitment. We did not make any contributions in 2009 under the Series A commitment. We are not required to fund the remaining Series A commitment in cash and we anticipate it will expire unused. | |
(4) | Excludes commitments related to the ProLogis Korea Fund as the agreements were amended and there are no longer any remaining commitments. |
91
2009 | ||||||||||||||||
North America | Europe (1) | Asia (2) | Total | |||||||||||||
Revenues
|
$ | 855.5 | $ | 736.3 | $ | 40.9 | $ | 1,632.7 | ||||||||
Net earnings (loss) (3)(4)
|
$ | (104.4 | ) | $ | 75.5 | $ | 16.4 | $ | (12.5 | ) | ||||||
Total assets
|
$ | 9,700.0 | $ | 8,807.5 | $ | 150.6 | $ | 18,658.1 | ||||||||
Amounts due to us (5)
|
$ | 50.0 | $ | 31.2 | $ | | $ | 81.2 | ||||||||
Third party debt (6)
|
$ | 5,340.3 | $ | 3,948.8 | $ | 48.1 | $ | 9,337.2 | ||||||||
Total liabilities
|
$ | 5,647.5 | $ | 4,773.8 | $ | 51.6 | $ | 10,472.9 | ||||||||
Noncontrolling interest
|
$ | 10.7 | $ | 15.8 | $ | | $ | 26.5 | ||||||||
Fund partners equity
|
$ | 4,041.6 | $ | 4,017.9 | $ | 99.1 | $ | 8,158.6 | ||||||||
Our weighted average ownership at end of period (7)
|
27.6 | % | 28.5 | % | 20.0 | % | 27.9 | % | ||||||||
Our investment balance (8)
|
$ | 1,010.2 | $ | 845.1 | $ | 21.4 | $ | 1,876.7 | ||||||||
Deferred gains, net of amortization (9)
|
$ | 243.1 | $ | 297.4 | $ | | $ | 540.5 |
2008 | ||||||||||||||||
North America | Europe | Asia | Total | |||||||||||||
Revenues
|
$ | 835.8 | $ | 665.6 | $ | 299.6 | $ | 1,801.0 | ||||||||
Net earnings (loss) (3)(4)
|
$ | (24.2 | ) | $ | (404.6 | ) | $ | 82.8 | $ | (346.0 | ) | |||||
Total assets
|
$ | 9,979.2 | $ | 8,982.9 | $ | 5,821.6 | $ | 24,783.7 | ||||||||
Amounts due to us (5)
|
$ | 30.2 | $ | 22.4 | $ | 147.4 | $ | 200.0 | ||||||||
Third party debt (6)
|
$ | 5,726.0 | $ | 4,829.9 | $ | 2,906.5 | $ | 13,462.4 | ||||||||
Total liabilities
|
$ | 5,985.4 | $ | 5,581.1 | $ | 3,855.1 | $ | 15,421.6 | ||||||||
Noncontrolling interests
|
$ | 10.7 | $ | 19.8 | $ | | $ | 30.5 | ||||||||
Fund partners equity
|
$ | 3,983.1 | $ | 3,382.0 | $ | 1,966.5 | $ | 9,331.6 | ||||||||
Our weighted average ownership at end of period (7)
|
27.5 | % | 30.2 | % | 20.0 | % | 26.9 | % | ||||||||
Our investment balance (8)
|
$ | 941.7 | $ | 634.6 | $ | 381.7 | $ | 1,958.0 | ||||||||
Deferred gains, net of amortization (9)
|
$ | 246.7 | $ | 299.0 | $ | 163.3 | $ | 709.0 |
92
(1) | The variances in the revenues, total assets, third party debt and total liabilities of the European property funds between 2008 and 2009 are mainly as a result of changes in the size of the property portfolios due to contributions of properties to PEPF II and fluctuations in foreign currency exchange rates, which we use to translate the assets and liabilities to U.S. dollars. | |
(2) | The reduction in revenues, net earnings, total assets, third party debt and total liabilities relating to the Asian property funds between 2008 and 2009 was due to the sale of our interests in the Japan property funds in February 2009 (see Note 3). | |
(3) | In 2007, two of the North America property funds entered into interest rate forward swap contracts and designated them as cash flow hedges. Certain of these derivative contracts no longer met the requirements for hedge accounting and, therefore, the change in fair value of these contracts was recognized within earnings, along with the gain or loss upon settlement. As a result, included in net earnings (loss) from North America for 2009 and 2008 are net losses of $17.1 million and $77.0 million, respectively. | |
During 2009, the North American Funds that own properties in Mexico recognized $79.5 million of deferred tax expense. In 2009, two North American property funds recorded impairment charges aggregating $11.1 million related to properties they planned to sell. In 2009, ProLogis North American Industrial Fund repaid debt scheduled to mature in 2011 and 2012 at a discount that resulted in the recognition of a $31.1 million gain on early extinguishment of debt. | ||
(4) | During 2009, PEPR sold 14 properties to unrelated third parties resulting in a loss of $15.3 million. The Europe results include properties that we contributed to PEPF II during 2009. Included in the net loss for Europe in 2008 was the loss on sale and impairment of PEPRs investment in PEPF II, as discussed above, of $434.3 million. | |
(5) | During 2009, we and our fund partner each loaned $25.4 million to ProLogis North American Industrial Fund III that was used to repay maturing debt of the property fund. These notes will be paid with operating cash flow, mature at dissolution of the property fund and bear interest at LIBOR plus 8%. As of December 31, 2009, the outstanding balance was $22.6 million. In addition, as of December 31, 2009 and 2008, ProLogis Mexico Industrial Fund had a note payable to us for $14.3 million and $15.3 million, respectively. The remaining amounts represent current balances from services provided by us. | |
(6) | As of December 31, 2009 and 2008, we had not guaranteed any of the third party debt of the property funds. On July 1, 2009, in connection with the restructuring and amendment of the partnership and loan agreements discussed earlier, we pledged direct owned properties, valued at approximately $275 million, to serve as additional collateral for the loan of ProLogis North American Industrial Fund II that is payable to an affiliate of our fund partner and for the related interest rate swap contract. | |
(7) | Represents our weighted average ownership interest in all property funds combined based on each entitys contribution to total assets, before depreciation, net of other liabilities. | |
(8) | The difference between our percentage ownership interest in the property funds equity and our investment balance results principally from three types of transactions: (i) deferring a portion of the gains we recognized from a contribution of one of our properties to a property fund as a result of our continuing ownership in the property (see next footnote); (ii) recording additional costs associated with our investment in the property fund; and (iii) advances to the property fund. | |
(9) | This amount is recorded as a reduction to our investment and represents the gains that were deferred when we contributed a property to a property fund due to our continuing ownership in the property. |
93
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
North America
|
$ | 2,814 | $ | 11,527 | $ | 7,428 | ||||||
Europe
|
337 | 1,815 | (2,855 | ) | ||||||||
Total earnings from other unconsolidated investees
|
$ | 3,151 | $ | 13,342 | $ | 4,573 | ||||||
2009 | 2008 | |||||||
North America
|
$ | 148,137 | $ | 150,963 | ||||
Europe
|
96,191 | 161,053 | ||||||
Asia
|
30,745 | | ||||||
Total
|
$ | 275,073 | $ | 312,016 | ||||
94
7. | Other Assets and Other Liabilities: |
2009 | 2008 | |||||||
Goodwill
|
$ | 399,037 | $ | 395,626 | ||||
Value added taxes receivable
|
125,768 | 250,707 | ||||||
Leasing commissions
|
119,496 | 115,194 | ||||||
Rent leveling assets and above market leases
|
106,009 | 81,558 | ||||||
Fixed assets
|
39,637 | 80,323 | ||||||
Loan fees
|
76,994 | 37,138 | ||||||
Non-qualified savings plan assets
|
699 | 24,901 | ||||||
Other
|
150,140 | 141,546 | ||||||
Totals
|
$ | 1,017,780 | $ | 1,126,993 | ||||
2009 | 2008 | |||||||
Income tax liabilities
|
$ | 171,602 | $ | 367,626 | ||||
Tenant security deposits
|
56,529 | 120,590 | ||||||
Accrued disposition costs
|
41,526 | 91,476 | ||||||
Unearned rents
|
43,388 | 60,331 | ||||||
Non-qualified savings plan liabilities
|
886 | 27,206 | ||||||
Value added taxes payable
|
24,690 | 10,571 | ||||||
Below market leases
|
6,908 | 7,332 | ||||||
Other
|
98,903 | 66,106 | ||||||
Totals
|
$ | 444,432 | $ | 751,238 | ||||
Amortization |
Net Charge (Increase) to |
|||||||
Expense | Rental Income | |||||||
2010
|
$ | 33,060 | $ | (2,408 | ) | |||
2011
|
27,865 | 16,909 | ||||||
2012
|
21,293 | 17,380 | ||||||
2013
|
14,328 | 14,191 | ||||||
2014
|
8,726 | 11,793 | ||||||
Thereafter
|
14,224 | 41,236 | ||||||
Total
|
$ | 119,496 | $ | 99,101 | ||||
95
Assets discontinued operations assets
held for sale:
|
||||
Investments in real estate assets:
|
||||
Industrial properties
|
$ | 471,221 | ||
Properties under development
|
225,971 | |||
Land held for development
|
245,965 | |||
Other investments
|
147,356 | |||
1,090,513 | ||||
Accumulated depreciation
|
(15,463 | ) | ||
Net investments in real estate assets
|
1,075,050 | |||
Investments in and advances to unconsolidated investees:
|
||||
Property funds
|
32,952 | |||
Other investees
|
247,507 | |||
Total investments in and advances to unconsolidated investees
|
280,459 | |||
Cash and cash equivalents
|
111,136 | |||
Other assets
|
42,345 | |||
Total assets before impairment
|
1,508,990 | |||
Impairment of assets
|
(198,236 | ) | ||
Total assets discontinued operations
assets held for sale
|
$ | 1,310,754 | ||
Liabilities discontinued operations
assets held for sale:
|
||||
Debt
|
$ | 218,463 | ||
Other liabilities
|
104,547 | |||
Noncontrolling interests
|
66,874 | |||
Total liabilities discontinued
operations assets held for sale
|
$ | 389,884 | ||
96
2009 | 2008 | 2007 | ||||||||||
Revenues:
|
||||||||||||
Rental income
|
$ | 50,492 | $ | 121,685 | $ | 109,942 | ||||||
CDFS dispositions proceeds acquired property
portfolios
|
| 83,648 | | |||||||||
Other income
|
93 | 1,514 | 348 | |||||||||
Total revenues
|
50,585 | 206,847 | 110,290 | |||||||||
Expenses:
|
||||||||||||
Rental expenses
|
14,434 | 42,058 | 31,209 | |||||||||
Cost of CDFS dispositions acquired property
portfolios
|
| 83,648 | | |||||||||
General and administrative
|
1,305 | 21,721 | 11,354 | |||||||||
Reduction in workforce
|
| 3,300 | | |||||||||
Depreciation and amortization
|
11,319 | 33,661 | 25,588 | |||||||||
Other expenses
|
7 | 5,088 | | |||||||||
Total expenses
|
27,065 | 189,476 | 68,151 | |||||||||
Operating income
|
23,520 | 17,371 | 42,139 | |||||||||
Total other income (expense)
|
787 | (16,390 | ) | 6,717 | ||||||||
Net (earnings) loss attributable to noncontrolling interest
|
(144 | ) | 10,068 | (1,189 | ) | |||||||
Income attributable to assets held for sale and disposed
properties
|
24,163 | 11,049 | 47,667 | |||||||||
Net gain (impairment) related to disposed assets
China operations
|
3,315 | (198,236 | ) | | ||||||||
Net gains recognized on property dispositions
|
261,464 | 19,501 | 81,497 | |||||||||
Total discontinued operations
|
$ | 288,942 | $ | (167,686 | ) | $ | 129,164 | |||||
2009 | 2008 | 2007 | ||||||||||
Number of properties
|
140 | 15 | 80 | |||||||||
Net proceeds from dispositions
|
$ | 845,186 | $ | 127,428 | $ | 426,838 | ||||||
Net gains from dispositions
|
$ | 261,464 | $ | 19,501 | $ | 81,497 |
97
9. | Debt: |
2009 | 2008 | |||||||||||||||
Weighted |
Weighted |
|||||||||||||||
Average |
Amount |
Average |
Amount |
|||||||||||||
Interest Rate | Outstanding | Interest Rate | Outstanding | |||||||||||||
Global Line
|
2.27% | $ | 736,591 | 2.38% | $ | 2,617,764 | ||||||||||
Credit Facility (1)
|
| | 2.81% | 600,519 | ||||||||||||
Senior and other notes
|
6.31% | 4,047,905 | 5.60% | 3,995,410 | ||||||||||||
Convertible senior notes (2)
|
5.55% | 2,078,441 | 5.56% | 2,590,133 | ||||||||||||
Secured mortgage debt
|
6.40% | 1,090,126 | 6.79% | 877,916 | ||||||||||||
Assessment bonds
|
6.49% | 24,715 | 6.55% | 29,626 | ||||||||||||
Totals
|
5.75% | $ | 7,977,778 | 4.75% | $ | 10,711,368 | ||||||||||
(1) | In 2009, we repaid the balance outstanding and terminated our existing multi-currency credit facility (the Credit Facility), which was scheduled to mature on October 6, 2009, with borrowings under our global line of credit (the Global Line). | |
(2) | The weighted average interest rate reflects the effective rate after the adoption of the new accounting standard for convertible debt (see Note 2 for more information on the adoption). The weighted coupon interest rate was 2.2% for both periods. |
For the Year Ended |
For the Year Ended |
|||||||
December 31, 2009 | December 31, 2008 | |||||||
Convertible Notes
|
||||||||
Original principal amount
|
$ | 653,993 | $ | | ||||
Cash purchase price
|
$ | 454,023 | $ | | ||||
Senior Notes (1)
|
||||||||
Original principal amount
|
$ | 587,698 | $ | 309,722 | ||||
Cash purchase price
|
$ | 545,618 | $ | 216,805 | ||||
Secured Mortgage Debt
|
||||||||
Original principal amount (2)
|
$ | 227,017 | $ | | ||||
Cash extinguishment price
|
$ | 227,017 | $ | | ||||
Total
|
||||||||
Original principal amount
|
$ | 1,468,708 | $ | 309,722 | ||||
Cash purchase / extinguishment price
|
$ | 1,226,658 | $ | 216,805 | ||||
Net gain on early extinguishment of debt (3)
|
$ | 172,258 | $ | 90,719 |
(1) | Included in the year ended December 31, 2009 is the repurchase of 248.7 million ($356.4 million) original principal amount of our other notes for 235.1 million ($338.7 million). | |
(2) | In addition, there was an unamortized premium of $11.4 million (recorded at acquisition) that was included in the calculation of the gain on early extinguishment. |
98
(3) | Although we reduced our debt obligations by $242.1 million and $92.9 million in 2009 and 2008, respectively, the gain is calculated based on the recorded debt balance, which may include unamortized related debt issuance costs, premiums, and discounts. |
2009 | 2008 | 2007 | ||||||||||
For the years ended December 31:
|
||||||||||||
Weighted average daily interest rate
|
1.62 | % | 3.26 | % | 3.72 | % | ||||||
Weighted average daily borrowings
|
$ | 1,641.9 | $ | 3,248.4 | $ | 3,075.9 | ||||||
Maximum borrowings outstanding at any month-end
|
$ | 3,285.3 | $ | 3,663.6 | $ | 3,538.2 | ||||||
As of December 31:
|
||||||||||||
Aggregate borrowing capacity (1)
|
$ | 2,164.8 | $ | 4,432.1 | $ | 4,354.9 | ||||||
Borrowings outstanding
|
$ | 736.6 | $ | 3,218.3 | $ | 2,564.4 | ||||||
Outstanding letters of credit (1)
|
$ | 114.9 | $ | 142.4 | $ | 148.2 | ||||||
Aggregate remaining capacity available
|
$ | 1,080.4 | $ | 1,071.5 | $ | 1,642.4 |
(1) | At December 31, 2009, included in this borrowing capacity and letters of credit is a credit facility with outstanding commitments equal to the outstanding letters of credit of 9.7 million British pound sterling ($15.6 million). |
Borrowing base
|
$ | 3,907.7 | ||
Borrowing capacity (1)
|
$ | 2,149.2 | ||
Less:
|
||||
Borrowings outstanding
|
736.6 | |||
Outstanding letters of credit
|
99.3 | |||
Debt due within one year
|
232.9 | |||
Current availability
|
$ | 1,080.4 | ||
(1) | Borrowing capacity represents 55% of the borrowing base related to the Global Line. |
99
Principal |
Coupon |
|||||||
Maturity Date
|
Balance | Rate | ||||||
Senior notes:
|
||||||||
November 15, 2010 (1)
|
190,278 | 5.25 | % | |||||
April 1, 2012 (1)
|
280,788 | 5.50 | % | |||||
March 1, 2013 (1)
|
262,066 | 5.50 | % | |||||
August 15, 2014 (1) (2)
|
350,000 | 7.63 | % | |||||
February 1, 2015 (3)
|
100,000 | 7.81 | % | |||||
March 1, 2015 (4)
|
30,000 | 9.34 | % | |||||
November 15, 2015 (1)
|
400,000 | 5.63 | % | |||||
April 1, 2016 (1)
|
400,000 | 5.75 | % | |||||
May 15, 2016 (5)
|
50,000 | 8.65 | % | |||||
November 15, 2016 (1)
|
550,000 | 5.63 | % | |||||
July 1, 2017 (1)
|
100,000 | 7.63 | % | |||||
May 15, 2018 (1)
|
600,000 | 6.63 | % | |||||
October 30, 2019 (1) (6)
|
600,000 | 7.38 | % | |||||
Total senior notes
|
3,913,132 | |||||||
Other notes April 13, 2011 (1) (7)
|
145,294 | 4.38 | % | |||||
Total par value
|
4,058,426 | |||||||
Discount, net
|
(10,521 | ) | ||||||
Total senior and other notes, net
|
$ | 4,047,905 | ||||||
100
(1) | Principal due at maturity. | |
(2) | We issued these notes in August 2009. | |
(3) | Beginning on February 1, 2010, and through February 1, 2015, requires annual principal payments ranging from $10.0 million to $20.0 million. | |
(4) | Beginning on March 1, 2010, and through March 1, 2015, requires annual principal payments ranging from $3.0 million to $7.5 million. | |
(5) | Beginning on May 15, 2010, and through May 15, 2016, requires annual principal payments ranging from $5.0 million to $12.5 million. | |
(6) | We issued these notes in October 2009. | |
(7) | Represents notes with principal outstanding of 101.3 million. |
101
December 31, 2009 | December 31, 2008 | December 31, 2007 | ||||||||||
Principal amount
|
$ | 2,266,507 | $ | 2,920,500 | $ | 2,370,500 | ||||||
Discount
|
(188,066 | ) | (330,367 | ) | (326,492 | ) | ||||||
Net carrying balance required to satisfy the conversion spread
|
$ | 2,078,441 | $ | 2,590,133 | $ | 2,044,008 | ||||||
Additional paid-in capital conversion option
|
$ | 381,493 | $ | 381,493 | $ | 310,575 |
2009 | 2008 | 2007 | ||||||||||
Coupon rate
|
$ | 55,951 | $ | 58,420 | $ | 24,505 | ||||||
Amortization of discount
|
71,662 | 73,374 | 27,638 | |||||||||
Amortization of deferred loan costs
|
3,801 | 3,470 | 1,373 | |||||||||
Interest expense
|
$ | 131,414 | $ | 135,264 | $ | 53,516 | ||||||
Effective interest rate
|
5.55 | % | 5.70 | % | 5.38 | % |
102
Balloon |
||||||||||||||||
Periodic |
Payment |
|||||||||||||||
Interest |
Payment |
Carrying |
Due at |
|||||||||||||
Maturity Date
|
Rate (1) | Date | Value | Maturity | ||||||||||||
June 23, 2012
|
4.09 | %(2) | (4 | ) | $ | 45,628 | $ | 45,628 | ||||||||
December 16, 2012
|
2.74 | %(2) | (4 | ) | 108,190 | $ | 108,190 | |||||||||
July 1, 2014
|
6.50 | % | (3 | ) | 101,750 | $ | 101,750 | |||||||||
August 1, 2015
|
5.47 | % | (4 | ) | 128,528 | $ | 111,690 | |||||||||
April 12, 2016
|
7.25 | % | (4 | ) | 196,265 | $ | 149,917 | |||||||||
July 10, 2019
|
7.55 | % | (3 | ) | 245,500 | $ | 245,500 | |||||||||
April 1, 2024
|
7.58 | % | (4 | ) | 190,230 | $ | 127,187 | |||||||||
Various
|
(5 | ) | (5 | ) | 74,035 | (5) | ||||||||||
Total secured mortgage debt(6)
|
$ | 1,090,126 | ||||||||||||||
(1) | The weighted average annual interest rate for our total secured mortgage debt was 6.4% at December 31, 2009. | |
(2) | Represents the effective fixed interest rates including interest rate swap contracts. | |
(3) | Principal due at maturity. | |
(4) | Monthly amortization with a balloon payment due at maturity. | |
(5) | Includes six mortgage notes with interest rates ranging from 4.7% to 7.23%, maturing from 2011 to 2025, primarily requiring monthly amortization with a balloon payment at maturity. The combined balloon payment for all of the notes is $71.2 million. | |
(6) | The debt is secured by 216 real estate properties with an aggregate undepreciated cost of $2.6 billion at December 31, 2009. |
103
2010 (1)
|
$ | 232,854 | ||
2011 (1)
|
188,441 | |||
2012 (2)
|
1,569,352 | |||
2013 (2) (3)
|
1,497,740 | |||
2014
|
513,653 | |||
Thereafter
|
3,417,667 | |||
Total principal due
|
7,419,707 | |||
Discount, net
|
(178,520 | ) | ||
Total carrying value
|
$ | 7,241,187 | ||
(1) | We expect to repay the amounts maturing in 2010 and 2011 with borrowings under our Global Line or with proceeds from the issuance of debt or equity securities, depending on market conditions. | |
(2) | The maturities in 2012 and 2013 include the aggregate principal amounts of the convertible notes of $1,103.7 million and $1,162.8 million, respectively, based on the year in which the holders first have the right to require us to repurchase their notes. | |
(3) | The convertible notes issued in November 2007 are included as 2013 maturities since the holders have the right to require us to repurchase their notes for cash in January 2013. The holders of these notes also have the option to convert their notes in November 2012, which we may settle in cash or common shares, at our option. |
104
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Gross interest expense
|
$ | 382,899 | $ | 477,933 | $ | 487,410 | ||||||
Amortization of discount, net
|
67,542 | 63,676 | 15,952 | |||||||||
Amortization of deferred loan costs
|
17,069 | 12,238 | 10,362 | |||||||||
467,510 | 553,847 | 513,724 | ||||||||||
Capitalized amounts
|
(94,205 | ) | (168,782 | ) | (123,880 | ) | ||||||
Net interest expense
|
$ | 373,305 | $ | 385,065 | $ | 389,844 | ||||||
10. | Noncontrolling Interests: |
2009 | 2008 | |||||||||||||||||||
Noncontrolling |
Noncontrolling |
|||||||||||||||||||
Type of Entity
|
Balance | Interests | Balance | Interests | ||||||||||||||||
North America limited partnerships (1)(2)(3)(4)
|
$ | 12,608 | 3-7 | % | $ | 14,396 | 4-7 | % | ||||||||||||
North America joint ventures
|
611 | 1-25 | % | 676 | 1-25 | % | ||||||||||||||
Europe joint venture
|
6,743 | 50 | % | 4,806 | 50 | % | ||||||||||||||
$ | 19,962 | $ | 19,878 | |||||||||||||||||
(1) | At December 31, 2009 and 2008, an aggregate of 810,163 and 1,233,566 limited partnership units, respectively, held by noncontrolling interest holders are convertible into an equal number of common shares. The majority of the outstanding limited partnership units are entitled to receive cumulative preferential quarterly cash distributions equal to the quarterly distributions paid on our common shares. | |
(2) | Certain properties owned by one of these partnerships cannot be sold, other than in tax-deferred exchanges, prior to the occurrence of certain events and without the consent of the limited partners. The partnership agreement provides that a minimum level of debt must be maintained within the partnership, which can include intercompany debt to us. | |
(3) | In 2009 and 2008, outstanding limited partnership units of 413,500 and 3,911,923, respectively, were converted into an equal number of common shares. | |
(4) | In 2009, outstanding limited partnership units of 9,903 were converted to cash in exchange for the sale of the property that was in the partnership. |
105
| 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 we determine ranging from 98% to 100% of the market price of such common shares. |
| Controlled Offering Program: Currently allows us to sell up to 40 million common shares through one designated agent who earns a fee up to 2% of the gross proceeds, as agreed on a transaction-by-transaction basis. In 2009, we issued 29.8 million shares, resulting in 10.2 million shares available for future issuance. |
| The Incentive Plan and Outside Trustees Plan: Certain of our employees and outside trustees participate in share-based compensation plans that provide compensation, generally in the form of common shares. See Note 12 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, 2009, we have 4.5 million shares available under this plan. |
106
2009 | 2008 | 2007 | ||||||||||||||||||||||
Shares | Proceeds | Shares | Proceeds | Shares | Proceeds | |||||||||||||||||||
1999 Dividend Reinvestment Plan
|
224 | $ | 1,901 | 335 | $ | 4,376 | 66 | $ | 4,145 | |||||||||||||||
Controlled Offering Program
|
29,757 | 331,942 | 3,367 | 196,381 | | | ||||||||||||||||||
Incentive Plan and Outside Trustees Plan
|
1,767 | 2,192 | 1,603 | 19,455 | 1,781 | 40,570 | ||||||||||||||||||
Employee Share Plan
|
195 | 1,362 | 76 | 1,950 | 44 | 2,140 | ||||||||||||||||||
Total
|
31,943 | $ | 337,397 | 5,381 | $ | 222,162 | 1,891 | $ | 46,855 | |||||||||||||||
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 | (a) | |||||||
Series G Preferred Shares
|
6.75 | % | $ | 1.69 per share | (a) |
(a) | These shares are currently redeemable at our option. |
107
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Per common share:
|
||||||||||||
Ordinary income
|
$ | 0.58 | $ | 1.01 | $ | 0.89 | ||||||
Qualified dividend
|
0.09 | 0.01 | | |||||||||
Capital gains
|
0.03 | 1.05 | 0.64 | |||||||||
Return of capital
|
| | 0.31 | |||||||||
Total distribution
|
$ | 0.70 | $ | 2.07 | $ | 1.84 | ||||||
Per preferred share Series C:
|
||||||||||||
Ordinary income
|
$ | 3.56 | $ | 2.07 | $ | 2.47 | ||||||
Qualified dividend
|
0.54 | 0.03 | | |||||||||
Capital gains
|
0.17 | 2.17 | 1.80 | |||||||||
Total dividend
|
$ | 4.27 | $ | 4.27 | $ | 4.27 | ||||||
Per preferred share Series F:
|
||||||||||||
Ordinary income
|
$ | 1.41 | $ | 0.82 | $ | 0.98 | ||||||
Qualified dividend
|
0.21 | 0.01 | | |||||||||
Capital gains
|
0.07 | 0.86 | 0.71 | |||||||||
Total dividend
|
$ | 1.69 | $ | 1.69 | $ | 1.69 | ||||||
Per preferred share Series G:
|
||||||||||||
Ordinary income
|
$ | 1.41 | $ | 0.82 | $ | 0.98 | ||||||
Qualified dividend
|
0.21 | 0.01 | | |||||||||
Capital gains
|
0.07 | 0.86 | 0.71 | |||||||||
Total dividend
|
$ | 1.69 | $ | 1.69 | $ | 1.69 | ||||||
108
109
Weighted Average |
||||||||||||||||
Number of |
Expiration |
Remaining Life |
||||||||||||||
Options | Exercise Price | Date | (in years) | |||||||||||||
Outside trustees
|
85,000 | $ | 20.75 - $43.80 | 2010-2015 | 3.2 | |||||||||||
Incentive Plan:
|
||||||||||||||||
2000 grants
|
476,169 | $ | 21.75 - $24.25 | 2010 | 0.7 | |||||||||||
2001 grants
|
276,142 | $ | 20.67 - $22.02 | 2011 | 1.7 | |||||||||||
2002 grants
|
523,841 | $ | 22.98 - $24.76 | 2012 | 2.7 | |||||||||||
2003 grants
|
666,842 | $ | 30.00 - $31.26 | 2013 | 3.6 | |||||||||||
2004 grants
|
1,143,805 | $ | 29.41 - $41.50 | 2014 | 4.3 | |||||||||||
2005 grants
|
663,155 | $ | 40.86 - $45.46 | 2015 | 5.8 | |||||||||||
2006 grants
|
491,105 | $ | 54.51 - $59.92 | 2016 | 6.8 | |||||||||||
2007 grants
|
573,748 | $ | 60.60 - $64.82 | 2017 | 7.8 | |||||||||||
2008 grants
|
1,138,893 | $ | 6.87 - $61.75 | 2018 | 8.9 | |||||||||||
Total
|
6,038,700 | 5.2 | ||||||||||||||
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, 2009
|
7,779,747 | $ | 31.76 | |||||||||||||||||
Exercised
|
(237,500 | ) | 6.87 | |||||||||||||||||
Forfeited
|
(1,503,547 | ) | 33.73 | |||||||||||||||||
Balance at December 31, 2009
|
6,038,700 | $ | 32.25 | 4,740,748 | $ | 34.77 | 4.3 | |||||||||||||
Weighted-Average |
||||||||
Number of |
Grant-Date |
|||||||
Shares | Fair Value | |||||||
Balance at January 1, 2009
|
2,253,029 | $ | 5.04 | |||||
Vested
|
(757,329 | ) | 3.67 | |||||
Forfeited
|
(197,748 | ) | 10.51 | |||||
Balance at December 31, 2009
|
1,297,952 | $ | 5.01 | |||||
110
111
Shares Outstanding | ||||||||||||
Number of |
Weighted Average |
Number of |
||||||||||
Shares | Original Value | Vested Shares | ||||||||||
Balance at January 1, 2009
|
3,381,009 | $ | 34.13 | 844,602 | ||||||||
Granted
|
2,020,083 | 6.73 | ||||||||||
Distributed
|
(1,619,530 | ) | 25.22 | |||||||||
Forfeited
|
(379,778 | ) | 48.72 | |||||||||
Balance at December 31, 2009
|
3,401,784 | $ | 20.47 | 143,268 | ||||||||
Weighted-Average |
||||||||
Number of |
Grant-Date |
|||||||
Shares | Fair Value | |||||||
Balance at January 1, 2009
|
2,536,407 | $ | 32.96 | |||||
Granted
|
2,020,083 | 6.73 | ||||||
Vested
|
(918,196 | ) | 13.79 | |||||
Forfeited
|
(379,778 | ) | 48.72 | |||||
Balance at December 31, 2009
|
3,258,516 | $ | 20.26 | |||||
Years Ended December 31, | ||||||||
2008 | 2007 | |||||||
Risk-free interest rate
|
2.56% | 3.78% | ||||||
Dividend yield
|
1.92% | 3.44% | ||||||
Volatility
|
40.35% | 23.43% | ||||||
Weighted average option life
|
5.8 years | 5.8 years |
112
14. | Impairment Charges: |
Years Ended December 31, | ||||||||||||
2009 | 2008 | 2007 | ||||||||||
Land
|
$ | 136,996 | $ | 194,137 | $ | | ||||||
Industrial properties core
|
| | 12,600 | |||||||||
Industrial properties properties under development
|
| 19,814 | | |||||||||
Industrial properties completed properties
|
126,205 | 15,026 | | |||||||||
Retail and mixed use properties
|
46,137 | | | |||||||||
Ground leases and other
|
17,630 | | | |||||||||
Other real estate investments
|
4,624 | 45,728 | | |||||||||
Total
|
$ | 331,592 | $ | 274,705 | $ | 12,600 | ||||||
113
2009 | 2008 | |||||||
Goodwill
|
$ | | $ | 175,419 | ||||
Investment in and advances to unconsolidated investees
|
143,640 | 113,724 | ||||||
Notes Receivable
|
| 17,893 | ||||||
Other Assets
|
20,004 | 13,600 | ||||||
Total
|
$ | 163,644 | $ | 320,636 | ||||
114
15. | Income Taxes: |
2009 | 2008 | 2007 | ||||||||||
Domestic
|
$ | (224,032 | ) | $ | (39,724 | ) | $ | 214,845 | ||||
International
|
(35,006 | ) | (174,545 | ) | 780,718 | |||||||
Total
|
$ | (259,038 | ) | $ | (214,269 | ) | $ | 995,563 | ||||
2009 | 2008 | 2007 | ||||||||||
Current income tax expense
|
||||||||||||
Federal
|
$ | 13,586 | $ | 30,020 | $ | 28,264 | ||||||
Non-U.S.
|
14,610 | 32,283 | 35,423 | |||||||||
State and local
|
1,066 | 1,138 | 2,652 | |||||||||
Total Current
|
29,262 | 63,441 | 66,339 | |||||||||
Deferred income tax expense(benefit)
|
||||||||||||
Federal
|
(22,529 | ) | 9,637 | (16,197 | ) | |||||||
Non-U.S.
|
(758 | ) | (5,067 | ) | 16,713 | |||||||
Total Deferred
|
(23,287 | ) | 4,570 | 516 | ||||||||
Total income tax expense
|
$ | 5,975 | $ | 68,011 | $ | 66,855 | ||||||
115
2009 | 2008 | |||||||
Deferred income tax assets:
|
||||||||
Net operating loss carryforwards(1)
|
$ | 107,236 | $ | 57,387 | ||||
Basis difference real estate properties
|
67,090 | 6,378 | ||||||
Basis difference equity investees
|
9,994 | 5,838 | ||||||
Alternative minimum tax credit carryforward
|
1,050 | 921 | ||||||
Other temporary differences
|
11,790 | 8,916 | ||||||
Total deferred income tax assets
|
197,160 | 79,440 | ||||||
Valuation allowance
|
(141,068 | ) | (39,612 | ) | ||||
Net deferred income tax assets
|
56,092 | 39,828 | ||||||
Deferred income tax liabilities:
|
||||||||
Basis difference real estate properties
|
49,860 | 5,009 | ||||||
Built-in gains real estate properties
|
22,666 | 23,279 | ||||||
Basis difference equity investees
|
5,606 | 11,210 | ||||||
Built-in gains equity investees
|
24,741 | 24,741 | ||||||
Indemnification liabilities
|
37,903 | 38,412 | ||||||
Other temporary differences
|
21,748 | 20,105 | ||||||
Total deferred income tax liabilities
|
162,524 | 122,756 | ||||||
Net deferred income tax liabilities
|
$ | 106,432 | $ | 82,928 | ||||
(1) | At December 31, 2009, we had net operating loss (NOL) carryforwards as follows: |
116
U.S. | Europe | Mexico | ||||||||||
Gross NOL carryforward
|
$ | 53.4 | $ | 220.9 | $ | 152.8 | ||||||
Tax-effected NOL
|
19.5 | $ | 44.1 | 43.6 | ||||||||
Valuation allowance
|
| (44.1 | ) | (43.6 | ) | |||||||
Net deferred tax asset-NOL carryforward
|
$ | 19.5 | $ | | $ | | ||||||
Expiration periods
|
2022 2029 | 2014 indefinite | 2010 2018 |
2009 | 2008 | |||||||
Balance at January 1,
|
$ | 284,698 | $ | 192,438 | ||||
Additions based on tax positions related to the current year
|
7,207 | 4,785 | ||||||
Additions for tax positions of prior years
|
15,746 | 143,045 | ||||||
Reductions for tax positions of prior years
|
(6,886 | ) | (49,168 | ) | ||||
Settlements on tax positions of prior years
|
(226,601 | ) | | |||||
Reductions due to lapse of applicable statute of limitations
|
(8,994 | ) | (6,402 | ) | ||||
Balance at December 31,
|
$ | 65,170 | $ | 284,698 | ||||
117
16. | Earnings Per Common Share: |
Years Ended December 31, | ||||||||||||
2009 (1) | 2008 (1) | 2007 | ||||||||||
Net earnings (loss) attributable to common shares
|
$ | (2,650 | ) | $ | (479,226 | ) | $ | 1,027,635 | ||||
Noncontrolling interests attributable to convertible limited
partnership units (2)
|
| | 4,814 | |||||||||
Adjusted net earnings (loss) attributable to common shares
|
$ | (2,650 | ) | $ | (479,226 | ) | $ | 1,032,449 | ||||
Weighted average common shares outstanding Basic
|
403,149 | 262,729 | 256,873 | |||||||||
Incremental weighted average effect of conversion of limited
partnership units
|
| | 5,078 | |||||||||
Incremental weighted average effect of share awards (3)
|
| | 5,275 | |||||||||
Weighted average common shares outstanding Diluted
|
403,149 | 262,729 | 267,226 | |||||||||
Net earnings (loss) per share attributable to common
shares Basic
|
$ | (0.01 | ) | $ | (1.82 | ) | $ | 4.00 | ||||
Net earnings (loss) per share attributable to common
shares Diluted
|
$ | (0.01 | ) | $ | (1.82 | ) | $ | 3.86 | ||||
118
(1) | In periods with a net loss, the inclusion of any incremental shares is anti-dilutive, and therefore, both basic and diluted shares are the same. | |
(2) | Includes the noncontrolling interest related to the convertible limited partnership units, which are included in incremental shares. If the impact of the conversion of limited partnership units is anti-dilutive, the income and shares are not included in the per share calculation. | |
(3) | Total weighted average potentially dilutive share awards outstanding for 2007 (in thousands) were 10,098 and the majority were dilutive. |
17. | Related Party Transactions: |
18. | Financial Instruments and Fair Value Measurements: |
119
| Foreign currency forwards we may use foreign currency forward contracts to manage the foreign currency fluctuations of intercompany loans not deemed to be a long-term investment and certain transactions denominated in a currency other than the entitys functional currency. These contracts are marked-to-market through earnings, as they are not designated as hedges. The gains or losses resulting from these derivative instruments are included in Foreign Currency Exchange Gains (Losses), Net in our Consolidated Statements of Operations. For contracts associated with intercompany loans, the impact on |
120
earnings is generally offset by the remeasurement gains and losses recognized on the related intercompany loans. We had no outstanding foreign currency forwards at December 31, 2009. |
| Foreign currency put options we may use foreign currency put option contracts to manage foreign currency exchange rate risk associated with the projected net operating income of our foreign consolidated subsidiaries and unconsolidated investees. These contracts are marked-to-market through earnings in Foreign Currency Exchange Gains (Losses), Net, as they do not qualify for hedge accounting treatment. We had no outstanding foreign currency put options at December 31, 2009. |
Foreign Currency |
Foreign Currency |
Interest |
||||||||||
Put Options (1) | Forwards (2) | Rate Swaps (3) | ||||||||||
Notional amounts at January 1, 2007
|
$ | 54.7 | $ | 661.0 | $ | | ||||||
New contracts
|
| 2,637.2 | 959.2 | |||||||||
Matured or expired contracts
|
(54.7 | ) | (2,937.5 | ) | (959.2 | ) | ||||||
Notional amounts at December 31, 2007
|
| 360.7 | | |||||||||
New contracts
|
| | 250.0 | |||||||||
Matured or expired contracts
|
| (360.7 | ) | (250.0 | ) | |||||||
Notional amounts at December 31, 2008
|
| | | |||||||||
New contracts
|
| 351.7 | 157.7 | |||||||||
Matured or expired contracts
|
| (351.7 | ) | | ||||||||
Notional amounts at December 31, 2009
|
$ | | $ | | $ | 157.7 | ||||||
(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, British 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. We did not recognize any expense in 2009, 2008 or 2007. | |
(2) | Certain of the foreign currency forward contracts outstanding in 2008 and 2007 were designed to manage the foreign currency fluctuations of intercompany loans and allowed us to sell British pounds sterling and euros at a fixed exchange rate to the U.S. dollar. We had no forward contracts related to intercompany loans outstanding at December 31, 2009. We recognized net losses of $5.7 million, $3.1 million and $95.9 million for the years ended December 31, 2009, 2008 and 2007, respectively, related to these contracts. | |
During 2009, we entered into and settled forward contracts to buy yen to manage the foreign currency fluctuations related to the sale of our investments in the Japan property funds and recognized losses of $5.7 million in Foreign Currency Exchange Gains (Losses), Net in our Consolidated Statements of Operations. | ||
During the second quarter of 2007, we purchased several foreign currency forward contracts to manage the foreign currency fluctuations of the purchase price of MPR (see Note 6). These contracts allowed us to buy Australian dollars at a fixed exchange rate to the U.S. dollar. Derivative instruments used to manage the foreign currency fluctuations of an anticipated business combination do not qualify for hedge accounting treatment and are included in earnings. The contracts settled in July 2007 in connection with |
121
the completed acquisition and resulted in the recognition of a net gain of $26.6 million in Foreign Currency Exchange Gains (Losses), Net for the year ended December 31, 2007. | ||
(3) | During 2009, 2008 and 2007, we entered into several contracts with total notional amounts of $157.7 million, $250.0 million, and $959.2 million, respectively, associated with anticipated debt issuances. |
| In 2009, we entered into two interest rate swap contracts to fix the interest rate on our variable rate TMK bonds (¥4.3 billion and ¥10.0 billion, respectively) that mature in June 2012 and December 2012, respectively. We designated the contracts as cash flow hedges and they qualify for hedge accounting treatment. We have recorded a liability of $0.9 million in Accounts Payable and Accrued Expenses in our Consolidated Balance Sheets at December 31, 2009. | |
| During 2008, in connection with the issuance of senior notes and convertible senior notes, we entered into contracts that qualified as cash flow hedges and recognized a decrease in value of $3.3 million, associated with the unwinding of these contracts, in Accumulated Other Comprehensive Income (Loss) and began amortizing as an increase to interest expense as interest payments are made on the related notes. | |
| In 2007, we entered into contracts with notional amounts of $188.0 million and $271.2 million and which represented our share of future debt issuances by ProLogis North American Industrial Fund III, ProLogis North American Industrial Fund II respectively. These contracts were transferred into the funds at formation, at which time the contracts qualified for hedge accounting treatment by the funds. We also entered into contracts with an aggregate notional amount of $500.0 million associated with a future debt issuance. All of these contracts qualified for hedge accounting treatment and allowed us to fix a portion of the interest rate associated with the anticipated issuance of senior notes. In connection with the issuance of the convertible notes, we unwound these contracts, recognized a decrease in value of $1.4 million in Accumulated Other Comprehensive Income (Loss) and began amortizing as an increase to interest expense as interest payments are made on the senior notes. |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Real estate assets
|
$ | | $ | | $ | 409,944 | $ | 409,944 | ||||||||
Investments in and advances to other unconsolidated investees
|
$ | | $ | | $ | 45,000 | $ | 45,000 |
122
December 31, | ||||||||||||||||
2009 | 2008 | |||||||||||||||
Carrying |
Carrying |
|||||||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||||
Debt:
|
||||||||||||||||
Global Line and Credit Facility
|
$ | 736,591 | $ | 716,993 | $ | 3,218,283 | $ | 3,175,128 | ||||||||
Senior and other notes
|
4,047,905 | 3,981,971 | 3,995,410 | 2,284,892 | ||||||||||||
Convertible senior notes
|
2,078,441 | 2,058,507 | 2,590,133 | 1,289,163 | ||||||||||||
Secured mortgage debt
|
1,090,126 | 1,094,526 | 877,916 | 837,727 | ||||||||||||
Assessment bonds
|
24,715 | 24,197 | 29,626 | 32,903 | ||||||||||||
Total debt
|
$ | 7,977,778 | $ | 7,876,194 | $ | 10,711,368 | $ | 7,619,813 | ||||||||
19. | Commitments and Contingencies: |
123
20. | Business Segments: |
124
| Direct Owned 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. We own real estate in North America (Canada, Mexico and the United States), Europe (Austria, Belgium, the Czech Republic, France, Germany, Hungary, Italy, the Netherlands, Poland, Romania, Slovakia, Spain, Sweden and the United Kingdom) and Asia (Japan and South Korea). Also included in this segment is the development of properties for continued direct ownership, including land held for development and properties currently under development. Beginning in 2009, we also include the land we own and lease to customers under ground leases that was previously included in our other operating segments. Therefore, we have reclassified 2008 amounts to conform to the 2009 presentation. | |
| Investment Management representing the long-term investment management of property funds and industrial and retail joint ventures and the properties they own. We recognize our proportionate share of the earnings or losses from our investments in unconsolidated property funds and joint ventures operating in North America, Europe and Asia. Along with the income recognized under the equity method, we include fees and incentives earned for services performed on behalf of the unconsolidated investees and interest income earned on advances to unconsolidated investees, if any. We utilize our leasing and property management expertise to efficiently manage the properties and our unconsolidated investees, and we allocate the costs as Investment Management Expenses in this segment. Each investment in a property fund or joint venture is considered to be an individual operating segment having similar economic characteristics that are combined within the reportable segment based upon geographic location. Our operations in the investment management segment are in North America (Canada, Mexico and the United States), Europe (Belgium, the Czech Republic, France, Germany, Hungary, Italy, the Netherlands, Poland, Slovakia, Spain, Sweden, and the United Kingdom), and Asia (Japan, through July 2009, and South Korea). |
| CDFS business primarily encompassed our development of real estate properties that were subsequently contributed to a property fund in which we had an ownership interest and acted as manager, or sold to third parties. Additionally, we acquired properties with the intent to rehabilitate and/or reposition the property prior to contributing to a property fund. The proceeds and related costs of these dispositions are presented as Developed and Repositioned Properties in the Consolidated Statements of Operations. In addition, we occasionally acquired a portfolio of properties with the intent of contributing the portfolio to an existing or future property fund. The proceeds and related costs of these dispositions are presented as Acquired Property Portfolios in the Consolidated Statements of Operations. During the period between the completion of development or acquisition of a property and the date the property is contributed to a property fund or sold to a third party, the property and its associated rental income and rental expenses were included in the direct owned segment because the primary activity associated with the property during that period is leasing. Upon contribution or sale, the resulting gain or loss was included in the income of the CDFS business segment. The separate activities in this segment were considered to be individual operating segments having similar economic characteristics that are combined within the reportable segment based upon geographic location. When a property that we originally contributed to a property fund |
125
was sold to a third party, we recognized any gain that was deferred due to our ownership interest in the property fund at the time of contribution as CDFS proceeds. In 2009, the only activity being reported in the CDFS segment is the gain on sale of our investments in the Japan property funds as it is essentially the recognition of gains from this segment that were deferred due to our ownership interests at the time of the original contributions. |
126
Years Ended December 31, | ||||||||||||||||
2009 | 2008 | 2007 | ||||||||||||||
Revenues (1):
|
||||||||||||||||
Direct Owned (2):
|
||||||||||||||||
North America
|
$ | 784,559 | $ | 797,250 | $ | 836,265 | ||||||||||
Europe
|
63,948 | 108,619 | 124,394 | |||||||||||||
Asia
|
51,575 | 33,638 | 35,681 | |||||||||||||
Total direct owned segment
|
900,082 | 939,507 | 996,340 | |||||||||||||
Investment management (3):
|
||||||||||||||||
North America
|
53,440 | 68,994 | 65,603 | |||||||||||||
Europe
|
82,632 | (41,884 | ) | 100,164 | ||||||||||||
Asia
|
30,038 | 39,331 | 30,184 | |||||||||||||
Total investment management segment
|
166,110 | 66,441 | 195,951 | |||||||||||||
CDFS business (4):
|
||||||||||||||||
North America
|
| 1,027,563 | 2,862,104 | |||||||||||||
Europe
|
| 2,614,877 | 1,488,645 | |||||||||||||
Asia
|
180,237 | 853,025 | 654,663 | |||||||||||||
Total CDFS business segment
|
180,237 | 4,495,465 | 5,005,412 | |||||||||||||
Total segment revenue
|
1,246,429 | 5,501,413 | 6,197,703 | |||||||||||||
Reconciling items (5)
|
(23,347 | ) | 64,570 | (91,232 | ) | |||||||||||
Total revenues
|
$ | 1,223,082 | $ | 5,565,983 | $ | 6,106,471 | ||||||||||
Net operating income:
|
||||||||||||||||
Direct owned (6):
|
||||||||||||||||
North America
|
$ | 554,338 | $ | 558,371 | $ | 620,125 | ||||||||||
Europe
|
16,821 | 51,983 | 86,428 | |||||||||||||
Asia
|
35,402 | 24,188 | 28,154 | |||||||||||||
Total direct owned segment
|
606,561 | 634,542 | 734,707 | |||||||||||||
Investment management (3)(7):
|
||||||||||||||||
North America
|
29,759 | 44,842 | 51,418 | |||||||||||||
Europe
|
66,327 | (59,802 | ) | 86,116 | ||||||||||||
Asia
|
26,608 | 30,640 | 24,469 | |||||||||||||
Total investment management segment
|
122,694 | 15,680 | 162,003 | |||||||||||||
CDFS business (8):
|
||||||||||||||||
North America
|
| 121,102 | 242,054 | |||||||||||||
Europe
|
| 310,765 | 280,539 | |||||||||||||
Asia
|
180,237 | 222,879 | 241,102 | |||||||||||||
Total CDFS business segment
|
180,237 | 654,746 | 763,695 | |||||||||||||
Total segment net operating income
|
909,492 | 1,304,968 | 1,660,405 | |||||||||||||
Reconciling items:
|
||||||||||||||||
General and administrative expenses
|
(180,486 | ) | (177,350 | ) | (170,398 | ) | ||||||||||
Reduction in workforce
|
(11,745 | ) | (23,131 | ) | | |||||||||||
Impairment of real estate properties (9)
|
(331,592 | ) | (274,705 | ) | (12,600 | ) | ||||||||||
Depreciation and amortization expense
|
(315,807 | ) | (317,315 | ) | (286,279 | ) | ||||||||||
Earnings from other unconsolidated investees, net
|
4,712 | 8,796 | 7,794 | |||||||||||||
Interest expense
|
(373,305 | ) | (385,065 | ) | (389,844 | ) | ||||||||||
Impairment of goodwill and other assets (10)
|
(163,644 | ) | (320,636 | ) | | |||||||||||
Other income (expense), net
|
(39,809 | ) | 16,063 | 31,686 | ||||||||||||
Net gains on dispositions of real estate properties
|
35,262 | 11,668 | 146,667 | |||||||||||||
Foreign currency exchange gains (losses), net
|
35,626 | (148,281 | ) | 8,132 | ||||||||||||
Gain on early extinguishment of debt
|
172,258 | 90,719 | | |||||||||||||
Total reconciling items
|
(1,168,530 | ) | (1,519,237 | ) | (664,842 | ) | ||||||||||
Total earnings (loss) before income taxes
|
$ | (259,038 | ) | $ | (214,269 | ) | $ | 995,563 | ||||||||
127
December 31, | ||||||||
2009 | 2008 | |||||||
Assets (11):
|
||||||||
Direct owned:
|
||||||||
North America (10)
|
$ | 9,241,846 | $ | 9,326,387 | ||||
Europe (10)
|
3,389,616 | 4,177,976 | ||||||
Asia
|
1,932,187 | 1,791,611 | ||||||
Total direct owned segment
|
14,563,649 | 15,295,974 | ||||||
Investment management (12):
|
||||||||
North America
|
1,027,367 | 959,689 | ||||||
Europe (10)
|
956,365 | 803,235 | ||||||
Asia
|
52,170 | 381,674 | ||||||
Total investment management segment
|
2,035,902 | 2,144,598 | ||||||
Reconciling items:
|
||||||||
Investments in and advances to other unconsolidated investees
|
141,107 | 150,681 | ||||||
Cash and cash equivalents
|
34,362 | 174,636 | ||||||
Accounts and notes receivable
|
1,574 | 2,253 | ||||||
Other assets
|
108,821 | 190,231 | ||||||
Discontinued operations assets held for sale
|
| 1,310,754 | ||||||
Total reconciling items
|
285,864 | 1,828,555 | ||||||
Total assets
|
$ | 16,885,415 | $ | 19,269,127 | ||||
(1) | Includes revenues attributable to the United States for the years ended December 31, 2009, 2008 and 2007 of $811.1 million, $1,610.6 million and $3,489.7 million, respectively. | |
(2) | Includes rental income of our industrial and retail properties and land subject to ground leases, as well as development management and other income. | |
(3) | Includes investment management fees and incentive returns and our share of the earnings or losses recognized under the equity method from our investments in unconsolidated property funds and certain industrial and retail joint ventures along with interest earned on advances to these unconsolidated investees. In 2008, the revenues and net operating income of this segment were reduced by $108.2 million representing our proportionate share of the loss on sale/impairment recognized by one of the property funds in Europe. See Note 6 for more information. | |
(4) | In 2009, includes the recognition of gains previously deferred from CDFS contributions to the Japan property funds due to the sale of our investments in the property funds in February 2009. In 2008 and 2007, includes proceeds received on CDFS property dispositions, fees earned from customers and third parties for development activities and interest income on notes receivable related to asset dispositions. | |
(5) | Amount represents the earnings or losses recognized under the equity method from our investments in unconsolidated investees that are reflected in the revenues of the investment management segment and interest income on notes receivable related to asset dispositions that are reflected in revenues of the CDFS business segment. These items are not presented as a component of revenues in our Consolidated Statements of Operations. |
128
(6) | Includes rental income less rental expenses of our distribution and retail properties and land subject to ground leases, as well as development management and other income less related expenses. | |
(7) | Also includes the costs we incur to manage the unconsolidated investees and the properties they own. | |
(8) | In 2009, includes the recognition of gains previously deferred from CDFS contributions to the Japan property funds due to the sale of our investments in the Japan property funds in February 2009. In 2008 and 2007 includes net gains on CDFS property dispositions, fees earned from customers and third parties for development activities and interest income on notes receivable related to asset dispositions, offset partially by land holding costs and the write-off of previously capitalized pursuit costs associated with potential CDFS business assets when it became likely the assets would not be acquired. | |
(9) | During 2009, we recognized impairment charges related to our real estate properties in our Direct Owned segment ($157.9 million in North America and $173.7 million in Europe). During 2008, we recognized impairment charges related to our real estate properties in our Direct Owned segment ($21.0 million in North America and $253.7 million in Europe). See Note 14 for more discussion of these charges. | |
(10) | During 2009, we recognized impairment charges of $28.5 million to write-off our investments in ProLogis North American Properties Fund IX and X. During 2009 and 2008 we recognized impairment charges of $115.1 million and $113.7 million, respectively, related to our investment in and advances to an unconsolidated investee in Europe. These impairments related to our Investment Management segment and are discussed further in Note 6. |
Segment/Reporting Unit | 2009 | 2008 | ||||||
Direct
Owned:
|
||||||||
North
America
|
$ | 235,519 | $ | 235,519 | ||||
Europe
|
130,758 | 127,347 | ||||||
Total
direct owned segment
|
366,277 | 362,866 | ||||||
Investment
management:
|
||||||||
Europe
|
25,286 | 25,286 | ||||||
Total
allocated
|
391,563 | 388,152 | ||||||
Not
allocated to a segment/reporting unit
|
7,474 | 7,474 | ||||||
Total
goodwill
|
$ | 399,037 | $ | 395,626 | ||||
(11) | Includes long-lived assets attributable to the United States as of December 31, 2009 and 2008 of $9.7 billion and $10.3 billion, respectively. | |
(12) | Represents our investments in and advances to the property funds and certain investments in industrial and retail joint ventures. |
129
21. | Supplemental Cash Flow Information: |
| We received $30.3 million, $455.0 million and $351.3 million of ownership interests in certain unconsolidated investees as a portion of our proceeds from the contribution of properties to these property funds during 2009, 2008 and 2007, respectively. In 2007, in connection with these contributions, we recorded $51.6 million in potential liabilities for future obligations we may have associated with these transactions, which have subsequently been settled or adjusted. |
| We capitalized portions of the total cost of our share-based compensation awards of $5.8 million, $12.1 million and $10.8 million to the investment basis of our real estate and other assets during the years ended December 31, 2009, 2008, and 2007, respectively. |
| We settled $1.6 million, $21.3 million and $4.4 million of noncontrolling interest liabilities with the conversion of limited partnership units into 413,500 common shares, 3.9 million common shares and 128,000 common shares in 2009, 2008 and 2007, respectively. |
| We recorded $6.7 million and $27.8 million of noncontrolling interest liabilities associated with investments made in entities that we consolidate and own less that 100% in 2008 and 2007, respectively. |
| We assumed $6.6 million and $27.3 million of debt and other liabilities in 2008 and 2007, respectively, in connection with the acquisition of properties. |
| As partial consideration for property contributions in 2008, the China property fund assumed $47.9 million in construction liabilities. |
| We recognized a $9.3 million increase in the liability for unrecognized tax benefits, which was accounted for as a reduction to the January 1, 2007 balance of distributions in excess of earnings in connection with the adoption of the provisions of a new accounting standard. |
| In connection with the acquisition of all of the units in MPR in July 2007 (see Note 6), we assumed $828.3 million of debt and reallocated our equity investment of $47.7 million to assets acquired. |
| As a result of the conversion by Citigroup of its convertible loan into equity of ProLogis North American Industrial Fund II in August 2007, we began accounting for our investment in this property fund under the equity method of accounting. This transaction resulted in a disposition of $2.0 billion of real estate assets and $1.9 billion of associated debt in exchange for an equity investment of $219.1 million and the recognition of a gain. |
130
22. | Selected Quarterly Financial Data (Unaudited): |
Three Months Ended, | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
2009:
|
||||||||||||||||
Total revenues
|
$ | 433,293 | $ | 259,053 | $ | 270,418 | $ | 260,318 | ||||||||
Operating income (loss)
|
$ | 221,994 | $ | (35,162 | ) | $ | 24,934 | $ | (165,711 | ) | ||||||
Earnings (loss) from continuing operations
|
$ | 170,669 | $ | 39,741 | $ | (21,810 | ) | $ | (453,613 | ) | ||||||
Net earnings (loss) attributable to common shares
|
$ | 178,732 | $ | 238,865 | $ | (11,788 | ) | $ | (408,459 | ) | ||||||
Net earnings (loss) per share attributable to common
shares Basic (1)
|
$ | 0.67 | $ | 0.59 | $ | (0.03 | ) | $ | (0.86 | ) | ||||||
Net earnings (loss) per share attributable to common
shares Diluted (1)(2)
|
$ | 0.66 | $ | 0.58 | $ | (0.03 | ) | $ | (0.86 | ) | ||||||
2008:
|
||||||||||||||||
Total revenues
|
$ | 1,625,028 | $ | 1,487,129 | $ | 985,491 | $ | 1,468,335 | ||||||||
Operating income (loss)
|
$ | 349,024 | $ | 256,222 | $ | 130,300 | $ | (158,968 | ) | |||||||
Earnings (loss) from continuing operations
|
$ | 178,782 | $ | 210,628 | $ | 29,435 | $ | (701,125 | ) | |||||||
Net earnings (loss) attributable to common shares
|
$ | 183,521 | $ | 206,332 | $ | 32,153 | $ | (901,232 | ) | |||||||
Net earnings (loss) per share attributable to common
shares Basic (1)
|
$ | 0.71 | $ | 0.79 | $ | 0.12 | $ | (3.39 | ) | |||||||
Net earnings (loss) per share attributable to common
shares Diluted (1)(2)
|
$ | 0.69 | $ | 0.76 | $ | 0.12 | $ | (3.39 | ) | |||||||
(1) | Quarterly earnings per common share amounts may not total to the annual amounts due to rounding and the changes in the number of weighted common shares outstanding and included in the calculation of diluted shares. | |
(2) | In periods with a net loss, the inclusion of any incremental shares is anti-dilutive, and therefore, both basic and diluted loss per share is the same. |
131
132
Initial Cost to |
Costs |
||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
|||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
|||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
|||||||||||||||||||||||
Industrial Operating Properties(d)
|
|||||||||||||||||||||||||||||||||
North American Markets:
|
|||||||||||||||||||||||||||||||||
United States:
|
|||||||||||||||||||||||||||||||||
Atlanta, Georgia
|
|||||||||||||||||||||||||||||||||
Atlanta NE Distribution Center
|
8 | (e) | 5,582 | 3,047 | 27,282 | 6,276 | 29,635 | 35,911 | (13,212) | 1996, 1997 | |||||||||||||||||||||||
Atlanta West Distribution Center
|
16 | (e) | 9,769 | 43,856 | 16,710 | 9,588 | 60,747 | 70,335 | (21,965) | 1994, 1996, 2005, 2006 | |||||||||||||||||||||||
Berkeley Lake Distribution Center
|
1 | (e) | 2,178 | 8,712 | 35 | 2,046 | 8,879 | 10,925 | (807) | 2006 | |||||||||||||||||||||||
Braselton Business Park
|
1 | (e) | 3,860 | 15,258 | 14 | 3,817 | 15,315 | 19,132 | (879) | 2008 | |||||||||||||||||||||||
Buford Distribution Center(d)
|
1 | 1,487 | - | 5,388 | 1,487 | 5,388 | 6,875 | (203) | 2007 | ||||||||||||||||||||||||
Cedars Distribution Center
|
1 | 1,366 | 7,739 | 3,045 | 1,692 | 10,458 | 12,150 | (4,034) | 1999 | ||||||||||||||||||||||||
Douglas Hill Distribution Center
|
4 | 11,599 | 46,825 | 1,202 | 11,677 | 47,949 | 59,626 | (6,671) | 2005 | ||||||||||||||||||||||||
Greenwood Industrial Park(d)
|
1 | 3,989 | - | 21,743 | 3,989 | 21,743 | 25,732 | (1,557) | 2006 | ||||||||||||||||||||||||
Horizon Distribution Center
|
1 | 2,846 | 11,385 | 173 | 2,846 | 11,558 | 14,404 | (1,054) | 2006 | ||||||||||||||||||||||||
LaGrange Distribution Center
|
1 | 174 | 986 | 724 | 174 | 1,710 | 1,884 | (1,072) | 1994 | ||||||||||||||||||||||||
Midland Distribution Center
|
1 | (e) | 1,919 | 7,679 | 1,446 | 1,919 | 9,125 | 11,044 | (879) | 2006 | |||||||||||||||||||||||
Northeast Industrial Center
|
3 | (f) | 841 | 4,744 | 2,290 | 782 | 7,093 | 7,875 | (4,006) | 1996 | |||||||||||||||||||||||
Northmont Industrial Center
|
1 | 566 | 3,209 | 1,169 | 566 | 4,378 | 4,944 | (2,505) | 1994 | ||||||||||||||||||||||||
Peachtree Corners Business Center
|
5 | (f) | 1,519 | 7,253 | 2,361 | 1,519 | 9,614 | 11,133 | (3,652) | 1994, 2006 | |||||||||||||||||||||||
Piedmont Ct. Distribution Center
|
2 | (f) | 885 | 5,013 | 2,585 | 885 | 7,598 | 8,483 | (4,182) | 1997 | |||||||||||||||||||||||
Pleasantdale Industrial Center
|
2 | 541 | 3,184 | 1,353 | 541 | 4,537 | 5,078 | (2,434) | 1995 | ||||||||||||||||||||||||
Riverside Distribution Center
|
3 | 2,533 | 13,336 | 3,403 | 2,556 | 16,716 | 19,272 | (6,263) | 1999 | ||||||||||||||||||||||||
South Royal Atlanta Distribution Center
|
1 | 356 | 2,019 | 505 | 356 | 2,524 | 2,880 | (570) | 2002 | ||||||||||||||||||||||||
Tradeport Distribution Center
|
3 | (e) | 1,464 | 4,563 | 7,195 | 1,479 | 11,743 | 13,222 | (6,018) | 1994, 1996 | |||||||||||||||||||||||
Weaver Distribution Center
|
2 | (f) | 935 | 5,182 | 2,096 | 935 | 7,278 | 8,213 | (3,876) | 1995 | |||||||||||||||||||||||
Westfork Industrial Center
|
10 | (e) | 2,483 | 14,115 | 3,900 | 2,442 | 18,056 | 20,498 | (9,118) | 1995 | |||||||||||||||||||||||
Total Atlanta, Georgia
|
68 | 56,892 | 208,105 | 104,619 | 57,572 | 312,044 | 369,616 | (94,957) | |||||||||||||||||||||||||
Austin, Texas
|
|||||||||||||||||||||||||||||||||
Corridor Park Corporate Center
|
6 | 1,652 | 1,681 | 15,406 | 2,113 | 16,626 | 18,739 | (8,459) | 1995, 1996 | ||||||||||||||||||||||||
Montopolis Distribution Center
|
1 | 580 | 3,384 | 1,675 | 580 | 5,059 | 5,639 | (2,769) | 1994 | ||||||||||||||||||||||||
Southpark Corporate Center
|
2 | 684 | - | 4,996 | 684 | 4,996 | 5,680 | (2,457) | 1994 | ||||||||||||||||||||||||
Walnut Creek Corporate Center
|
3 | 461 | 4,089 | 55 | 515 | 4,090 | 4,605 | (2,143) | 1994 | ||||||||||||||||||||||||
Total Austin, Texas
|
12 | 3,377 | 9,154 | 22,132 | 3,892 | 30,771 | 34,663 | (15,828) | |||||||||||||||||||||||||
133
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
Central Valley, California
|
||||||||||||||||||||||||||||||||||
Central Valley Distribution Center
|
1 | 2,233 | 13,432 | 506 | 2,233 | 13,938 | 16,171 | (5,026 | ) | 1999 | ||||||||||||||||||||||||
Central Valley Industrial Center
|
4 | (e) | 11,418 | 48,726 | 11,526 | 11,868 | 59,802 | 71,670 | (18,210 | ) | 1999, 2002, 2005 | |||||||||||||||||||||||
Manteca Distribution Center
|
1 | 9,280 | 27,841 | 62 | 9,280 | 27,903 | 37,183 | (4,010 | ) | 2005 | ||||||||||||||||||||||||
Patterson Pass Business Center (d)
|
3 | (f) | 1,862 | 4,885 | 8,373 | 1,886 | 13,234 | 15,120 | (3,787 | ) | 1993, 2007 | |||||||||||||||||||||||
Tracy II Distribution Center (d)
|
3 | 6,783 | 20,384 | 73,442 | 10,856 | 89,753 | 100,609 | (1,885 | ) | 2007, 2009 | ||||||||||||||||||||||||
Total Central Valley, California
|
12 | 31,576 | 115,268 | 93,909 | 36,123 | 204,630 | 240,753 | (32,918 | ) | |||||||||||||||||||||||||
Charlotte, North Carolina
|
||||||||||||||||||||||||||||||||||
Barringer Industrial Center
|
3 | 308 | 1,746 | 1,143 | 308 | 2,889 | 3,197 | (1,638 | ) | 1994 | ||||||||||||||||||||||||
Bond Distribution Center
|
2 | 905 | 5,126 | 2,252 | 905 | 7,378 | 8,283 | (3,927 | ) | 1994 | ||||||||||||||||||||||||
Charlotte Commerce Center
|
10 | (e) | 4,341 | 24,954 | 9,586 | 4,342 | 34,539 | 38,881 | (19,535 | ) | 1994 | |||||||||||||||||||||||
Charlotte Distribution Center
|
9 | (e) | 4,578 | - | 26,624 | 6,096 | 25,106 | 31,202 | (11,850 | ) | 1995, 1996, 1997, 1998 | |||||||||||||||||||||||
Interstate North Business Park (d)
|
3 | 948 | 3,030 | 5,507 | 954 | 8,531 | 9,485 | (2,391 | ) | 1997, 2006 | ||||||||||||||||||||||||
Northpark Distribution Center
|
2 | (e) | 1,183 | 6,707 | 2,410 | 1,184 | 9,116 | 10,300 | (4,426 | ) | 1994, 1998 | |||||||||||||||||||||||
West Pointe Business Center (d)
|
1 | 2,416 | - | 9,487 | 2,416 | 9,487 | 11,903 | (450 | ) | 2006 | ||||||||||||||||||||||||
Wilson Business Park Distribution Center
|
1 | 976 | 5,598 | 17 | 968 | 5,623 | 6,591 | (545 | ) | 2007 | ||||||||||||||||||||||||
Total Charlotte, North Carolina
|
31 | 15,655 | 47,161 | 57,026 | 17,173 | 102,669 | 119,842 | (44,762 | ) | |||||||||||||||||||||||||
Chicago, Illinois
|
||||||||||||||||||||||||||||||||||
Addison Distribution Center
|
1 | (f) | 646 | 3,662 | 824 | 640 | 4,492 | 5,132 | (2,115 | ) | 1997 | |||||||||||||||||||||||
Alsip Distribution Center
|
2 | 2,093 | 11,859 | 9,138 | 2,549 | 20,541 | 23,090 | (11,309 | ) | 1997, 1999 | ||||||||||||||||||||||||
Arlington Heights Distribution Center
|
1 | 831 | 3,326 | 631 | 831 | 3,957 | 4,788 | (397 | ) | 2006 | ||||||||||||||||||||||||
Bedford Park Industrial Center
|
1 | 941 | 4,907 | 2,011 | 941 | 6,918 | 7,859 | (991 | ) | 2005 | ||||||||||||||||||||||||
Bensenville Distribution Center
|
1 | 926 | 3,842 | 5,673 | 940 | 9,501 | 10,441 | (5,597 | ) | 1997 | ||||||||||||||||||||||||
Bolingbrook Distribution Center
|
5 | (e) | 15,299 | 68,440 | 2,156 | 15,110 | 70,785 | 85,895 | (14,888 | ) | 1999, 2006 | |||||||||||||||||||||||
Des Plaines Distribution Center
|
3 | (e) | 2,158 | 12,232 | 5,030 | 2,159 | 17,261 | 19,420 | (9,113 | ) | 1995, 1996 | |||||||||||||||||||||||
Elk Grove Distribution Center (d)
|
26 | (f) | 32,828 | 94,843 | 36,454 | 32,716 | 131,409 | 164,125 | (35,210 | ) | 1995, 1996, 1997, 1998, 1999, 2006, 2009 | |||||||||||||||||||||||
Elmhurst Distribution Center
|
1 | 713 | 4,043 | 977 | 713 | 5,020 | 5,733 | (2,367 | ) | 1997 | ||||||||||||||||||||||||
Glendale Heights Distribution Center
|
3 | (e) | 3,903 | 22,119 | 3,146 | 3,903 | 25,265 | 29,168 | (9,303 | ) | 1999 | |||||||||||||||||||||||
Glenview Distribution Center
|
2 | 1,156 | 6,550 | 1,727 | 1,156 | 8,277 | 9,433 | (3,747 | ) | 1996, 1999 | ||||||||||||||||||||||||
I-55 Distribution Center (d)
|
2 | (e) | 5,383 | 25,504 | 31,528 | 10,484 | 51,931 | 62,415 | (2,310 | ) | 2007 | |||||||||||||||||||||||
Itasca Distribution Center
|
2 | 604 | 3,382 | 1,147 | 604 | 4,529 | 5,133 | (2,111 | ) | 1996, 1997 | ||||||||||||||||||||||||
Lombard Distribution Center
|
1 | (f) | 1,170 | 6,630 | 397 | 1,170 | 7,027 | 8,197 | (2,633 | ) | 1999 |
134
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
Minooka Distribution Center (d)
|
2 | 12,240 | 41,745 | 15,609 | 12,203 | 57,391 | 69,594 | (6,396 | ) | 2005, 2008 | ||||||||||||||||||||||||
Mitchell Distribution Center
|
1 | 1,236 | 7,004 | 2,170 | 1,236 | 9,174 | 10,410 | (4,713 | ) | 1996 | ||||||||||||||||||||||||
Northbrook Distribution Center
|
1 | (f) | 2,056 | 8,227 | 286 | 2,056 | 8,513 | 10,569 | (791 | ) | 2007 | |||||||||||||||||||||||
Northlake Distribution Center
|
1 | (f) | 372 | 2,106 | 705 | 372 | 2,811 | 3,183 | (1,439 | ) | 1996 | |||||||||||||||||||||||
Pleasant Prairie Distribution Center
|
1 | 1,314 | 7,450 | 2,379 | 1,315 | 9,828 | 11,143 | (3,507 | ) | 1999 | ||||||||||||||||||||||||
Rochelle Distribution Center (d)
|
1 | 4,457 | 20,100 | 510 | 4,402 | 20,665 | 25,067 | (492 | ) | 2008 | ||||||||||||||||||||||||
Romeoville Distribution Center
|
6 | (e) | 23,731 | 96,764 | 1,072 | 23,731 | 97,836 | 121,567 | (15,531 | ) | 1999, 2005 | |||||||||||||||||||||||
S.C. Johnson & Son (d)
|
1 | 2,267 | 15,911 | 604 | 2,225 | 16,557 | 18,782 | (382 | ) | 2008 | ||||||||||||||||||||||||
Waukegan Distribution Center
|
2 | 4,368 | 17,632 | 684 | 4,368 | 18,316 | 22,684 | (1,776 | ) | 2007 | ||||||||||||||||||||||||
West Chicago Distribution Center
|
1 | 3,125 | 12,499 | 421 | 3,125 | 12,920 | 16,045 | (1,797 | ) | 2005 | ||||||||||||||||||||||||
Woodale Distribution Center
|
1 | 263 | 1,490 | 445 | 263 | 1,935 | 2,198 | (956 | ) | 1997 | ||||||||||||||||||||||||
Woodridge Distribution Center (d)
|
14 | (e) | 46,575 | 197,289 | 11,861 | 49,942 | 205,783 | 255,725 | (27,542 | ) | 2005, 2007 | |||||||||||||||||||||||
Total Chicago, Illinois
|
83 | 170,655 | 699,556 | 137,585 | 179,154 | 828,642 | 1,007,796 | (167,413 | ) | |||||||||||||||||||||||||
Cincinnati, Ohio
|
||||||||||||||||||||||||||||||||||
Airpark Distribution Center
|
2 | (e) | 1,128 | - | 11,840 | 1,716 | 11,252 | 12,968 | (4,830 | ) | 1996 | |||||||||||||||||||||||
Capital Distribution Center II
|
5 | (e) | 1,953 | 11,067 | 4,506 | 1,953 | 15,573 | 17,526 | (8,663 | ) | 1994 | |||||||||||||||||||||||
Constitution Distribution Center
|
1 | 1,465 | 8,301 | 658 | 1,465 | 8,959 | 10,424 | (3,326 | ) | 1999 | ||||||||||||||||||||||||
Dues Drive Distribution Center
|
1 | 921 | 5,218 | 2,168 | 921 | 7,386 | 8,307 | (1,437 | ) | 2003 | ||||||||||||||||||||||||
Empire Distribution Center
|
3 | (e) | 529 | 2,995 | 2,290 | 529 | 5,285 | 5,814 | (2,950 | ) | 1995 | |||||||||||||||||||||||
Enterprise Distribution Center
|
1 | (f) | 1,275 | 7,222 | 35 | 1,275 | 7,257 | 8,532 | (776 | ) | 2005 | |||||||||||||||||||||||
Fairfield Business Center
|
1 | 348 | 1,971 | 581 | 381 | 2,519 | 2,900 | (548 | ) | 2004 | ||||||||||||||||||||||||
Fairfield Distribution Center
|
1 | 586 | 3,319 | 1,307 | 586 | 4,626 | 5,212 | (1,112 | ) | 2002 | ||||||||||||||||||||||||
Park I-275 (d)
|
1 | 3,899 | 12,014 | 1,525 | 3,863 | 13,575 | 17,438 | (120 | ) | 2008 | ||||||||||||||||||||||||
Production Distribution Center
|
2 | 717 | 2,717 | 2,910 | 824 | 5,520 | 6,344 | (2,210 | ) | 1994, 1998 | ||||||||||||||||||||||||
Sharonville Distribution Center
|
3 | (e) | 1,761 | - | 12,509 | 2,424 | 11,846 | 14,270 | (4,170 | ) | 1997, 1998 | |||||||||||||||||||||||
Total Cincinnati, Ohio
|
21 | 14,582 | 54,824 | 40,329 | 15,937 | 93,798 | 109,735 | (30,142 | ) | |||||||||||||||||||||||||
Columbus, Ohio
|
||||||||||||||||||||||||||||||||||
Brookham Distribution Center
|
2 | 5,964 | 23,858 | 3,368 | 5,965 | 27,225 | 33,190 | (4,041 | ) | 2005 | ||||||||||||||||||||||||
Canal Pointe Distribution Center
|
1 | 1,237 | 7,013 | 1,942 | 1,280 | 8,912 | 10,192 | (2,940 | ) | 1999 | ||||||||||||||||||||||||
Capital Park South Distribution Center
|
3 | (e) | 1,588 | - | 25,219 | 1,980 | 24,827 | 26,807 | (9,995 | ) | 1996 | |||||||||||||||||||||||
Charter Street Distribution Center
|
1 | (e) | 1,245 | 7,055 | 461 | 1,245 | 7,516 | 8,761 | (2,657 | ) | 1999 | |||||||||||||||||||||||
Corporate Park West
|
2 | (e) | 679 | 3,847 | 1,794 | 679 | 5,641 | 6,320 | (2,846 | ) | 1996 |
135
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
Etna Distribution Center (d)
|
1 | 3,308 | - | 13,749 | 1,669 | 15,388 | 17,057 | (712 | ) | 2007 | ||||||||||||||||||||||||
Fisher Distribution Center
|
1 | 1,197 | 6,785 | 2,420 | 1,197 | 9,205 | 10,402 | (5,377 | ) | 1995 | ||||||||||||||||||||||||
Foreign Trade Center I
|
5 | (e) | 6,527 | 36,989 | 6,576 | 6,992 | 43,100 | 50,092 | (15,530 | ) | 1999 | |||||||||||||||||||||||
McCormick Distribution Center
|
5 | (e) | 1,664 | 9,429 | 7,716 | 1,664 | 17,145 | 18,809 | (8,310 | ) | 1994 | |||||||||||||||||||||||
New World Distribution Center
|
1 | 207 | 1,173 | 2,222 | 207 | 3,395 | 3,602 | (1,964 | ) | 1994 | ||||||||||||||||||||||||
South Park Distribution Center
|
2 | (e) | 3,344 | 15,182 | 2,065 | 3,343 | 17,248 | 20,591 | (3,805 | ) | 1999, 2005 | |||||||||||||||||||||||
Westbelt Business Center
|
3 | 1,777 | 7,168 | 199 | 1,777 | 7,367 | 9,144 | (881 | ) | 2006 | ||||||||||||||||||||||||
Westpointe Distribution Center
|
2 | (e) | 1,450 | 7,601 | 362 | 1,446 | 7,967 | 9,413 | (1,034 | ) | 2007 | |||||||||||||||||||||||
Wingate Distribution Center
|
1 | 152 | 859 | 549 | 152 | 1,408 | 1,560 | (625 | ) | 1994 | ||||||||||||||||||||||||
Total Columbus, Ohio
|
30 | 30,339 | 126,959 | 68,642 | 29,596 | 196,344 | 225,940 | (60,717 | ) | |||||||||||||||||||||||||
Dallas/Fort Worth, Texas
|
||||||||||||||||||||||||||||||||||
Alliance Distribution Center
|
1 | 3,654 | 14,613 | 1 | 3,653 | 14,615 | 18,268 | (2,091 | ) | 2005 | ||||||||||||||||||||||||
Carter Industrial Center
|
1 | 334 | - | 2,351 | 334 | 2,351 | 2,685 | (1,062 | ) | 1996 | ||||||||||||||||||||||||
Centerport Distribution Center
|
1 | 1,250 | 7,082 | 629 | 1,250 | 7,711 | 8,961 | (2,760 | ) | 1999 | ||||||||||||||||||||||||
Dallas Corporate Center
|
10 | (e) | 5,161 | - | 31,193 | 5,357 | 30,997 | 36,354 | (13,197 | ) | 1996, 1997, 1998, 1999 | |||||||||||||||||||||||
Enterprise Distribution Center
|
1 | 1,107 | 5,702 | 816 | 1,133 | 6,492 | 7,625 | (2,333 | ) | 1999 | ||||||||||||||||||||||||
Flower Mound Distribution Center
|
1 | 5,157 | 20,991 | 2,283 | 5,157 | 23,274 | 28,431 | (1,592 | ) | 2007 | ||||||||||||||||||||||||
Freeport Distribution Center
|
4 | (e) | 1,393 | 5,549 | 4,991 | 1,440 | 10,493 | 11,933 | (4,580 | ) | 1996, 1997, 1998 | |||||||||||||||||||||||
Great Southwest Distribution Center
|
36 | (e) | 38,300 | 173,329 | 15,809 | 36,848 | 190,590 | 227,438 | (51,199 | ) | 1995, 1996, 1997,1999, 2000, 2001, 2002, 2005 | |||||||||||||||||||||||
Lancaster Distribution Center (d)
|
2 | 5,388 | 14,362 | 19,305 | 5,350 | 33,705 | 39,055 | (1,092 | ) | 2007, 2008 | ||||||||||||||||||||||||
Lone Star Distribution Center
|
1 | 512 | 2,896 | 1,346 | 511 | 4,243 | 4,754 | (2,078 | ) | 1996 | ||||||||||||||||||||||||
Northgate Distribution Center (d)
|
9 | (e) | 15,481 | 72,651 | 7,499 | 16,323 | 79,308 | 95,631 | (15,043 | ) | 1994, 1999, 2005, 2008 | |||||||||||||||||||||||
Pinnacle Park Distribution Center (h)
|
1 | 5,058 | - | 19,652 | 3,880 | 20,830 | 24,710 | (4,937 | ) | 2001 | ||||||||||||||||||||||||
Redbird Distribution Center
|
2 | (f) | 1,095 | 6,212 | 2,091 | 1,096 | 8,302 | 9,398 | (3,478 | ) | 1994, 1999 | |||||||||||||||||||||||
Royal Distribution Center
|
1 | 811 | 4,598 | 615 | 811 | 5,213 | 6,024 | (1,541 | ) | 2001 | ||||||||||||||||||||||||
Stemmons Distribution Center
|
1 | 272 | 1,544 | 793 | 272 | 2,337 | 2,609 | (1,168 | ) | 1995 | ||||||||||||||||||||||||
Stemmons Industrial Center
|
11 | 1,820 | 11,705 | 4,783 | 1,819 | 16,489 | 18,308 | (8,576 | ) | 1994, 1995, 1996, 1999 | ||||||||||||||||||||||||
Trinity Mills Distribution Center
|
7 | (e) | 4,453 | 27,346 | 3,612 | 4,405 | 31,006 | 35,411 | (12,669 | ) | 1996, 1999, 2001 | |||||||||||||||||||||||
Valwood Business Center
|
4 | 3,785 | 16,846 | 891 | 3,662 | 17,860 | 21,522 | (3,473 | ) | 2001, 2006 | ||||||||||||||||||||||||
Valwood Distribution Center
|
1 | 850 | 4,890 | 476 | 850 | 5,366 | 6,216 | (1,786 | ) | 1999 | ||||||||||||||||||||||||
Total Dallas/Fort Worth, Texas
|
95 | 95,881 | 390,316 | 119,136 | 94,151 | 511,182 | 605,333 | (134,655 | ) | |||||||||||||||||||||||||
136
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
Denver, Colorado
|
||||||||||||||||||||||||||||||||||
Denver Business Center
|
4 | 865 | 6,907 | 3,596 | 882 | 10,486 | 11,368 | (5,288 | ) | 1992, 2002 | ||||||||||||||||||||||||
Pagosa Distribution Center
|
1 | (e) | 406 | 2,322 | 1,142 | 406 | 3,464 | 3,870 | (1,990 | ) | 1993 | |||||||||||||||||||||||
Stapleton Business Center
|
12 | (e) | 34,634 | 139,256 | 3,203 | 34,635 | 142,458 | 177,093 | (20,757 | ) | 2005 | |||||||||||||||||||||||
Upland Distribution Center
|
6 | (f) | 808 | 4,421 | 12,237 | 821 | 16,645 | 17,466 | (8,944 | ) | 1992, 1994, 1995 | |||||||||||||||||||||||
Upland Distribution Center II
|
3 | 1,295 | 5,159 | 5,130 | 1,328 | 10,256 | 11,584 | (5,692 | ) | 1993 | ||||||||||||||||||||||||
Total Denver, Colorado
|
26 | 38,008 | 158,065 | 25,308 | 38,072 | 183,309 | 221,381 | (42,671 | ) | |||||||||||||||||||||||||
El Paso, Texas
|
||||||||||||||||||||||||||||||||||
Billy the Kid Distribution Center
|
1 | 273 | 1,547 | 1,556 | 273 | 3,103 | 3,376 | (1,546 | ) | 1994 | ||||||||||||||||||||||||
Goodyear Distribution Center
|
1 | 511 | 2,899 | 1,002 | 511 | 3,901 | 4,412 | (1,777 | ) | 1991 | ||||||||||||||||||||||||
Northwestern Corporate Center
|
5 | 981 | - | 19,094 | 1,986 | 18,089 | 20,075 | (8,094 | ) | 1992, 1993, 1994, 1997 | ||||||||||||||||||||||||
Pan Am Distribution Center
|
1 | (f) | 196 | 1,110 | 1,595 | 196 | 2,705 | 2,901 | (725 | ) | 2002 | |||||||||||||||||||||||
Vista Corporate Center
|
4 | 1,945 | - | 12,197 | 1,946 | 12,196 | 14,142 | (5,694 | ) | 1994, 1995, 1996 | ||||||||||||||||||||||||
Vista Del Sol Industrial Center II
|
4 | (f) | 996 | - | 19,107 | 2,056 | 18,047 | 20,103 | (8,403 | ) | 1995, 1997, 1998 | |||||||||||||||||||||||
Total El Paso, Texas
|
16 | 4,902 | 5,556 | 54,551 | 6,968 | 58,041 | 65,009 | (26,239 | ) | |||||||||||||||||||||||||
Houston, Texas
|
||||||||||||||||||||||||||||||||||
Blalock Distribution Center
|
2 | 595 | 3,370 | 1,125 | 595 | 4,495 | 5,090 | (1,092 | ) | 2002 | ||||||||||||||||||||||||
Brittmore Distribution Center
|
2 | 1,838 | 10,417 | 1,352 | 1,838 | 11,769 | 13,607 | (4,647 | ) | 1999 | ||||||||||||||||||||||||
Crosstimbers Distribution Center
|
1 | 359 | 2,035 | 1,116 | 359 | 3,151 | 3,510 | (1,624 | ) | 1994 | ||||||||||||||||||||||||
Hempstead Distribution Center
|
3 | (f) | 1,013 | 5,740 | 3,619 | 1,013 | 9,359 | 10,372 | (4,520 | ) | 1994 | |||||||||||||||||||||||
Hobby Business Park
|
1 | 721 | 2,885 | 263 | 721 | 3,148 | 3,869 | (498 | ) | 2005 | ||||||||||||||||||||||||
Kempwood Business Center
|
4 | (f) | 1,746 | 9,894 | 1,971 | 1,746 | 11,865 | 13,611 | (4,201 | ) | 2001 | |||||||||||||||||||||||
Northpark Distribution Center (d)
|
3 | (e) | 3,912 | 16,568 | 1,602 | 3,873 | 18,209 | 22,082 | (788 | ) | 2006, 2008 | |||||||||||||||||||||||
Perimeter Distribution Center
|
2 | 813 | 4,604 | 998 | 813 | 5,602 | 6,415 | (2,332 | ) | 1999 | ||||||||||||||||||||||||
Pine Forest Business Center
|
9 | 2,665 | 14,132 | 6,417 | 2,665 | 20,549 | 23,214 | (9,920 | ) | 1993, 1995 | ||||||||||||||||||||||||
Pine North Distribution Center
|
2 | 847 | 4,800 | 836 | 847 | 5,636 | 6,483 | (2,248 | ) | 1999 | ||||||||||||||||||||||||
Pine Timbers Distribution Center
|
2 | 2,956 | 16,750 | 3,431 | 2,956 | 20,181 | 23,137 | (8,088 | ) | 1999 | ||||||||||||||||||||||||
Pinemont Distribution Center
|
2 | 642 | 3,636 | 670 | 642 | 4,306 | 4,948 | (1,762 | ) | 1999 | ||||||||||||||||||||||||
Post Oak Business Center
|
15 | 3,005 | 15,378 | 8,433 | 3,005 | 23,811 | 26,816 | (13,029 | ) | 1993, 1994, 1996 | ||||||||||||||||||||||||
Post Oak Distribution Center
|
7 | 2,115 | 12,017 | 6,061 | 2,039 | 18,154 | 20,193 | (10,932 | ) | 1993, 1994 | ||||||||||||||||||||||||
South Loop Distribution Center
|
5 | 1,051 | 5,964 | 4,269 | 1,052 | 10,232 | 11,284 | (5,948 | ) | 1994 | ||||||||||||||||||||||||
Southland Distribution Center
|
1 | 1,209 | 6,849 | 1,514 | 1,209 | 8,363 | 9,572 | (1,423 | ) | 2002 |
137
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
West by Northwest Industrial Center
|
3 | 468 | 2,149 | 3,952 | 664 | 5,905 | 6,569 | (3,198 | ) | 1993, 1994 | ||||||||||||||||||||||||
White Street Distribution Center
|
1 | 469 | 2,656 | 1,481 | 469 | 4,137 | 4,606 | (2,022 | ) | 1995 | ||||||||||||||||||||||||
Total Houston, Texas
|
65 | 26,424 | 139,844 | 49,110 | 26,506 | 188,872 | 215,378 | (78,272 | ) | |||||||||||||||||||||||||
I-81 Corridor, Pennsylvania
|
||||||||||||||||||||||||||||||||||
Harrisburg Distribution Center
|
1 | 2,243 | 12,572 | 700 | 2,231 | 13,284 | 15,515 | (2,510 | ) | 2004 | ||||||||||||||||||||||||
Harrisburg Industrial Center
|
1 | 782 | 6,190 | 870 | 782 | 7,060 | 7,842 | (1,477 | ) | 2002 | ||||||||||||||||||||||||
Kraft Distribution Center
|
1 | 2,457 | 13,920 | 70 | 2,457 | 13,990 | 16,447 | (5,008 | ) | 1999 | ||||||||||||||||||||||||
Lehigh Valley Distribution Center
|
4 | 6,636 | 37,114 | 2,680 | 6,601 | 39,829 | 46,430 | (7,381 | ) | 2004 | ||||||||||||||||||||||||
Middleton Distribution Center
|
1 | 4,190 | 23,478 | 151 | 4,168 | 23,651 | 27,819 | (4,238 | ) | 2004 | ||||||||||||||||||||||||
Park 33 Distribution Center (d)
|
1 | 13,411 | - | 32,116 | 13,423 | 32,104 | 45,527 | (872 | ) | 2007 | ||||||||||||||||||||||||
Quakertown Distribution Center
|
1 | 6,966 | - | 27,688 | 6,966 | 27,688 | 34,654 | (2,445 | ) | 2006 | ||||||||||||||||||||||||
Total I-81 Corridor, Pennsylvania
|
10 | 36,685 | 93,274 | 64,275 | 36,628 | 157,606 | 194,234 | (23,931 | ) | |||||||||||||||||||||||||
Indianapolis, Indiana
|
||||||||||||||||||||||||||||||||||
Eastside Distribution Center
|
2 | 1,204 | 6,820 | 1,286 | 1,275 | 8,035 | 9,310 | (3,164 | ) | 1995, 1999 | ||||||||||||||||||||||||
Logo Court Distribution Center
|
1 | 3,352 | 18,678 | 197 | 3,334 | 18,893 | 22,227 | (3,385 | ) | 2004 | ||||||||||||||||||||||||
North by Northeast Corporate Center
|
1 | 1,058 | - | 7,017 | 1,059 | 7,016 | 8,075 | (3,185 | ) | 1995 | ||||||||||||||||||||||||
Park 100 Industrial Center
|
14 | (e) | 4,948 | 28,691 | 11,700 | 4,900 | 40,439 | 45,339 | (20,057 | ) | 1994, 1995 | |||||||||||||||||||||||
Park Fletcher Distribution Center
|
9 | 2,687 | 15,224 | 6,983 | 2,785 | 22,109 | 24,894 | (11,509 | ) | 1994, 1995, 1996 | ||||||||||||||||||||||||
Shadeland Industrial Center
|
3 | 428 | 2,431 | 2,594 | 429 | 5,024 | 5,453 | (2,910 | ) | 1995 | ||||||||||||||||||||||||
Total Indianapolis, Indiana
|
30 | 13,677 | 71,844 | 29,777 | 13,782 | 101,516 | 115,298 | (44,210 | ) | |||||||||||||||||||||||||
Inland Empire, California
|
||||||||||||||||||||||||||||||||||
California Commerce Center
|
1 | (e) | 4,201 | 7,802 | 100 | 4,201 | 7,902 | 12,103 | (1,145 | ) | 2005 | |||||||||||||||||||||||
Crossroads Business Park
|
7 | (e) | - | 84,519 | 65,062 | 51,662 | 97,919 | 149,581 | (14,261 | ) | 2005 | |||||||||||||||||||||||
Haven Distribution Center (d)
|
5 | (e) | 100,127 | 73,902 | 8,027 | 99,712 | 82,344 | 182,056 | (1,240 | ) | 2008 | |||||||||||||||||||||||
Inland Empire Distribution Center
|
5 | (e) | 41,355 | 74,536 | 6,108 | 42,134 | 79,865 | 121,999 | (11,824 | ) | 2005 | |||||||||||||||||||||||
Kaiser Distribution Center
|
8 | (e) | 130,680 | 242,618 | 15,397 | 136,030 | 252,665 | 388,695 | (33,370 | ) | 2005, 2008 | |||||||||||||||||||||||
Meridian Park
|
1 | 13,016 | 24,268 | - | 12,931 | 24,353 | 37,284 | (1,450 | ) | 2008 | ||||||||||||||||||||||||
ProLogis Park Ontario
|
2 | (e) | 25,500 | 47,366 | 153 | 25,499 | 47,520 | 73,019 | (4,408 | ) | 2007 | |||||||||||||||||||||||
Rancho Cucamonga Distribution Center
|
6 | (g) | 51,283 | 95,241 | 248 | 51,283 | 95,489 | 146,772 | (13,696 | ) | 2005 | |||||||||||||||||||||||
Redlands Distribution Center (d)
|
2 | (e) | 21,543 | 43,423 | 28,088 | 22,810 | 70,244 | 93,054 | (4,432 | ) | 2006, 2007 | |||||||||||||||||||||||
Riverbluff Distribution Center (d)
|
1 | (e) | 43,003 | - | 33,120 | 43,003 | 33,120 | 76,123 | (574 | ) | 2009 | |||||||||||||||||||||||
Total Inland Empire, California
|
38 | 430,708 | 693,675 | 156,303 | 489,265 | 791,421 | 1,280,686 | (86,400 | ) | |||||||||||||||||||||||||
138
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
Las Vegas, Nevada
|
||||||||||||||||||||||||||||||||||
Black Mountain Distribution Center
|
2 | 1,108 | - | 7,189 | 1,206 | 7,091 | 8,297 | (3,017 | ) | 1997 | ||||||||||||||||||||||||
Cameron Business Center
|
1 | (e) | 1,634 | 9,256 | 327 | 1,634 | 9,583 | 11,217 | (3,493 | ) | 1999 | |||||||||||||||||||||||
Hughes Airport Center
|
1 | 876 | - | 3,454 | 910 | 3,420 | 4,330 | (1,924 | ) | 1994 | ||||||||||||||||||||||||
Placid St. Distribution Center
|
1 | 2,620 | 14,848 | 168 | 2,620 | 15,016 | 17,636 | (5,367 | ) | 1999 | ||||||||||||||||||||||||
West One Business Center
|
4 | 2,468 | 13,985 | 2,738 | 2,468 | 16,723 | 19,191 | (7,470 | ) | 1996 | ||||||||||||||||||||||||
Total Las Vegas, Nevada
|
9 | 8,706 | 38,089 | 13,876 | 8,838 | 51,833 | 60,671 | (21,271 | ) | |||||||||||||||||||||||||
Los Angeles, California
|
||||||||||||||||||||||||||||||||||
Anaheim Industrial Center
|
13 | (e) | 32,275 | 59,983 | 1,212 | 32,275 | 61,195 | 93,470 | (8,732 | ) | 2005 | |||||||||||||||||||||||
Dominguez North Industrial Center
|
2 | (e) | 7,340 | 13,739 | 202 | 7,366 | 13,915 | 21,281 | (1,335 | ) | 2007 | |||||||||||||||||||||||
Fullerton Industrial Center
|
2 | 8,238 | 15,300 | 125 | 8,239 | 15,424 | 23,663 | (2,213 | ) | 2005 | ||||||||||||||||||||||||
Industry Distribution Center
|
7 | (g) | 50,268 | 93,355 | 2,083 | 50,268 | 95,438 | 145,706 | (13,551 | ) | 2005 | |||||||||||||||||||||||
Los Angeles Industrial Center
|
2 | 3,777 | 7,015 | 321 | 3,777 | 7,336 | 11,113 | (1,039 | ) | 2005 | ||||||||||||||||||||||||
Mid Counties Industrial Center
|
14 | (e) | 45,864 | 87,107 | 11,001 | 45,830 | 98,142 | 143,972 | (15,670 | ) | 2005, 2006 | |||||||||||||||||||||||
Orange Industrial Center
|
2 | 5,930 | 11,014 | 4 | 5,930 | 11,018 | 16,948 | (1,576 | ) | 2005 | ||||||||||||||||||||||||
Santa Ana Distribution Center
|
2 | 4,318 | 8,019 | 111 | 4,318 | 8,130 | 12,448 | (1,163 | ) | 2005 | ||||||||||||||||||||||||
South Bay Distribution Center
|
4 | (e) | 14,478 | 27,511 | 1,966 | 15,280 | 28,675 | 43,955 | (3,830 | ) | 2005, 2007 | |||||||||||||||||||||||
Tustin Industrial Center
|
2 | 4,553 | 8,456 | 46 | 4,553 | 8,502 | 13,055 | (1,231 | ) | 2005 | ||||||||||||||||||||||||
Vernon Distribution Center
|
15 | 25,439 | 47,250 | 1,835 | 25,441 | 49,083 | 74,524 | (7,209 | ) | 2005 | ||||||||||||||||||||||||
Total Los Angeles, California
|
65 | 202,480 | 378,749 | 18,906 | 203,277 | 396,858 | 600,135 | (57,549 | ) | |||||||||||||||||||||||||
Louisville, Kentucky
|
||||||||||||||||||||||||||||||||||
Airpark Commerce Center
|
4 | 1,583 | 8,971 | 5,714 | 1,583 | 14,685 | 16,268 | (8,006 | ) | 1998 | ||||||||||||||||||||||||
Cedar Grove Distribution Center (d)
|
2 | 6,065 | 30,404 | 585 | 6,025 | 31,029 | 37,054 | (2,818 | ) | 2005, 2008 | ||||||||||||||||||||||||
Commerce Crossings Distribution Center
|
1 | 1,912 | 7,649 | 89 | 1,912 | 7,738 | 9,650 | (1,104 | ) | 2005 | ||||||||||||||||||||||||
I-65 Meyer Dist. Center (d)
|
2 | 4,258 | - | 23,882 | 4,565 | 23,575 | 28,140 | (1,414 | ) | 2006, 2007 | ||||||||||||||||||||||||
Louisville Distribution Center
|
2 | (e) | 680 | 3,402 | 4,646 | 689 | 8,039 | 8,728 | (3,359 | ) | 1995, 1998 | |||||||||||||||||||||||
Riverport Distribution Center
|
1 | 1,515 | 8,585 | 2,781 | 1,515 | 11,366 | 12,881 | (4,002 | ) | 1999 | ||||||||||||||||||||||||
Total Louisville, Kentucky
|
12 | 16,013 | 59,011 | 37,697 | 16,289 | 96,432 | 112,721 | (20,703 | ) | |||||||||||||||||||||||||
Memphis, Tennessee
|
||||||||||||||||||||||||||||||||||
Airport Distribution Center
|
5 | 2,052 | 10,888 | 5,225 | 2,063 | 16,102 | 18,165 | (8,298 | ) | 1995, 1996, 1999 | ||||||||||||||||||||||||
Centerpointe Distribution Center
|
1 | 1,401 | 9,019 | 365 | 1,401 | 9,384 | 10,785 | (3,359 | ) | 2001 | ||||||||||||||||||||||||
Delp Distribution Center
|
6 | 3,870 | 21,853 | (1,969 | ) | 3,870 | 19,884 | 23,754 | (12,185 | ) | 1995, 1999 |
139
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
DeSoto Distribution Center (d)
|
1 | 4,761 | - | 26,338 | 4,761 | 26,338 | 31,099 | (697 | ) | 2007 | ||||||||||||||||||||||||
Fred Jones Distribution Center
|
1 | 125 | 707 | 199 | 125 | 906 | 1,031 | (555 | ) | 1994 | ||||||||||||||||||||||||
Memphis Distribution Center
|
1 | 480 | 2,723 | 440 | 481 | 3,162 | 3,643 | (827 | ) | 2002 | ||||||||||||||||||||||||
Olive Branch Distribution Center
|
2 | 2,892 | 16,389 | 2,348 | 2,892 | 18,737 | 21,629 | (7,494 | ) | 1999 | ||||||||||||||||||||||||
Raines Distribution Center
|
1 | 1,635 | 4,262 | 9,269 | 1,635 | 13,531 | 15,166 | (7,186 | ) | 1998 | ||||||||||||||||||||||||
Southpark Distribution Center
|
1 | 859 | 4,866 | 834 | 859 | 5,700 | 6,559 | (923 | ) | 2003 | ||||||||||||||||||||||||
Willow Lake Distribution Center
|
1 | 613 | 3,474 | (96 | ) | 613 | 3,378 | 3,991 | (1,481 | ) | 1999 | |||||||||||||||||||||||
Total Memphis, Tennessee
|
20 | 18,688 | 74,181 | 42,953 | 18,700 | 117,122 | 135,822 | (43,005 | ) | |||||||||||||||||||||||||
Nashville, Tennessee
|
||||||||||||||||||||||||||||||||||
Bakertown Distribution Center
|
2 | 463 | 2,626 | 652 | 463 | 3,278 | 3,741 | (1,755 | ) | 1995 | ||||||||||||||||||||||||
I-40 Industrial Center
|
4 | 1,711 | 9,698 | 1,513 | 1,712 | 11,210 | 12,922 | (5,012 | ) | 1995, 1996, 1999 | ||||||||||||||||||||||||
Interchange City Distribution Center (d)
|
8 | (f) | 5,179 | 26,540 | 5,083 | 6,382 | 30,420 | 36,802 | (5,365 | ) | 1998, 2003, 2008 | |||||||||||||||||||||||
Space Park South Distribution Center
|
15 | 3,499 | 19,830 | 9,412 | 3,499 | 29,242 | 32,741 | (16,546 | ) | 1994 | ||||||||||||||||||||||||
Total Nashville, Tennessee
|
29 | 10,852 | 58,694 | 16,660 | 12,056 | 74,150 | 86,206 | (28,678 | ) | |||||||||||||||||||||||||
New Jersey
|
||||||||||||||||||||||||||||||||||
Bellmawr Distribution Center
|
1 | 212 | 1,197 | 382 | 211 | 1,580 | 1,791 | (706 | ) | 1999 | ||||||||||||||||||||||||
Brunswick Distribution Center
|
2 | 870 | 4,928 | 1,967 | 870 | 6,895 | 7,765 | (3,893 | ) | 1997 | ||||||||||||||||||||||||
Chester Distribution Center
|
1 | 548 | 5,319 | 1 | 548 | 5,320 | 5,868 | (3,261 | ) | 2002 | ||||||||||||||||||||||||
Exit 8A Distribution Center
|
1 | 7,626 | 44,103 | 397 | 7,787 | 44,339 | 52,126 | (6,357 | ) | 2005 | ||||||||||||||||||||||||
Exit 10 Distribution Center
|
6 | (e) | 22,738 | 126,961 | 1,490 | 22,738 | 128,451 | 151,189 | (18,330 | ) | 2005 | |||||||||||||||||||||||
Kilmer Distribution Center
|
4 | (e) | 2,526 | 14,313 | 2,749 | 2,526 | 17,062 | 19,588 | (8,310 | ) | 1996 | |||||||||||||||||||||||
Meadowland Distribution Center
|
4 | (e) | 10,272 | 57,480 | 1,427 | 10,271 | 58,908 | 69,179 | (8,388 | ) | 2005 | |||||||||||||||||||||||
Meadowland Industrial Center
|
8 | (e) | 5,676 | 32,167 | 16,123 | 5,677 | 48,289 | 53,966 | (27,646 | ) | 1996, 1997, 1998 | |||||||||||||||||||||||
Mount Olive Distribution Center
|
1 | 1,509 | 8,552 | (62 | ) | 1,500 | 8,499 | 9,999 | (673 | ) | 2007 | |||||||||||||||||||||||
Mt. Laurel Distribution Center
|
2 | 588 | 2,885 | 1,372 | 592 | 4,253 | 4,845 | (1,691 | ) | 1999 | ||||||||||||||||||||||||
Pennsauken Distribution Center
|
2 | 192 | 958 | 372 | 203 | 1,319 | 1,522 | (531 | ) | 1999 | ||||||||||||||||||||||||
Port Reading Business Park (d)
|
2 | (e) | 11,177 | - | 37,510 | 11,309 | 37,378 | 48,687 | (2,630 | ) | 2005, 2009 | |||||||||||||||||||||||
Total New Jersey
|
34 | 63,934 | 298,863 | 63,728 | 64,232 | 362,293 | 426,525 | (82,416 | ) | |||||||||||||||||||||||||
Orlando, Florida
|
||||||||||||||||||||||||||||||||||
33rd Street Industrial Center
|
9 | 1,980 | 11,237 | 4,325 | 1,980 | 15,562 | 17,542 | (8,017 | ) | 1994, 1995, 1996 | ||||||||||||||||||||||||
Beltway Commerce Center
|
3 | 17,178 | 25,526 | 1,723 | 17,082 | 27,345 | 44,427 | (56 | ) | 2008 | ||||||||||||||||||||||||
Chancellor Distribution Center
|
1 | 380 | 2,156 | 1,557 | 380 | 3,713 | 4,093 | (1,949 | ) | 1994 |
140
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
Consulate Distribution Center
|
3 | (f) | 4,148 | 23,617 | 1,136 | 4,148 | 24,753 | 28,901 | (9,202 | ) | 1999 | |||||||||||||||||||||||
LaQuinta Distribution Center
|
1 | 354 | 2,006 | 1,689 | 354 | 3,695 | 4,049 | (2,137 | ) | 1994 | ||||||||||||||||||||||||
Total Orlando, Florida
|
17 | 24,040 | 64,542 | 10,430 | 23,944 | 75,068 | 99,012 | (21,361 | ) | |||||||||||||||||||||||||
Phoenix, Arizona
|
||||||||||||||||||||||||||||||||||
24th Street Industrial Center
|
2 | 503 | 2,852 | 1,498 | 561 | 4,292 | 4,853 | (2,625 | ) | 1994 | ||||||||||||||||||||||||
Alameda Distribution Center
|
2 | 3,872 | 14,358 | 1,942 | 3,872 | 16,300 | 20,172 | (2,372 | ) | 2005 | ||||||||||||||||||||||||
Buckeye Road Industrial Center
|
2 | 1,236 | 4,988 | 976 | 1,236 | 5,964 | 7,200 | (1,109 | ) | 2005 | ||||||||||||||||||||||||
Hohokam 10 Business Center
|
6 | (f) | 4,258 | 7,467 | 13,190 | 4,258 | 20,657 | 24,915 | (8,709 | ) | 1996, 1999 | |||||||||||||||||||||||
I-10 West Business Center
|
3 | 263 | 1,525 | 850 | 263 | 2,375 | 2,638 | (1,349 | ) | 1993 | ||||||||||||||||||||||||
Kyrene Commons Distribution Center
|
3 | (f) | 2,369 | 5,475 | 511 | 1,093 | 7,262 | 8,355 | (3,510 | ) | 1992, 1998, 1999 | |||||||||||||||||||||||
Martin Van Buren Distribution Center
|
6 | 572 | 3,285 | 1,990 | 572 | 5,275 | 5,847 | (3,028 | ) | 1993, 1994 | ||||||||||||||||||||||||
Papago Distribution Center
|
3 | 4,828 | 20,017 | 1,939 | 4,829 | 21,955 | 26,784 | (4,380 | ) | 1994, 2005 | ||||||||||||||||||||||||
Roosevelt Distribution Center
|
1 | 1,766 | 7,065 | 34 | 1,766 | 7,099 | 8,865 | (1,020 | ) | 2005 | ||||||||||||||||||||||||
University Dr Distribution Center
|
1 | 683 | 2,735 | 184 | 683 | 2,919 | 3,602 | (422 | ) | 2005 | ||||||||||||||||||||||||
Watkins Street Distribution Center
|
1 | 242 | 1,375 | 467 | 243 | 1,841 | 2,084 | (960 | ) | 1995 | ||||||||||||||||||||||||
Wilson Drive Distribution Center
|
1 | 1,273 | 5,093 | 254 | 1,273 | 5,347 | 6,620 | (750 | ) | 2005 | ||||||||||||||||||||||||
Total Phoenix, Arizona
|
31 | 21,865 | 76,235 | 23,835 | 20,649 | 101,286 | 121,935 | (30,234 | ) | |||||||||||||||||||||||||
Portland, Oregon
|
||||||||||||||||||||||||||||||||||
Argyle Distribution Center
|
3 | 946 | 5,388 | 3,348 | 946 | 8,736 | 9,682 | (3,904 | ) | 1993 | ||||||||||||||||||||||||
Columbia Distribution Center
|
2 | 550 | 3,121 | 1,140 | 551 | 4,260 | 4,811 | (2,330 | ) | 1994 | ||||||||||||||||||||||||
PDX Corporate Center North Phase II (d)
|
1 | (e)(g) | 5,077 | 9,895 | 1,670 | 5,051 | 11,591 | 16,642 | (178 | ) | 2008 | |||||||||||||||||||||||
Southshore Corporate Center
|
5 | (e) | 13,061 | 52,299 | 1,162 | 13,273 | 53,249 | 66,522 | (7,248 | ) | 2005, 2006 | |||||||||||||||||||||||
Wilsonville Corporate Center
|
3 | (e) | 1,569 | - | 7,288 | 1,588 | 7,269 | 8,857 | (3,632 | ) | 1995 | |||||||||||||||||||||||
Total Portland, Oregon
|
14 | 21,203 | 70,703 | 14,608 | 21,409 | 85,105 | 106,514 | (17,292 | ) | |||||||||||||||||||||||||
Reno, Nevada
|
||||||||||||||||||||||||||||||||||
Golden Valley Distribution Center
|
3 | (e) | 2,975 | 13,686 | 11,200 | 4,451 | 23,410 | 27,861 | (5,791 | ) | 1996, 1998, 2005 | |||||||||||||||||||||||
Meredith Kleppe Business Center
|
1 | 526 | 754 | 3,563 | 526 | 4,317 | 4,843 | (2,222 | ) | 1993 | ||||||||||||||||||||||||
Packer Way Distribution Center
|
2 | 506 | 2,879 | 1,620 | 506 | 4,499 | 5,005 | (2,753 | ) | 1993 | ||||||||||||||||||||||||
Spice Island Distribution Center
|
1 | (f) | 435 | 2,466 | 2,323 | 435 | 4,789 | 5,224 | (2,154 | ) | 1996 | |||||||||||||||||||||||
Tahoe-Reno Industrial Center (d)
|
1 | 3,281 | - | 23,029 | 3,281 | 23,029 | 26,310 | (875 | ) | 2007 | ||||||||||||||||||||||||
Vista Industrial Park
|
10 | (e) | 9,566 | 40,036 | 15,101 | 9,566 | 55,137 | 64,703 | (17,947 | ) | 1994, 1995, 2001 | |||||||||||||||||||||||
Total Reno, Nevada
|
18 | 17,289 | 59,821 | 56,836 | 18,765 | 115,181 | 133,946 | (31,742 | ) | |||||||||||||||||||||||||
141
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
San Antonio, Texas
|
||||||||||||||||||||||||||||||||||
10711 Distribution Center
|
2 | (f) | 582 | 3,301 | 1,947 | 582 | 5,248 | 5,830 | (3,122 | ) | 1994 | |||||||||||||||||||||||
City Park East Distribution Center (d)
|
4 | 1,344 | 9,645 | 1,504 | 1,334 | 11,159 | 12,493 | (1,197 | ) | 2003, 2008 | ||||||||||||||||||||||||
Coliseum Distribution Center
|
1 | 428 | - | 4,986 | 465 | 4,949 | 5,414 | (2,893 | ) | 1994 | ||||||||||||||||||||||||
Dist Drive Center
|
1 | 473 | 2,680 | 1,231 | 473 | 3,911 | 4,384 | (2,390 | ) | 1992 | ||||||||||||||||||||||||
Eisenhauer Distribution Center (d)
|
1 | 836 | 884 | 3,170 | 474 | 4,416 | 4,890 | (122 | ) | 2007 | ||||||||||||||||||||||||
Macro Distribution Center
|
3 | (f) | 1,705 | 9,024 | 2,273 | 1,705 | 11,297 | 13,002 | (2,017 | ) | 2002 | |||||||||||||||||||||||
Perrin Creek Corporate Center
|
1 | 288 | - | 1,295 | 206 | 1,377 | 1,583 | (633 | ) | 1996 | ||||||||||||||||||||||||
Rittiman East Industrial Park
|
7 | 5,902 | 23,746 | 254 | 5,902 | 24,000 | 29,902 | (2,751 | ) | 2006 | ||||||||||||||||||||||||
Rittiman West Industrial Park
|
2 | 1,237 | 4,950 | 373 | 1,230 | 5,330 | 6,560 | (619 | ) | 2006 | ||||||||||||||||||||||||
San Antonio Distribution Center I
|
9 | 1,589 | 9,028 | 6,633 | 1,589 | 15,661 | 17,250 | (8,987 | ) | 1992, 1993, 1994 | ||||||||||||||||||||||||
San Antonio Distribution Center II
|
3 | 945 | - | 6,560 | 885 | 6,620 | 7,505 | (3,281 | ) | 1994 | ||||||||||||||||||||||||
San Antonio Distribution Center III
|
3 | 969 | 4,913 | 3,214 | 973 | 8,123 | 9,096 | (4,355 | ) | 1996 | ||||||||||||||||||||||||
Tri-County Distribution Center
|
2 | (e) | 3,183 | 12,743 | 219 | 3,184 | 12,961 | 16,145 | (945 | ) | 2007 | |||||||||||||||||||||||
Woodlake Distribution Center
|
2 | 248 | 1,405 | 1,230 | 248 | 2,635 | 2,883 | (1,576 | ) | 1994 | ||||||||||||||||||||||||
Total San Antonio, Texas
|
41 | 19,729 | 82,319 | 34,889 | 19,250 | 117,687 | 136,937 | (34,888 | ) | |||||||||||||||||||||||||
San Francisco (East Bay), California
|
||||||||||||||||||||||||||||||||||
Alvarado Business Center
|
10 | 20,739 | 62,595 | 2,069 | 20,739 | 64,664 | 85,403 | (9,373 | ) | 2005 | ||||||||||||||||||||||||
Eigenbrodt Way Distribution Center
|
1 | (e) | 393 | 2,228 | 502 | 393 | 2,730 | 3,123 | (1,511 | ) | 1993 | |||||||||||||||||||||||
Hayward Commerce Center
|
4 | 1,933 | 10,955 | 2,513 | 1,933 | 13,468 | 15,401 | (7,106 | ) | 1993 | ||||||||||||||||||||||||
Hayward Distribution Center
|
6 | (e) | 2,906 | 19,165 | 5,726 | 3,327 | 24,470 | 27,797 | (13,297 | ) | 1993 | |||||||||||||||||||||||
Hayward Industrial Center
|
13 | (e) | 4,481 | 25,393 | 5,634 | 4,481 | 31,027 | 35,508 | (17,064 | ) | 1993 | |||||||||||||||||||||||
Livermore Distribution Center
|
4 | 8,992 | 26,976 | 1,461 | 8,992 | 28,437 | 37,429 | (4,248 | ) | 2005 | ||||||||||||||||||||||||
Oakland Industrial Center
|
3 | 8,234 | 24,704 | 529 | 8,235 | 25,232 | 33,467 | (3,681 | ) | 2005 | ||||||||||||||||||||||||
Regatta Business Park
|
2 | (e) | 7,688 | 23,063 | 257 | 7,688 | 23,320 | 31,008 | (3,351 | ) | 2005 | |||||||||||||||||||||||
San Leandro Distribution Center
|
3 | (e) | 1,387 | 7,862 | 2,217 | 1,387 | 10,079 | 11,466 | (5,340 | ) | 1993 | |||||||||||||||||||||||
Total San Francisco (East Bay), California
|
46 | 56,753 | 202,941 | 20,908 | 57,175 | 223,427 | 280,602 | (64,971 | ) | |||||||||||||||||||||||||
San Francisco (South Bay), California
|
||||||||||||||||||||||||||||||||||
Bayside Corporate Center
|
7 | (g) | 4,365 | - | 18,718 | 4,365 | 18,718 | 23,083 | (9,663 | ) | 1995, 1996 | |||||||||||||||||||||||
Bayside Plaza I
|
12 | (g) | 5,212 | 18,008 | 4,845 | 5,216 | 22,849 | 28,065 | (12,160 | ) | 1993 | |||||||||||||||||||||||
Bayside Plaza II
|
2 | (g) | 634 | - | 3,296 | 634 | 3,296 | 3,930 | (1,955 | ) | 1994 | |||||||||||||||||||||||
Gateway Corporate Center
|
10 | (g) | 6,736 | 24,746 | 6,368 | 6,744 | 31,106 | 37,850 | (16,841 | ) | 1993 | |||||||||||||||||||||||
Mowry Business Center
|
4 | 5,933 | - | 19,442 | 7,815 | 17,560 | 25,375 | (7,490 | ) | 1997, 1998 |
142
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
Overlook Distribution Center
|
1 | (f) | 1,573 | 8,915 | 96 | 1,573 | 9,011 | 10,584 | (3,227 | ) | 1999 | |||||||||||||||||||||||
Pacific Commons Industrial Center
|
6 | (g) | 27,568 | 82,855 | 1,932 | 27,591 | 84,764 | 112,355 | (12,094 | ) | 2005 | |||||||||||||||||||||||
Pacific Industrial Center
|
6 | (e) | 21,676 | 65,083 | 1,957 | 21,675 | 67,041 | 88,716 | (9,688 | ) | 2005 | |||||||||||||||||||||||
Shoreline Business Center
|
8 | (g) | 4,328 | 16,101 | 3,179 | 4,328 | 19,280 | 23,608 | (9,809 | ) | 1993 | |||||||||||||||||||||||
Spinnaker Business Center
|
12 | (g) | 7,043 | 25,220 | 5,576 | 7,043 | 30,796 | 37,839 | (16,521 | ) | 1993 | |||||||||||||||||||||||
Thornton Business Center
|
4 | 2,047 | 11,706 | 1,726 | 2,066 | 13,413 | 15,479 | (6,990 | ) | 1993 | ||||||||||||||||||||||||
Total San Francisco (South Bay), California
|
72 | 87,115 | 252,634 | 67,135 | 89,050 | 317,834 | 406,884 | (106,438 | ) | |||||||||||||||||||||||||
Seattle, Washington
|
||||||||||||||||||||||||||||||||||
ProLogis Park SeaTac (d)
|
2 | (e) | 12,230 | 14,170 | 2,079 | 12,457 | 16,022 | 28,479 | (167 | ) | 2008 | |||||||||||||||||||||||
Total Seattle, Washington
|
2 | 12,230 | 14,170 | 2,079 | 12,457 | 16,022 | 28,479 | (167 | ) | |||||||||||||||||||||||||
South Florida
|
||||||||||||||||||||||||||||||||||
Airport West Distribution Center
|
2 | (e) | 1,253 | 3,825 | 3,303 | 1,974 | 6,407 | 8,381 | (2,612 | ) | 1995, 1998 | |||||||||||||||||||||||
Boca Distribution Center
|
1 | 1,474 | 5,918 | 217 | 1,474 | 6,135 | 7,609 | (719 | ) | 2006 | ||||||||||||||||||||||||
CenterPort Distribution Center
|
3 | 2,083 | 11,806 | 954 | 2,083 | 12,760 | 14,843 | (4,795 | ) | 1999 | ||||||||||||||||||||||||
Copans Distribution Center
|
2 | 504 | 2,857 | 492 | 504 | 3,349 | 3,853 | (1,422 | ) | 1997, 1998 | ||||||||||||||||||||||||
Dade Distribution Center
|
1 | 2,589 | 14,670 | 300 | 2,589 | 14,970 | 17,559 | (2,216 | ) | 2005 | ||||||||||||||||||||||||
North Andrews Distribution Center
|
1 | 698 | 3,956 | 101 | 698 | 4,057 | 4,755 | (2,060 | ) | 1994 | ||||||||||||||||||||||||
Pompano Beach Distribution Center (d)
|
3 | 11,101 | 15,137 | 2,283 | 11,035 | 17,486 | 28,521 | (97 | ) | 2008 | ||||||||||||||||||||||||
Port Lauderdale Distribution Center
|
2 | (e) | 896 | - | 8,071 | 2,205 | 6,762 | 8,967 | (2,554 | ) | 1997 | |||||||||||||||||||||||
ProLogis Park I-595
|
2 | (e) | 1,998 | 11,326 | 482 | 1,999 | 11,807 | 13,806 | (2,704 | ) | 2003 | |||||||||||||||||||||||
Sawgrass Distribution Center (d)
|
2 | 10,016 | - | 13,368 | 10,016 | 13,368 | 23,384 | - | 2009 | |||||||||||||||||||||||||
Total South Florida
|
19 | 32,612 | 69,495 | 29,571 | 34,577 | 97,101 | 131,678 | (19,179 | ) | |||||||||||||||||||||||||
St. Louis, Missouri
|
||||||||||||||||||||||||||||||||||
Earth City Industrial Center
|
5 | 2,225 | 12,820 | 4,470 | 2,226 | 17,289 | 19,515 | (8,079 | ) | 1997, 1998 | ||||||||||||||||||||||||
Westport Distribution Center
|
1 | 366 | 1,247 | 1,987 | 365 | 3,235 | 3,600 | (1,304 | ) | 1997 | ||||||||||||||||||||||||
Total St. Louis, Missouri
|
6 | 2,591 | 14,067 | 6,457 | 2,591 | 20,524 | 23,115 | (9,383 | ) | |||||||||||||||||||||||||
Tampa, Florida
|
||||||||||||||||||||||||||||||||||
Adamo Distribution Center
|
6 | (f) | 2,105 | 11,930 | 2,387 | 2,105 | 14,317 | 16,422 | (4,615 | ) | 1995, 2001 | |||||||||||||||||||||||
Commerce Park Distribution Center
|
4 | 811 | 4,597 | 1,476 | 811 | 6,073 | 6,884 | (3,494 | ) | 1994 | ||||||||||||||||||||||||
Eastwood Distribution Center
|
1 | 122 | 690 | 96 | 122 | 786 | 908 | (397 | ) | 1994 | ||||||||||||||||||||||||
Lakeland Distribution Center
|
1 | 938 | 5,313 | 1,326 | 938 | 6,639 | 7,577 | (3,516 | ) | 1994 | ||||||||||||||||||||||||
Madison Distribution Center
|
1 | - | 5,313 | 287 | 3,188 | 2,412 | 5,600 | (75 | ) | 2007 |
143
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
Orchid Lake Industrial Center
|
1 | 41 | 235 | 61 | 41 | 296 | 337 | (142 | ) | 1994 | ||||||||||||||||||||||||
Plant City Distribution Center
|
1 | 206 | 1,169 | 241 | 206 | 1,410 | 1,616 | (761 | ) | 1994 | ||||||||||||||||||||||||
Sabal Park Distribution Center
|
8 | (e) | 3,180 | - | 26,443 | 3,516 | 26,107 | 29,623 | (9,114 | ) | 1996, 1997, 1998, 2002 | |||||||||||||||||||||||
Silo Bend Distribution Center
|
4 | 2,887 | 16,358 | 3,574 | 2,887 | 19,932 | 22,819 | (10,553 | ) | 1994 | ||||||||||||||||||||||||
Silo Bend Industrial Center
|
1 | 525 | 2,975 | 899 | 525 | 3,874 | 4,399 | (1,954 | ) | 1994 | ||||||||||||||||||||||||
Tampa East Distribution Center
|
9 | 2,627 | 14,835 | 2,773 | 2,468 | 17,767 | 20,235 | (9,552 | ) | 1994 | ||||||||||||||||||||||||
Tampa East Industrial Center
|
1 | 303 | 1,513 | 909 | 303 | 2,422 | 2,725 | (1,127 | ) | 1994 | ||||||||||||||||||||||||
Tampa West Distribution Center
|
11 | 2,874 | 16,128 | 3,670 | 2,919 | 19,753 | 22,672 | (10,593 | ) | 1994, 1995 | ||||||||||||||||||||||||
Tampa West Industrial Center
|
3 | 346 | - | 6,033 | 635 | 5,744 | 6,379 | (2,418 | ) | 1996, 1998 | ||||||||||||||||||||||||
Total Tampa, Florida
|
52 | 16,965 | 81,056 | 50,175 | 20,664 | 127,532 | 148,196 | (58,311 | ) | |||||||||||||||||||||||||
Washington D.C./Baltimore, Maryland
|
||||||||||||||||||||||||||||||||||
1901 Park 100 Drive
|
1 | 2,409 | 7,227 | 846 | 2,409 | 8,073 | 10,482 | (930 | ) | 2006 | ||||||||||||||||||||||||
7616 Canton Center Dr
|
1 | 1,521 | 4,528 | 7 | 1,521 | 4,535 | 6,056 | (372 | ) | 2007 | ||||||||||||||||||||||||
Airport Commons Distribution Center
|
2 | (e) | 2,320 | - | 8,987 | 2,360 | 8,947 | 11,307 | (3,039 | ) | 1997 | |||||||||||||||||||||||
Ardmore Distribution Center
|
3 | 1,431 | 8,110 | 1,723 | 1,431 | 9,833 | 11,264 | (5,289 | ) | 1994 | ||||||||||||||||||||||||
Ardmore Industrial Center
|
2 | 984 | 5,581 | 1,305 | 985 | 6,885 | 7,870 | (3,841 | ) | 1994 | ||||||||||||||||||||||||
Corcorde Industrial Center
|
4 | (e) | 1,538 | 8,717 | 3,167 | 1,538 | 11,884 | 13,422 | (6,227 | ) | 1995 | |||||||||||||||||||||||
DeSoto Business Park
|
6 | 2,709 | 12,892 | 7,416 | 2,710 | 20,307 | 23,017 | (7,015 | ) | 1996, 2007 | ||||||||||||||||||||||||
Gateway Distribution Center
|
2 | 192 | - | 4,612 | 831 | 3,973 | 4,804 | (1,342 | ) | 1998 | ||||||||||||||||||||||||
Hickory Ridge Distribution Center
|
2 | 15,988 | 47,964 | 842 | 15,988 | 48,806 | 64,794 | (6,861 | ) | 2005 | ||||||||||||||||||||||||
Meadowridge Distribution Center
|
1 | (e) | 1,757 | - | 6,076 | 1,902 | 5,931 | 7,833 | (2,039 | ) | 1998 | |||||||||||||||||||||||
Patapsco Distribution Center
|
1 | 270 | 1,528 | 1,054 | 270 | 2,582 | 2,852 | (1,228 | ) | 1995 | ||||||||||||||||||||||||
ProLogis Park Edgewood
|
1 | 4,244 | 12,732 | 5,606 | 4,244 | 18,338 | 22,582 | (3,389 | ) | 2005 | ||||||||||||||||||||||||
White Oak Distribution Center
|
1 | 3,986 | 24,107 | 1,445 | 3,986 | 25,552 | 29,538 | (4,950 | ) | 2002 | ||||||||||||||||||||||||
Winchester Distribution Center
|
1 | 3,286 | 13,141 | - | 3,286 | 13,141 | 16,427 | (1,880 | ) | 2005 | ||||||||||||||||||||||||
Total Washington D.C./Baltimore, Maryland
|
28 | 42,635 | 146,527 | 43,086 | 43,461 | 188,787 | 232,248 | (48,402 | ) | |||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||||||||
Shawnee Distribution Center
|
1 | 2,859 | 11,431 | 3 | 2,858 | 11,435 | 14,293 | (1,636 | ) | 2005 | ||||||||||||||||||||||||
Valley Industrial Center
|
1 | 363 | - | 4,731 | 363 | 4,731 | 5,094 | (1,620 | ) | 1997 | ||||||||||||||||||||||||
Total Other
|
2 | 3,222 | 11,431 | 4,734 | 3,221 | 16,166 | 19,387 | (3,256 | ) | |||||||||||||||||||||||||
144
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
Mexico:
|
||||||||||||||||||||||||||||||||||
Guadalajara
|
||||||||||||||||||||||||||||||||||
El Salto Distribution Center (d)
|
2 | 4,473 | 6,159 | 1,151 | 4,449 | 7,334 | 11,783 | (82 | ) | 2008 | ||||||||||||||||||||||||
Total Guadalajara, Mexico
|
2 | 4,473 | 6,159 | 1,151 | 4,449 | 7,334 | 11,783 | (82 | ) | |||||||||||||||||||||||||
Juarez
|
||||||||||||||||||||||||||||||||||
Bermudez Industrial Center
|
2 | 1,155 | 4,619 | 3,463 | 1,158 | 8,079 | 9,237 | (787 | ) | 2007 | ||||||||||||||||||||||||
Centro Industrial Center (d)
|
3 | 8,274 | - | 13,288 | 8,274 | 13,288 | 21,562 | (43 | ) | 2009 | ||||||||||||||||||||||||
Del Norte Industrial Center II (d)
|
2 | 1,523 | 5,729 | 729 | 1,512 | 6,469 | 7,981 | (85 | ) | 2008 | ||||||||||||||||||||||||
Ramon Rivera Lara Industrial Center
|
1 | 445 | - | 4,030 | 2,269 | 2,206 | 4,475 | (541 | ) | 2000 | ||||||||||||||||||||||||
Total Juarez, Mexico
|
8 | 11,397 | 10,348 | 21,510 | 13,213 | 30,042 | 43,255 | (1,456 | ) | |||||||||||||||||||||||||
Mexico City
|
||||||||||||||||||||||||||||||||||
Cedros-Tepotzotlan Distribution Center (d)
|
2 | 11,990 | 6,719 | 14,039 | 12,799 | 19,949 | 32,748 | (1,381 | ) | 2006, 2007 | ||||||||||||||||||||||||
Nor-T Distribution Center
|
4 | 7,247 | 32,135 | 2,673 | 5,898 | 36,157 | 42,055 | (4,049 | ) | 2006 | ||||||||||||||||||||||||
Puente Grande Distribution Center (d)
|
2 | 14,975 | 6,813 | 10,513 | 14,945 | 17,356 | 32,301 | (377 | ) | 2008, 2009 | ||||||||||||||||||||||||
Toluca Distribution Center (d)
|
1 | 7,952 | - | 12,934 | 7,952 | 12,934 | 20,886 | (45 | ) | 2009 | ||||||||||||||||||||||||
Total Mexico City, Mexico
|
9 | 42,164 | 45,667 | 40,159 | 41,594 | 86,396 | 127,990 | (5,852 | ) | |||||||||||||||||||||||||
Monterrey
|
||||||||||||||||||||||||||||||||||
Monterrey Airport (d)
|
3 | 9,263 | 12,878 | 7,580 | 9,218 | 20,503 | 29,721 | (614 | ) | 2007, 2008 | ||||||||||||||||||||||||
Monterrey Industrial Park
|
1 | 272 | - | 2,032 | 277 | 2,027 | 2,304 | (863 | ) | 1997 | ||||||||||||||||||||||||
Total Monterrey, Mexico
|
4 | 9,535 | 12,878 | 9,612 | 9,495 | 22,530 | 32,025 | (1,477 | ) | |||||||||||||||||||||||||
Reynosa
|
||||||||||||||||||||||||||||||||||
El Puente Industrial Center (d)
|
2 | 1,906 | 5,823 | 1,280 | 1,889 | 7,120 | 9,009 | (128 | ) | 2008 | ||||||||||||||||||||||||
Pharr Bridge Industrial Center (d)
|
2 | 3,947 | 3,682 | 9,049 | 3,936 | 12,742 | 16,678 | (123 | ) | 2008, 2009 | ||||||||||||||||||||||||
Total Reynosa, Mexico
|
4 | 5,853 | 9,505 | 10,329 | 5,825 | 19,862 | 25,687 | (251 | ) | |||||||||||||||||||||||||
Tijuana
|
||||||||||||||||||||||||||||||||||
ProLogis Park Alamar (d)
|
3 | 20,540 | 17,081 | (2,835 | ) | 20,536 | 14,250 | 34,786 | (390 | ) | 2008 | |||||||||||||||||||||||
Total Tijuana, Mexico
|
3 | 20,540 | 17,081 | (2,835 | ) | 20,536 | 14,250 | 34,786 | (390 | ) | ||||||||||||||||||||||||
145
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
Canada:
|
||||||||||||||||||||||||||||||||||
Toronto
|
||||||||||||||||||||||||||||||||||
Bolton Distribution Center (d)
|
1 | 9,189 | - | 23,661 | 9,189 | 23,661 | 32,850 | - | 2009 | |||||||||||||||||||||||||
Mississauga Gateway Center (d)
|
1 | 1,512 | 6,320 | 2,853 | 2,638 | 8,047 | 10,685 | (149 | ) | 2008 | ||||||||||||||||||||||||
Total Toronto, Canada
|
2 | 10,701 | 6,320 | 26,514 | 11,827 | 31,708 | 43,535 | (149 | ) | |||||||||||||||||||||||||
Subtotal North American Markets
|
1,086 | 1,752,946 | 4,975,087 | 1,687,705 | 1,842,363 | 6,573,375 | 8,415,738 | (1,592,018 | ) | |||||||||||||||||||||||||
European Markets
|
||||||||||||||||||||||||||||||||||
Czech Republic:
|
||||||||||||||||||||||||||||||||||
Ostrava Distribution Center (d)
|
2 | 7,993 | 57,501 | 2,374 | 10,478 | 57,390 | 67,868 | (658 | ) | 2008 | ||||||||||||||||||||||||
Stenovice Distribution Center (d)
|
3 | 4,222 | 32,424 | 17,456 | 4,685 | 49,417 | 54,102 | (308 | ) | 2008, 2009 | ||||||||||||||||||||||||
Uzice Distribution Center (d)
|
3 | 8,838 | - | 62,858 | 8,938 | 62,758 | 71,696 | (725 | ) | 2007, 2009 | ||||||||||||||||||||||||
Total Czech Republic
|
8 | 21,053 | 89,925 | 82,688 | 24,101 | 169,565 | 193,666 | (1,691 | ) | |||||||||||||||||||||||||
France:
|
||||||||||||||||||||||||||||||||||
Avignon Distribution Center (d)
|
1 | 3,405 | 24,084 | (2,024 | ) | 3,280 | 22,185 | 25,465 | (393 | ) | 2008 | |||||||||||||||||||||||
Isle dAbeau Distribution Center
|
1 | 12,792 | 20,230 | 9,120 | 9,038 | 33,104 | 42,142 | (3,885 | ) | 2006 | ||||||||||||||||||||||||
Le Havre Distribution Center (d)
|
1 | 540 | - | 17,349 | 540 | 17,349 | 17,889 | - | 2009 | |||||||||||||||||||||||||
Macon Distribution Center (d)
|
1 | 2,065 | - | 27,063 | 3,280 | 25,848 | 29,128 | (1,554 | ) | 2006 | ||||||||||||||||||||||||
Moissy Cramayel Distribution Center (d)
|
1 | - | 6,161 | - | - | 6,161 | 6,161 | (96 | ) | 2009 | ||||||||||||||||||||||||
Rennes Distribution Center (d)
|
1 | 616 | - | 13,197 | 616 | 13,197 | 13,813 | - | 2009 | |||||||||||||||||||||||||
Strasbourg Distribution Center (d)
|
2 | 67 | 30,427 | (905 | ) | - | 29,589 | 29,589 | (584 | ) | 2008 | |||||||||||||||||||||||
Vemars Distribution Center (d)
|
4 | 13,944 | - | 54,333 | 13,944 | 54,333 | 68,277 | - | 2009 | |||||||||||||||||||||||||
Total France
|
12 | 33,429 | 80,902 | 118,133 | 30,698 | 201,766 | 232,464 | (6,512 | ) | |||||||||||||||||||||||||
Germany:
|
||||||||||||||||||||||||||||||||||
Alzenau Distribution Center (d)
|
1 | 4,618 | 9,832 | (996 | ) | 4,505 | 8,949 | 13,454 | (149 | ) | 2008 | |||||||||||||||||||||||
Augsburg Distribution Center (d)
|
2 | 9,218 | - | 20,574 | 9,218 | 20,574 | 29,792 | - | 2009 | |||||||||||||||||||||||||
Billbrook Hamburg Distribution Center (d)
|
1 | 6,908 | - | 13,267 | 6,908 | 13,267 | 20,175 | (207 | ) | 2009 | ||||||||||||||||||||||||
Cologne Eifeltor Distribution Center (d)
|
1 | 3,040 | 12,585 | 360 | 3,286 | 12,699 | 15,985 | (13 | ) | 2008 | ||||||||||||||||||||||||
Heilbronn Distribution Center (d)
|
3 | 13,765 | - | 41,415 | 13,765 | 41,415 | 55,180 | (93 | ) | 2009 | ||||||||||||||||||||||||
Herford Distribution Center (d)
|
2 | 2,643 | - | 12,274 | 2,643 | 12,274 | 14,917 | - | 2009 | |||||||||||||||||||||||||
Kolleda Distribution Center (d)
|
1 | 289 | 4,306 | 10 | 291 | 4,314 | 4,605 | (67 | ) | 2008 | ||||||||||||||||||||||||
Meerane Distribution Center (d)
|
1 | 830 | 5,714 | 166 | 810 | 5,900 | 6,710 | - | 2008 | |||||||||||||||||||||||||
Weilerswist Distribution Center (d)
|
1 | 2,403 | 6,685 | 104 | 2,338 | 6,854 | 9,192 | (78 | ) | 2008 | ||||||||||||||||||||||||
Total Germany
|
13 | 43,714 | 39,122 | 87,174 | 43,764 | 126,246 | 170,010 | (607 | ) | |||||||||||||||||||||||||
146
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
Hungary:
|
||||||||||||||||||||||||||||||||||
Batta Distribution Center (d)
|
1 | 2,497 | 15,829 | 227 | 4,762 | 13,791 | 18,553 | (43 | ) | 2008 | ||||||||||||||||||||||||
Budapest Park Phase II (d)
|
1 | 952 | 21,215 | (2,906 | ) | 4,693 | 14,568 | 19,261 | (390 | ) | 2008 | |||||||||||||||||||||||
Budapest-Sziget Dist. Center (d)
|
1 | 2,763 | 9,500 | 168 | 3,057 | 9,374 | 12,431 | (49 | ) | 2008 | ||||||||||||||||||||||||
Hegyeshalom Distribution Center (d)
|
1 | 965 | - | 12,482 | 1,154 | 12,293 | 13,447 | (496 | ) | 2007 | ||||||||||||||||||||||||
Total Hungary
|
4 | 7,177 | 46,544 | 9,971 | 13,666 | 50,026 | 63,692 | (978 | ) | |||||||||||||||||||||||||
Italy:
|
||||||||||||||||||||||||||||||||||
Lodi Distribution Center
|
2 | 7,996 | 35,613 | 7,332 | 13,063 | 37,878 | 50,941 | (4,624 | ) | 2005, 2006 | ||||||||||||||||||||||||
Romentino Distribution Center (d)
|
2 | 3,758 | - | 32,706 | 3,975 | 32,489 | 36,464 | (2,337 | ) | 2006 | ||||||||||||||||||||||||
Total Italy
|
4 | 11,754 | 35,613 | 40,038 | 17,038 | 70,367 | 87,405 | (6,961 | ) | |||||||||||||||||||||||||
Netherlands:
|
||||||||||||||||||||||||||||||||||
Venlo Dist. Center. (d)
|
1 | 3,494 | 11,126 | 511 | 3,649 | 11,482 | 15,131 | (132 | ) | 2008 | ||||||||||||||||||||||||
Total Netherlands
|
1 | 3,494 | 11,126 | 511 | 3,649 | 11,482 | 15,131 | (132 | ) | |||||||||||||||||||||||||
Poland:
|
||||||||||||||||||||||||||||||||||
Bedzin Distribution Center (d)
|
2 | 4,279 | - | 9,326 | 4,279 | 9,326 | 13,605 | (95 | ) | 2009 | ||||||||||||||||||||||||
Blonie II Distribution Center (d)
|
2 | 7,317 | - | 23,111 | 7,317 | 23,111 | 30,428 | - | 2009 | |||||||||||||||||||||||||
Chorzow Distribution Center (d)
|
2 | 18,009 | - | 42,001 | 18,009 | 42,001 | 60,010 | (99 | ) | 2009 | ||||||||||||||||||||||||
Janki Distribution Center (d)
|
1 | 2,348 | 12,497 | (456 | ) | 3,229 | 11,160 | 14,389 | (174 | ) | 2008 | |||||||||||||||||||||||
Nadarzyn Distribution Center (d)
|
1 | 2,960 | - | 8,358 | 2,960 | 8,358 | 11,318 | - | 2009 | |||||||||||||||||||||||||
Piotrkow Distribution Center (d)
|
2 | 1,006 | 9,764 | 436 | 2,723 | 8,483 | 11,206 | (62 | ) | 2008 | ||||||||||||||||||||||||
Piotrkow II Distribution Center (d)
|
1 | 1,861 | - | 6,507 | 1,861 | 6,507 | 8,368 | - | 2009 | |||||||||||||||||||||||||
Poznan II Distribution Center (d)
|
1 | 5,554 | - | 4,608 | 1,769 | 8,393 | 10,162 | (270 | ) | 2007 | ||||||||||||||||||||||||
ProLogis Park Rawa (d)
|
1 | 3,151 | - | 10,979 | 3,151 | 10,979 | 14,130 | - | 2009 | |||||||||||||||||||||||||
Sochaczew Distribution Center. (d)
|
2 | 144 | 12,782 | 1,884 | 858 | 13,952 | 14,810 | (189 | ) | 2008 | ||||||||||||||||||||||||
Szczecin Distribution Center (d)
|
1 | 3,430 | 21,344 | 1,473 | 4,055 | 22,192 | 26,247 | (115 | ) | 2008 | ||||||||||||||||||||||||
Warsaw II Distribution Center (d)
|
1 | 2,114 | - | 11,399 | 3,218 | 10,295 | 13,513 | (91 | ) | 2008 | ||||||||||||||||||||||||
Wroclaw Distribution Center (d)
|
2 | 3,839 | 33,390 | 1,000 | 6,531 | 31,698 | 38,229 | (306 | ) | 2008 | ||||||||||||||||||||||||
Wroclaw III Distribution Center (d)
|
2 | 7,033 | - | 33,072 | 7,033 | 33,072 | 40,105 | - | 2009 | |||||||||||||||||||||||||
Total Poland
|
21 | 63,045 | 89,777 | 153,698 | 66,993 | 239,527 | 306,520 | (1,401 | ) | |||||||||||||||||||||||||
147
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
Romania:
|
||||||||||||||||||||||||||||||||||
Bucharest Distribution Center (d)
|
4 | 7,592 | 33,188 | 16,085 | 10,346 | 46,519 | 56,865 | (1,717 | ) | 2007, 2008 | ||||||||||||||||||||||||
Total Romania
|
4 | 7,592 | 33,188 | 16,085 | 10,346 | 46,519 | 56,865 | (1,717 | ) | |||||||||||||||||||||||||
Slovakia:
|
||||||||||||||||||||||||||||||||||
Bratislava Distribution Center (d)
|
3 | 6,280 | 45,922 | 15,522 | 6,162 | 61,562 | 67,724 | (3,787 | ) | 2007, 2008 | ||||||||||||||||||||||||
Sered Distribution Center (d)
|
1 | 2,864 | - | 15,073 | 2,864 | 15,073 | 17,937 | - | 2009 | |||||||||||||||||||||||||
Total Slovakia
|
4 | 9,144 | 45,922 | 30,595 | 9,026 | 76,635 | 85,661 | (3,787 | ) | |||||||||||||||||||||||||
Spain:
|
||||||||||||||||||||||||||||||||||
Massalaves Distribution Center (d)
|
1 | 3,051 | - | 10,373 | 3,051 | 10,373 | 13,424 | - | 2009 | |||||||||||||||||||||||||
Sallent Distribution Center (d)
|
1 | 10,146 | - | 6,480 | 10,146 | 6,480 | 16,626 | - | 2009 | |||||||||||||||||||||||||
Tarancon Distribution Center (d)
|
1 | 4,146 | 18,319 | 1,201 | 4,020 | 19,646 | 23,666 | (184 | ) | 2008 | ||||||||||||||||||||||||
Total Spain
|
3 | 17,343 | 18,319 | 18,054 | 17,217 | 36,499 | 53,716 | (184 | ) | |||||||||||||||||||||||||
Sweden:
|
||||||||||||||||||||||||||||||||||
Jonkoping Distribution Center (d)
|
1 | 2,392 | - | 57,025 | 2,392 | 57,025 | 59,417 | - | 2009 | |||||||||||||||||||||||||
Total Sweden
|
1 | 2,392 | - | 57,025 | 2,392 | 57,025 | 59,417 | - | ||||||||||||||||||||||||||
United Kingdom:
|
||||||||||||||||||||||||||||||||||
Coventry Distribution Center (d)
|
1 | 4,322 | - | 7,476 | 3,497 | 8,301 | 11,798 | (249 | ) | 2007 | ||||||||||||||||||||||||
Crewe Distribution Center (d)
|
1 | 11,478 | 19,049 | 2,499 | 11,963 | 21,063 | 33,026 | (241 | ) | 2008 | ||||||||||||||||||||||||
Hayes Distribution Center (d)
|
2 | 9,755 | - | 35,410 | 30,109 | 15,056 | 45,165 | (689 | ) | 2007 | ||||||||||||||||||||||||
Houghton Main Distribution Center (d)
|
1 | 8,993 | - | 26,155 | 7,387 | 27,761 | 35,148 | (1,388 | ) | 2006 | ||||||||||||||||||||||||
Midpoint Park (d)
|
2 | 29,189 | 30,098 | (2,659 | ) | 30,465 | 26,163 | 56,628 | (62 | ) | 2008 | |||||||||||||||||||||||
North Kettering Bus Pk (d)
|
2 | 22,367 | - | 25,997 | 17,937 | 30,427 | 48,364 | (1,265 | ) | 2007 | ||||||||||||||||||||||||
Peterborough Dist. Center. (d)
|
1 | 6,554 | - | 13,848 | 5,861 | 14,541 | 20,402 | (409 | ) | 2007 | ||||||||||||||||||||||||
Pineham Distribution Center (d)
|
2 | 18,368 | 29,767 | 5,422 | 22,478 | 31,079 | 53,557 | (351 | ) | 2008 | ||||||||||||||||||||||||
Stafford Distribution Center (d)
|
1 | 10,765 | - | 10,915 | 7,845 | 13,835 | 21,680 | (530 | ) | 2007 | ||||||||||||||||||||||||
Total United Kingdom
|
13 | 121,791 | 78,914 | 125,063 | 137,542 | 188,226 | 325,768 | (5,184 | ) | |||||||||||||||||||||||||
Subtotal European Markets
|
88 | 341,928 | 569,352 | 739,035 | 376,432 | 1,273,883 | 1,650,315 | (29,154 | ) | |||||||||||||||||||||||||
Asian Markets
|
||||||||||||||||||||||||||||||||||
Japan:
|
||||||||||||||||||||||||||||||||||
Chiba Distribution Center (d)
|
1 | (e) | 29,647 | 56,727 | (45 | ) | 28,881 | 57,448 | 86,329 | (1,352 | ) | 2008 | ||||||||||||||||||||||
Iwanuma I Land (d)
|
1 | 6,377 | 38,225 | 1,989 | 6,155 | 40,436 | 46,591 | (258 | ) | 2008 |
148
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
Kitanagoya Distribution Center (d)
|
1 | 28,163 | - | 57,127 | 28,163 | 57,127 | 85,290 | - | 2009 | |||||||||||||||||||||||||
ProLogis Park Aichi Distribution Center (d)
|
1 | 26,362 | - | 88,239 | 31,955 | 82,646 | 114,601 | (3,295 | ) | 2007 | ||||||||||||||||||||||||
ProLogis Park Ichikawa (d)
|
1 | 91,315 | 165,709 | 3,959 | 88,976 | 172,007 | 260,983 | (1,108 | ) | 2008 | ||||||||||||||||||||||||
ProLogis Park Ichikawa II (d)
|
1 | 61,553 | - | 114,901 | 61,553 | 114,901 | 176,454 | - | 2009 | |||||||||||||||||||||||||
ProLogis Park Maishima III (d)
|
1 | 25,124 | 98,516 | (628 | ) | 24,363 | 98,649 | 123,012 | (2,066 | ) | 2008 | |||||||||||||||||||||||
ProLogis Park Narita III (d)
|
1 | 24,527 | 86,956 | 1,327 | 23,805 | 89,005 | 112,810 | (1,114 | ) | 2008 | ||||||||||||||||||||||||
ProLogis Park Osaka II (d)
|
1 | (e) | 30,630 | - | 178,173 | 37,128 | 171,675 | 208,803 | (7,042 | ) | 2007 | |||||||||||||||||||||||
Zama Distribution Center (d)
|
1 | 59,798 | - | 159,979 | 59,798 | 159,979 | 219,777 | - | 2009 | |||||||||||||||||||||||||
Total Japan
|
10 | 383,496 | 446,133 | 605,021 | 390,777 | 1,043,873 | 1,434,650 | (16,235 | ) | |||||||||||||||||||||||||
Korea:
|
||||||||||||||||||||||||||||||||||
ProLogis Park Deokpyung
|
1 | 5,062 | 6,364 | 1,974 | 4,074 | 9,326 | 13,400 | (1,177 | ) | 2006 | ||||||||||||||||||||||||
ProLogis Park Namyangju (d)
|
1 | 4,140 | - | 10,951 | 4,140 | 10,951 | 15,091 | (157 | ) | 2009 | ||||||||||||||||||||||||
ProLogis Park Okcheon (d)
|
1 | 819 | 2,349 | 467 | 927 | 2,708 | 3,635 | (96 | ) | 2008 | ||||||||||||||||||||||||
ProLogis Park Yongin
|
1 | (e) | 8,871 | 2,221 | 1,580 | 7,176 | 5,496 | 12,672 | (441 | ) | 2007 | |||||||||||||||||||||||
Total Korea
|
4 | 18,892 | 10,934 | 14,972 | 16,317 | 28,481 | 44,798 | (1,871 | ) | |||||||||||||||||||||||||
Subtotal Asian Markets
|
14 | 402,388 | 457,067 | 619,993 | 407,094 | 1,072,354 | 1,479,448 | (18,106 | ) | |||||||||||||||||||||||||
Total Industrial Operating Properties
|
1,188 | 2,497,262 | 6,001,506 | 3,046,733 | 2,625,889 | 8,919,612 | 11,545,501 | (1,639,278 | ) | |||||||||||||||||||||||||
Retail and Office operating properties
|
||||||||||||||||||||||||||||||||||
Chicago, Illinois
|
||||||||||||||||||||||||||||||||||
Glenview Office Center
|
1 | - | - | 7,859 | 1,313 | 6,546 | 7,859 | (711 | ) | 2005 | ||||||||||||||||||||||||
Total Chicago, Illinois
|
1 | - | - | 7,859 | 1,313 | 6,546 | 7,859 | (711 | ) | |||||||||||||||||||||||||
Denver, Colorado Airport Way
|
1 | 2,284 | - | 28,945 | 2,284 | 28,945 | 31,229 | - | 2009 | |||||||||||||||||||||||||
Total Denver, Colorado
|
1 | 2,284 | - | 28,945 | 2,284 | 28,945 | 31,229 | - | ||||||||||||||||||||||||||
Los Angeles / Orange County, California
|
||||||||||||||||||||||||||||||||||
Newport Retail Center
|
1 | 4,478 | 10,450 | (10,072 | ) | 4,478 | 378 | 4,856 | (1,121 | ) | 2005 | |||||||||||||||||||||||
Woodland Retail Center
|
3 | 10,376 | 24,208 | 393 | 10,375 | 24,602 | 34,977 | (2,658 | ) | 2005 | ||||||||||||||||||||||||
Total Los Angeles / Orange County, California
|
4 | 14,854 | 34,658 | (9,679 | ) | 14,853 | 24,980 | 39,833 | (3,779 | ) | ||||||||||||||||||||||||
San Francisco (East Bay), California
|
||||||||||||||||||||||||||||||||||
EB Bridge Shopping Center
|
8 | (g) | 23,042 | 81,693 | 502 | 23,042 | 82,195 | 105,237 | (10,307 | ) | 2005 | |||||||||||||||||||||||
Granada Shopping Center
|
1 | 2,604 | 9,232 | 408 | 2,604 | 9,640 | 12,244 | (1,002 | ) | 2005 | ||||||||||||||||||||||||
Total San Francisco (East Bay), California
|
9 | 25,646 | 90,925 | 910 | 25,646 | 91,835 | 117,481 | (11,309 | ) | |||||||||||||||||||||||||
149
Initial Cost to |
Costs |
|||||||||||||||||||||||||||||||||
ProLogis |
Capitalized |
Gross Amounts At Which Carried as of December 31, 2009 |
Accumulated |
Date of |
||||||||||||||||||||||||||||||
No. of |
Encum- |
Building & |
Subsequent |
Building & |
Depreciation |
Construction/ |
||||||||||||||||||||||||||||
Description
|
Bldgs.
|
brances
|
Land
|
Improvements
|
To Acquisition
|
Land
|
Improvements
|
Total (a,b)
|
(c)
|
Acquisition
|
||||||||||||||||||||||||
San Francisco (South Bay), California
|
||||||||||||||||||||||||||||||||||
Pacific Commons Retail
|
14 | 28,144 | 64,829 | 1,663 | 30,415 | 64,221 | 94,636 | (8,867 | ) | 2005, 2006, 2008 | ||||||||||||||||||||||||
Total San Francisco (South Bay), California
|
14 | 28,144 | 64,829 | 1,663 | 30,415 | 64,221 | 94,636 | (8,867 | ) | |||||||||||||||||||||||||
Total Retail Operating Properties
|
29 | 70,928 | 190,412 | 29,698 | 74,511 | 216,527 | 291,038 | (24,666 | ) | |||||||||||||||||||||||||
Total Operating Properties
|
1,217 | 2,568,190 | 6,191,918 | 3,076,431 | 2,700,400 | 9,136,139 | 11,836,539 | (1,663,944 | ) | |||||||||||||||||||||||||
Properties Under Development
|
||||||||||||||||||||||||||||||||||
North American Markets:
|
||||||||||||||||||||||||||||||||||
United States
|
||||||||||||||||||||||||||||||||||
Inland Empire, California
|
||||||||||||||||||||||||||||||||||
Crossroads Business Park
|
1 | 17,212 | - | 1,517 | 17,212 | 1,517 | 18,729 | - | 2009 | |||||||||||||||||||||||||
Total Inland Empire, California
|
1 | 17,212 | - | 1,517 | 17,212 | 1,517 | 18,729 | - | ||||||||||||||||||||||||||
Subtotal North American Markets
|
1 | 17,212 | - | 1,517 | 17,212 | 1,517 | 18,729 | - | ||||||||||||||||||||||||||
European Markets:
|
||||||||||||||||||||||||||||||||||
Netherlands
|
||||||||||||||||||||||||||||||||||
Oosterhout Distribution Center
|
1 | 16,367 | - | 17,169 | 16,367 | 17,169 | 33,536 | - | 2009 | |||||||||||||||||||||||||
Total Netherlands
|
1 | 16,367 | - | 17,169 | 16,367 | 17,169 | 33,536 | - | ||||||||||||||||||||||||||
Spain
|
||||||||||||||||||||||||||||||||||
Zaragoza Distribution Center
|
1 | 24,402 | - | 22,339 | 24,402 | 22,339 | 46,741 | - | 2009 | |||||||||||||||||||||||||
Total Spain
|
1 | 24,402 | - | 22,339 | 24,402 | 22,339 | 46,741 | - | ||||||||||||||||||||||||||
United Kingdom
|
||||||||||||||||||||||||||||||||||
Co-op Prologis M8 - Scotland
|
1 | 7,530 | - | 3,788 | 7,530 | 3,788 | 11,318 | - | 2009 | |||||||||||||||||||||||||
Total United Kingdom
|
1 | 7,530 | - | 3,788 | 7,530 | 3,788 | 11,318 | - | ||||||||||||||||||||||||||
Subtotal European Markets
|
3 | 48,299 | - | 43,296 | 48,299 | 43,296 | 91,595 | - | ||||||||||||||||||||||||||
Asian Markets:
|
||||||||||||||||||||||||||||||||||
Japan
|
||||||||||||||||||||||||||||||||||
Ebina Distribution Center
|
1 | 55,446 | - | 25,357 | 55,446 | 25,357 | 80,803 | - | 2009 | |||||||||||||||||||||||||
Total Japan
|
1 | 55,446 | - | 25,357 | 55,446 | 25,357 | 80,803 | - | ||||||||||||||||||||||||||
Subtotal Asian Markets
|
1 | 55,446 | - | 25,357 | 55,446 | 25,357 | 80,803 | - | ||||||||||||||||||||||||||
Total Properties Under Development
|
5 | 120,957 | - | 70,170 | 120,957 | 70,170 | 191,127 | - | ||||||||||||||||||||||||||
GRAND TOTAL
|
1,222 | 2,689,147 | 6,191,918 | 3,146,601 | 2,821,357 | 9,206,309 | 12,027,666 | (1,663,944 | ) | |||||||||||||||||||||||||
150
(a) | Reconciliation of real estate assets per Schedule III to our Consolidated Balance Sheet as of December 31, 2009 (in thousands): |
Total per Schedule III
|
$ | 12,027,666 | ||
Land held for development
|
2,569,343 | |||
Land subject to ground leases and other
|
385,222 | (e)(g) | ||
Other investments
|
233,665 | |||
Total per consolidated balance sheet
|
$ | 15,215,896 | (h) | |
(b) | The aggregate cost for Federal tax purposes at December 31, 2009 of our real estate assets was approximately $12,197,275,000 |
(c) | Real estate assets (excluding land balances) are depreciated over their estimated useful lives. These useful lives are generally 7 years for capital improvements, 10 years for standard tenant improvements, 30 years for acquired industrial properties, 40 years for office and retail properties acquired and 40 years for properties we develop. |
Total accumulated depreciation per Schedule III
|
$ | 1,663,944 | ||
Accumulated depreciation on other investments
|
7,156 | |||
Total per Consolidated Balance Sheet
|
$ | 1,671,100 | ||
(d) | Total industrial properties include 163 properties developed in the completed development portfolio aggregating 50.6 million square feet at a total investment of $4.1 billion. See Item 1. Business - Operating Segments - Direct Owned. |
(e) | Properties with an aggregate undepreciated cost of $2,643,037,300 secure $1,090,126,300 of mortgage notes. See Note 9 to our Consolidated Financial Statements in Item 8. |
(f) | Properties with an aggregate undepreciated cost of $277,268,800 serve as collateral for a loan of the ProLogis American Industrial Fund II. See Note 6 to our Consolidated Financial Statements in Item 8. |
(g) | Assessment bonds of $24,715,300 are secured by assessments (similar to property taxes) on various underlying real estate properties with an aggregate undepreciated cost of $953,045,100. See Note 9 to our Consolidated Financial Statements in Item 8. |
(h) | A summary of activity for our real estate assets and accumulated depreciation for the years ended December 31 (in thousands): |
2009 | 2008 | 2007 | ||||||||||
Real estate assets:
|
||||||||||||
Balance at beginning of year
|
$ | 12,496,292 | $ | 13,370,979 | $ | 11,615,735 | ||||||
Acquisitions of operating properties, transfers of development
completions from CIP and improvements to operating properties
|
1,857,947 | 4,154,685 | 5,437,923 | |||||||||
Basis of operating properties disposed of
|
(1,145,256 | ) | (3,993,178 | ) | (4,693,606 | ) | ||||||
Change in properties under development balance
|
(990,217 | ) | (807,025 | ) | 1,023,527 | |||||||
Impairment of real estate properties (1)
|
(191,100 | ) | (36,942 | ) | (12,600 | ) | ||||||
Assets transferred to
held-for-sale
|
- | (192,227 | ) | - | ||||||||
Balance at end of year
|
$ | 12,027,666 | $ | 12,496,292 | $ | 13,370,979 | ||||||
Accumulated Depreciation:
|
||||||||||||
Balance at beginning of year
|
$ | 1,581,672 | $ | 1,366,637 | $ | 1,278,693 | ||||||
Depreciation expense
|
276,400 | 261,614 | 211,887 | |||||||||
Balances retired upon disposition of operating properties
|
(194,128 | ) | (40,326 | ) | (123,943 | ) | ||||||
Assets transferred to
held-for-sale
|
- | (6,253 | ) | - | ||||||||
Balance at end of year
|
$ | 1,663,944 | $ | 1,581,672 | $ | 1,366,637 | ||||||
(1) | The impairment charges relating to real estate properties that we recognized during 2009 and 2008 were based primarily on valuations of real estate, which had declined due to market conditions, that we no longer expected to hold for long term investment. The 2007 impairment charge related to a portfolio of buildings we had decided to sell. See Note 14 to our Consolidated Financial Statements in Item 8 for more information related to our impairment charges. |
151
By: |
/s/ WALTER
C. RAKOWICH
|
Signature
|
Title
|
Date
|
||||
/s/ WALTER
C. RAKOWICH Walter C. Rakowich |
Chief Executive Officer and Trustee | February 26, 2010 | ||||
/s/ WILLIAM
E. SULLIVAN William E. Sullivan |
Chief Financial Officer | February 26, 2010 | ||||
/s/ JEFFREY
S. FINNIN Jeffrey S. Finnin |
Chief Accounting Officer | February 26, 2010 | ||||
/s/ STEPHEN
L. FEINBERG Stephen L. Feinberg |
Chairman of the Board of Trustees | February 26, 2010 | ||||
/s/ GEORGE
L. FOTIADES George L. Fotiades |
Trustee | February 26, 2010 | ||||
/s/ CHRISTINE
N. GARVEY Christine N. Garvey |
Trustee | February 26, 2010 | ||||
/s/ LAWRENCE
V. JACKSON Lawrence V. Jackson |
Trustee | February 26, 2010 | ||||
/s/ DONALD
P. JACOBS Donald P. Jacobs |
Trustee | February 26, 2010 | ||||
/s/ IRVING
F. LYONS III Irving F. Lyons III |
Trustee | February 26, 2010 | ||||
/s/ D.
MICHAEL STEUERT D. Michael Steuert |
Trustee | February 26, 2010 |
152
Signature
|
Title
|
Date
|
||||
/s/ J.
ANDRÉ TEIXEIRA J. André Teixeira |
Trustee | February 26, 2010 | ||||
/s/ WILLIAM
D. ZOLLARS William D. Zollars |
Trustee | February 26, 2010 | ||||
/s/ ANDREA
M. ZULBERTI Andrea M. Zulberti |
Trustee | February 26, 2010 |
153
Exhibit |
||||||
Number
|
Description
|
|||||
1 | .1 | | Sales Agreement dates February 27, 2007, between ProLogis and Cantor Fitzgerald & Co. (incorporated by reference to exhibit 1.1 to ProLogis Form 10-K for the year ended December 31, 2006). | |||
1 | .2 | | Equity Distribution Agreement, dated June 2, 2009, between ProLogis and Citigroup Global Markets Inc. (incorporated by reference to exhibit 1.1 to ProLogis Form 8-K filed on June 2, 2009). | |||
3 | .1 | | Articles of Amendment and Restatement of Declaration of Trust of ProLogis (incorporated by reference to exhibit 4.1 to ProLogis Form 10-Q for the quarter ended June 30, 1999). | |||
3 | .2 | | Certificate of Amendment, dated as of May 22, 2002, to Amended and Restated of Declaration of Trust of ProLogis (incorporated by reference to exhibit 99.1 to ProLogis Form 8-K dated May 30, 2002). | |||
3 | .3 | | Articles of Amendment to Amended and Restated Declaration of Trust of ProLogis dated as of May 19, 2005 (incorporated by reference to exhibit 3.1 to ProLogis Form 8-K filed on May 20, 2005). | |||
3 | .4 | | Articles of Amendment to Amended and Restated Declaration of Trust of ProLogis dated as of July 12, 2005 (incorporated by reference to exhibit 3.1 to ProLogis Form 8-K filed on July 13, 2005). | |||
3 | .5 | | Articles of Amendment to Amended and Restated Declaration of Trust of ProLogis dated as of February 27, 2009 (incorporated by reference to exhibit 3.5 to ProLogis Form 10-K for the year ended December 31, 2008). | |||
3 | .6 | | Amended and Restated Bylaws of ProLogis dated as of March 15, 2005 (incorporated by reference to exhibit 3.1 to ProLogis Form 8-K filed on March 21, 2005). | |||
3 | .7 | | Amendment to Amended and Restated Bylaws, dated as of March 15, 2006 (incorporated by reference to exhibit 3.1 to ProLogis Form 8-K filed on March 17, 2006). | |||
3 | .8 | | Amendment to Amended and Restated Bylaws, dated as of December 9, 2008 (incorporated by reference to exhibit 3.1 to ProLogis Form 8-K filed on December 12, 2008). | |||
3 | .9 | | Articles Supplementary Classifying and Designating the Series F Cumulative Redeemable Preferred Shares of Beneficial Interest (incorporated by reference to exhibit 4.2 to ProLogis Form 8-K dated December 24, 2003). | |||
3 | .10 | | Articles Supplementary Classifying and Designating the Series G Cumulative Redeemable Preferred Shares of Beneficial Interest (incorporated by reference to exhibit 4.3 to ProLogis Form 8-K dated December 24, 2003). | |||
3 | .11 | | Articles Supplementary Reclassifying and Designating Shares of Beneficial Interest of ProLogis as Common Shares of Beneficial Interest (incorporated by reference to exhibit 3.2 to ProLogis Form 8-K filed on July 13, 2005). | |||
4 | .1 | | Form of share certificate for common shares of Beneficial Interest of ProLogis (incorporated by reference to exhibit 4.4 to ProLogis registration statement No. 33-73382). | |||
4 | .2 | | Form of share certificate for Series C Cumulative Redeemable Preferred Shares of Beneficial Interest of ProLogis (incorporated by reference to exhibit 4.8 to ProLogis Form 10-K for the year ended December 31, 1996). | |||
4 | .3 | | Form of share certificate for Series F Cumulative Redeemable Preferred Shares of Beneficial Interest of ProLogis (incorporated by reference to exhibit 4.1 to ProLogis Form 8-K dated November 26, 2003). | |||
4 | .4 | | Form of share certificate for Series G Cumulative Redeemable Preferred Shares of Beneficial Interest of ProLogis (incorporated by reference to exhibit 4.1 to ProLogis Form 8-K dated December 24, 2003). |
154
4 | .5 | | ProLogis Trust Employee Share Purchase Plan, as amended and restated (incorporated by reference to exhibit 4.27 to ProLogis Form S-8, dated September 27, 2001). | |||
4 | .6 | | Indenture, dated as of March 1, 1995, between ProLogis and State Street Bank and Trust Company, as Trustee (incorporated by reference to Exhibit 4.9 to ProLogis Form 10-K for the year ended December 31, 1994). | |||
4 | .7 | | First Supplemental Indenture, dated as of February 9, 2005, by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to exhibit 4.1 to ProLogis Form 8-K dated February 9, 2005). | |||
4 | .8 | | Second Supplemental Indenture dated as of November 2, 2005 by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to Exhibit 4.1 to ProLogis Form 8-K filed on November 4, 2005). | |||
4 | .9 | | Third Supplemental Indenture dated as of November 2, 2005 by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to Exhibit 4.2 to ProLogis Form 8-K filed on November 4, 2005). | |||
4 | .10 | | Fourth Supplemental Indenture dated as of March 26, 2007 by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to exhibit 4.1 to ProLogis form 8-K filed on March 26, 2007). | |||
4 | .11 | | Fifth Supplemental Indenture dated as of November 8, 2007 by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to exhibit 4.1 to ProLogis form 8-K filed on November 7, 2007). | |||
4 | .12 | | Sixth Supplemental Indenture dated as of May 7, 2008 by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to exhibit 4.1 to ProLogis form 10-Q for the quarter ended June 30, 2008). | |||
4 | .13 | | Seventh Supplemental Indenture dated as of May 7, 2008 by and between ProLogis and U.S. Bank National Association, as Trustee (as successor in interest to State Street Bank and Trust Company) (incorporated by reference to exhibit 4.2 to ProLogis form 10-Q for the quarter ended June 30, 2008). | |||
4 | .14 | | Eighth Supplemental Indenture dated as of August 14, 2009 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 August 14, 2009). | |||
4 | .15 | | Ninth Supplemental Indenture dated as of October 1, 2009 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 October 2, 2009). | |||
4 | .17 | | 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 | .18 | | 7.875% Note due May 15, 2009 (incorporated by reference to exhibit 4.4 to ProLogis Form 8-K dated May 9, 1995). | |||
4 | .19 | | 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 | .20 | | 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 | .21 | | 7.625% Note due July 1, 2017 (incorporated by reference to exhibit 4 to ProLogis Form 8-K dated July 11, 1997). | |||
4 | .22 | | Form of 5.50% Promissory Note due March 1, 2013 (incorporated by reference to exhibit 4.26 to ProLogis Form10-K for the year ended December 31, 2002). |
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4 | .23 | | Form of 2.25% Convertible Notes due 2037 (incorporated by reference to exhibit 10.3 to ProLogis 10-Q for the quarter ended March 31, 2007). | |||
4 | .24 | 7.625% Note due August 15, 2014 (incorporated by reference to exhibit 4.3 to ProLogis Form 8-K filed on August 14, 2009). | ||||
4 | .25 | 7.375% Note due October 30, 2019 (incorporated by reference to exhibit 4.2 to ProLogis Form 8-K filed on October 30, 2009). | ||||
4 | .26 | 7.375% Note due October 30, 2019 (incorporated by reference to exhibit 4.3 to ProLogis Form 8-K filed on October 30, 2009). | ||||
10 | .1 | | Agreement of Limited Partnership of ProLogis Limited Partnership-I, dated as of December 22, 1993, by and among ProLogis, as general partner, and the limited partners set forth therein (incorporated by reference to exhibit 10.4 to ProLogis Registration Statement No. 33-73382). | |||
10 | .2 | | Agreement of Limited Partnership of Meridian Realty Partners, L.P. (incorporated by reference to exhibit 99.1 to ProLogis Registration Statement No. 333-86081). | |||
10 | .3 | | Amended and Restated Agreement of Limited Partnership of ProLogis Fraser, L.P. dated as of August 4, 2004 (incorporated by reference to exhibit 10.1 to ProLogis Form 10-Q for the quarter ended September 30, 2004). | |||
10 | .4 | | Form of Indemnification Agreement entered into between ProLogis and its Trustees and executive officers (incorporated by reference to exhibit 10.16 to ProLogis Registration Statement No. 33-73382). | |||
10 | .5 | | Indemnification Agreement between ProLogis and each of its independent Trustees (incorporated by reference to exhibit 10.16 to ProLogis Form 10-K for the year ended December 31, 1995). | |||
10 | .6 | | Declaration of Trust for the benefit of ProLogis independent Trustees (incorporated by reference to exhibit 10.17 to ProLogis Form 10-K for the year ended December 31, 1995). | |||
10 | .7 | | 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 | .8 | Amendment and Supplement No 1 dated as of August 21, 2009 to the Amended And Restated Security Agency Agreement dated as of October 6, 2005 among Bank of America, N.A., as Global Administrative Agent on behalf of the Global Lenders defined therein, certain Other Creditors of ProLogis and Bank of America, as Collateral Agent (incorporated by reference to Exhibit 10.2 to ProLogis Form 8-K filed on August 26, 2009). | ||||
10 | .9 | Third Amendment to Global Senior Credit Agreement dated as of August 21, 2009 among ProLogis and certain affiliate borrowers, as borrowers, 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 Euro Funding Agent, Euro Swing Line Lender, and a Euro L/C issuer, Sumitomo Mitsui Banking Corporation, as a Global Co-Syndication Agent, Yen Funding Agent, KRW Funding Agent, and a Yen L/C Issuer, The Royal Bank of Scotland plc and JPMorgan Chase Bank, N.A., as Global Co-Syndication Agents, and the other lenders party thereto (incorporated by reference to Exhibit 10.1 to ProLogis Form 8-K filed on August 26, 2009). | ||||
10 | .10 | | 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 | .11* | | ProLogis 2000 Share Option Plan for Outside Trustees (as Amended and Restated Effective as of December 31, 2009) (incorporated by reference to exhibit 10.13 to ProLogis Form 10-K for the year ended December 31, 2008). | |||
10 | .12* | | 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). |
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10 | .13* | | ProLogis 2006 Long-Term Incentive Plan (incorporated by reference to exhibit 10.2 to ProLogis Form 8-K filed on June 2, 2006). | |||
10 | .14* | | ProLogis Nonqualified Savings Plan (as Amended and Restated effective as of December 31, 2009) (incorporated by reference to exhibit 10.16 to ProLogis Form 10-K for the year ended December 31, 2008). | |||
10 | .15* | | ProLogis Executive Deferred Compensation Plan (effective as of December 31, 2009) (incorporated by reference to exhibit 10.17 to ProLogis Form 10-K for the year ended December 31, 2008). | |||
10 | .16* | | ProLogis Deferred Fee Plan for Trustees (as Amended and Restated as of December 31, 2009) (incorporated by reference to exhibit 10.18 to ProLogis Form 10-K for the year ended December 31, 2008). | |||
10 | .17* | | Third Amended and Restated Employment Agreement, dated January 7, 2009, entered into between ProLogis and Walter C. Rakowich (incorporated by reference to exhibit 10.19 to ProLogis Form 10-K for the year ended December 31, 2008). | |||
10 | .18* | | Amended and Restated Employment Agreement, effective as of December 31, 2009, entered into between ProLogis and Ted R. Antenucci (incorporated by reference to exhibit 10.20 to ProLogis Form 10-K for the year ended December 31, 2008). | |||
10 | .19* | | Form of Executive Protection Agreements entered into between ProLogis and Edward S. Nekritz and William E. Sullivan, effective as of December 31, 2009 (incorporated by reference to exhibit 10.23 to ProLogis Form 10-K for the year ended December 31, 2008). | |||
10 | .20* | | Executive Protection Agreement entered into between ProLogis and Gary E. Anderson, effective as of December 31, 2009 (incorporated by reference to exhibit 10.24 to ProLogis Form 10-K for the year ended December 31, 2008). | |||
10 | .21* | | Advisory Agreement, dated May 15, 2007, entered into between ProLogis and K. Dane Brooksher (incorporated by reference to exhibit 10.1 to ProLogis Form 10-Q for the quarter ended June 30, 2007). [TBD whether material] | |||
10 | .22 | | Master Implementation Agreement, dated December 23, 2008, entered into between ProLogis and Reco China Logistics Pte Ltd, relating to the sale and purchase of ProLogis interest in: (i) PRC Holdco; (ii) the Japan Trusts; (iii) Master Lessees; (iv) Barbados Managementco; (v) HK Managementco; (vi) Barbados Targetcos; (vii) Targetco (each as defined therein) (incorporated by reference to exhibit 10.29 to ProLogis Form 10-K for the year ended December 31, 2008). | |||
10 | .23 | | Supplemental Agreement, dated February 9, 2009, entered into between ProLogis and Reco China Logistics Pte Ltd (incorporated by reference to exhibit 10.30 to ProLogis Form 10-K for the year ended December 31, 2008). | |||
10 | .24 | | Transfer and Registration rights Agreement, dated as of December 22, 1993, among ProLogis and the persons set forth therein (incorporated by reference to exhibit 10.10 to ProLogis registration statement no. 33-73382) | |||
10 | .25 | Form of Non Qualified Share Option Award Terms; ProLogis 2006 Long-Term Incentive Plan | ||||
10 | .26 | Form of Restricted Share Award Terms; ProLogis 2006 Long-Term Incentive Plan | ||||
10 | .27 | Form of Performance Share Award Terms; ProLogis 2006 Long-Term Incentive Plan | ||||
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. |
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32 | .1 | | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||
99 | .1 | | Registration Rights Agreement dated February 9, 2007, between ProLogis and each of the parties identified therein (incorporated by reference to exhibit 99.10 to ProLogis Form 10-K for the year ended December 31, 2006). | |||
101 | | The following materials from ProLogis Annual Report on Form 10-K for the year ended December 31, 2009 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Equity (v) the Consolidated Statements of Cash Flows, and (vi) related notes to these financial statements, tagged as blocks of text. |
* | Management Contract or Compensatory Plan or Arrangement |
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