Prologis posts lower net EPS in Q2; makes progress on deleveraging

Global logistics property provider Prologis said net earnings in the second quarter of 2009 fell to $0.58 (EUR 0.41) per diluted share, compared with $0.76 per diluted share in 2008. Included in the Q2 2009 figure were $0.46 of additional gains, primarily associated with the sale of non-development properties.

Prologis said it made significant progress on its strategy of strengthening its balance sheet and increasing liquidity in response to deteriorating global economic conditions. 'Our accomplishments have put the company on much firmer financial footing,' said CEO Walter Rakowich. However, he warned that the industry is facing declining rents and that Prologis expects the challenging leasing environment to persist. 'While no one can be certain about the timing of a recovery, with our strengthened financial condition and quality portfolio, we are well positioned to work our way through any additional challenges in the road ahead.'

Prologis said funds from operations (FFO) as defined by the company, including significant non-cash items, declined to $0.34 per diluted share in the second quarter, compared with $1.02 in the second quarter of 2008. Excluding significant non-cash items, FFO was $0.19 per diluted share, compared with $1.02 per diluted share in the same period in 2008.

Both net earnings and FFO per diluted share, as previously reported for the second quarter of 2008, were reduced by $0.04 per diluted share for the company's retroactive adoption of APB 14-1 (also known as ASC 470-20) and related additional interest expense.