Prologis (PLD)

Tracy Ward Investor Relations
Tom Olinger Chief Financial Officer
Hamid Moghadam Chairman and CEO
Gary Anderson Chief Executive Officer of Europe and Asia
Chris Caton Senior Vice President and Global Head of Research
Mike Curless Chief Investment Officer
Ed Nekritz Chief Legal Officer
Gene Reilly Chief Executive Officer of the Americas
Colleen McKeown Chief Human Resources Officer
Jeremy Metz BMO
Michael Bilerman Citi
Nick Yulico Scotiabank
Jamie Feldman Bank of America Merrill Lynch
Craig Mailman KeyBanc Capital Markets
Steve Sakwa Evercore ISI
Blaine Heck Wells Forgo
John Guinee Stifel
Eric Frankel Green Street Advisor
Vikram Malhotra Morgan Stanley
Sarah Tan JP Morgan
Dave Rodgers Baird
Derek Johnston Deutsche Bank
Manny Korchman Citi
Ki Bin Kim SunTrust
Call transcript
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Welcome to the Prologis Q1 Earnings Conference Call. My name is Chris, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session. [Operator Instructions] Also note, this conference is being recorded. turn over to Tracy like now the to call Ward. I'd may begin. you Tracy,

Tracy Ward

and Thanks, to on everyone. XXXX morning, conference I'd Chris, good and that state Welcome prologis.com Investor The this document in Securities as will and market, the like projections Federal to at conference statements which operates supplemental based our is well laws. assumptions. industry as Prologis forward-looking beliefs website contain under available on our call are management's under about Relations. and These call. statements current estimates the quarter first expectations,

not performance affected Forward-looking guarantees statements may of results actual be are a factors. variety of and operating by

of list statement our SEC a notice For in or factors, the please refer to XX-K forward-looking those filings.

release such results CFO, Olinger, financial do measures. are to press and This Reg EBITDA accordance that reconciliation we'll Additionally, supplemental as Tom cover measures, and we hear our measures our and in G, those who morning, non-GAAP will with quarter contain Chris FFO us and provided on turn first have results from Gary also Colleen with who are outlook. CEO, that, the With to Ed Company's our will Anderson, Moghadam, and McKeown Chairman the then Mike Gene Reilly, call comment Curless, here Nekritz, and guidance; I'll over Tom. today. Caton, and Hamid

Tom Olinger

morning for Tracy. joining thanks and Thanks, Good our call.

across and remains labor. access Let demand strong prioritizing high-level small end-consumer me and few start customers the our type medium the markets. User disciplined segments a the Supply generally observations. exceptionally in as to are with is our

first is despite where Europe the the our UK notable conversion period very leasing reflect period fourth active. typically remains rates from pipeline the headlines, the healthy improved negative year. leasing demand quarter to softest the including showing and Our is strong proprietary quarter. as Build-to-Suit This remains economic gestation data have continues of average

XX with the our over was Globally roll XX.X%. in-places had at $X.XX This was our down and rates first over and about markets push basis points expense resulting million Europe U.S XX%.Our very share. increase continued We a XX of Rent by our at This share from quarter FFO almost million on spread cash of remains strong excellent XX%. at leased benefit expense same-store to led recovery to from between more stock Now term. base XX% was elevated share strategy also and G&A X.X%. our our bringing quarter occupancy per be higher a and with timing. at performance to XX sequentially, of due strong share great consistent growth the in included core We expected end with about points $X square over and compensation for feet XX% NOI results. operating the to basis positive at than rents than price. change

capital Cambridge For excludes at contributions. in our that and million. seasonally dispositions deployment, low Ivanhoe Brazil joint Starts of were in January. with $XXX This of closed we the from $XXX venture million formation completed $XXX million

Stabilizations were quarter. record an However, XX%. margin we estimated a of second meaningfully in million accelerate expect $XXX to the starts with

to access continue We terms. very in capital globally attractive

than a and addition a earlier of announced we've of of recasts eight quarter, line refinanced In billion our rate the debt yen basis points X.X of $X.X years. XX to in global at billion average credit term weighted more interest

very continues the our to from in with logistics interest XX%. generating European high. our was the This be to open to our Investor the our venture's ownership million. target fund of and XX% proceeds bring ended to partners ownership long-term line in reduced During of we quarter, accommodate XX%, in sector $XXX

deployment us to needs capacity more well $X.X fund run rate than and $X.X billion foreseeable sell-downs liquidity fund have from with potential the over We unto of future. positioning investment our significant billion self

Now for highlights, on guidance basis. which were share our in XXXX

account quarter, guidance $X.XX outlooks by last our mentioned to time. and $X.XX per that share guidance and XXXX we about better we removes of our political initial market We updated turbulence conservatism. for our feel As today tempered at that

points for our $XXX realized we're raising midpoint to and stabilization our sources a result, $XXX this guidance million as net earnings increasing basis by now quarter. to generated up of million. by our by forecast bottom And of development like given an year respectively. end revise billion. We're guidance more NOI We're midpoint. and starts We're million midpoints to raising first for million $X.X $XXX gains X%, X.XX% the range the $X our same-store a and of $XXX acquisitions a a range the of up almost will We than the both As of end billion to XX.X%. a $XXX narrowing raising occupancy also be million cash XX [indiscernible] XX at XX.X% the of points development to $XXX bringing capital. result, basis on drag there expect We're timing and million midpoint

million modest cash we flow. of we and usage, plan leverage For which net to free expect $XXX deployment full the year, fund with

share, result in valuation for up gains $X.XX. net of income Europe, a the full at we our year As $X.XX expect now promote per

that not to business last but growth. This from to our midpoint of this increasing core quarter. will the This FFO At these our income. share. flow in into account, between As FFO earned $X.XX Taking and $X.XX include valuation as year. development $X.XX we core share promotes $X.XX want core point $X.X $X.XX underappreciated business to create it of promote the in promote is be we're a growth. our often higher excluding reminder, did nearing in adds adds third the gains includes guidance is midpoint, a by now range XXXX we our than out and the the net obviously cash to per the vast value majority realized revenue approximately FFO, I changes

of $XX the $X.X merger created has this completed delivered has since of billion margin development business Over sum and billion XXXX. our a of quarter. Hamid. the year. track development in position To development million business a We more successful the with record excited we I our Our prospects will up, $XXX rest has period, than approximately feel profitability. value, and of great average that, about had of XX% it for to And [ongoing] are long good significant an our We've over [ph]. about over turn roughly

Hamid Moghadam

Thanks, Tom.

You quarter. add. covered well, had and another great don’t to have it much We I

behind organization. shape Our in phase our stronger a is entering we're in balance foundational evolution portfolio as is customer-centric next than excellent this With sheet work us, the and ever. our

operational enable in clear. the customers to We'll in leading pain vigilant analytics, deliver are confident sector key Chris our remain service. plans With for address will our quarter. your customers in closing, our financial stay global to that, our and we through for sentiment, innovation, reach us why points executive scale data customer for In shifts looking ability earlier the That’s over to realigned team Our turn technology I and results. market in conditions and questions. and it and


Your with first BMO. question [Operator is Jeremy from Metz instructions]

open. now line is Your

Jeremy Metz

first Europe the look we had When the we year, here strength the quarter in U.S. you move possibly quite XXXX? could as Obviously, outpace started talked the rent about good how growth U.S. into in further the

seeing the your in talked traffic there. about You what data optimism and market increased you're in your the

still can Europe comment from U.S. more for can think do for your rent get on you both and there? here outlook So And the abroad? broadly, maybe growth you

Chris Caton

Caton. That's our It’s rent we've indeed Chris good Yes, question. revised growth forecast.

the Europe still mid-to-high than increase basis expect globally. to outperform We U.S. points increase. XXX That's driven We year, by but the principally more [Xs][ph] later this expect was


next question Manny Your with Korchman from Citi. comes

Your line open. is now

Michael Bilerman

This you Simon get whole here think, company far can organization. them through coming They'll end verticals I’m this with you store. customer centric of in And do down go curious Manny. to data that to is clearly your to see don't other talked to call, them want far in platform than about online. are buy the had how customers? that But rather you the I thinking customers? where outside we Michael leasing about Hamid, and could I launched in your the how Prologis into? that launching go at analytics the people move Bilerman comment of platform. transforming the your are And you into And just an space able just they how the to be helping know past strategically going goods quarter announced verticals are other e-com the

Hamid Moghadam

need about basically to are going The of customers our way thinking things are properties. all we attack those it today our that we operate is that to

So these services. basically that products are they fully to utilize need our and services

beyond vision right chain. with sector that execute we I'll going that in the say, four to I the clearly answer vendors is Are is those sense. limited us businesses The players logistics But ourselves? to in going -- be partner walls but that will we other can are our and never and no. We supply never, to the help plan. say business will now and roof


with You from is next Nick Scotiabank. question Yulico

open. Your is line

Nick Yulico

help hear on guidance, increase well. and same-store then as Tom, the little in just what drove more me bit a about the occupancy

bit I You turnover. renewable would tenants willing guidance talked a mean that But about accept higher are vacancy the just that with year so? that I more or up know your of push to boosted that trying occupancy more you're thought little more this you that and, create you going on and does strategy pricing renewals frictional, the guess, finding to

Tom Olinger

the at increase in did of it a demand. continued interest activity, occupancy can And look you function and continued same-store, if Nick, strong customer strong Yes, be leasing outperform.

go long-term be continuing and see year. is surprised retention high term. Our a little right to are quite be but rents going decision, was we are if and good we expectations, the will the Don't throughout and lower this that. which quite to you make pushing going push extending to But rents, our be occupancy we quarter,

a and function good a growth, occupancy, really of customer really, bit rent dialogue it's So and really of little better activity.


is question of Bank America. next from Feldman with Your Jamie

Your line open. is

Jamie Feldman

kind remarks segments. the larger that in of seeing the a and mentioned also, your forward? strengths of thoughts had you big attack slowdown suggest midsize you I can in Prologis about and box, the at traditionally how the company. And that want there are thoughts your just get developments. going on And of on just box you're given all size to small supply Tom, does

Tom Olinger

third of when important XXX,XXX Jamie, our look represents our our space by square about space. feet, remember you a at greater space sizes footage than sizes, square to it's

So spaces represent square XXX,XXX under and feet, two-thirds. spaces XXX,XXX XXX,XXX between

infilled then when So that square that, on we much more And a not. at look is footage. space lot have that's you than

So at when on XXX. NOI, more the in it and XXX based you look certainly, NOI,

to boxes the at big boxes the smaller now. positioned occupancy and capture well and right potential, that when lower sizes market. is little occupancy actually are And we a you So in look medium

have to we capture think I opportunity. So are we positioned well a that --

Hamid Moghadam


XX% about of of our Only Just that. big facilities. box portfolio is really of super-regional sort to specific type put some numbers around the

the multi-market our that So majority tend the actually maybe is entry to closer we centers And vast to markets. of regional super in portfolio extent high have be very distribution those end stuff. barrier distribution to and city

that buildings medium to the in corridors example, in read So rent are Chicago about are big exception not buildings intended that’s but really for but commentary strength, markets market and was the larger softer point the its and there rule. outlying periphery, where I the until get those absorbed, size spaces, there wouldn't lot small for now some the of on to businesses the the weakness


next with Markets. Mailman from Craig is KeyBanc Your Capital question

now is open. line Your

Craig Mailman

to lease kind Are was spaces? guys guess, any thirds guys the space portfolio Tom, raised in on quick trigger Is box power $X.XX, mentioned pricing sale market spaces promote the ones, [indiscernible] lesser size? you two getting also, any depending the two stuff. did of separately, And box is I Just related smaller you the you than bifurcation the big in the first, of that of that guys there big better anything? on to

Tom Olinger

question, first are items. promote and impact there fund the sell on your no two the on totally Those down. was so separate Craig, increase

And it's category on rent a that's on bigger probably I that’s spread the consistent. would in smaller that been something -- versus that box accelerating Second, change spaces, is saying higher definitely XXX say roll under been the we're to bit. XXX accelerating pretty

Hamid Moghadam

are big segments the up are medium pause all the spaces. recovery The to got the enjoyed early if the And XX% as course years. Yes. cycle. you by taking XX% their look much and all during And of boxes of now growth. they as at a rents, there last growth significantly But somewhat or good in a think rent five and smaller [indiscernible] I backseat really over, four, those

Tom Olinger

higher, cost These rents to as is cost, are growing smaller significantly well. spaces faster replacement and going and follow replacement it's on


Sakwa Steve from is with question Evercore next ISI. Your

Your line is now open.

Steve Sakwa

I maybe made wondering I growth and geographic you year. seeing And higher guess how just we're wanted the of about talk maybe about guess the just kind if for strong question to sort rent your ask development. comment the impacting opportunities? of Gene you costs. that’s in up. focus going going I’m could up took a best where I guys your of seeing the starts replacement you cost about And presumably but replacement yield, that given the

Hamid Moghadam

be would period. looking deal at underwritten the I that markets market competitors every are ground specifically of out road generally say Steve, of and the the coming today Yes, the is dynamics on the very development and will that that down the during

rents years experience the that four the answer think question. is under we’re cap projected, compression. there we why we better that been is get. the are going three has to no been have margins general last we So by And rent than underwrite we higher or obviously mean and growth. large, rents to which what that actual And that in have shot have and rate I

So smaller they because generally difficult also are land greater. spaces the are areas are to replace where constraints more

answer have you that? do for Gene, anyway, So

Gene Reilly

may be bit of color. just Yes. Steve, little a

starts it's of markets. feet. build different were million And every XXX,XXX XXX,XXX by the whether we way, or average starts building about the feet single in XX is in sub-dividable. the building feet, size And So it's the quarter those

through to XX think these, going updated where you are all our all are the getting those the development And And build take over but at away look that we program, can markets. of are. customers. to I we So we from are smaller XXX very if buildings clear built. to obviously, stay And it's in markets different overall keep you we

good a And now. the healthy lucky from very we're composition. very about We markets market feel are that so, selection right that perspective, most of


is from Blaine Heck next Forgo. Wells You question with

open. is line Your

Blaine Heck

of that on at promote are six Obviously, for there some Tom, when this than see as up assumed year. that strategic continue there we co-investment but I many are move notes, point? how money from guess is we this following to wondering capital at others, page a promote look just those XXXX? progress ventures up in guidance change I'm supplemental, your are I to the the be in And could through bigger are eligible

Tom Olinger

different You promotes. need to driving what's look those at

be the the to larger of the new of the development. the funds extend earned, obvious have promotes stating we're annual Some AUM is. where the majority development But vast promote will

to what's bulk that's And in open So going our promote be funds. our ended of that's the going to revenue. drive

Hamid Moghadam

AUM. think will not or be mean, capture XX% that the obviously, of in goes more about points I less. at much to point to that line of of this normalize mean, more more and down the can't say, basis the been been the to cycle And be I the about the and is there's down continue of XX, bottom that. would it any have passes, it in will venture is money. going money less a which the pretty available historically in has the to will time road. all I number, XX I But that share they're

years. about it's think only basis the it can XX what I that but the the last you as cycle to of or of type XX be points sort So AUM been that's not across of would mean, number. over that, XX-ish


is from Stifel. question next You John with Guinee

open. line Your is

John Guinee

most compares development, or into how think, feet Can you Thank Talking maybe XX which, goes about of and some hit to in build-to-suits? floor Great. to market different multi-level that current type? one rents And is segue in footprint. you. I those whether relatively market And involved about I talk your prototype, are levels? what you Seattle. need got you Amazon XX the that product accepting up then, small the think And in of you've

Gene Reilly

Yes, Gene. John, it's

that. with start me Let

per do new we product from to naturally, in Seattle. It's of the of in ground sense, $X of you And on Georgetown. that And month. market a size be on going give depending $X.XX that to the older So customer. most range of a rents project -- foot sort the have the $X.XX sort to range is a older for location in square

is average sort be $X from foot the for to $X.XX, probably on going going of in a space product square to range in over $X.XX to Our it's our maybe but certain product.

about XX% is We XX% premium, need until us. learned definitely lesson XXX,XXX we've denomination. product. we new to get long, to to that But It's asset. have So lease done is This that accustomed in go are customers premium. this be think gestation a of process and we've in have is the depending We more that premium. gotten to a to new respect there the basically that on behind periods size there And deal product one is continue to a square Amazon? we foot With this we'll customers. on with are a through question this get they'll but location. long And

Michael Curless

really John, our see e-com in within focus We pursue the opportunities customers portfolio. of all RFEs fits a buildings with population large close are and involve broadly, are largest of network everything portfolio. given seeing of located series think terms those some centers, that they're a of buildings with But customer, we're our higher we in larger and like to well certainly smaller and a other Amazon it's that Mike, Amazon. we best on for of rollouts combination that which number our fits customers

Tom Olinger

-- in the options building and they terms is parcel for that the it’s a that would prototype footprint at lower to the I the bit is more much smaller, probably but on. that of and like just prototype, what was John -- smaller little that put driving the Yes, were of size size have new reason the old they think you XXX can that

they the They high clear the cetera, into essentially more in site. et are so mezzanine increasing effectively utilization the et with what So are doing. same of that’s cetera, floors putting building it,


question is from Advisor. Eric next Your Frankel Green with Street

Your line open. is

Eric Frankel

question on is then, same-store your free growth quarter, fairly in activity acquisition stabilized is attributable Can just a And you first I your NOI just of how the low. Just light, same-store I X.X% noticed on, your think, much to results. quarter rent burn-offs? this generally but think your all-time rate, clarify is cap investment in an obviously,

assets buy Thank for are? profits to can the maybe talk like you the you'd just total you. you think what competitiveness So the return market pricing about that and and

Tom Olinger

based Tom. rent, is first a quarter-to-quarter XX this in question. like, the And first and It a -- Eric, rate. between spread should basis would the same-store. and the on just pretty run why explain long-term also but more I’ll cash GAAP the basis that's rate. fair than was about run On that's benefit good free what will points spread on around be it mix little quarter? the pretty of bounce And between points XX a

Hamid Moghadam

the of why actually battle. number but that's on that GAAP we number, And focus the got we Yes. more tired cash than

cannot to or significantly rehab maxed by areas place. the way where have lease afraid but operating risk place, the feature the number on trying to look, yield compete. that we're we're we We're or to not asked, you the below investment covered take leases. it buyers in we're things more capital concessions. is quarter, now and look buying at we're this With to constrained that prominently, operate to So in risk institutional respect We're have way really not risk. And properties been cash all factor stabilized in buying out, right other buying more of which is redevelopment the large X.X% single on value-added market land

those kinds So that situations. of of a lot reflects X.X%

at those upside in kinds get us a low-Xs those because example, If you but is NOI type to the as at actually high-Xs, take to of there be in to those well years on focused very to, numbers. deals. We're few market, for the those may that investments mid-Xs of numbers, how it costs were replacement would in shows look much investments us


with You Stanley. from is question next Vikram Malhotra Morgan

open. is line Your

Vikram Malhotra

Thanks the questions. for taking

slowdown markets? then, may two a Europe, to given bit some us growth in back that, more markets, the the maybe a key Just be color the going bigger give slowing to at picture and thought of sort to And parts second broader any slow rent as question the a logistics if great. just you U.S. several can just a environment somewhat on on down, prospects Europe for of study looking little by would of there were perform to case U.S. as it in how relates

Gene Reilly


-- in and And Europe color the I'll by is me specifics, basically the Let performing take Gene. growth demand than remember rent the so chain. can right continues high monetization and supply but Chris now, very to higher economic on well then some level of that probably add it’s headlines. chain supply more be that reconfiguration far Europe

weaker So And see you're is for pretty economic going excess than in is example. to continue Spain of other that take-up growth. markets, now, limited to some right weak

it some And but And turn to maybe seeing overall, we're rent weak, to is CEE specifics I'll on the Chris. with strength. of respect growth, fairly

Chris Caton

Happy Yes. share. to

both naturally Czech one be on rising and led by that Central the Republic rotation in the the key economy rents the Germany, from and effect basis that the region, result Europe, of outperforming. Netherlands the and So Poland our market a where of message are the will combination That's economy. UK performance also


Tan is Sarah Your from JP with next question Morgan.

is open. Your line

Sarah Tan

question. my for Thanks taking

Muller, Where On the the low line color acquisition X.X% -- guys could rate some buy? get did cap on quick we you for question [indiscernible] on Michael of

Tom Olinger

really just Speakers] on having your the have [Multiple you. a time that acquisitions, our are hard we hearing low think recent we rates talked you Yes. what But and was I Sara, about. explains question cap may

Hamid Moghadam

basically But a of stabilized. and X.X% Yes. that ago Eric's and plays the unstabilized lot I that I'm reflects not land covered like explained deals sorry. response are maybe to minutes the question. in just

market, the to were rates. be at look higher will significantly cap stabilized If there at numbers you

Tom Olinger

what you I'd know said. add on You just

You are quarter-to-quarter. going to see this

growing side. we in leased acquisition to a that infield buy and be are almost because at site are over the buying going rents have see You're is market It's map rates going been because to to so impossible cap quickly. particularly all

So this something is to used we'll it. probably get

Chris Caton

that anticipating are that large by our everybody's acquisitions sale the the leases their We've they're question, is to assets. because out our and rate and non-strategic yes, answer By rolled dispositions of than value those way, maximize. market, next high cap

that So, the other explains end that equation. of


is Baird. Rodgers with question Dave next from Your

is Your open. line

Dave Rodgers

where and I Yes. in follow-up a selling of maybe the Thoughts assets total maybe on added of and you just us in versus comments some can would about guess you selling on the Hi, over-own the everyone. mentioned U.S. down wrap sale. still that demand the U.S., in Europe? So kind down great. for about your give Europe be about maybe funds, kind all especially given just you up growth color

Tom Olinger

we in and leverage challenge down growth. is lower if earnings gets anything, And dilutes capital. need us our that to Our selling it don't the too

underlevered. market value So and higher we'd just the terms we're than of of We're in like now leverage, XX% over that. be to

once effect, in So we're that's then other want. we and with find where acquisitions, target It's those deployment its our immediately. in for can other building down money invested invested. in that's example, places where And not the and funds land redeploy up bank or out there we're size to happy rebalancing we sell we effect it's why opportunities,

until and they in use, In no point the -- and them to more money our invested, our can stopped doing trying -- get there's both end sell down, because we that. significant fact have open use. to of for capital significant chateau And funds terms have ability we've of are raise

opportunities. timing decision more our money driven is our of plenty and there's alternative So by investment

are We call a not Europe or in think of both markets. these any US We market of about rental there's making things. or growth plenty left


Bank. is Deutsche from Johnston with Your question next Derek

Your line is open.

Derek Johnston

possible how capital favorable valuation, use about equity profile? rising do given With the equity you the you. Thank cost of think

Tom Olinger

The than our else most banks significantly out capital. because us return can investments do is is the building on with we capital anything those profitable use for higher marginal of existing land

more capital or more we As more equity, to we whether equity. need don't need

look not levels sell -- terms of to And going we rate of our down ability XX run is to our we can anytime we're capital, soon to way never. of development and equity back any be in care in maybe years targeted enough at our it, type and take to funds needs the deployment. that So, of raising

we've to it? money. is, So, what best question the lots deploy The are got of places


next Your is from question with Manny Korchman Citi.

is Your open. line

Manny Korchman

or to call Hey ago. earlier $X.XX go think back $X.XX that occupancy but and related just were, mix be? thought weight it on where $X.XX being we comments less it, that are conservative based your call, still less the essentially was now in than or looks that Tom, Is guys. to XX you on actually not about you days the If things based I deployment. would of same the same-store was like buffering said of you're guidance was confident beyond you then, you

Tom Olinger


from on deployment fees potential is NOI, is reminder, deployment volumes, from including was the more $X.XX that original our and delta. that in mix of no, the but faster things higher $X.XX got to hold, would we from got just road a I to standpoint, same, plan, driver related and how the think conditions to relatively a that market just $X.XX we've weighted if remains going straight, -- is upside So of activity are, back standpoint go same-store; $X.XX see was this we Then $X.XX go the based you And expect good. land that customer down the of hold. would things update strong, But as tell where given that best today view this $X.XX $X.XX of probably so we've little the what $X.XX there changes. half and we'll originally the mix a we're a Today, January I a see. we'll that transaction our is guess where segment was to you few build-to-suit call if

Hamid Moghadam

the Tom remain, mix. is converse same if if you definition, it to is that the call with to the -- $X.XX want targets of the what said is or outperformance of same The mix $X.XX also by performance just reversion the original

yet, on potential It's for So, laid won't, on. that originally but we report haven't mix full we'll the we is goes it the everything doesn't as time out just the that mean we price. same realized


Bank Jamie Your is next America from Merrill with of question Lynch. Feldman

open. is line Your

Jamie Feldman

Just think a might to big you what whole quick margins? follow some quantify might this earnings development program or you on it provide up some initiatives. Just thoughts mean on the or data initiatives margins AI ability what or Can mean? impact on for

Hamid Moghadam

Well, -- a the topic. big first that's

The fully to say that our to the that X%. program is before we're is third But tackling the time. gun specific if And years not for all about beginning leases but And X% roll the that you of probably my we'll are to to see. X%, going revenue between because at project take expecting management. at number of first it the come put head, rolling of of And impact are are up X% over a in management revenue results would and a will I we're course same of the fully quarter. expectations the

to So that's roll to other we're that get in the one. the in of and going each do project to in we line, us over properly just But take that the are terms to that and do projects number our our docket part of organization a we ability and confidence out. move for that have. one on work Once time build the the next first finish the have we some


next with question Kim Bin Ki Your is from SunTrust.

Your line open. is

Ki Bin Kim


a follow-ups. I couple have questions asked big think of been of so already, the most just

compares behavior customer for in to usage, show kind how or do And question, bit U.S.? early, business? up might about as in the Going can a language back the this provide you more it was little doesn't or early be in leases you talk you're might U.S.? have your more a like that fulfillment subtle And on on maybe a occupancy noticing Europe, thoughts and color there bit to terms compares rate the but that it you like can second micro TI impact on it's and some maybe rental what the make duration maybe to but of any of little centers

Hamid Moghadam

feet of the absorption. excess look, was XX a of million Europe, XX range foot XX absorption now square it's in the couple So to in square million ago, of content years million in and in

of Europe And I and say, less is So, there is in trends and healthy of customers. would reasonably spec therefore are in built-to-suit development business in terms discernible Europe. trends, our more

that pipeline to better mean, spec. have I built-to-suit less States, but in plenty We and market a better the Europe, in be it's we of -- even tends have

So, development in of release is much and government land as of employment and controls the it Europe by are couple the Germany like. controlled by like there and to they in big generation France, interesting to tied in because markets land, how and strict large, usually is the land for and is

of out risk will, it in land spec than is Mike, less you metering else that of if add? So in anything to overbuilding is the US you and, want of they're reason. Europe for the

Michael Curless

in out, pointing Europe. and activity UPS see we investments, and A touch we're US. think I activity over there so percentage are and Amazon active, structural some activities the very in players XPLs at lot like sentiment significant of the good more probably and seeing times two last making familiar in

Hamid Moghadam

quite large, on And have because same existing of they're formats. by e-commerce, and different ahead in they retail of infrastructure don't XX the us


Stifel. Your Guinee with from next John question comes

open. Your line is

John Guinee

XX.X% dividend recollection pay minimum? the taxable your in a but to a your One this question, my -- about above in raise Tom, correct wrong, or the was I late Yes. did meet quarter, that first dividend me $X.XX taxable follow-up share, your minimum just got if you you

Hamid Moghadam

It's it's our the minimum. John, meet No, former. to

flow. We continue retaining frankly We're quite of run that type. a to lot cash

grow on based midpoint north the new you we're our earnings of look three north If at last to our X%. years, over going

and grown Our has in the digits. cash flow double AFFO low

over that Our dividend period X% of time. same grown has

clearly capacity. we have So

Tom Olinger

about while by way, the XX we By points. delevered

Hamid Moghadam


So is short we're the the bare -- answer. minimum

Tom Olinger

you. look next word. and sooner. thank not if get to seeing quarter you I Okay. for last forward attendance you John, Thank your the you


This concludes today's call. conference

You may now disconnect.