Prologis launches €300m Eurobond issue

Logistics space provider Prologis said on Wednesday it has issued a €300 mln unsecured bond in the Eurobond market.

The bond was issued by Prologis International Funding II SA, a wholly owned subsidiary of Prologis European Properties Fund II (PEPF II). PEPF II will guarantee the bond, which is due in 2018 and carries a coupon rate of 2.75%.

The net proceeds of the issuance will be used for paying down debt, asset acquisitions and general working capital requirements.

As of end-June 2013, PEPF II owned more than 220 properties covering 5.2 million m2 across 12 European countries.

Prologis also reported third-quarter earnings on Wednesday showing core funds from operations (FFO) per fully diluted share fell to $0.41 from $0.49 for the same period in 2012 which included a tax benefit of $0.06 per share.

Net operating income (NOI) increased 1.4%, or 1.8% on an adjusted cash basis, compared to the same period in 2012.

'Market conditions are improving faster than expected with rent growth across our markets in the US and broadening in Europe,' said Hamid Moghadam, chairman and CEO of Prologis. 'Utilization in our facilities is running at an all-time high. The demand we're seeing is, by and large, just to keep up with current needs and not for future expansion.'

Prologis narrowed its full-year 2013 core FFO guidance range to $1.64 - $1.66 per diluted share from $1.63 - $1.67 per diluted share. The company also expects to realise net earnings, for GAAP purposes, of $0.53 to $0.55 per diluted share.