Loading...
Docoh

Prologis (PLD)

Participants
Tracy Ward Investor Relations
Tom Olinger Chief Financial Officer
Gene Reilly Chief Investment 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
Colleen McKeown Chief Human Resources Officer
Jeremy Metz BMO
Michael Bilerman Citi
Derek Johnston Deutsche Bank
Caitlin Burrows Goldman Sachs
Steve Sakwa Evercore ISI
Jamie Feldman Bank of America Merrill Lynch
Vikram Malhotra Morgan Stanley
Craig Mailman KeyBanc Capital Markets
Ki Bin Kim SunTrust
Nick Yulico Scotiabank
Dave Rodgers Baird
Jon Petersen Jefferies
John Guinee Stifel
Eric Frankel Green Street Advisors
Michael Carroll RBC Capital Markets
Michael Mueller JP Morgan
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Welcome to the Prologis Q2 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

Thank to everyone. earnings morning, you, Good Chris. Welcome call. Prologis quarter second

is If press at yet not under available it prologis.com you website on Relations. downloaded Investor Prologis' have release, the

from Officer. Caton, and morning, Investment Hamid Chief Financial Prologis's joining Moghadam, call Mike is us Nekritz in Gary Olinger, Officer This Tom McKeown. our Chris Gene Curless, and Ed Colleen hear Reilly, the Anderson, you'll Also, Chief today for

like statements I'd market will estimates management. remarks, beliefs state on prepared that under the call our begin about and we expectations, conference to contain which the in and federal company this Before assumptions the current industry, projections and securities are operate, of statements the as forward-looking as laws. These based well

to factors in XX-K these or of are SEC Prologis' filings. Some referred

factors but include, and attain and the that to conditions ability including the could are expected of the the cause of the transaction not transaction the Additional actual timing results the their stockholders the be of approval of satisfied. of not completion IPT, likelihood to, differ may risk that with the closing limited to

operating are performance statements of and the may Forward-looking guarantees differ. actual not results

are and package. measures, financial as this will measures earnings our provided those call in company Finally, contain a in Reg-G, has FFO, non-GAAP EBITDA the such with that measures accordance reconciliation to

begin. turn will I the call you over that, please Tom, With Tom. to will

Tom Olinger

for thank morning. Good Tracy. today. you And us another We Thanks quarter. joining had excellent

than as customers and their capabilities strength. overall remain diverse average in disciplined. face gestation continue in operating Market out and healthy. is metrics Showings, quarter supply U.S. conversion proprietary to rates our better in or the Demand to continue either be is deal build the supply chain of reflect very demand. strong conditions further line Our last

for year logistics low growth, Starts not facilities Continental is remained consumption. this business in be demand Japan, more quite while endpoint being the despite a with let and ecommerce, than decade. growth, keeping high boosted GDP good. economic pace in to to Demand be absorbed. concentrated U.S. supply in steadily highest the is markets, supply of is are barrier while alone the we growth expect Europe In barrier in the continues markets strong to by closer rent moderating

the With the seeing list. improvement market we removing we our are it market, in from are Osaka watch

raising continue replacement as are global X.X% rising XXXX growth approximately basis and market low our by XXX to We costs rent points to vacancies higher. push estimates rents over

We portfolio. X leased in square continues million was a outstanding, our including be role by XX%. Rent flat change feet at U.S. Looking million led to XX feet, shared over on quarter. XX% to and are square development the Period-end but occupancy sequentially.

year. of in change We the expect higher half back to rent the trend

Notably, was Our Core share $X.XX of anticipated. for was growth cash X.X%. per driven X.X%, same-store was FFO by which Europe the rent growth NOI quarter. have second share we

to promo G&A impact forecasted in in driven resulting offset price. than by This increase compensation, was from the mostly by them. higher expected, the our stock-based was higher quarter share than

increase starts in the deployment, starts of million half For second quarter. $XXX the will meaningfully were pace The year. the of in

million realized gains first started over of the the million and of completed In in $XXX million in of in July. we've two weeks resulting We XXX fact, build-to-suits contributions, $XXX in already quarter. dispositions

our impacts on the not are an guidance which note from include basis. highlights guidance XXXX that does IPT acquisition. the our-share And for Now,

development midpoint contributions and development holding to We're are raising X%. end same-store starts We're by We $XX realized million, rents guidance million. the range range by narrowing continue and we NOI occupancy. prioritize a cash both of for our the increasing as of X.X% gains our the and top to to $XXX over

flow we increase share, an and which usage, income per expected be net million in $X.XX Net quarter. the $XXX for be from will Effectively, the increase free leverage. about net $X.XX remaining earned promote of now in year cash expect income a to full to modest is with of still We our the plan all promote guidance. third fund prior

XXXX excluding full per guidance year, are And the midpoint $X.XX between midpoint the last revised X.X% core and our For we is higher FFO and narrowing increasing $X.XX, and core per our FFO range $X.XX year. than by share. growth share, promotes,

XX%, XXX past growth points. with has clearly basis CAGR while the of five our by years, exceptional almost Over a been de-levering

mentioned, IPT. acquisition and day-one. more of shareholder captures I costs in does Gene on revenue this cover significant synergies, portfolio, this delivering As The include detail, will value guidance high-quality not which

debt. later We and both XXXX. planned the or investment allocation, of private the cash our to U.S. and a the whole than one and with Depending no transaction the billion $X.X ventures close ultimate quarter the our likely new of $X on fund range portfolio first will which via vehicles, is we between expect through billion,

$X.XX the a approximately completion annual to and decreased minimal XX%. with by to $X.XX per corporate on between a G&A expect this to of core of This any with basis the rising a leverage resulting result in basis. have overhead value non-strategic not percentage accretion as plan XXX add acquisition X%. as We asset do and connection about upon stabilized sales to will [AUM] points is expected on transaction FFO range The a loan impact share

I we lately think feel questions components. continue how we will size, to grow given and growth about several three that about our

multiple. by is on strength important sustainable most of the the that This and our also quality is and and driver first of growth portfolio. organic based far the highest The deserves

build from development The land second out of is creation and our bank. to the value

This between episodic, is hands long-term. over and management is pricing of the of the markets. component and not third sustainable arbitraging private out public the The

very felt superior our a good long been the on continuation the outlook. be about has a driver of sum and focus growth. the have We I To growth been have two year. components, up, never second the first quarter continue what will foundation to our which term of performance, of was already our better

it to that, over Gene. turn And I'll with

Gene Reilly

pleased XX of XX Tom. share assets details have sub-markets we I'm which comprises square located largest a agreement already proven scale, and and are merger presence. the benefit operating consider the the by The markets, about Portfolio our IPT. where U.S. are to feet target and in we markets. XX.X million Thanks, strategic and

portfolio and is slightly in younger our The similar otherwise, than of characteristics. U.S. assets the and profile balance of very customer existing terms physical

portfolio. square $XXX anticipated we foot, rate X.X% works rents. market just Over of using the the are stabilized to purchasing billion of or and under we $XXX rate small approximately price program we course business, at the out some a $X of of to XX% current believe cap normal X.X% cap million a The portfolio replace a And discount then disposition costs.

our incremental activity are purchasing property IPT to will management platform and operating We leasing limited the necessary to personnel portfolio. hiring and therefore, be manage not the

and of relationships, IPT the the our underway. service to $X.XX not include that will more generate knowledge of have As to benefit flexibility, the deeper roll $X.XX or the to and market procurement, market initiatives teams accretion benefits platform revenue Prologis ability revenue. best to better Tom ultimately, access sources, information, bigger greater provide overtime, the leases currently of share ancillary The and other our customers potential mentioned does

each $XX here. the we very transactions, expect forecast the portfolio case, we've outperformed billion do over integrated so large past and transaction, synergy including Prologis During we years, to AMB DCT. KTR in eight our In and

we're in integrate short, ability into to So confident portfolio. in our highly assets our these

And I'll with questions. for the call to over that, operator turn the

Operator

[Operator Instructions] Your Jeremy first BMO. Metz comes with from question

Your line is open.

Jeremy Metz

waiting your range to of the Tom, the of be investors XX% XX% you in the past, queue to allocation you into will share. have get mentioned to IPT though funds. in your Even a

talked level or wanting down your You've the take to bring give time. stake over about to there XX%

is initially then can a sticking talk opportunity, of with this even that the driven? fee $X.XX Thanks. deal and to thought how So and about you that? is take of there $X.XX much Promote less to Maybe accretion

Tom Olinger

things. couple Jeremy. Thanks A

So about incremental our the way think investment. to

If you does. USLV, use funds, equally the two does XX%. not equity, it portfolio ownership split USLF our And the is between

would leverage think to we targets deal USLF an transaction. XX% fund about this So from

table XX% of to that So $X $X.X that to needed of is billion. the our think billion about come equity

you When accretion operating the accretion, the accretion is, majority is the think primarily of the about efficiencies. vast

of between penny $X.XX less about get $X.XX a of or to operating the about $X.XXX and half So a us. to is purchase penny actually efficiencies to of of $X.XX leverage incremental $X.XXX

would And components in so about and The the accretion $X.XXX is talked I cash. be quite strong. fee baked of that Most $X.XX. roughly is that that's

Jeremy Metz

that Yes, Tom of you at the beginning equity. any require mentioned, won't

require meant any You that doesn't debt…

Tom Olinger

right. That's

Operator

next Your Manny Citi. Korchman with from comes question

Your open. line is

Michael Bilerman

in $X Asia, would debt portfolio lower Manny. it could owning north certainly and upside which too, with clearly, of as this of getting in all to thing? bit $XX, guess step and/or of the to do you're to of own trade-off finance even from such assets, a to you able and in Bilermanhere I back billion fees rates, you getting. Why buying market It's versus issue the points potential at XX Certainly within the it's bottom-line or rents all amount of it, And more the ability there well? the is incremental a be accretion Europe in whole the of at you NOI not equity flow basis U.S. you little strong whether if would the portfolio. provide have Michael there's

Hamid Moghadam

for integral that forward. are our don't that business view This put is we going strategy established Michael. -- our the is thing. the And vehicles vehicle or strategic we've the business. our an are We exactly accretive. is it of that's part our And part ones capital really It not where this Hamid, as deals bad of doing those

return that and fund. obviously go in the ones the because like sticking and not business the balance it all do We asset the through plan way. sheets go and like. funds same equity it's ones the is of Also, the the we're to leverage fees So the management greater, the bad good to the on to

So, been will that's remain and the strategy. strategy. it the the strategy It's

Tom Olinger

that your debt of is about We versus do on foreign U.S. non-U.S. debt XX% debt. About would debt. to foreign non-dollar. question assets only extent the we're our with today matching Michael,

financing ability use accretion U.S. non-dollar We these do to dollar Sure, in none a financing? have have assumed peers, financing. not little but baked our numbers. any we all the us that into we more that's Do would of non-dollar

Operator

Johnston question Bank. Deutsche comes from next Derek with Your

open. is line Your

Derek Johnston

is were update on that while the we've the rent growth? consensus that filtering 'XX about EU leasing switching to further falling. of estimates healthy contributor a I in seen and XQ should EU rates absorption back Is the XQ? is a any guess, global for gross Or outlook concerned there metrics? through half we be post And Europe. and lag the there Certainly, to in this strong

Gene Reilly

answer I well. pile as start and I'll Gene. is think with on This the will Caton Chris

headwinds see the don't vacancy rates operating the And X% environment. just basically we continent. got So, in you've across

You steady get demand.

low very steady up demand. don't in -- but growth see of excess coming we economic dialog. Brexit don't You you concerns, in just get any don't demand trade customer And we we have see

look we pretty in isolated than And good excessive see So other also don't supply individual things now. some markets. right very

Chris Caton

is X% rents are vacancy unfolding low is at rise. Gene call it, a that of more than the than The the basis rates, net X% first that's on on the we More beginning the spot in X% of a year. That's pace on effective Yes, anticipated on. rates are lot to continent year. half market like rental the

good momentum looking confident really there's and feel So we forward.

Hamid Moghadam

the that, the thought. UK other a down is we has bit the stronger on than and side of slowed But continent

any So, having not I effect, right. don't its Brexit think

midlands. the the down in think particularly I definitely had UK slowed some,

Operator

Goldman Your next comes question with Burrows Caitlin from Sachs.

line open. is Your

Caitlin Burrows

financing, Maybe back else And was either competition win think allowing you deal? to I like, differentiated IPT the ultimately on Prologis, or this in just other you was level what do from to or interest comment acquirers. the if what you assumptions, could potential wondering something your the acquisition.

Hamid Moghadam

on on I think Well, there interested a ultimately, you I is bid you call, who tell this in it the plenty knows competitive process. I this estate. can tell And real can't as of was capital portfolio. everybody

particularly I I this think don't vehicle vehicle our As for held items any certainty like of it's for think close, was you've competitive do But publicly a advantage, of critical. listed. the

negotiate to was ability our and this important. transaction confidence smoothly, their complete think I so, And

Gene Reilly

from at looked the they Yes, of also side. other have the the proxy what details will plenty on

So, we'll both find out.

Operator

Your Steve from next Sakwa question Evercore with ISI. is

line open. Your is

Steve Sakwa

could comment bit Thanks, Tom. good morning. on you little I see the NOI just wanted if a guidance, to

kept end, You X%. X% unchanged of the the The half year. did at high you in about first

both and back of low So that the And assumes tougher those at through end, the to realize end you you year. half help some back the growth high I facing given us the comps today X%. assumes drives flattish think low just can two we here you're the what and of where in the sit occupancy half But points?

Tom Olinger

occupancy you nailed it. Steve, impact. It's Yes, really

are We continuing push to rents.

bit. occupancies little seeing are We a dip

more. certainly room to think rents push have I we

just at rent you growth. you at our occupancy our you retention, look looked look If at our

and I a rent is second taking As in my We mentioned rents up think we going roll increasing occupancy. I will see end remarks, we're are the accelerate we talked see the why prepared growth to of in half. because about on change and top

you We're going really up in in push of longer for rolling think even said is calls, XXXX we that about second rents last really for we in a is mark-to-markets transitional XX% in our same-store, where at if setting and look have growth -- with lower have the at quarter. couple the And year occupancy. runway same-store to lot a the don't as this store for same But role over of durable we half. just XX% holding

if been your been that's roll, of same-store rent real the think driver headwind you But accelerating. So it's about year. change this your a

Our trailing the over on going It roll fourth basis a to forward. points rent XXX is four going last quarter change quarters. up go is higher, in

So one larger on thing spaces. the intact retention, board. it And we're growing, high same-store and driver is is on is retention rents grow. we're and fundamental very the pushing will the it across But seeing of

I opportunity of across space sizes. our think to push we have rents an all

Operator

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

line Your open. is

Jamie Feldman

build-to-suit and pipelines up as starts Can an you spec today? ahead of that and shaping across of And keep think what, next -- your to in things you capital lot to the had you that on to capital know half we so do get like or terms and hearing that thoughts supply just work? XX think and expect a I expectation over may the the shrink to said looks maybe just pipeline we're year. your work? back year, even talk ability that land are to less I to you about development want both how ramp you story available the put next actually less your markets given of up to months in and think there's demand putting

Mike Curless

Curless. Mike its Jamie,

-- some build-to-suit So major seen it from the rollouts. spec. I'll Gene Certainly hit then a flip on our seen customers of announcements with plans to and some the public lot significant larger I'll of you've for

requirements demands. zoning more working the and there's deliver It of up arrow definitely we're markets. build-to-suits an and to say on So, I'd the more availability global some days, land through is But the and challenging these certainly that.

the significant this I to in I'd Our very Jamie, build-to-suit with percentage lows largely And lumpy, know in speak And robust the in XX% as up spec? now, across on you you percentage build-to-suit got already by mentioned, the as very that's range expect look coming million Tom our rollouts. towards underway. fully Gene, $XXX right it to be stars high build-to-suit some XXs, driven national look quarter quarter quarters. I we think range at as four

Gene Reilly

out as So $XXX Jamie you the we've, can million. see, midpoint taken

activity talked captured about. the of build-to-suit that’s Some increased Mike by

say have spec. I modest we as don't we very -- in But robust a land there's you opportunities, I'd a bank. know, see increase when don't -- we So,

So building, it we do. opportunity, have ability we're to the but going we see unless and to not do we start market

year. So, of throughout a on basically, is, based guidance your the rest going modest prior this we're to increase question our have the to answer

Operator

Vikram Stanley. Malhotra from comes question next Your with Morgan

open. line Your is

Vikram Malhotra

is mark-to-market the the Can U.S. just to that think I And Europe? just So in IPT? also, said mark-to-market holding the at wanted across what clarify, break you clarify between you XX%. and portfolios four

Tom Olinger

first the take piece. I'll

around around So Europe is today, and XX% portfolio in our XX%. Prologis is U.S.,

XX.X%. about is blended our So

Gene Reilly

pretty our U.S. with of in assets. the rest is line IPT much

Operator

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

open. line Your is

Craig Mailman

A accretive your guys efficiencies I -- at Will looked whole and or IPT in baked growth. you, operational have know growth same you're PLD legacy portfolio it below But guys from looking portfolio going what bring just their portfolio perspective? relative trending had the guys buy they you ultimately I ultimately quick for to questions the just curious, growth portfolio. didn't you versus into be your or that dilutive like I'm you as to they know to inline store were 'XX, some this numbers 'XX profile your X% the And But financials. in. look

Hamid Moghadam

slightly I What I'd be their a performance. location think bought say, operating historical marginal we accretive. we increase. frank platform, we have which And I the study to our studied mean them the is of quality onto it's We not have and assets, like.

Operator

from comes Kim Bin SunTrust. with question next Your Ki

Your is line open.

Ki Bin Kim

guess I of portfolio. a questions couple IPT on

its prompted I the deal have the it? seems little enough it, and even First, you a behind prompt bit scaled. don't the Do a by size. What of And was that was deal? financial this think accretion wouldn't itself talk quite it this like about what you of thinking can just success

about talk we the that other maybe points can So, haven't covered?

Hamid Moghadam

level are is portfolios market. that And supply good these think and I and this high are there's permanent. really limited of quality going think I capital a sources the availability that into stuff dwindling. of And they're portfolios

So whenever squeeze of scale, more portfolio, our around juice for a those pick the And really is up assets some of can the opportunity same markets, also oranges. see lot and there us those we out which competing focused is effect an on you'll those own because to clustering of opportunities.

Operator

Scotiabank. Your next question comes Nick from with Yulico

is you're open. so Nick line Your your line is Yulico, unmute, open.

Nick Yulico

you For a underwrote non-strategic asset. why a XX% you cap IPT, said sale a non-strategic assets? from of assets on and rate is about those we those the about I how sale candidate they're should think you Can how talk portfolio think just --

Hamid Moghadam

repeat you of part the first the Could question?

Nick Yulico

So, said I you think that…

Hamid Moghadam

Salt of not portion it present is City, small is which portfolio, Memphis a two and we're in. sale which For Lake XX%, markets,

the it. presence, markets the it X% see and of about balance is portfolio a portion the a our we of don't existing fit but we portion of assets, have the where And between that that's really pruning our that of So assets. and

of those rest. cases in and of two exits case a pruning it's combination So, market the in the

Gene Reilly

I with be good as our assets strategy. of just prior a are to on not But of our think And assets. These want easy to They're some compared dispose these bit. assets consistent pile disposition activities. relatively to that are will I that assets

Hamid Moghadam

or you we've about data by prices. in expectations our you. We've of six average first the not other that billion assets. exceeded time on years. through of $XX last And X% sold cleanup one on the assets point Yes, interested This is five for gone we've about might be the sales

So we're pretty at assets the we these that comfortable exit can premium.

Operator

Your with next Dave question Baird. is Rodgers from

Your open. line is

Dave Rodgers

Yes, for or maybe Tom maybe the even Hamid, just just or talking internationally. construction about pipeline nationally,

off most watch as You I and comments? competition your the Tom said do the Osaka think supply referenced list you in the you you Have a you added see market. any took for where today?

Gene Reilly

the It's think Gene, quarter, But to Chris I'll as start globe and answer. finish will if compared aren't we at very many differences. the look last there really I

U.S. or As Atlanta, Dallas a certain the you while, heard in in and say us Empire over in crisis. come-on Chicago, kept years, past i.e. markets interesting the come-off Inland South came a just Pennsylvania, and list, that once frankly, Central five certain in until four markets off the the never you're cycles and in East in over-building list. them markets prior And what's is they

or now, hasn't changed that Osaka's really I picture is very that one vacancy elevated. we It's The XX%. X% was have internationally. So think note Osaka.

list. in reduction come comfortable. if at vacancy back the have… Chris, may I we're But that of recently. point, A rate don't it know lot this So you on pretty

Chris Caton

you And the You're Houston were to spot And is have year, to I'd Midland year we additions and there late last to Yes, last one for in no add, and list. have also mentioned addition no as a subtraction. this this market then year back year. this been look that additions additions so Gene, fact in on,

Operator

Your next Jefferies. question is from Jon Petersen with

open. is line Your

JonPetersen

a question maybe or Probably Gene Chris Caton. for

to that one how IPT the with I dominant probably get think a any transaction you're concentration I with rent you have harder, you curious a the you have -- if I'm market talked bit forget in that before? out a transaction, you that. position push able DCT for framed And you second about now didn't you exactly how certain sub-markets Tom. then sub-markets call But when

to Prologis, any new won't Just equity for clarify, right? this common require transaction

Chris Caton

no the not, second I'll one, equity. take absolutely

Gene Reilly

incremental tracked have is So, market that the that's we're buildings say, if XX square and million at clusters a and way XX describe a and that a we There we that to details buildings, go the have adding And adding is way you not we X this feet. you get that. specific own. clustering I'm And situation one created effect call no we smaller that, look to assets a X you have asset million let's we is you're when we a cluster. on there you're But to cluster, into to tested. going to have concentration already adding any question NOI. then enough or

to in that and just this Chris, market Portland. don't to want There's big on if otherwise, case category. that, And one you for we have have be to very, in will we're concentration Portland, Baltimore, here big, also And know that. cluster I created anything you in fall sure, adding And concentrations. a add very good pretty PA a that

Chris Caton

also, portfolio, far add which pieces. the doesn't more perfect. thing I think existing newly the that is the The acquired benefit portfolios, two would is to by to important just accrue that accrues the I was the of only

Operator

Your with next from Stifel. is Guinee question John

open. is line Your

John Guinee

congratulations. first Hamid,

DCT quality DCT, in As I roots? cap rate. recall, which in Talk initial about a IPT foot the little investment X.X obviously and the and a difference a $XXX at and strategy between you about the same has place acquired bit initial

Hamid Moghadam

so bought deal. stock it X.X cap rate at stock for we and DCT Yes, was

relative So, of more absolute a it exercise valuation than valuation was an exercise.

looking at and portion, say, DCT on would hold, quality, sell. one But at don't hold terms XX% XX% think rates market can much was is that. So, whole I if you conclude in about cap look I this of you XX% this based the

less would would to comparable. XX% XX%, it I that dispose. say sense, portfolio look they and at in I were the because But you So the has the mark DCT better, if as

Operator

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

Your is open. line

Eric Frankel

a cap definition to of back that's IPT the quoted your that the based stabilization. to go Just you deal, rate, of on price X.X%

input have the would based one-off than basis? brought bit aggregation maybe occupancy. the rate a cap that on Do finally, paid if you you months. you on then Thank do current higher rather And quality second, general, cap maybe So premium portfolio last for on guys And be believe gone little a some rates think rates, you based interest few assets? then entire have where you. industrial declined in this good

Tom Olinger

on comments talk mean, the of rates because different couple rates. about, use cap cap I approaches to So are all them. really to difficult things people of kinds

to it something call cap costs, to price plus Just way be is critical required because leased we the includes allowance, necessary. stabilize the rate the get is back which the closing portfolio clear, over it And it adjust XX% if CapEx a it's all occupancy, we the a that to is plus to vacancy purchase down XX%.

we And see So cap marketplace, that rates we not reported can in pretty rates we we at every the underwrote. certainly that's rates the our look shake the deal. oftentimes because you that cap to that heads our much cap imagine

successful. cap respect we obviously, third not were looked on So and portfolios tell was and the other in we significant competed since direction methodology. one cases, commentary of that's that you DCT the at I will to two this that the With for rates,

the whether you did not portion did as not there or but pretty was at the to we whole we to of ones. a those the portfolio smart who unsuccessful all to pricing other and not, portfolios tell consistent. or Our of this on were change successful, not any one, other enough But I'm one on ones, knows. be this so on portfolio we'll one attribute the

Hamid Moghadam

more Erick, just one thing.

market. we often also have that it. have And you of side and that any cost to, equation of people leave mark to think, out the the debt On I to equation, factor you

Tom Olinger

this actually there any there're others, the margins. wasn't And that. significant in But been of on one,

Operator

Your RBC Markets. from next Michael Capital question is Carroll with

is line open. Your

Michael Carroll

range? headline the I your about? ranges. estate Can hear included conservatism continue provide remove updated from some largely the a you logistic inflated fears guidance that you you Did that real macro in prior And to conservatism quick how's market we the update? know remain trade in

Tom Olinger

And from from very more we all So sequential remarks, opening in in what we're showings, conservatism that's just customer holding activity or you slightly our quarter I'll as better. I perspective, start. seeing to tell gestation, as my guidance. No conversion see mentioned it relates I would consistent our rates,

our pipeline, in it good. see we what be continues quite to from So

Mike Curless

From little This customer blip a significant. some impact a increased meaningful other perspective, inventories but examples, perhaps no is Mike. than with spot nothing and

Hamid Moghadam

our I the you little commentary stock on significant having referring maybe most were of we think two talked where were track. generally about the and things quarter all sell-off off fourth market We're call, reduced wobbly, Yes, And the coming with just recent a overall January. a in planning, we to internal weeks, the that's economy in done. back on

to all that. ignore that, referring you if you're can So,

Operator

JP with question is Michael next Mueller Morgan. from Your

open. line Your is

Michael Mueller

to it be done remaining XXXX? Will sale the timeframe IPT of in the dispose all What's assets?

Gene Reilly

be Gene. But with think fairly then the to was it. on doing. we this timeframe. need consistent telling, We that. In in business. to else we're not it see And that tend Michael, current patterns I environment, is our I do has deadlines normal put to to everything do on the it course where have we demand It of on we the quickly

Sometimes portfolio value cases you move quickly, can one-off. maximizing other and aggregate a means

So probably that reasonable. but is timeframe XXXX -- within

Operator

Manny comes question And Citi. from our with Korchman last

open. is line Your

Michael Bilerman

It's Michael few you of… Bilerman. in can one But just address a a hope I at I'm time. terms more. had

Hamid Moghadam

are the one. because Michael, you you continuously, go last can

on with… can go we So

Michael Bilerman

do you time much How have?

Hamid Moghadam

away… carried get Don't

Michael Bilerman

squeezing this in terms upside more in potential, of just juice of portfolio. these out So, oranges

Prologis then rents. market another on You market talked But is about, but the I the rents. similar. assuming think, rate cap about But upside these you mentioned you mark-to-market, rate mentioned in when the were analyst X.X% was X.X% difference X.X% XX% asked X.X% to X% stabilized the cap current and assets only about portfolio

maybe So, what was I the numbers didn't difference match driving didn't down or the yield, know what the up.

Mike Curless

versus cash cash, Its effective cap base…

Michael Bilerman

So, the a is cash. X.X% X.X% to

XX% So GAAP your mark-to-market portfolio also. X% Prologis in That cash the X%, a would number? is a be basis on

Mike Curless

XX%. about It's

obviously. either, X.X% precise the and numbers So X.X% are not

going take were like Hamid out didn’t to we that, four So so… decimals,

Hamid Moghadam

thing is there's hold the portfolio. the between sell Michael, the and a difference other portfolio that

those primary hold rent is bigger appreciations. portfolio has But the So, because difference about had by and points. and mark-to-market, the X the is markets large a are GAAP they've which number, versus stronger more cash

Michael Bilerman

of the through be the that Prologis' trying plan to going assets funds dynamics of $XXX those to the or just one Or understand the to warehouse going sold $X of go then will entirety two sheet? balance on portfolio. is and out billion just And on the assets the whole on? Is million funds? into the actually I'm

Hamid Moghadam

It's It's the latter. the latter, Michael.

Mike Curless

be will to the by funds. will going assets sale sold be funds. Any The the assets

Michael Bilerman

just By reduce the or will funds, that effective those ownership your contribution funds? in your and

Hamid Moghadam

Not because revolving line we up have really, we down. and a Michael, that credit of pull

So to of for in pull going out we're capital probably leave just it growth. funds. We'll there future the not

Michael Bilerman

to original assets wholly And the recognize if back to versus owned And you funds, that funds. I But stock-for-stock in ability a transaction. you then the wanted just having sell to. to about didn't chose the DCT I come my was DCT question doing to alleviate this from

cash I why doing REIT deal, larger and So One guess, stock This a for asset? stock. was really a I'm M&A non-traded balance public transactions. trying to cash. DCT that you're was the IPT sheet just all for these all scale why two one understand is fund yes, was it

Hamid Moghadam

question. Good

all, of ours. always of not First the is currency choice

the a yes, to the deal much balance too sheet. time. we settler just of and then the associated deals on buy transaction of the oftentimes, And period demands that fund, sell them currencies. of prevents to for that. different that cost with frictional there're structuring some it do kinds But And Sometimes

that. So, it gets do to complicated

those and way, north These I very that. of mentioned do now are, by to mean, model do terms deals, funds. be as to a look you'll significant I the funds. USLF this business billion. transactions, cash in committed portion the cash transactions, we'll we're very, deal, mean, In to of where continue will end of I the going that's or of $XX at our to certain it's at be

at look vehicle. billion PELF It's fund You $XX our where about is. an European

basis, a the on these, out could REITs mean some I standalone of largest there. be

we that we range successful And have to of the opportunities. very address ability They're like needs. fact and ongoing have use they vehicles. cash a the to currency So,

Michael Bilerman

least U.S., money I Asia slowdown Just that's indicate countries. yesterday, on environment. in given and borrowing know you're between going anything down that on locally particular there seen loan Asia that the in out you've in uncertainty and base, the a anything the just corporates the what's the out two our And industrial happening activity with less of Asia? earnings in Chinese Is client finding of coming at everything U.S. terms there last the macro of side? China any would But the Asia one least Citi's in slow in was happening At

Hamid Moghadam

supply much the is ground. this needs Okay, always that -- last market been the on been land. it the and But because driven in in. industrial of jumped than by don't going are reluctant is generate of But has industrial the of the reason your taxes. that that in with question, slower to land dynamics some market users is time, but land, be to seller definitely they've real it China from government. one we industrial And And see for terms overall availability slower the more what China look, somebody for the estate the has that

there And in property system no is China. tax

their on are. usually So their registered tax get revenue their And people where they capital. based don't capital warehouses register

shortage China. in of the land always key a there's markets in So

these modest in a there's with just even growth, So enough product not of more markets. a lot supply economic of

shortage industrial So, driven industrial of is a of land. by strength and the the market consumption domestic

time Consumption from slowed first for the the high-single-digit. mid-teens to the

really my keep land shortage the the applies operate. that's way, to of by to Tier markets important we X-X.X type And commentary mind. in which So, the in about

that's can to than relevant outlying in but e-commerce remember, And normal the decade land, ago. of more more business. a the tailwind all of areas where not you different takes have our the get would consumption space these consumption Some of places

Operator

Vikram The with last Malhotra question Morgan Stanley. comes from

line Your open. is

Vikram Malhotra

the leaving for Thanks follow up.

noise. for Sorry background the

NOI believe Just components? calculation? give one and those you you provide Could revenue to I you used of two same us separately. store change if quick expense this. the sorry question, I Did store same the missed disclosure

Tom Olinger

giving we'll those components. Yes, be

was back it. disclosure look the years comment review disclosure. rata in us did rata financial us our us a to see few If quite of in asked a pro pro they But NOI view store same of calculate manage. modify this approved and and our our you they just owned one modify SEC had asked back. took you comment K, That of light around detail their advantage their the asked modify actually was sub, information, they because we disclosure, for view at and to that annual the our that The that own one can to order they you to

the we up, So, this back you the But footnote at percentage. percentage. and you calculate if can't can our you look show

Hamid Moghadam

everybody. you to Thank Great. Thank if sooner. seeing Look quarter you. you, not forward next

Operator

This conference concludes call. today's

You now disconnect. may