Exhibit 99.1

EARNINGS RELEASE AND SUPPLEMENTAL INFORMATION - Unaudited
Third Quarter 2010

OVERVIEW:		Section I
Earnings Release			1.1
Overview			1.5
FINANCIAL STATEMENTS:		Section II
Consolidated Balance Sheets			2.1
Consolidated Statements of Operations			2.2
Consolidated Statements of Funds From Operations (FFO)			2.3
Reconciliations of Net Earnings (Loss) to FFO and EBITDA			2.4
Calculation of Per Share Amounts			2.5
DIRECT OWNED:		Section III
Operating Properties			3.1
Under Development Portfolio and Land			3.2
Development Activity			3.3
Investing Activity			3.4
INVESTMENT MANAGEMENT:		Section IV
ProLogis’ Investments in Unconsolidated Investees			4.1
Operating Portfolio of Property Funds			4.2
Summarized Financial Information of Property Funds			4.3
Investing and Financing Activity			4.5
OPERATING STATISTICS:		Section V
Direct Owned Leasing and Capital Expenditures			5.1
Investment Management Leasing and Capital Expenditures			5.2
Same Store Analysis and Top Customers			5.3
Major Logistics Corridors and Total Portfolio			5.4
DEBT:		Section VI
ProLogis Debt Summary			6.1
ProLogis Debt and Equity			6.2
Property Fund Debt Summary			6.3
ProLogis Debt Covenant Ratios			6.4
NET ASSET VALUE:		Section VII
Components of Net Asset Value for ProLogis			7.1
NOTES AND DEFINITIONS:
Notes to Supplemental Information		Appendix A
Definitions		Appendix B

Third Quarter 2010

PROLOGIS REPORTS THIRD QUARTER RESULTS

– New Date and Time for Conference Call –

– Key Industrial Indicators Showing Improvement –

– Dispositions Ahead of Plan; Support Enhanced Portfolio Quality and

Concentration in Major Logistics Corridors –

– Company Provides Dividend and 2011 FFO Outlook –

Denver, Colo. — October 25, 2010 — ProLogis (NYSE: PLD), the leading global provider of distribution facilities, today reported third quarter 2010 funds from operations as defined by ProLogis (FFO), excluding significant non-cash items, of $0.22 per diluted share. Of this amount, approximately $0.07 related to gains from disposition activity and $0.15 per diluted share was from core operations. FFO, including significant non-cash items of $0.01, was $0.21 per diluted share.

For the nine months ended September 30, 2010, FFO, excluding significant non-cash items and year-to-date non-recurring charges, was $0.50 per diluted share, relative to the company’s full-year 2010 guidance of $0.70 to $0.78 per diluted share. Core FFO for the nine months was $0.38 per diluted share relative to the company’s full-year guidance of $0.53 to $0.56 per diluted share.

The company reported a net loss of $0.03 per diluted share for the third quarter of 2010 and a net loss of $0.27 per diluted share for the nine months ended September 30, 2010.

“During the quarter, we made significant progress on our objective of disposing of non-strategic, direct owned properties in order to reduce debt and create value through accretive development,” said Walter C. Rakowich, chief executive officer. “Our third-quarter dispositions and those we plan to complete in the fourth quarter or in early 2011 support our efforts to shift investment into new development, increase our direct owned portfolio outside the United States and enhance the quality and concentration of our properties within major logistics corridors.”

Industrial Fundamentals Showing Improvement

“Industrial operating performance metrics are turning around, although the pace of improvement is more moderate than we have experienced in past recoveries,” Rakowich said. “There is a continued lack of new development in our global markets, and the availability of large, modern distribution centers is shrinking. We believe we are nearing a tipping point where even a modest improvement in demand could facilitate a rapid recovery in the industrial market. Among the favorable signs are: positive net absorption in the top 31 North American industrial markets for the second consecutive quarter, stable-to-improving occupancies and rental rate growth in select, supply constrained markets. Overall, fundamentals are headed in the right direction.”

The company’s total industrial operating portfolio (including completed development and the investment management portfolio) was 89.90 percent leased at the end of the quarter, up 24 basis points from 89.66 percent at June 30, 2010. Leasing in the company’s completed development portfolio increased by 122 basis points, or 217 basis points excluding the contribution and sale of fully leased properties during the quarter (see page 3.1). Total leasing activity in the third quarter was 27.0 million square feet, in line with historical average quarterly leasing activity.

Customer retention during the quarter remained strong at 70.5 percent within the company’s direct owned portfolio and 79.1 percent within its investment management business. In the company’s total same-store portfolio, rental rates on turnovers declined 8.5 percent in the third quarter, compared with a rental rate decline of 15.7 percent in the second quarter of 2010. Occupancy increased by 2.1 percent, and net operating income increased 0.27 percent.

Year-to-date and Planned Dispositions to Significantly Exceed Goal

Section I — Overview
Page 1.1

Third Quarter 2010

Through the end of the third quarter, the company had completed over $595 million of property dispositions and contributions to funds. In addition, the company recently entered into a definitive agreement with affiliates of Blackstone Real Estate Advisors (“Blackstone”) to sell a North American industrial portfolio, its minority interest in a hotel property and ProLogis’ interests in three of its property funds for a total purchase price of $1.02 billion. Total gross proceeds from this transaction, year-to-date dispositions and anticipated fourth quarter sales are expected to be approximately $1.65 to $1.7 billion — above the company’s initial 2010 gross disposition target of $1.3 to $1.5 billion. Net proceeds from the Blackstone transaction are expected to be approximately $830 million and will be used principally for the repayment of debt and to fund development activity.

In addition, ProLogis is actively pursuing the disposition of certain retail, mixed-use and ground lease assets. The company expects to consummate the disposition of all, or a portion of, these assets in early 2011 and to generate $350 to $550 million in proceeds.

Steady Demand for New Development

In the first three quarters, the company began more than $500 million of new development. Since the end of the quarter, ProLogis has signed three new build-to-suit agreements totaling $62 million of total expected investment, including two in the United States and one in the UK. “We continue to have a robust pipeline of development proposals and expect actual starts this year of $600 to $700 million, with another $48 million of signed development agreements that will begin construction in 2011,” said Ted R. Antenucci, president and chief investment officer. “We plan to expand our development business to $800 million to $1 billion of annual starts in 2011. While we anticipate the vast majority will be build-to-suit, we believe improving fundamentals in major logistics corridors will support speculative development in a handful of space-constrained markets. Expanding our development program is an important element of our long-term growth plan and is accretive to net asset value.”

Strategic Positioning in Focus for Fourth Quarter

“We are highly focused on implementing a number of strategic initiatives in the fourth quarter, which we believe will position us well for 2011 and beyond,” said William E. Sullivan, chief financial officer. The spectrum of initiatives includes, but is not limited to:

	•		A strategic decision to more aggressively pursue land sales, wherein we are undertaking a rigorous evaluation of all land positions and may take further impairments of our current book basis, which we expect to be in line with discount ranges presented in our recent investor presentations, which could be material;
	•		A plan to tender for between $1 billion and $2 billion of our public debt, with the principal intent of further smoothing our annual maturities, as well as deploying the proceeds from our asset sales activity into the most accretive debt reduction opportunities;
	•		An intent to evaluate the effectiveness of various derivative positions, in light of the current and anticipated interest rate environment, which may result in the recording of one-time charges or adjustments;
	•		A focus on creating incremental cost savings from structural and platform efficiencies, and
	•		A review of the company’s investment in certain non-industrial assets, which may result in impairments.

“Our 2010 per diluted share guidance for core FFO of $0.53 to $0.56; FFO, excluding significant non-cash items and non-recurring charges, of $0.70 to $0.78; and net earnings of $0.09 to $0.13, remains unchanged. However, we anticipate a variety of one-time charges, some cash and some non-cash, from the fourth quarter strategic positioning activities, which are not included in our guidance.”

While the Blackstone transaction will generate sizeable taxable gains, the company expects these gains to be partially offset by losses associated with the intended debt repurchase and other anticipated fourth quarter charges. As a result, the company intends to reduce its fourth quarter dividend to $0.1125 per share, consistent with anticipated taxable income for 2010. “It is our Board’s current intent to maintain this level of cash dividend throughout 2011, more in line with our taxable income, and position ourselves to grow the dividend over time as our adjusted FFO grows,” said Sullivan.

Section I — Overview
Page 1.2

Third Quarter 2010

Expectations for 2011

The company also established an expectation for growth in core FFO per share of 15 percent or more for 2011 and will provide a specific range and business drivers to support that guidance early in the year. “Our growth rate in 2011 will be affected by the dilutive impact of the Blackstone transaction and additional anticipated 2010 and 2011 asset sales, the proceeds of which will initially be used to reduce debt. However, we expect growth from the impact of continued development portfolio leasing, new build-to-suit developments coming on line and higher average occupancies,” said Sullivan. “In addition, while we expect FFO gains from development in 2011, we will focus our guidance in 2011 primarily on core FFO.”

The company’s expected net earnings per share of $0.09 to $0.13 for 2010 would have been a net loss of $0.50 to $0.55 per share prior to anticipated disposition gains. For 2011, the loss per share is expected to decline by roughly 25 percent, prior to any dispositions, acquisitions or other transactions. The primary difference between FFO and earnings per share relates to depreciation and gains or losses on transactions.

Webcast and Conference Call Information

The company will host a webcast/conference call to discuss quarterly results, current market conditions and future outlook on Tuesday, October 26, 2010, at 8:30 a.m. Eastern Time. Interested parties are encouraged to access the live webcast by clicking the microphone icon located near the top of the opening page at http://ir.prologis.com. Interested parties also can participate via conference call by dialing (866) 305-2304 domestically or (660) 422-4873 internationally.

Replay Information

A replay of the conference call will be posted when available. The replay will be available until midnight Eastern Time on Tuesday, November 9, 2010, and can be accessed by dialing (800) 642-1687 domestically or (706) 645-9291 internationally and entering passcode 20289828. A transcript of the call and the webcast replay, including a podcast format, will be posted when available in the “Financial Information” section of the ProLogis Investor Relations website.

About ProLogis

ProLogis is the leading global provider of distribution facilities, with more than 475 million square feet of industrial space owned and managed (44 million square meters) in markets across North America, Europe and Asia. The company leases its industrial facilities to more than 4,400 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. For additional information about the company, go to www.prologis.com.

Follow ProLogis on Twitter: http://twitter.com/ProLogis

The statements above that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which ProLogis operates, management’s beliefs and assumptions made by management, they involve uncertainties that could significantly impact ProLogis’ financial results. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, development activity and changes in sales or contribution volume of developed properties, general conditions in the geographic areas where we operate and the availability of capital in existing or new property funds — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local

Section I — Overview
Page 1.3

Third Quarter 2010

economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, (v) maintenance of real estate investment trust (“REIT”) status, (vi) availability of financing and capital, (vii) changes in demand for developed properties, and (viii) those additional factors discussed in reports filed with the Securities and Exchange Commission by ProLogis under the heading “Risk Factors.” ProLogis undertakes no duty to update any forward-looking statements appearing in this press release.

Investor Relations		Media		Financial Media
Melissa Marsden		Krista Shepard		Suzanne Dawson
303-567-5622		303-567-5907		Linden Alschuler & Kaplan, Inc
mmarsden@prologis.com		kshepard@prologis.com		212-329-1420
				sdawson@lakpr.com

Section I — Overview
Page 1.4

Third Quarter 2010

Overview

 

 Summary of Results

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2010				2009				2010				2009
Revenues (page 2.2)		$	270,114			$	269,291			$	790,541			$	960,283
Net earnings (loss) (page 2.2) (a)		$	(15,052	)		$	(11,788	)		$	(129,331	)		$	405,809
Net earnings (loss) per share - Diluted (page 2.5) (a)		$	(0.03	)		$	(0.03	)		$	(0.27	)		$	1.06
FFO, including significant non-cash items (page 2.3) (a)		$	104,050			$	65,187			$	179,011			$	444,646
Add (deduct) significant non-cash items (page 2.4):
Impairment of real estate properties and other assets			2,929				46,274				3,296				130,492
Net gain related to disposed assets - China operations			-				-				-				(3,315	)
Losses (gains) on early extinguishment of debt			1,791				(12,010	)			16,049				(173,218	)
Write-off deferred extension fees associated with the Global Line			-				-				854				-
Our share of certain losses (gains) recognized by the property funds			-				(4,925	)			3,575				6,358
Total adjustments for significant non-cash items			4,720				29,339				23,774				(39,683	)
FFO, excluding significant non-cash items (page 2.4) (a)		$	108,770			$	94,526			$	202,785			$	404,963
FFO per share - Diluted, including significant non-cash items (page 2.5) (a)		$	0.21			$	0.14			$	0.37			$	1.16
Add (deduct) - summarized significant non-cash adjustments - per share (page 2.4)			0.01				0.07				0.05				(0.10	)
FFO per share - Diluted, excluding significant non-cash items (page 2.5) (a)		$	0.22			$	0.21			$	0.42			$	1.06
Assets Owned and Under Management

		September 30,				June 30,				March 31,				December 31,
		2010				2010				2010				2009
Direct owned - investment balance:
Industrial properties:
Core (page 3.1)		$	7,580,614			$	7,486,076			$	7,431,138			$	7,436,539
Core - completed development (page 3.1)			4,048,846				4,061,575				4,069,516				4,108,962
Properties under development (page 3.2)			276,397				199,434				194,226				191,127
Land held for development (page 3.2)			2,380,914				2,282,223				2,387,984				2,569,343
Retail and mixed use properties			304,358				303,428				303,191				302,838
Land subject to ground leases and other			372,823				371,181				372,902				373,422
Other investments			162,285				209,932				195,677				190,352
Total - direct owned			15,126,237				14,913,849				14,954,634				15,172,583
Investment management - investment balance (b):
Industrial properties:
Property funds (page 4.2)			18,811,641				17,958,090				18,660,979				19,468,889
Other unconsolidated investees			951,208				623,858				618,671				444,985
Total - investment management			19,762,849				18,581,948				19,279,650				19,913,874
Total assets owned and under management		$	34,889,086			$	33,495,797			$	34,234,284			$	35,086,457

See numbered note references in Appendix A and Appendix B for definitions that are used throughout this report.

Section I - Overview
Page 1.5

Third Quarter 2010

Overview - continued

 

(in thousands, except percentages)

 Summary of Portfolio

																		September 30, 2010				December 31, 2009
Square feet owned and under management:
Direct Owned:
Industrial properties:
Core (page 3.1)																			142,803				141,019
Core - completed development (page 3.1)																			49,339				50,604
Properties under development (page 3.2)																			4,347				2,930
Retail and mixed use properties																			1,150				1,150
Investment management - industrial properties:
Property funds (page 4.2)																			269,108				274,241
Other unconsolidated investees																			12,975				10,021
Total square feet owned and under management																			479,722				479,965
		As of September 30, 2010
		Core				Core-Completed Development				Under Development				Retail & Mixed Use				Investment Mgmt.				Total
Square feet by continent:
North America			140,865				20,992				937				1,150				174,265				338,209
Europe			1,727				20,896				1,681				-				104,145				128,449
Asia			211				7,451				1,729				-				3,673				13,064
Total square feet owned and under management			142,803				49,339				4,347				1,150				282,083				479,722
Leasing Information
										September 30, 2010				June 30, 2010				March 31, 2010				December 31, 2009
Leased %
Direct owned operating portfolio:
Core											90.43	%			89.51	%			89.73	%			90.06	%
Core - completed development											73.14	%			71.92	%			67.12	%			62.18	%
Direct owned operating portfolio (page 3.1)											85.99	%			84.84	%			83.74	%			82.70	%
Investment management- industrial properties:
Property funds (page 4.2)											92.72	%			93.08	%			93.04	%			93.54	%
Other unconsolidated investees											89.53	%			90.62	%			91.58	%			94.47	%
Investment management portfolio											92.57	%			92.98	%			92.98	%			93.57	%
Total Operating Portfolio - Industrial											89.90	%			89.66	%			89.21	%			89.19	%
Under Development Portfolio (page 3.2)											65.64	%			65.49	%			60.72	%			100.00	%
Leasing activity:
Direct owned - leases signed - quarterly activity (page 5.1)											11,357				14,222				12,661				15,361
Property funds - leases signed - quarterly activity (page 5.2)											15,665				14,062				16,957				15,888
Total leasing activity											27,022				28,284				29,618				31,249

Section I - Overview

Page 1.6

Third Quarter 2010

Consolidated Balance Sheets

 

(in thousands, except per share data)

		September 30,				December 31,
		2010				2009
Assets:
Investments in real estate assets:
Industrial properties:
Core (1)		$	7,580,614			$	7,436,539
Core - completed development			4,048,846				4,108,962
Properties under development			276,397				191,127
Land held for development			2,380,914				2,569,343
Retail and mixed use properties			304,358				302,838
Land subject to ground leases and other			372,823				373,422
Other investments			162,285				190,352
			15,126,237				15,172,583
Less accumulated depreciation			1,883,405				1,671,100
Net investments in real estate assets			13,242,832				13,501,483
Investments in and advances to unconsolidated investees:
Property funds (1)			2,024,149				1,876,650
Other unconsolidated investees (1)			328,039				275,073
Total investments in and advances to unconsolidated investees			2,352,188				2,151,723
Cash and cash equivalents			17,799				34,362
Accounts and notes receivable			123,186				91,547
Other assets			1,033,914				1,017,780
Total assets		$	16,769,919			$	16,796,895
Liabilities and Equity:
Liabilities:
Debt (2)		$	8,170,032			$	7,977,778
Accounts payable and accrued expenses			397,281				367,399
Other liabilities			519,524				444,432
Total liabilities			9,086,837				8,789,609
Equity:
ProLogis shareholders’ equity:
Series C preferred shares at stated liquidation preference of $50 per share			100,000				100,000
Series F preferred shares at stated liquidation preference of $25 per share			125,000				125,000
Series G preferred shares at stated liquidation preference of $25 per share			125,000				125,000
Common shares at $.01 par value per share			4,770				4,742
Additional paid-in capital			8,573,066				8,524,867
Accumulated other comprehensive income			17,392				42,298
Distributions in excess of net earnings			(1,279,837	)			(934,583	)
Total ProLogis shareholders’ equity			7,665,391				7,987,324
Noncontrolling interests			17,691				19,962
Total equity			7,683,082				8,007,286
Total liabilities and equity		$	16,769,919			$	16,796,895

See Appendix A for note references

Section II - Financial Statements
Page 2.1

Third Quarter 2010

Consolidated Statements of Operations

 

(in thousands, except per share amounts)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2010				2009				2010				2009
Revenues:
Rental income (3)		$	236,068			$	220,489			$	695,816			$	661,252
Property management and other fees and incentives			29,262				45,792				86,231				111,200
CDFS disposition proceeds (4)			-				-				-				180,237
Development management and other income			4,784				3,010				8,494				7,594
Total revenues			270,114				269,291				790,541				960,283
Expenses:
Rental expenses			69,095				67,862				201,732				203,325
Investment management expenses			9,829				10,186				30,079				31,581
General and administrative (5)			34,959				38,632				115,886				128,325
Reduction in workforce (5)			-				415				-				11,745
Impairment of real estate properties and other assets			2,929				46,274				3,296				130,492
Depreciation and amortization			93,469				79,643				267,018				230,952
Other expenses			5,409				8,405				14,325				19,408
Total expenses			215,690				251,417				632,336				755,828
Operating income			54,424				17,874				158,205				204,455
Other income (expense):
Earnings from unconsolidated property funds, net			7,455				11,639				13,305				31,135
Earnings (loss) from other unconsolidated investees, net			1,770				(693	)			7,197				2,850
Interest expense (6)			(120,233	)			(89,838	)			(349,132	)			(265,819	)
Other income (expense), net			7,375				(10,021	)			5,833				(5,846	)
Net gains on dispositions of real estate properties (7)			35,922				13,627				58,688				22,419
Foreign currency exchange gains, net (8)			6,144				13,386				2,626				34,898
Gain (loss) on early extinguishment of debt, net (2)			(1,791	)			12,010				(48,449	)			173,218
Total other income (expense)			(63,358	)			(49,890	)			(309,932	)			(7,145	)
Earnings (loss) before income taxes			(8,934	)			(32,016	)			(151,727	)			197,310
Current income tax expense (benefit) (4)			5,499				(4,626	)			15,850				30,140
Deferred income tax expense (benefit)			1,956				(5,088	)			(40,442	)			(20,687	)
Total income taxes			7,455				(9,714	)			(24,592	)			9,453
Earnings (loss) from continuing operations			(16,389	)			(22,302	)			(127,135	)			187,857
Discontinued operations (9):
Income (loss) attributable to disposed properties			(130	)			2,775				392				23,416
Net gain related to disposed assets - China operations (4)			-				-				-				3,315
Net gains on dispositions:
Non-development properties			667				14,270				9,729				199,791
Development properties and land subject to ground leases			7,359				-				7,424				11,503
Total discontinued operations			7,896				17,045				17,545				238,025
Consolidated net earnings (loss)			(8,493	)			(5,257	)			(109,590	)			425,882
Net earnings attributable to noncontrolling interests			(190	)			(162	)			(634	)			(966	)
Net earnings (loss) attributable to controlling interests			(8,683	)			(5,419	)			(110,224	)			424,916
Less preferred share dividends			6,369				6,369				19,107				19,107
Net earnings (loss) attributable to common shares		$	(15,052	)		$	(11,788	)		$	(129,331	)		$	405,809
Weighted average common shares outstanding - Basic			477,028				452,683				476,280				379,421
Weighted average common shares outstanding - Diluted			477,028				452,683				476,280				382,623
Net earnings (loss) per share attributable to common shares - Basic:
Continuing operations		$	(0.05	)		$	(0.07	)		$	(0.31	)		$	0.44
Discontinued operations			0.02				0.04				0.04				0.63
Net earnings (loss) per share attributable to common shares - Basic		$	(0.03	)		$	(0.03	)		$	(0.27	)		$	1.07
Net earnings (loss) per share attributable to common shares - Diluted (page 2.5):
Continuing operations		$	(0.05	)		$	(0.07	)		$	(0.31	)		$	0.44
Discontinued operations			0.02				0.04				0.04				0.62
Net earnings (loss) per share attributable to common shares - Diluted		$	(0.03	)		$	(0.03	)		$	(0.27	)		$	1.06

See Appendix A for note references

Section II - Financial Statements
Page 2.2

Third Quarter 2010

Consolidated Statements of Funds From Operations (FFO)

 

(in thousands, except per share amounts)

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2010				2009				2010				2009
Revenues:
Rental income		$	236,252			$	225,226			$	697,419			$	711,681
Property management and other fees and incentives			29,262				45,792				86,231				111,293
CDFS disposition proceeds (4)			-				-				-				180,237
Development management and other income			4,784				3,010				8,494				7,594
Total revenues			270,298				274,028				792,144				1,010,805
Expenses:
Rental expense			69,326				68,874				202,607				218,228
Investment management expenses			9,829				10,186				30,079				31,581
General and administrative (5)			34,959				38,632				115,886				129,630
Reduction in workforce (5)			-				415				-				11,745
Impairment of real estate properties and other assets			2,929				46,274				3,296				130,492
Depreciation of corporate assets			3,269				3,982				9,770				12,069
Other expenses			5,409				8,405				14,325				19,414
Total expenses			125,721				176,768				375,963				553,159
Operating FFO			144,577				97,260				416,181				457,646
Other income (expense):
FFO from unconsolidated property funds			42,315				43,901				116,016				115,518
FFO from other unconsolidated investees			3,660				947				12,135				8,926
Interest expense			(120,233	)			(89,838	)			(349,132	)			(265,649	)
Other income (expense), net			7,375				(10,021	)			5,833				(5,774	)
Net gains on dispositions of real estate properties, net of related tax (7)(10)			38,899				12,515				59,150				30,072
Foreign currency exchange gains (losses), net			(694	)			318				17				(22,068	)
Gain (loss) on early extinguishment of debt, net (2)			(1,791	)			12,010				(48,449	)			173,218
Current income tax benefit (expense) (4)(10)			(3,499	)			4,626				(12,999	)			(30,341	)
Net gain related to disposed assets - China operations (4)			-				-				-				3,315
Total other income (expense)			(33,968	)			(25,542	)			(217,429	)			7,217
FFO			110,609				71,718				198,752				464,863
Less preferred share dividends			6,369				6,369				19,107				19,107
Less net earnings attributable to noncontrolling interests			190				162				634				1,110
FFO attributable to common shares, including significant non-cash items		$	104,050			$	65,187			$	179,011			$	444,646
Adjustments for significant non-cash items (page 2.4)			4,720				29,339				23,774				(39,683	)
FFO attributable to common shares, excluding significant non-cash items		$	108,770			$	94,526			$	202,785			$	404,963
Weighted average common shares outstanding - Basic			477,028				452,683				476,280				379,421
FFO per share attributable to common shares, including significant non-cash items:
Basic		$	0.22			$	0.14			$	0.38			$	1.17
Diluted (page 2.5)		$	0.21			$	0.14			$	0.37			$	1.16
FFO per share attributable to common shares, excluding significant non-cash items:
Basic		$	0.23			$	0.21			$	0.43			$	1.07
Diluted (page 2.5)		$	0.22			$	0.21			$	0.42			$	1.06

See Appendix A for note references

Section II - Financial Statements
Page 2.3

Third Quarter 2010

Reconciliations of Net Earnings (Loss) to FFO and EBITDA

 

(in thousands)

 Reconciliation of net earnings (loss) to FFO, including significant non-cash items

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2010				2009				2010				2009
Net earnings (loss) (a)		$	(15,052	)		$	(11,788	)		$	(129,331	)		$	405,809
Add (deduct) NAREIT defined adjustments:
Real estate related depreciation and amortization			90,200				75,661				257,248				218,883
Adjustments to gains on dispositions for depreciation			(2,376	)			(1,001	)			(4,208	)			(2,204	)
Adjustments to (gains on) dispositions of non-development properties			(6	)			(111	)			97				(1,646	)
Reconciling items attributable to discontinued operations: (9)
Gains on dispositions of non-development properties			(667	)			(14,270	)			(9,729	)			(199,791	)
Real estate related depreciation and amortization			83				950				336				11,534
Total discontinued operations			(584	)			(13,320	)			(9,393	)			(188,257	)
Our share of reconciling items from unconsolidated investees:
Real estate related depreciation and amortization			39,311				37,973				116,143				113,954
Adjustment to gains/losses on dispositions for depreciation			-				(1,310	)			-				(7,888	)
Other amortization items			(3,324	)			(1,659	)			(10,313	)			(7,821	)
Total unconsolidated investees			35,987				35,004				105,830				98,245
Total NAREIT defined adjustments			123,221				96,233				349,574				125,021
Subtotal-NAREIT defined FFO			108,169				84,445				220,243				530,830
Add (deduct) our defined adjustments:
Foreign currency exchange gains, net (8)			(6,838	)			(13,068	)			(2,609	)			(56,897	)
Deferred income tax expense (benefit)			1,956				(5,088	)			(40,442	)			(20,699	)
Our share of reconciling items from unconsolidated investees:
Foreign currency exchange losses (gains), net (8)			350				(556	)			2,294				(790	)
Unrealized losses (gains) on derivative contracts, net			1,450				(208	)			(125	)			(6,167	)
Deferred income tax benefit			(1,037	)			(338	)			(350	)			(1,631	)
Total unconsolidated investees			763				(1,102	)			1,819				(8,588	)
Total our defined adjustments			(4,119	)			(19,258	)			(41,232	)			(86,184	)
FFO, including significant non-cash items (a)		$	104,050			$	65,187			$	179,011			$	444,646

 Reconciliation of FFO, including significant non-cash items to FFO, excluding significant non-cash items

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2010				2009				2010				2009
FFO, including significant non-cash items (a)		$	104,050			$	65,187			$	179,011			$	444,646
Add (deduct) significant non-cash items:
Impairment of real estate properties and other assets			2,929				46,274				3,296				130,492
Net gain related to disposed assets - China operations (4)			-				-				-				(3,315	)
Losses (gains) on early extinguishment of debt (2)			1,791				(12,010	)			16,049				(173,218	)
Write-off deferred extension fees associated with Global Line			-				-				854				-
Our share of certain net losses (gains) recognized by the property funds (page 4.3)			-				(4,925	)			3,575				6,358
Total adjustments for significant non-cash items			4,720				29,339				23,774				(39,683	)
FFO, excluding significant non-cash items (a)		$	108,770			$	94,526			$	202,785			$	404,963

 Reconciliation of FFO, excluding significant non-cash items, to EBITDA

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2010				2009				2010				2009
FFO, excluding significant non-cash items (a)		$	108,770			$	94,526			$	202,785			$	404,963
Interest expense			120,233				89,838				348,278				265,649
Depreciation of corporate assets			3,269				3,982				9,770				12,069
Current income tax expense (benefit) included in FFO (10)			5,499				(4,626	)			15,850				30,341
Adjustments to gains on dispositions for interest capitalized			1,849				4,605				3,119				11,544
Preferred share dividends			6,369				6,369				19,107				19,107
Our share of reconciling items from unconsolidated investees			45,705				44,241				141,247				130,705
Earnings before interest, taxes, depreciation, and amortization (EBITDA)		$	291,694			$	238,935			$	740,156			$	874,378

See Consolidated Statements of Operations on page 2.2 and Consolidated Statements of FFO on page 2.3

See Appendix A for note references

Section II - Financial Statements
Page 2.4

Third Quarter 2010

Calculation of Per Share Amounts

 

Net Earnings (Loss) Per Share

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2010 (a)				2009 (a)				2010 (a)				2009
Net earnings (loss) - Basic (b)		$	(15,052	)		$	(11,788	)		$	(129,331	)		$	405,809
Noncontrolling interest attributable to convertible limited partnership units (c)			-				-				-				966
Adjusted net earnings (loss) - Diluted (b)		$	(15,052	)		$	(11,788	)		$	(129,331	)		$	406,775
Weighted average common shares outstanding - Basic			477,028				452,683				476,280				379,421
Incremental weighted average effect of conversion of limited partnership units (c)			-				-				-				1,192
Incremental weighted average effect of stock awards			-				-				-				2,010
Weighted average common shares outstanding - Diluted (d)			477,028				452,683				476,280				382,623
Net earnings (loss) per share - Diluted (b)		$	(0.03	)		$	(0.03	)		$	(0.27	)		$	1.06

FFO Per Share, including significant non-cash items

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2010				2009				2010				2009
FFO - Basic, including significant non-cash items (b)		$	104,050			$	65,187			$	179,011			$	444,646
Interest expense for convertible debt to common shares (d)			4,216				-				-				-
Noncontrolling interest attributable to convertible limited partnership units (c)			157				-				-				966
FFO - Diluted, including significant non-cash items (b)		$	108,423			$	65,187			$	179,011			$	445,612
Weighted average common shares outstanding - Basic			477,028				452,683				476,280				379,421
Incremental weighted average effect of conversion of limited partnership units (c)			760				-				-				1,192
Incremental weighted average effect of conversion of certain convertible debt (d)			26,611				-				-				-
Incremental weighted average effect of stock awards			3,275				2,388				3,355				2,010
Weighted average common shares outstanding - Diluted			507,674				455,071				479,635				382,623
FFO per share - Diluted, including significant non-cash items (b)		$	0.21			$	0.14			$	0.37			$	1.16