Prologis, Inc. - FORM 8-K - EX-99.1

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8-K - FORM 8-K - Prologis, Inc.	d480629d8k.htm

Earnings

Release

and

Supplemental

Information

Unaudited

Fourth Quarter 2012

2013 Prologis

Supplemental 4Q 2012

Table of Contents

Overview

Press Release

Highlights

Company Profile

Company Performance

Financial Information

Consolidated Balance Sheets

Consolidated Statements of Operations

Reconciliation of Net Earnings (Loss) to FFO

EBITDA Reconciliation

Pro-rata Information

Operations Overview

Operating Portfolio

Operating Metrics

Customer Information

Capital Deployment

Building Dispositions and Contributions

Third Party Building Acquisitions

Development Starts

Development Portfolio

Land Portfolio

Private Capital

Detail Information

Operating and Balance Sheet Information

Capitalization

Debt and Equity Summary

Debt Covenants and Other Metrics

Assets Under Management

Net Asset Value

Components

Notes and Definitions

Prologis

Park

Dallas,

TX,

United

States

Prologis

Park

Zama

Zama,

Japan

Milton

Keynes

Marston

Gate,

Bedfordshire,

United

Kingdom

Cover:

Prologis

Park

Isle

d'Abeau

Distribution

Center,

France

2013 Prologis

Prologis, Inc. Announces Fourth Quarter 2012 Earnings Results

Record 40.5 million square feet of leasing in Q4; 145 million in 2012 -

Occupancy increases to 94.0 percent at year end -

$1.3 billion in contributions and dispositions in Q4; $2.7 billion in 2012 -

Ahead of schedule on 10 Quarter Strategic Plan -

SAN FRANCISCO (Feb. 6, 2013) – Prologis, Inc. (NYSE: PLD), the leading

global owner, operator and developer of industrial real estate, today reported

results for the fourth quarter and full year 2012.

Core funds from operations (Core FFO) per fully diluted share was $0.42 for

the fourth quarter 2012 compared to $0.44 for the same period in 2011. Core

FFO per fully diluted share for full year 2012 was $1.74 compared to $1.58 for

full year 2011.

Net loss per fully diluted share was $0.50 for the fourth quarter 2012 compared

to a net loss of $0.10 for the same period in 2011. Net loss per share was

$0.18 for the full year 2012 compared to a net loss of $0.51 for the same period

in 2011. The net loss for the quarter and year was principally due to impairment

charges and losses on the early extinguishment of debt which were partially

offset by gains on acquisitions and dispositions of real estate.

“This marks the first full year as a combined company and Prologis delivered

very strong results,” said Hamid Moghadam, chairman and CEO, Prologis. “We

are ahead of schedule on our 10 Quarter Plan and we’ve built a solid

foundation upon which we will continue to grow the company.”

Operating Portfolio Metrics

The company leased a record 40.5 million square feet (3.8 million square

meters) in its combined operating and development portfolios in the fourth

quarter, and 145.3 million square feet (13.5 million square meters) in the full

year 2012. Prologis ended the quarter with 94.0 percent occupancy in its

operating portfolio, up 90 basis points over the prior quarter and 180 basis

points over year end 2011. Tenant retention in the quarter was 87.3 percent,

with tenant renewals totaling 25.1 million square feet (2.3 million square

meters).

“Our team did an exceptional job setting another quarterly record for leasing

around the globe,” said Moghadam. “Increasing demand and lack of supply

remain the theme in most markets, and we expect our overall rent change on

rollover to turn positive this year. In the United States, in particular, occupancy

in our small spaces increased 280 basis points year over year, and we expect

this trend will continue given improvements in the housing market.”

Same-store net operating income (NOI) increased 0.1 percent in the fourth

quarter and 1.3 percent in the full year 2012. Rental rates on leases signed in

the fourth quarter same-store pool decreased by 2.4 percent from in-place

rents.

Dispositions and Contributions

Prologis completed $1.3 billion in contributions and dispositions in the fourth

quarter, of which more than $1.0 billion was Prologis’ share. This includes

approximately:

$878 million of third-party building and land dispositions primarily in the

United States and Europe, of which $700 million was the company's

share; and

$401 million of contributions to Prologis European Properties Fund II,

Prologis Europe Logistics Venture, Prologis Targeted Europe Logistics

Fund, and joint ventures in Brazil, of which $325 million was the

company’s share.

In the full year 2012, contributions and dispositions totaled $2.7 billion, of which

more than $2.1 billion was the company's share.

Additionally, the company has approximately $5 billion of operating portfolio

assets in Japan and Europe scheduled for contribution in the first quarter of

2013, in connection with Nippon Prologis REIT (NPR) and Prologis European

Logistics Partners Sàrl (PELP), subject to the listing of NPR and customary

closing conditions. The combination of these transactions, in conjunction with

fourth quarter activity, positions the company ahead of its 10 Quarter Plan.

“We continue to make excellent progress executing on our priority to realign

our portfolio,” said Thomas Olinger, chief financial officer, Prologis. “These

dispositions and contributions reflect the diversity of our activities as well as the

market’s demand for high quality industrial real estate.”

2013 Prologis

Development Starts and Building Acquisitions

Committed capital during the fourth quarter 2012 totaled approximately $1.2

billion, of which $909 million was Prologis' share, including:

Development starts of $727 million, of which $613 million was

Prologis’ share. These starts totaled 7.3 million square feet (675,000

square meters), and monetized $190 million of land. The company’s

estimated share of value creation on development starts in the fourth

quarter was $71 million.

Acquisitions of $458 million, including $276 million in buildings with a

stabilized capitalization rate of 7.4 percent and an investment of $182

million in land and land infrastructure. Of the total acquisitions, $295

million was Prologis’ share.

Capital committed during the year totaled approximately $2.5 billion, of which

$2.0 billion was the company’s share. This included development starts of $1.6

billion, of which 57 percent were build-to-suits, and acquisitions of $983 million,

including $544 million in buildings with a stabilized capitalization rate of 7.3

percent and an investment of $439 million in land and land infrastructure.

At quarter end, Prologis' global development pipeline comprised 22.5 million

square feet (2.1 million square meters), with a total expected investment of

$2.1 billion, of which Prologis' share was $1.9 billion. The company’s share of

estimated value creation at stabilization is expected to be $354 million, with a

weighted average stabilized yield of 7.8 percent and a margin of approximately

19 percent.

Private Capital Activity

In 2012, Prologis raised or received commitments for $1.9 billion in new, third-

party equity. This was primarily due to PELP, and also included Prologis

Targeted U.S. Logistics Fund and Prologis Targeted Europe Logistics Fund.

The company continued streamlining its co-investment ventures into fewer,

more profitable and differentiated investment vehicles, rationalizing six funds in

2012.

In the fourth quarter, Prologis concluded the Prologis North American Fund I.

Two of the fund’s assets were sold to third parties with the remaining portfolio

divided up between the partners, of which Prologis’ share was $117 million.

Capital Markets

Prologis completed approximately $1.1 billion of capital markets activity in the

fourth quarter and $4.8 billion for the full year 2012. This includes debt

financings, re-financings, and pay-downs.

Subsequent to quarter end, the company paid off $141 million of its 1.875

percent convertible notes and repaid $319 million of secured debt.

Guidance for 2013

Prologis established a full-year 2013 Core FFO guidance range of $1.60 to

$1.70 per diluted share. On a GAAP basis, the company expects to recognize

a range of a net loss of ($0.07) per share to net earnings of $0.03 per share.

From a fourth quarter run rate perspective, this slight decline from 2012 is

primarily due to near-term dilution from disposition and contribution activities,

which are expected to significantly deleverage the company by the end of the

first quarter.

The Core FFO and earnings guidance reflected above excludes any potential

future gains (losses) recognized from real estate transactions. In reconciling

from net earnings to Core FFO, Prologis makes certain adjustments, including

but not limited to real estate depreciation and amortization expense,

impairment charges, deferred taxes, early extinguishment of debt, and

unrealized gains or losses on foreign currency or derivative activity.

The difference between the company's Core FFO and net earnings guidance

for 2013 predominantly relates to real estate depreciation and recognized

gains on real estate transactions.

The principal drivers supporting Prologis’ 2013 guidance include the following:

Year end occupancy in its operating portfolio between 94 to 95

percent (consistent with historical seasonal trends, the company

expects occupancy to decrease in the first quarter and trend higher

through the remainder of the year);

Same-store NOI growth of 1.5 to 2.5 percent, excluding the impact of

foreign exchange movements;

Development starts of $1.5 to $1.8 billion, of which approximately 75

percent is expected to be the company’s share;

Building acquisitions of $400 to $600 million, of which approximately

35 percent is expected to be the company’s share;

Building and land dispositions and contributions of $7.5 to $10.0

billion, of which approximately 60 percent is expected to be the

company’s share; and

A euro exchange rate of $1.35; and a yen exchange rate of JPY 92

per U.S. dollar.

2013 Prologis

Webcast and Conference Call Information

The company will host a webcast /conference call to discuss quarterly results,

current market conditions and future outlook today, Feb. 6, 2013, at 12:00 p.m.

U.S. Eastern Time. Interested parties are encouraged to access the live

webcast by clicking the microphone icon located near the top of the opening

page of the Prologis Investor Relations website (http://ir.prologis.com).

Interested parties also can participate via conference call by dialing +1 877-

256-7020 (from the U.S. and Canada toll free) or +1 973-409-9692 (from all

other countries) and enter conference code 86463676

A telephonic replay will be available from Feb. 6 through March 6 at +1 855-

859-2056 (from the U.S. and Canada) or +1 404-537-3406 (from all other

countries), with conference code 86463676. The webcast and podcast replay

will be posted when available in the "Financial Information" section of Investor

Relations on the Prologis website.

About Prologis

Prologis, Inc., is the leading owner, operator and developer of industrial real

estate, focused on global and regional markets across the Americas, Europe

and Asia. As of Dec. 31, 2012, Prologis owned or had investments in, on a

consolidated basis or through unconsolidated joint ventures, properties and

development projects expected to total approximately 554 million square feet

(51.5 million square meters) in 21 countries. The company leases modern

distribution facilities to more than 4,500 customers, including manufacturers,

retailers, transportation companies, third-party logistics providers and other

enterprises.

The statements in this release 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. Such statements 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, disposition activity, general conditions in the geographic

areas where we operate, synergies to be realized from our recent merger

transaction, our debt and financial position, our ability to form new property

funds 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 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, dispositions and development of properties, (v) maintenance of

real estate investment trust ("REIT") status and tax structuring, (vi) availability of

financing and capital, the levels of debt that we maintain and our credit ratings,

(vii) risks related to our investments in our co-investment ventures and funds,

including our ability to establish new co-investment ventures and funds, (viii)

risks of doing business internationally, including currency risks, (ix)

environmental uncertainties, including risks of natural disasters, and (x) 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 release

Media Contacts

Tracy Ward, Tel: +1 415 733 9565, tward@prologis.com, San Francisco

Atle Erlingsson, Tel: +1 415 733 9495, aerlingsson@prologis.com, San

Francisco

2013 Prologis

Supplemental 4Q 2012

Highlights

Company Profile

(A)

Generally represents properties in which Prologis has an ownership interest but does not manage (6 msf) and other properties owned by Prologis (4 msf), which includes value added

properties (3 msf).

(B)

Original cost basis for the total land portfolio is $3.0 billion.

Number of operating portfolio buildings

2,330

585

360

135

Total (msf)

380

138

$968

$203

$921

7,614

3,485

170

$1,074

$710

$109

Land (acres)

Land gross book value (millions) (B)

AMERICAS (4 countries)

ASIA (3 countries)

EUROPE (14 countries)

Operating Portfolio (msf)

Development Portfolio (msf)

Other (msf) (A)

Development portfolio TEI (millions)

TOTAL

522

1,893

2,092

554

11,269

2,992

Prologis, Inc. is the leading owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia.

As of December 31, 2012, Prologis owned or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development

projects totaling 554 million square feet (51.5 million square meters) in 21 countries. The company leases modern distribution facilities to more than 4,500

customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.

2013 Prologis

Supplemental 4Q 2012

Highlights

Company Performance

(A)

AMB and Prologis completed a merger (the “Merger”) in June 2011. The financial results presented throughout this supplemental include Prologis for the full period and AMB results from the

date of the Merger going forward. See the Notes and Definitions for more information.

2012

2011

2012

2011 (A)

517,557

456,777

2,005,961

1,451,327

(228,713)

(45,459)

(80,946)

(188,110)

(88,199)

134,147

552,435

411,688

195,816

203,945

813,863

593,917

110,786

147,934

563,180

431,450

376,940

386,965

1,516,263

1,514,150

Net loss available for common stockholders

(0.50)

(0.10)

(0.18)

(0.51)

FFO, as defined by Prologis

(0.19)

0.29

1.19

1.10

Core FFO

0.42

0.44

1.74

1.58

Per common share - diluted:

FFO, as defined by Prologis

Core FFO

AFFO

Adjusted EBITDA

Year ended December 31,

Revenues

Net loss available for common stockholders

(dollars in thousands, except per share data)

Three months ended December 31,

$50

$100

$150

$200

$250

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Core FFO (in millions)

92.3%

92.4%

93.1%

94.0%

85%

90%

95%

100%

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Operating

Portfolio

Owned

and

Managed

Period

Ending

Occupancy

2013 Prologis

Supplemental 4Q 2012

Financial Information

Consolidated Balance Sheets

(in thousands)

22,608,248

23,304,246

21,552,548

951,643

774,821

860,531

1,794,364

1,924,626

1,984,233

454,868

457,373

390,225

25,809,123

26,461,066

24,787,537

2,480,660

2,389,214

2,157,907

Net investments in properties

23,328,463

24,071,852

22,629,630

2,195,782

2,242,075

2,857,755

188,000

243,979

322,834

26,027

376,642

444,850

Net investments in real estate

25,738,272

26,934,548

26,255,069

100,810

158,188

176,072

176,926

172,515

71,992

171,084

181,855

147,999

1,123,053

1,129,316

1,072,780

Total assets

27,310,145

28,576,422

27,723,912

11,790,794

12,578,060

11,382,408

1,746,015

1,823,841

1,886,030

Total liabilities

13,536,809

14,401,901

13,268,438

582,200

4,618

4,609

4,594

16,411,855

16,395,797

16,349,328

(233,563)

(165,100)

(182,321)

(3,696,093)

(3,335,757)

(3,092,162)

Total stockholders' equity

13,069,017

13,481,749

13,661,639

653,125

639,631

735,222

51,194

53,141

58,613

Total equity

13,773,336

14,174,521

14,455,474

Total liabilities and equity

27,310,145

28,576,422

27,723,912

Noncontrolling interests - limited partnership unitholders

Preferred stock

Accounts payable, accrued expenses, and other liabilities

Debt

Distributions in excess of net earnings

Equity:

Common stock

Additional paid-in capital

Accumulated other comprehensive loss

Noncontrolling interests

Stockholders' equity:

Other assets

Liabilities:

Less accumulated depreciation

Restricted cash

Accounts receivable

Cash and cash equivalents

Liabilities and Equity:

December 31, 2011

Investments in and advances to unconsolidated entities

Land

Assets held for sale

Operating properties

Development portfolio

Notes receivable backed by real estate

December 31, 2012

Investments in real estate assets:

September 30, 2012

Assets:

Other real estate investments

2013 Prologis

Supplemental 4Q 2012

Financial Information

Consolidated Statements of Operations

(A) The financial results include Prologis for the full period and AMB and PEPR results from approximately June 1, 2011.

(B) See Calculation of Per Share Amounts in the Notes and Definitions.

(in thousands, except per share amounts)

481,743

415,226

1,869,224

1,294,872

31,715

40,230

126,779

137,619

4,099

1,321

9,958

18,836

517,557

456,777

2,005,961

1,451,327

131,696

110,169

505,499

358,559

16,134

15,734

63,820

54,962

60,608

50,797

228,068

195,161

28,103

18,772

80,676

140,495

243,138

21,237

252,914

21,237

187,770

180,628

739,981

552,849

9,414

9,789

26,556

24,031

676,863

407,126

1,897,514

1,347,294

(159,306)

49,651

108,447

104,033

10,414

904

25,703

49,326

815

3,016

5,973

10,609

5,107

5,780

22,299

19,843

(123,623)

(129,055)

(507,484)

(468,072)

(22,609)

(16,135)

(126,432)

24,639

(2,966)

305,607

111,684

(2,567)

(3,584)

(19,918)

33,337

(19,033)

556

(14,114)

258

(104,248)

(147,958)

(198,069)

(369,447)

(263,554)

(98,307)

(89,622)

(265,414)

3,364

(8,184)

3,580

1,776

(266,918)

(90,123)

(93,202)

(267,190)

2,958

13,039

27,632

50,638

48,620

37,069

35,098

58,614

51,578

50,108

62,730

109,252

(215,340)

(40,015)

(30,472)

(157,938)

(3,068)

4,832

(9,248)

4,524

(218,408)

(35,183)

(39,720)

(153,414)

10,305

10,276

41,226

34,696

(228,713)

(45,459)

(80,946)

(188,110)

460,447

458,383

459,895

370,534

(0.50)

(0.10)

(0.18)

(0.51)

2012

2011 (A)

Twelve Months Ended

December 31,

Expenses:

2012

2011

Revenues:

Rental income

Private capital revenue

Development management and other income

Total revenues

Three Months Ended

December 31,

Interest expense

Earnings from other unconsolidated joint ventures, net

Rental expenses

Private capital expenses

General and administrative expenses

Impairment of real estate properties

Depreciation and amortization

Merger, acquisition and other integration expenses

Total expenses

Operating income (loss)

Other income (expense):

Earnings from unconsolidated co-investment ventures, net

Interest income

Other expenses

Discontinued operations:

Impairment of other assets

Gain (loss) on acquisitions and dispositions of investments in real estate, net

Foreign currency and derivative gains (losses) and other income (expenses), net

Gain (loss) on early extinguishment of debt, net

Total other income (expense)

Loss before income taxes

Income tax expense (benefit) - current and deferred

Loss from continuing operations

Income attributable to disposed properties and assets held for sale

Net gain on dispositions, including related impairment charges and taxes

Consolidated net loss

Net loss (earnings) attributable to noncontrolling interests

Net loss attributable to controlling interests

Less preferred stock dividends

Net loss available for common stockholders

Total discontinued operations

Net loss per share available for common stockholders - Diluted

Weighted average common shares outstanding - Diluted (B)

2013 Prologis

Supplemental 4Q 2012

Financial Information

Reconciliations of Net Earnings (Loss) to FFO

(A) The financial results include Prologis for the full period and AMB and PEPR results from approximately June 1, 2011.

(228,713)

(45,459)

(80,946)

(188,110)

182,134

175,754

721,436

533,854

13,141

5,300

34,801

5,300

(65,866)

(20,265)

(222,752)

(7,338)

(5,592)

(8,199)

(27,680)

(19,889)

23,032

43,879

127,323

147,608

(81,864)

151,010

552,182

471,425

(666)

6,002

14,892

(39,034)

(2,162)

(22,558)

(8,804)

(19,803)

(3,507)

(307)

(5,835)

(900)

(88,199)

134,147

552,435

411,688

229,997

38,546

264,844

145,028

5,210

28,103

18,772

80,676

140,495

(5,835)

2,538

(121,303)

(117,800)

19,033

(556)

14,114

(258)

5,415

7,331

Our share of reconciling items included in earnings from unconsolidated entities

12,717

5,083

23,097

2,223

284,015

69,798

261,428

182,229

195,816

203,945

813,863

593,917

(5,543)

(8,678)

(27,753)

(42,287)

(36,037)

(21,473)

(90,144)

(64,918)

(26,970)

(19,558)

(95,566)

(60,975)

(19,481)

(15,739)

(56,629)

(44,905)

Amortization of management contracts

1,805

1,925

6,419

6,749

Amortization of debt discounts/(premiums) and financing costs, net of capitalization

(6,877)

(2,344)

(19,688)

12,387

Stock compensation expense

8,073

9,856

32,678

31,482

AFFO

110,786

147,934

563,180

431,450

Common stock dividends

131,624

130,573

522,986

388,333

Adjustments to arrive at Adjusted FFO ("AFFO"), including our share of unconsolidated entities:

Adjustments to arrive at Core FFO, including our share of unconsolidated entities:

Adjustments to arrive at Core FFO

Impairment charges

Japan disaster expenses

Merger, acquisition and other integration expenses

Loss (gain) on early extinguishment of debt, net

Income tax expense on dispositions

Loss (gain) on acquisitions and dispositions of investments in real estate, net

Straight-lined rents and amortization of lease intangibles

Property improvements

Tenant improvements

Leasing commissions

Reconciliation of net loss to FFO

Subtotal-NAREIT defined FFO

FFO, as defined by Prologis

Reconciling items related to noncontrolling interests

Core FFO

Net loss available for common stockholders

Add (deduct) NAREIT defined adjustments:

Add (deduct) our defined adjustments:

Real estate related depreciation and amortization

Net gain on non-FFO dispositions and acquisitions

Our share of reconciling items included in earnings from unconsolidated entities

Unrealized foreign currency and derivative losses (gains), net

Deferred income tax benefit

Our share of reconciling items included in earnings from unconsolidated entities

Impairment charges on certain real estate properties

2012

2011 (A)

Twelve Months Ended

December 31,

2012

2011

Three Months Ended

December 31,

(in thousands)

2013 Prologis

Supplemental 4Q 2012

Financial Information

EBITDA Reconciliation

(A) Adjustments

during

2012

include

the

effects

Prologis

North

American

Industrial

Fund

and

Prologis

California

reflect

NOI

for

the

full

period.

See

Notes

and

Definitions

for

detail.

Reconciliation of consolidated net loss to Adjusted EBITDA

(228,713)

(45,459)

(80,946)

(188,110)

(73,492)

(35,403)

(371,534)

(176,173)

187,770

180,628

739,981

552,849

123,623

129,055

507,484

468,072

243,138

43,846

299,645

150,328

28,103

18,772

80,676

140,495

19,033

(556)

14,114

(258)

3,597

(6,884)

3,813

4,992

12,352

263,994

(2,958)

(13,039)

(27,632)

(50,638)

(113)

8,560

(431)

21,551

3,068

(4,832)

9,248

(4,524)

10,305

10,276

41,226

34,696

7,407

15,858

47,570

(7,551)

5,210

320,768

300,822

1,275,566

1,214,933

(2,330)

5,083

1,993

5,083

32,101

43,879

129,547

147,608

22,659

37,231

92,381

142,282

5,674

11,673

304

4,200

1,271

257

6,738

4,918

(3,507)

(307)

(5,835)

(900)

226

376,940

386,965

1,516,263

1,514,150

Depreciation and amortization from continuing operations

Pro forma adjustment (A)

2011

2012

Interest expense from continuing operations

Current and deferred income tax expense (benefit)

Impairment charges

Merger, acquisition and other integration expenses

Twelve Months Ended

December 31,

2012

2011

Net gain on acquisitions and dispositions of investments in real estate

Net loss available for common stockholders

Three Months Ended

December 31,

Loss (gain) on early extinguishment of debt

Adjusted EBITDA

Interest expense

Current income tax expense

Realized losses on derivative activity

Depreciation and amortization

Unrealized gains and deferred income tax benefit

Our share of reconciling items from unconsolidated entities:

Income attributable to disposal properties and assets held for sale

Net loss (gain) on disposition of real estate, net

Other adjustments made to arrive at Core FFO

Adjusted EBITDA, prior to our share of unconsolidated entities

Unrealized losses (gains) and stock compensation expense, net

Loss on early extinguishment of debt

Net earnings (loss) attributable to noncontrolling interest

Preferred stock dividends

Impairment of real estate properties and other assets

NOI attributable to assets held for sale

(in thousands)

2013 Prologis

Supplemental 4Q 2012

Financial Information

Pro-rata Balance Sheet Information

(in thousands)

Investments in real estate assets:

22,608,248

(894,076)

4,406,432

26,120,604

14,113,579

40,234,183

3,200,875

(58,135)

114,084

3,256,824

232,721

3,489,545

(2,480,660)

35,533

(359,453)

(2,804,580)

(1,129,630)

(3,934,210)

23,328,463

(916,678)

4,161,063

26,572,848

13,216,670

39,789,518

2,195,782

(63,210)

(2,132,572)

63,210

1,785,900

(227,350)

19,225

1,577,775

1,085,806

2,663,581

Total assets

27,310,145

(1,207,238)

2,047,716

28,150,623

14,365,686

42,516,309

Liabilities:

11,790,794

(364,164)

1,781,510

13,208,140

5,775,205

18,983,345

1,746,015

(138,755)

266,206

1,873,466

866,752

2,740,218

Total liabilities

13,536,809

(502,919)

2,047,716

15,081,606

6,641,957

21,723,563

Equity:

13,069,017

7,723,729

20,792,746

704,319

(704,319)

Total equity

13,773,336

(704,319)

13,069,017

7,723,729

20,792,746

Total liabilities and equity

27,310,145

(1,207,238)

2,047,716

28,150,623

14,365,686

42,516,309

Net investments in properties

Pro-rata Balance Sheet Information as of

December 31, 2012

Consolidated

Less Non

Controlling

Interest

Liabilities and Equity:

Gross operating properties

Other real estate

Less accumulated depreciation

Investments in unconsolidated investees

Other assets

PLD Total

Investors'

Share of

Ventures

Total Owned

and Managed

Assets:

Plus PLD Share of

Unconsolidated

Co-Investment

Ventures

Noncontrolling interests

Debt

Other liabilities

Stockholders' / partners' equity

On this page and the following page, we present balance sheet and income statement information on a pro-rata basis reflecting our proportionate economic

ownership of each entity included in our Total Owned and Managed portfolio.

The consolidated amounts shown are derived from, and prepared on a consistent basis with, our consolidated financial statements. The PLD Share of

Unconsolidated Co-Investment Ventures column was derived on an entity-by-entity basis by applying our ownership percentage to each line item to calculate

our share of that line item. For purposes of balance sheet data, we used our ownership percentage at the end of the period and for operating information, we

used our average ownership percentage for the period, consistent with how we calculate our share of net income (loss) during the period. We used a similar

calculation to derive the noncontrolling interests’ share of each line item. In order to present the Total Owned and Managed portfolio, we added our investors’

share of each line item in the unconsolidated co-investment ventures and the noncontrolling interests share of each line item to the PLD Total Share.

2013 Prologis

Supplemental 4Q 2012

Financial Information

Pro-rata Operating Information

(in thousands)

Prologis’

Share (in millions)

Real Estate Operations NOI

Private Capital NOI

Development Value Creation (B)

481,743

(19,004)

87,793

550,532

272,664

823,196

31,715

(16)

31,699

31,715

4,099

381

4,480

355

4,835

517,557

(19,020)

88,174

586,711

273,035

859,746

131,696

(5,854)

22,475

148,317

71,433

219,750

16,134

60,608

(479)

3,258

63,387

10,796

74,183

28,103

243,138

1,684

244,822

4,375

249,197

187,770

(7,242)

32,585

213,113

105,744

318,857

9,414

(510)

1,596

10,500

7,399

17,899

676,863

(14,085)

61,598

724,376

199,747

924,123

(159,306)

(4,935)

26,576

(137,665)

73,288

(64,377)

66,586

(66,586)

469,660

(8,163)

40,010

501,507

121,931

623,438

376,940

(13,098)

363,842

195,219

559,061

344,732

(12,640)

64,103

396,195

194,187

590,382

15,581

(16)

15,565

15,581

66,586

(66,586)

(49,959)

(442)

2,483

(47,918)

1,016

(46,902)

376,940

(13,098)

363,842

195,219

559,061

Total reconciling items to Adjusted EBITDA

Adjusted EBITDA (A)

Adjusted EBITDA

Private Capital NOI

General and administrative and other expenses

Our share of co-investment ventures

Adjusted EBITDA by segment:

Real Estate Operations NOI

Total Owned

and Managed

Plus PLD Share of

Unconsolidated

Co-Investment

Ventures

PLD Total

Impairment of real estate properties

Less Non

Controlling

Interest

Total revenues

Pro-rata Operating Information for

Three Months Ended December 31, 2012

Consolidated

General and administrative expenses

Merger, acquisition and other integration expenses

Depreciation and amortization

Other expenses

Total expenses

Operating income (loss)

Our share of co-investment ventures

Investors'

Share of

Ventures

Development management and other income

Expenses:

Rental expenses

Private capital expenses

Revenues:

Rental income

Private capital revenue

$100

$200

$300

$400

$500

$396.6 (96%)

$15.6 (4%)

$13.2

(A)

See reconciliation of Consolidated Net Loss to Adjustd EBITDA on page 9.

(B)

Represents Value Creation for development properties that reached Stabilization during the quarter and moved into the Operating Portfolio.

2013 Prologis

Supplemental 4Q 2012

Operations Overview

Operating Portfolio –

Square Feet, Occupied and Leased

(A) Selected and ordered by Prologis share of NOI ($).

(square feet in thousands)

Region

# of Buildings

Total Owned and

Managed

Prologis

Share (%)

% of Total

Total Owned and

Managed

Prologis

Total Owned and

Managed

Prologis

Atlanta

East

117

14,053

11,320

80.6%

3.1%

86.1%

Baltimore/Washington

East

8,095

5,340

66.0%

1.5%

95.3%

94.8%

95.3%

94.8%

Central Valley

Northwest

8,970

7,127

79.5%

1.9%

91.9%

92.3%

93.4%

94.2%

Central & Eastern PA

East

14,049

7,136

50.8%

1.9%

94.2%

96.4%

95.1%

96.8%

Chicago

Central

221

36,329

28,355

78.1%

7.8%

91.4%

91.7%

91.4%

91.7%

Dallas/Ft. Worth

Central

159

22,878

18,863

82.5%

5.2%

95.3%

95.8%

95.7%

96.2%

Houston

Central

9,420

6,815

72.3%

1.9%

98.2%

98.6%

98.2%

98.6%

New Jersey/New York City

East

169

21,656

15,940

73.6%

4.4%

95.5%

94.7%

95.5%

94.7%

San Francisco Bay Area

Northwest

242

19,992

17,007

85.1%

4.6%

91.7%

92.0%

91.7%

92.1%

Seattle

Northwest

10,205

5,018

49.2%

1.4%

96.3%

96.9%

96.3%

96.9%

South Florida

East

10,553

7,579

71.8%

2.1%

96.5%

95.5%

96.5%

95.5%

Southern California

Southwest

300

55,794

45,426

81.4%

12.4%

97.9%

98.3%

98.2%

98.6%

On Tarmac

Various

2,598

2,373

91.3%

0.6%

91.9%

91.2%

91.9%

91.2%

East

6,383

5,080

79.6%

1.4%

99.9%

100.0%

99.9%

100.0%

Latin America

185

29,832

17,243

57.8%

4.7%

93.4%

92.9%

93.4%

92.9%

Latin America

2,161

292

13.5%

0.1%

100.0%

Americas total

1,813

272,968

200,914

73.6%

55.0%

94.5%

94.6%

94.7%

94.8%

Northern

2,016

1,245

61.8%

0.3%

99.6%

99.4%

99.6%

99.4%

Southern

124

29,505

20,925

70.9%

5.7%

94.8%

94.1%

94.8%

94.1%

Northern

18,284

7,932

43.4%

2.2%

99.7%

99.6%

99.7%

99.6%

Northern

10,699

5,496

51.4%

1.5%

89.8%

89.2%

93.6%

92.6%

CEE

20,572

11,793

57.3%

3.2%

87.0%

85.4%

90.7%

89.3%

Southern

7,126

6,006

84.3%

1.6%

81.1%

82.6%

88.0%

85.8%

17,231

10,520

61.1%

2.9%

97.5%

96.9%

97.5%

96.9%

468

105,433

63,917

60.6%

17.4%

93.2%

92.2%

94.8%

93.5%

China

5,499

2,312

42.0%

0.6%

91.9%

95.8%

91.9%

95.8%

Japan

20,781

14,977

72.1%

4.1%

98.0%

97.8%

98.0%

97.8%

Singapore

942

100.0%

0.3%

100.0%

27,222

18,231

67.0%

5.0%

96.9%

97.7%

96.9%

97.7%

2,358

405,623

283,062

69.8%

77.4%

94.3%

94.9%

94.7%

CEE

6,824

5,099

74.7%

1.4%

95.0%

93.3%

97.8%

97.1%

Southern

8,378

7,690

91.8%

2.1%

86.0%

85.5%

86.0%

85.5%

CEE

5,346

3,822

71.5%

1.1%

85.1%

86.2%

86.5%

88.2%

Central

6,270

5,474

87.3%

1.5%

99.8%

Columbus -

Americas

Central

9,727

7,763

79.8%

2.1%

96.4%

95.6%

96.4%

95.6%

Central

5,606

4,185

74.7%

1.2%

94.2%

95.1%

94.3%

95.3%

Sweden -

Europe

Northern

3,807

2,546

66.9%

0.7%

100.0%

Northwest

5,208

4,254

81.7%

1.2%

96.6%

95.9%

96.6%

95.9%

Central

6,663

4,142

62.2%

1.2%

98.9%

98.2%

98.9%

98.2%

Central

4,360

3,425

78.6%

0.9%

91.0%

89.3%

91.0%

89.3%

Various

17,591

11,745

66.8%

3.2%

95.9%

94.9%

95.9%

94.9%

382

79,780

60,145

75.4%

16.6%

94.5%

93.7%

94.9%

94.2%

Various

252

36,769

22,037

59.9%

6.0%

89.8%

92.9%

90.0%

93.1%

2,992

522,172

365,244

69.9%

100.0%

94.0%

94.1%

94.5%

Czech Republic -

Europe

Italy -

Europe

San Antonio -

Americas

Orlando -

Americas

Regional markets total

Remaining other regional (5 markets)

Denver -

Americas

Cincinnati -

Americas

Memphis -

Americas

Hungary -

Europe

Other markets (14 markets)

Total operating portfolio -

owned and managed

Regional markets (A)

Asia total

Total global markets

Occupied

Leased

Japan

Global Markets

U.S.

Canada

Belgium

Mexico

Brazil

Square Feet

Netherlands

Poland

Spain

Europe total

United Kingdom

Singapore

China

France

Germany

2013 Prologis

Supplemental 4Q 2012

Operations Overview

Operating Portfolio –

NOI and Gross Book Value

(A) Selected and ordered by Prologis share of NOI ($).

(dollars in thousands)

Region

Atlanta

East

$8,792

$6,771

77.0%

1.7%

$635,503

$474,398

74.6%

1.8%

Baltimore/Washington

East

9,252

5,746

62.1%

1.4%

620,631

374,892

60.4%

1.4%

Central Valley

Northwest

5,917

4,747

80.2%

1.2%

470,376

365,198

77.6%

1.4%

Central & Eastern PA

East

12,388

6,289

50.8%

1.6%

804,849

393,751

48.9%

1.5%

Chicago

Central

26,725

20,529

76.8%

5.2%

2,167,484

1,634,526

75.4%

6.1%

Dallas/Ft. Worth

Central

14,554

11,425

78.5%

2.9%

1,093,351

849,441

77.7%

3.1%

Houston

Central

10,008

5,958

59.5%

1.5%

523,766

330,740

63.1%

1.2%

New Jersey/New York City

East

25,861

16,937

65.5%

4.3%

1,896,226

1,265,329

66.7%

4.7%

San Francisco Bay Area

Northwest

26,018

23,469

90.2%

5.9%

1,973,782

1,683,632

85.3%

6.3%

Seattle

Northwest

11,164

5,246

47.0%

1.3%

947,506

468,153

49.4%

1.7%

South Florida

East

12,954

9,882

76.3%

2.5%

1,031,022

768,108

74.5%

2.8%

Southern California

Southwest

59,561

48,975

82.2%

12.4%

5,017,690

4,042,857

80.6%

15.0%

On Tarmac

Various

7,489

6,681

89.2%

1.7%

313,749

275,344

87.8%

1.0%

East

8,576

6,709

78.2%

1.7%

639,332

504,677

78.9%

1.9%

Latin America

27,321

16,193

59.3%

4.1%

1,783,499

979,633

54.9%

3.6%

Latin America

4,449

666

15.0%

0.2%

196,065

23,292

11.9%

0.1%

271,029

196,223

72.4%

49.6%

20,114,831

14,433,971

71.8%

53.6%

Northern

2,018

1,297

64.3%

0.3%

168,167

101,488

60.3%

0.4%

Southern

39,647

25,946

65.4%

6.5%

2,470,341

1,651,308

66.8%

6.1%

Northern

25,175

11,001

43.7%

2.8%

1,587,730

641,633

40.4%

2.4%

Northern

12,816

6,998

54.6%

1.8%

1,013,788

495,569

48.9%

1.8%

CEE

18,645

10,814

58.0%

2.7%

1,371,702

711,538

51.9%

2.6%

Southern

8,864

7,925

89.4%

2.0%

599,207

522,722

87.2%

1.9%

33,058

19,646

59.4%

5.0%

2,048,259

1,135,565

55.4%

4.2%

140,223

83,627

59.6%

21.1%

9,259,194

5,259,823

56.8%

19.4%

China

4,220

1,383

32.8%

0.4%

286,301

89,696

31.3%

0.3%

Japan

63,554

45,253

71.2%

11.4%

4,067,908

2,841,262

69.8%

10.6%

Singapore

2,493

100.0%

0.6%

149,669

100.0%

0.6%

70,267

49,129

69.9%

12.4%

4,503,878

3,080,627

68.4%

11.5%

481,519

328,979

68.3%

83.1%

33,877,903

22,774,421

67.2%

84.5%

CEE

8,519

6,444

75.6%

1.6%

545,279

385,017

70.6%

1.4%

Southern

6,729

6,082

90.4%

1.5%

543,882

489,656

90.0%

1.8%

CEE

5,449

3,828

70.3%

1.0%

377,890

237,827

62.9%

0.9%

Central

4,459

3,789

85.0%

1.0%

207,423

179,302

86.4%

0.7%

Central

4,945

3,697

74.8%

0.9%

371,554

287,153

77.3%

1.1%

Central

4,585

3,513

76.6%

0.9%

256,149

181,775

71.0%

0.7%

Northern

5,563

3,482

62.6%

0.9%

346,701

216,557

62.5%

0.8%

Northwest

4,386

3,427

78.1%

0.9%

291,347

241,816

83.0%

0.9%

Central

5,622

3,089

54.9%

0.8%

268,989

151,460

56.3%

0.6%

Central

3,501

2,585

73.8%

0.6%

283,619

212,581

75.0%

0.8%

Various

12,933

7,473

57.8%

1.9%

800,379

475,936

59.5%

1.8%

66,691

47,409

71.1%

12.0%

4,293,212

3,059,080

71.3%

11.5%

Various

31,376

19,466

62.0%

4.9%

1,923,762

1,074,773

55.9%

4.0%

$579,586

$395,854

68.3%

100.0%

$40,094,877

$26,908,274

67.1%

100.0%

Sweden -

Europe

Other markets (14 markets)

Total operating portfolio -

owned and managed

Orlando -

Americas

Regional markets total

Denver -

Americas

Cincinnati -

Americas

Remaining other regional (5 markets)

Italy -

Europe

San Antonio -

Americas

Columbus -

Americas

Memphis -

Americas

Japan

Singapore

Asia total

Total global markets

Regional markets (A)

Czech Republic -

Europe

Hungary -

Europe

Poland

Spain

United Kingdom

Europe total

China

Americas total

Belgium

France

Germany

Netherlands

Global Markets

U.S.

Canada

Mexico

Brazil

Total Owned and

Managed

Prologis

Share ($)

Prologis

Share (%)

Gross Book Value

% of Total

Fourth Quarter NOI

Total Owned and

Managed

Prologis

Share ($)

Prologis

Share (%)

% of Total

2013 Prologis

Supplemental 4Q 2012

Operations Overview

Operating Portfolio –

Summary by Division

(square feet and dollars in thousands)

# of Buildings

Total Owned

and Managed

Prologis

Share (%)

% of Total

Total Owned

and Managed

Prologis

Total Owned

and Managed

Prologis

1,529

232,650

100.0%

63.7%

94.7%

94.9%

273

65,127

100.0%

17.9%

90.9%

92.1%

16,218

100.0%

4.4%

97.9%

Total

operating

portfolio

consolidated

1,835

313,995

100.0%

86.0%

94.1%

94.5%

801

126,879

28,516

22.5%

7.8%

93.3%

93.5%

93.6%

312

70,294

20,720

29.5%

5.6%

94.9%

94.8%

96.6%

96.5%

11,004

2,013

18.3%

0.6%

95.4%

95.9%

95.4%

95.9%

Total

operating

portfolio

unconsolidated

1,157

208,177

51,249

24.6%

14.0%

94.0%

94.1%

94.6%

94.9%

2,330

359,529

261,166

72.6%

71.5%

94.2%

94.6%

94.4%

94.8%

585

135,421

85,847

63.4%

23.5%

93.0%

91.8%

94.4%

93.1%

27,222

18,231

67.0%

5.0%

96.9%

97.7%

96.9%

97.7%

Total

operating

portfolio

owned

and

managed

2,992

522,172

365,244

69.9%

100.0%

94.0%

94.1%

94.5%

2,352

100.0%

45.6%

576

138

24.0%

36.0%

Total owned and managed

3,016

525,100

367,734

70.0%

93.8%

94.2%

$211,946

100.0%

53.6%

$15,001,381

100.0%

55.7%

78,405

100.0%

19.8%

4,771,549

100.0%

17.7%

44,053

100.0%

11.1%

2,739,270

100.0%

10.2%

$334,404

100.0%

84.5%

$22,512,200

100.0%

83.6%

$124,010

$27,955

22.5%

7.0%

$9,147,380

$2,070,646

22.7%

7.7%

94,958

28,419

29.9%

7.2%

6,670,689

1,984,071

29.7%

7.4%

26,214

5,076

19.4%

1.3%

1,764,608

341,357

19.3%

1.3%

$245,182

$61,450

25.1%

15.5%

$17,582,677

$4,396,074

25.0%

16.4%

$335,956

$239,901

71.4%

60.6%

$24,148,761

$17,072,027

70.7%

63.4%

173,363

106,824

61.6%

27.0%

11,442,238

6,755,620

59.0%

25.1%

70,267

49,129

69.9%

12.4%

4,503,878

3,080,627

68.4%

11.5%

$579,586

$395,854

68.3%

100.0%

$40,094,877

$26,908,274

67.1%

100.0%

162

100.0%

96,048

100.0%

104

24.0%

43,258

10,358

23.9%

$579,852

$396,041

68.3%

$40,234,183

$27,014,680

67.1%

Occupied

Leased

Europe

Consolidated

Europe

Total

operating

portfolio

consolidated

Americas

Asia

Americas

Consolidated

Americas

Europe

Asia

Unconsolidated

Total Owned

and Managed

Value

added

properties

unconsolidated

Asia

Total

operating

portfolio

owned

and

managed

Unconsolidated

Europe

Asia

Total

operating

portfolio

unconsolidated

Americas

% of Total

Prologis

Share ($)

Prologis

Share (%)

% of Total

Total Owned

and Managed

Value

added

properties

consolidated

Value

added

properties

unconsolidated

Total owned and managed

Square Feet

Gross Book Value

Prologis

Share ($)

Prologis

Share (%)

Europe

Asia

Fourth Quarter NOI

Americas

Europe

Asia

Total

Value

added

properties

consolidated

2013 Prologis

Supplemental 4Q 2012

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2012

Q2 2012

Q3 2012

Q4 2012

1,017

2,863

2,279

3,772

522,571

519,939

514,031

501,957

New leases

10,023

11,947

12,102

11,571

(0.6%)

1.5%

2.3%

1.8%

Renewals

19,812

20,189

24,599

25,118

(6.6%)

4.8%

1.1%

6.8%

30,852

34,999

38,980

40,461

1.7%

0.4%

2.7%

0.1%

78.3%

82.4%

87.5%

87.3%

Net operating income - adjusted cash

3.1%

2.3%

3.0%

0.8%

$ 1.14

$ 1.50

$ 1.36

2.6%

2.9%

2.3%

2.1%

28,227

30,127

33,852

34,758

Q1 2012

Q2 2012

Q3 2012

Q4 2012

(1.1%)

(3.9%)

(1.8%)

(2.4%)

17,100

21,056

33,704

47,517

0.03

0.04

0.06

0.09

28,598

29,243

31,515

36,715

16,401

18,523

21,483

25,166

Total turnover costs

44,999

47,766

52,998

61,881

62,099

68,822

86,702

109,398

11.9%

(C)

12.0%

(C)

12.7%

13.9%

76.9%

72.2%

72.0%

75.4%

47,734

49,689

62,428

82,488

Same Store Information (A)

Prologis share

Weighted average ownership percent

Leasing Activity

Total square feet of leases signed

Properties under development

Trailing four quarters - % of gross NOI

$ per square foot

Average occupancy

Total capital expenditures

Leasing commissions

Property improvements

Rental income

Rental expenses

Operating portfolio:

Weighted average customer retention

Percentage change in rental rates

Tenant improvements

Capital Expenditures Incurred

Square feet of leases signed:

Square feet of population

Percentage change:

Net operating income - GAAP

Square feet of leasing activity

Turnover costs (per square foot) (B)

92.1%

96.2%

92.3%

92.2%

92.1%

96.8%

92.4%

93.3%

92.0%

96.5%

93.1%

94.2%

93.0%

96.9%

94.0%

85%

90%

95%

100%

Total

Asia

Americas

Europe

Q1 2012 Q2 2012 Q3 2012 Q4 2012

Operations Overview

Operating Metrics –

Owned and Managed

(A) See the Notes and Definitions for further explanations.

(B) Turnover

costs

per

foot

represent

expected

costs

based

the

leases

signed

during

the

quarter,

rather

than

costs

incurred

presented

the

“Capital

Expenditures

Incurred”

section.

(C) This metric is calculated using the trailing twelve month NOI based on pro forma information for the pre-Merger period.

(square feet and dollars in thousands)

Period Ending Occupancy by Division

2013 Prologis

Supplemental 4Q 2012

Operations Overview

Customer Information –

Owned and Managed

DHL

2.0%

12,074

Month to month customers

39,295

1.5%

11,851

2.4%

CEVA Logistics

1.4%

6,872

2013

342,020

12.6%

64,196

13.1%

Kuehne & Nagel

1.3%

7,074

2014

388,289

14.3%

75,030

15.3%

Geodis

1.0%

5,726

2015

411,423

15.2%

79,793

16.2%

Amazon.com, Inc.

0.9%

4,678

2016

350,782

13.0%

63,626

13.0%

Home Depot, Inc.

0.9%

4,326

2017

328,410

12.1%

60,939

12.4%

FedEx Corporation

0.8%

2,376

Thereafter

846,453

31.3%

135,657

27.6%

PepsiCo

0.8%

5,350

Total

2,706,672

100%

491,092

100%

Hitachi Ltd

0.8%

2,141

United States Government

0.8%

1,483

10.7%

52,100

Panasonic Logistics Co. Ltd.

0.7%

2,248

Tesco PLC

0.7%

2,693

Month to month customers

27,321

1.5%

8,570

2.5%

Sagawa Express

0.6%

1,112

2013

249,631

13.4%

47,004

13.7%

Nippon Express Group

0.6%

1,575

2014

278,486

15.0%

56,068

16.3%

ND Logistics

0.6%

2,724

2015

275,210

14.8%

54,968

16.0%

Wal-Mart Stores

0.6%

3,239

2016

249,409

13.4%

46,316

13.5%

Panalpina, Inc.

0.6%

2,457

2017

215,577

11.6%

39,881

11.6%

Kraft Foods, Inc.

0.5%

3,020

Thereafter

561,431

30.3%

90,893

26.4%

Unilever

0.5%

3,920

Total

1,857,065

100%

343,700

100%

UPS SCS (United Parcel Service Inc.)

0.5%

2,217

DB Schenker

0.5%

2,410

Caterpillar Logistics Services

0.4%

1,153

APL (Neptune Orient Lines)

0.4%

3,983

0.4%

2,540

La Poste

0.4%

1,278

18.7%

88,669

Percentage

of Total

Top Customers

Lease Expirations - Operating Portfolio - Owned and Managed

Year

Percentage

of Total

% of Annual

Base Rent

Total Square

Feet

Occupied

Square Feet

Annual Base

Rent

Top 10 Customers

Top 25 Customers

Lease Expirations - Operating Portfolio - Prologis Share

Year

Annual Base

Rent

Percentage

of Total

Occupied

Square Feet

Percentage

of Total

(square feet and dollars in thousands)

2013 Prologis

Supplemental 4Q 2012

Capital Deployment

Dispositions and Contributions

(A) Prologis share reflects our effective ownership. For contributions, this amount reflects cash proceeds to Prologis (net of units received for partial consideration).

(B) This is a consolidated fund.

(C) This was a consolidated fund through the second quarter of 2012. Beginning in the third quarter, the assets and liabilities of this fund are now wholly owned.

(square feet and dollars in thousands)

Prologis wholly owned

7,216

$332,488

100.0%

14,414

$714,375

100.0%

Prologis AMS (B)

204

14,560

5,604

38.5%

204

14,560

5,604

38.5%

Prologis Institutional Alliance Fund II (B)

420

118

33,693

9,485

28.2%

850

239

62,693

17,649

28.2%

Prologis North American Industrial Fund

1,541

355

56,817

13,102

23.1%

1,601

369

59,217

13,656

23.1%

Prologis North America Properties Fund I

1,406

581

58,769

24,272

41.3%

1,406

581

58,769

24,272

41.3%

Prologis North American Properties Fund XI

3,616

723

138,959

27,791

20.0%

Prologis Targeted U.S. Logistics Fund

753

180

52,449

12,561

23.9%

819

196

56,081

13,468

24.0%

Total Americas

11,540

8,528

548,776

397,512

72.4%

22,910

16,600

1,104,654

816,815

73.9%

Prologis wholly owned

5,214

251,114

100.0%

7,390

386,136

100.0%

Prologis European Properties (C)

3,670

3,439

338,862

317,513

93.7%

Prologis European Properties Fund II

553

164

30,569

9,085

29.7%

2,596

772

180,743

53,715

29.7%

Prologis Targeted Europe Logistics Fund

128

7,445

2,393

32.1%

345

111

15,813

5,079

32.1%

Total Europe

5,895

5,419

289,128

262,592

90.8%

14,001

11,712

921,554

762,443

82.7%

Asia

Prologis wholly owned

592

36,938

100.0%

Prologis Japan Fund 1

993

199

20.0%

Total Asia

600

594

37,931

37,137

97.9%

Total Third Party Building Dispositions

17,435

13,947

$837,904

$660,104

78.8%

37,511

28,906

$2,064,139

$1,616,395

78.3%

Brazil Fund and joint ventures

515

129

$52,482

$13,121

25.0%

815

204

$80,844

$20,211

25.0%

Prologis Mexico Fondo Logistico (B)

755

40,650

32,520

80.0%

Total Americas

515

129

52,482

13,121

25.0%

1,570

959

121,494

52,731

43.4%

Prologis European Properties Fund II

2,104

169,933

100.0%

2,240

185,947

100.0%

Europe Logistics Venture 1

1,781

131,633

111,888

85.0%

1,920

148,508

126,231

85.0%

Prologis Targeted Europe Logistics Fund

624

47,434

29,690

62.6%

624

47,434

29,690

62.6%

Total Europe

4,509

349,000

311,511

89.3%

4,784

381,889

341,868

89.5%

Asia

Total Asia

5,024

4,638

$401,482

$324,632

80.9%

6,354

5,743

$503,383

$394,599

78.4%

22,459

18,585

$1,239,386

$984,736

79.5%

43,865

34,649

$2,567,522

$2,010,994

78.3%

36,435

100.0%

91,306

100.0%

3,412

100.0%

16,836

15,455

91.8%

$1,279,233

$1,024,583

80.1%

$2,675,664

$2,117,755

79.1%

7.3%

Americas

FY 2012

Prologis Share of

Proceeds (%) (A)

Prologis Share

of Square Feet

Prologis Share of

Proceeds (%) (A)

Total Proceeds

Prologis Share

of Proceeds ($)

Square Feet

Prologis Share

of Square Feet

Prologis Share

of Proceeds ($)

Total Proceeds

Weighted average stabilized cap rate on building dispositions and

contributions

Grand Total Dispositions and Contributions

Europe

Square Feet

Q4 2012

Land dispositions and contributions

Other real estate dispositions

Americas

Europe

Total Contributions and Dispositions to Co-Investment Ventures

Total Building Dispositions and Contributions

Building Contributions and Dispositions to Co-Investment Ventures

Third Party Building Dispositions

2013 Prologis

Supplemental 4Q 2012

Capital Deployment

Third Party Building Acquisitions

Prologis Share of

Acquisition

Cost (%) (A)

Acquisition

Cost (%) (A)

Third Party Building Acquisitions

Prologis wholly owned (B)

2,556

$ 111,976

100.0%

3,563

$ 169,019

100.0%

Prologis Mexico Fondo Logistico (C)

159

6,773

1,355

20.0%

449

17,048

3,410

20.0%

Prologis North American Industrial Fund

2,886

667

23.1%

Prologis Targeted U.S. Logistics Fund

2,154

516

157,718

37,766

23.9%

3,125

770

267,679

66,099

24.7%

Total Americas (D)

4,869

3,104

276,467

151,097

54.7%

7,178

4,432

456,632

$ 239,195

52.4%

Europe Logistics Venture 1

762

114

50,194

7,529

15.0%

Prologis European Properties Fund II

717

213

36,812

10,940

29.7%

Total Europe

1,479

327

87,006

18,469

21.2%

Asia

4,869

3,104

$ 276,467

$ 151,097

54.7%

8,657

4,759

$ 543,638

$ 257,664

47.4%

7.4%

7.3%

Q4 2012

FY 2012

Prologis Share of

Acquisition

Cost ($)

Prologis

Share of

Square Feet

Acquisition

Cost

Prologis Share of

Acquisition

Cost ($)

Acquisition

Cost

Square Feet

Americas

Weighted average stabilized cap rate

Prologis Share

of Square

Feet

Total Third Party Building Acquisitions

Europe

(square feet and dollars in thousands)

(A)

Prologis share reflects our effective ownership.

(B)

Includes properties totaling 2.4 million square feet for total acquisition costs of $97.8 million that were acquired upon dissolution of one of our other unconsolidated joint ventures during the

fourth quarter.

(C)

This is a consolidated fund.

(D)

Includes properties acquired in the fourth quarter and designated as Value Added Acquisitions totaling 2.2 million square feet for total acquisition costs of $107.8 million, of which 1.7 million

square

feet

and

$76.4

million

acquisition

costs

were

Prologis’

share.

2013 Prologis

Supplemental 4Q 2012

Capital Deployment

Development Starts –

Current Quarter

(in thousands, except percent and per square foot)

(A)

Prologis share reflects our effective ownership.

(B)

Value Creation excludes fees or promotes that we may earn. See complete definition in the Notes and Definitions section.

Square Feet

Total Expected

Investment

Cost Per

Square Foot

Leased % at

Start

Square Feet

Total Expected

Investment

Cost Per

Square Foot

Leased % at

Start

Square Feet

Total Expected

Investment

Americas

3,661

$377,958

$103

47.9%

3,661

$377,958

$103

47.9%

100.0%

Brazil Fund and joint ventures

1,478

151,600

103

45.7%

370

37,900

102

45.7%

25.0%

Total Americas

5,139

529,558

103

47.3%

4,031

415,858

103

47.7%

78.4%

78.5%

Europe

820

70,086

100.0%

820

70,086

100.0%

820

70,086

100.0%

820

70,086

100.0%

Asia

1,308

127,547

33.5%

1,308

127,547

33.5%

100.0%

1,308

127,547

33.5%

1,308

127,547

33.5%

100.0%

Total

7,267

$727,191

$100

50.8%

6,159

$613,491

$100

51.7%

84.8%

84.4%

Prologis Share ($) - Q4

Prologis Share (%) - Q4 (A)

Consolidated

Total Europe

Consolidated

Total Asia

Total Q4 2012

Consolidated

Weighted average estimated stabilized yield

7.9%

$57,095

Weighted average estimated cap rate at stabilization

6.8%

$106,640

Estimated development margin

14.7%

Prologis share of value creation on development starts (B)

66.4%

Prologis share of value creation on development starts (B)

$70,776

Pro forma NOI

Estimated value creation (B)

2013 Prologis

Supplemental 4Q 2012

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

2009

2010

2011

2012

Americas

Europe

Asia

Capital Deployment

Development Starts –

FY 2012

(A)

Prologis share reflects our effective ownership.

(B)

Value Creation excludes fees or promotes that we may earn. See complete definition in the Notes and Definitions section.

(C)

This

represents

the

economic

gain

realized

from

the

sale

Value

Added

Conversion

“VAC”

property

during

the

year.

The

gain

represents

the

amount

which

the

sales

proceeds

exceeds

the amount included in NAV for this property.

FY 2012 Development Starts

Historical Development Starts (TEI)

(in thousands, except percent and per square foot)

$313,877

$758,905

$1,016,763

$1,552,785

Americas

Europe

Asia

Prologis Share

Partners’

Speculative

Build to Suit

$133,639

$193,598

12%

$671,263

43%

$832,415

53%

$586,731

38%

$1,359,187

88%

$881,522

57%

Square Feet

Total Expected

Investment

Cost Per

Square Foot

Leased % at

Start

Square Feet

Total Expected

Investment

Cost Per

Square Foot

Leased % at

Start

Square Feet

Total Expected

Investment

Americas

8,514

$612,561

$72

39.6%

8,514

$612,561

$72

39.6%

100.0%

Brazil Fund and joint ventures

2,210

219,854

63.7%

553

54,964

63.7%

25.0%

Total Americas

10,724

832,415

44.6%

9,067

667,525

41.1%

84.5%

80.2%

Europe

1,709

133,639

84.5%

1,709

133,639

84.5%

100.0%

1,709

133,639

84.5%

1,709

133,639

84.5%

100.0%

Asia

3,859

552,957

143

77.5%

3,859

552,957

143

77.5%

100.0%

Prologis China Logistics Venture I

598

33,774

0.0%

5,066

0.0%

15.0%

4,457

586,731

132

67.1%

3,949

558,023

141

75.7%

88.6%

95.1%

Total

16,890

$1,552,785

$92

54.5%

14,725

$1,359,187

$92

55.4%

87.2%

87.5%

Weighted average estimated stabilized yield

7.9%

$122,624

Weighted average estimated cap rate at stabilization

6.7%

$281,006

Estimated development margin

18.1%

Prologis share of value creation on development starts (B)

79.8%

Prologis share of value creation on development starts (B)

$224,262

Prologis share of value creation realized on VAC buildings (C)

10,954

$235,216

Prologis Share ($) -

FY 2012

Prologis Share (%) -

FY 2012 (A)

Consolidated

Total Europe

Consolidated

Total Prologis share of estimated and realized value creation

year to date

Pro forma NOI

Estimated value creation (B)

Total Asia

Total FY 2012

Consolidated

2013 Prologis

Supplemental 4Q 2012

Capital Deployment

Development Portfolio

(in thousands, except percent)

(A) Value creation excludes fees or promotes that we may earn. See complete definition in the Notes and Definitions section.

Sq Ft

TEI $

Sq Ft

TEI $

Sq Ft

TEI $

Sq Ft

TEI $

Prologis share of

TEI $

% of Total

Leased %

147

$7,717

1,334

$57,250

1,334

$57,250

$64,967

3.5%

33.7%

706

71,717

1,612

69,182

879

101,742

2,491

170,924

242,641

13.1%

75.5%

1,258

134,220

1,258

134,220

7.2%

80.9%

415

26,850

800

48,145

800

48,145

74,995

4.0%

0.0%

U.S. Total

1,268

106,284

5,004

308,797

879

101,742

5,883

410,539

516,823

27.8%

55.0%

910

107,351

910

107,351

5.8%

0.0%

383

19,368

854

53,085

854

53,085

72,453

3.9%

8.1%

Americas total

1,651

125,652

6,768

469,233

879

101,742

7,647

570,975

696,627

37.5%

43.3%

0.0%

507

38,862

262

16,681

262

16,681

55,543

3.0%

48.4%

201

10,647

265

14,773

265

14,773

25,420

1.4%

100.0%

698

76,575

698

76,575

4.1%

100.0%

Europe total

708

49,509

963

91,348

262

16,681

1,225

108,029

157,538

8.5%

79.5%

2,166

317,070

2,203

333,298

1,087

154,166

3,290

487,464

804,534

43.3%

79.2%

568

22,913

568

22,913

1.2%

77.0%

Asia total

2,166

317,070

2,771

356,211

1,087

154,166

3,858

510,377

827,447

44.5%

79.0%

4,525

492,231

10,502

916,792

2,228

272,589

12,730

1,189,381

1,681,612

90.5%

59.9%

486

22,694

486

22,694

1.2%

0.0%

260

14,648

0.8%

0.5%

260

14,648

486

22,694

486

22,694

37,342

2.0%

0.2%

4,785

506,879

10,988

939,486

2,228

272,589

13,216

1,212,075

1,718,954

92.5%

57.4%

Prologis Targeted U.S. Logistics Fund

272

32,196

7,709

0.4%

0.0%

Brazil Fund and joint ventures

2,249

217,144

2,249

217,144

108,572

5.8%

48.5%

Prologis Targeted Europe Logistics Fund

5,862

250

24,691

250

24,691

30,553

9,820

0.5%

0.0%

Prologis China Logistics Venture I

598

34,067

1,078

59,264

1,676

93,331

14,000

0.8%

0.0%

319

38,058

3,097

275,902

1,078

59,264

4,175

335,166

373,224

140,101

7.5%

24.3%

5,104

$ 544,937

14,085

$ 1,215,388

3,306

$ 331,853

17,391

1,547,241

$ 2,092,178

$ 1,859,055

100.0%

50.8%

4,865

$ 516,472

12,283

$ 1,061,104

2,389

$ 281,478

14,672

$ 1,342,582

$ 1,859,054

55.7%

95.3%

94.8%

87.2%

87.3%

72.3%

84.8%

84.4%

86.8%

88.9%

$ 38,087

$ 651,527

$ 253,386

$ 904,913

$ 943,000

$ 32,845

$ 575,552

$ 219,301

$ 794,853

$ 827,698

0.0%

64.0%

23.5%

55.5%

40.1%

53.7%

52.0%

40.8%

49.9%

50.8%

7.6%

7.9%

7.5%

7.9%

7.8%

$ 163,113

Weighted average estimated cap rate at stabilization

6.5%

$ 398,151

Estimated development margin

19.0%

$ 354,340

89.0%

Total Development Portfolio

Consolidated

Total Under

Development

U.S.

2014 and thereafter

Expected Completion

2013 Expected

Completion

Pre-Stabilized

Developments

Prologis share of value creation (A)

Prologis share of cost to complete

Percent build to suit (based on Prologis share)

Leased percent

Prologis share of value creation (A)

Pro forma NOI

Estimated value creation (A)

Weighted average estimated stabilized yield

Cost to complete

Central

East

Northwest

United Kingdom

Europe

Southwest

Northern Europe

Southern Europe

Latin America

Europe

Central Europe

Japan

Asia

China

Canada

Under Development

Total

development

portfolio

owned

managed

Total global markets

Total

unconsolidated

development

portfolio

Total regional and other markets

Regional and other markets

Americas

Unconsolidated

Total

consolidated

development

portfolio

516,823

696,627

Total

development

portfolio

Prologis

(%)

Total

development

portfolio

Prologis

2013 Prologis

Supplemental 4Q 2012

Capital Deployment

Land Portfolio –

Owned and Managed

(A) Ordered by our share of current book value.

(dollars in thousands)

Region

Prologis

% of

Share (%)

Share ($)

Share (%)

Total

Atlanta

East

616

100.0%

$ 25,656

100.0%

1.4%

Baltimore/Washington

East

106

100.0%

13,137

100.0%

0.7%

Central Valley

Northwest

1,155

100.0%

37,521

100.0%

2.0%

Central & Eastern PA

East

311

100.0%

27,187

100.0%

1.5%

Chicago

Central

567

100.0%

49,233

100.0%

2.7%

Dallas/Ft. Worth

Central

459

100.0%

26,909

100.0%

1.5%

Houston

Central

100.0%

5,422

100.0%

0.3%

New Jersey/New York City

East

323

100.0%

132,340

100.0%

7.2%

South Florida

East

377

100.0%

148,691

100.0%

8.1%

Southern California

Southwest

882

100.0%

184,053

100.0%

10.0%

Canada

183

100.0%

62,451

100.0%

3.4%

Mexico

901

100.0%

177,060

100.0%

9.6%

Brazil

269

135

50.0%

78,508

39,254

50.0%

2.1%

6,196

6,062

97.8%

968,168

928,914

95.9%

50.5%

Northern

100.0%

10,363

100.0%

0.6%

Southern

503

100.0%

89,911

100.0%

4.9%

Northern

116

100.0%

22,405

100.0%

1.2%

Northern

100.0%

67,839

100.0%

3.7%

CEE

775

100.0%

96,606

100.0%

5.3%

Southern

100

100.0%

15,717

100.0%

0.9%

987

100.0%

257,055

100.0%

14.0%

2,579

100.0%

559,896

100.0%

30.6%

China

103

30.1%

29,063

11,550

39.7%

0.6%

Japan

100.0%

80,071

100.0%

4.4%

170

57.6%

109,134

91,621

84.0%

5.0%

8,945

8,739

97.7%

1,637,198

1,580,431

96.5%

86.1%

C.E.E.

247

100.0%

40,530

100.0%

2.2%

C.E.E.

338

100.0%

38,111

100.0%

2.1%

Southern

107

100.0%

32,840

100.0%

1.8%

East

129

100.0%

25,686

100.0%

1.4%

C.E.E.

100.0%

16,915

100.0%

0.9%

East

229

100.0%

13,097

100.0%

0.7%

Northwest

100.0%

8,727

100.0%

0.5%

Central

165

100.0%

7,293

100.0%

0.4%

Central

199

100.0%

6,692

100.0%

0.4%

Central

127

100.0%

4,474

100.0%

0.2%

Central

100.0%

1,480

100.0%

0.1%

1,717

100.0%

195,845

100.0%

10.7%

Total other markets

(10 markets)

Various

607

100.0%

60,433

100.0%

3.2%

Total

land

portfolio

owned

and

managed

11,269

11,063

98.2%

1,893,476

1,836,709

97.0%

100.0%

Original Cost Basis

3,017,610

2,976,621

Columbus

Regional markets (A)

Netherlands

Poland

Spain

Total global markets

China

Japan

Asia total

Europe total

United Kingdom

Land by Market

Total Owned &

Managed

Current Book Value

Brazil

Mexico

Acres

Global markets

U.S.

Canada

Cincinnati

Americas total

Total Owned &

Managed

Total regional markets

Central Florida

Savannah

Slovakia

Memphis

Indianapolis

Hungary

Italy

Czech Republic

Belgium

France

Germany

Denver

2013 Prologis

Supplemental 4Q 2012

Capital Deployment

Land Portfolio –

Summary and Roll Forward

Investment at

Acres

% of Total

December 31, 2012

% of Total

7,345

65.2%

996,161

52.6%

Brazil Fund and joint ventures

269

2.4%

78,508

4.1%

Total Americas

7,614

67.6%

1,074,669

56.7%

3,485

30.8%

709,673

37.5%

0.8%

88,530

4.7%

Prologis China Logistics Venture 1

0.8%

20,604

1.1%

Total Asia

170

1.6%

109,134

5.8%

11,269

100.0%

1,893,476

100.0%

Americas

Europe

Asia

Total

1,111,379

758,502

138,039

2,007,920

Acquisitions

103,706

24,167

16,348

144,221

Dispositions

(9,262)

(15,906)

(7,651)

(32,819)

Development starts

(143,986)

(18,550)

(27,603)

(190,139)

Infrastructure costs

30,324

5,461

1,917

37,702

Reclasses

7,628

Impairment charges

(21,144)

(56,403)

(77,547)

Effect of changes in foreign exchange rates and other

(3,976)

12,402

(11,916)

(3,490)

1,074,669

709,673

109,134

1,893,476

Land Portfolio Summary

Consolidated

Americas

Total land portfolio - owned and managed

Consolidated

Europe

Asia

Consolidated

As of December 31, 2012

Land Roll Forward - Owned and Managed

As of September 30, 2012

(dollars in thousands)

2013 Prologis

Supplemental 4Q 2012

Private Capital

Detail Information

Investment Information

Co-Investment Ventures

Type

Investment Type

Geographic Focus

Ownership

Date Established

Term

Prologis Institutional Alliance Fund II

Core

Consolidated

28.2%

June 2001

Closed end

Prologis AMS

Core

Consolidated

38.5%

June 2004

Closed end

Prologis Mexico Fondo Logistico (A)

Core/Development

Consolidated

Mexico

20.0%

July 2010

Closed end

Prologis Targeted U.S. Logistics Fund (A)

Core

Unconsolidated

23.9%

October 2004

Open end

Prologis North American Industrial Fund

Core

Unconsolidated

23.1%

March 2006

Open end

Prologis DFS Fund I

Development

Unconsolidated

15.0%

October 2006

Closed end

Prologis North American Industrial Fund III

Core

Unconsolidated

20.0%

July 2007

Closed end

Prologis SGP Mexico

Core

Unconsolidated

Mexico

21.6%

December 2004

Closed end

Prologis Mexico Industrial Fund

Core

Unconsolidated

Mexico

20.0%

August 2007

Closed end

Prologis Brazil Logistics Partners Fund I (A)(B)

Development

Unconsolidated

Brazil

50.0%

December 2010

Closed end

Prologis Targeted Europe Logistics Fund (A)

Core

Unconsolidated

Europe

32.4%

June 2007

Open end

Prologis European Properties Fund II (A)

Core

Unconsolidated

Europe

29.7%

August 2007

Open end

Europe Logistics Venture 1 (A)

Core

Unconsolidated

Europe

15.0%

February 2011

Open end

Prologis Japan Fund 1

Core

Unconsolidated

Japan

20.0%

June 2005

Closed end

Prologis China Logistics Venture 1 (A)

Core/Development

Unconsolidated

China

15.0%

March 2011

Closed end

(A)

These funds are or will be actively investing in new properties through acquisition and/or development activities, whereas the remaining funds do not expect to be actively investing in new properties.

(B)

We have a 50% ownership interest in and consolidate an entity that in turn owns 50% of an entity that is accounted for on the equity method (“Brazil Fund”). The Brazil Fund develops industrial

properties in Brazil and has sold properties to an entity in which it maintains an equity interest. We also have other joint ventures that we account for using the equity method. We show our

ownership in these entities at our effective ownership and include the properties in our owned and managed pool.

(C)

Values represent Prologis’ stepped up basis and may not be comparable to values reflected in the entities’ stand alone financial statements calculated on a different basis.

Prologis Investment In

and Advances To

47,340

$41,914

$2,888,458

$1,192,165

$9,665

$38,660

$274,913

$13,693

209,580

17,655

12,993

941,724

647,774

2,599

10,396

129,555

28,872

20,860

44,436

50,726

4,151,258

1,566,099

12,146

48,584

375,004

2,492

645,241

9,502

7,931

598,120

214,149

1,586

6,344

42,830

669

50,681

6,361

6,101

415,013

215,282

1,318

5,272

46,501

(11,272)

33,245

2,161

4,449

196,065

666

2,664

(2,951)

152,224

Americas

127,455

124,114

9,190,638

3,835,469

27,980

111,920

868,803

31,503

1,111,831

55,275

71,174

4,881,068

1,734,126

21,153

84,612

515,382

(47,626)

398,291

11,896

21,578

1,545,944

650,100

6,935

27,740

208,954

21,152

280,430

Europe Logistics Venture I

3,123

2,206

243,677

331

1,324

906

44,027

Europe

70,294

94,958

6,670,689

2,384,226

28,419

113,676

724,336

(25,568)

722,748

7,255

22,876

1,533,307

848,856

4,575

18,300

169,771

18,218

144,352

3,749

3,338

231,301

124,000

501

2,004

18,600

4,313

34,149

Asia

11,004

26,214

1,764,608

972,856

5,076

20,304

188,371

22,531

178,501

208,753

$245,286

$17,625,935

$7,192,551

$61,475

$245,900

$1,781,510

$28,466

$2,013,080

Information by Unconsolidated Co-investment Venture (C):

Prologis' Share

Fourth

Gross Book Value of

Fourth

Annualized

Debt

Quarter NOI

(in thousands)

Square Feet

Quarter NOI

Operating Buildings

Pro forma NOI

Debt

Assets (Liabilities)

Total

Prologis North American Industrial Fund III

Prologis Targeted U.S. Logistics Fund

Prologis Mexico Industrial Fund

Prologis SGP Mexico

Brazil Fund and joint ventures

Prologis European Properties Fund II

Prologis Targeted Europe Logistics Fund

Prologis Japan Fund 1

Prologis China Logistics Venture 1

Prologis North American Industrial Fund

Total Other Tangible

2013 Prologis

Supplemental 4Q 2012

Private Capital

Operating and Balance Sheet Information

(A)

Includes the unconsolidated co-investment ventures listed on the previous page.

(B)

Represents the entire entity, not our proportionate share.

(dollars in thousands)

(99)

10,136

(323)

9,714

632

700

533

10,148

(267)

10,414

17,602

9,164

4,896

31,662

18,135

19,312

4,629

42,076

9,190,638

6,670,689

1,764,608

17,625,935

(878,707)

(492,243)

(82,600)

(1,453,550)

211,773

22,415

54,482

288,670

546,718

404,297

200,520

1,151,535

9,070,422

6,605,158

1,937,010

17,612,590

3,835,469

2,384,226

972,856

7,192,551

334,942

569,615

89,645

994,202

4,170,411

2,953,841

1,062,501

8,186,753

23.2%

29.7%

19.2%

25.1%

Properties under development and land

Prologis' share of the co-investment ventures' net earnings (loss)

Interest income

Earnings (loss) from unconsolidated co-investment ventures, net

Weighted average ownership

Other assets

Other liabilities

Total liabilities

Fees earned by Prologis

Condensed Balance Sheet of the Unconsolidated Co-Investment Ventures, Aggregated (A)(B)

Total earnings recognized by Prologis, net

As of December 31, 2012

Third party debt

Total assets

Operating industrial properties, before depreciation

Accumulated depreciation

178,349

128,412

34,692

341,453

(49,672)

(29,904)

(8,478)

(88,054)

128,677

98,508

26,214

253,399

(4,311)

(3,123)

(122)

(7,556)

(40,273)

(13,742)

(2,257)

(56,272)

(3,631)

(4,952)

(4,992)

(13,575)

(57,224)

(29,178)

(5,030)

(91,432)

(1,207)

(1,719)

(1,076)

(4,002)

22,031

45,794

12,737

80,562

(76,670)

(40,094)

(14,245)

(131,009)

3,667

(372)

900

4,195

38,048

8,844

46,892

(2,381)

9,701

(52)

7,268

(15,305)

23,873

(660)

7,908

7,466

16,031

3,433

26,930

632

700

8,098

16,043

3,489

27,630

17,602

9,164

4,896

31,662

General and administrative expenses

Americas

Europe

Asia

Total

Rental income

For the Three Months Ended December 31, 2012

FFO and Net Earnings (Loss) of the Co-Investment Ventures, Aggregated (A)(B)

Rental expenses

Net operating income from properties

Other expense, net

Loss on dispositions of investments in real estate, impairment charges and early extinguishment of debt, net

Interest expense

Current income tax expense

FFO of the unconsolidated co-investment ventures

Real estate related depreciation and amortization

For the Three Months Ended December 31, 2012

Prologis' Share of FFO and Net Earnings (Loss) of the Unconsolidated Co-Investment Ventures (A)

Gain on dispositions of investments in real estate, net

Deferred tax benefit (expense) and other income (expense), net

Net earnings (loss) of the unconsolidated co-investment ventures

Prologis' share of the co-investment ventures' FFO

Interest income

Fees earned by Prologis

FFO from unconsolidated co-investment ventures, net

Foreign currency exchange and unrealized derivative gains (losses), net

Total FFO recognized by Prologis, net

25,700

25,207

8,385

59,292

2013 Prologis

Supplemental 4Q 2012

Capitalization

Debt and Equity Summary

(A) Based on Prologis share of the total debt. Interest rate is based on the effective rate (which includes the amortization of related premiums and discounts) assuming the net premiums (discounts)

associated with the respective debt were included in the maturities by year.

(B) Interest rate is based on the effective rate and weighted based on borrowings outstanding.

Dividend

Security

Value

Series

Rate

Value

Common Stock

461.0

$36.49

$16,822

Series L

6.5%

$49

$2,118

Partnership Units

3.2

$36.49

117

Series M

6.8%

Total

464.2

$16,939

Series O

7.0%

Borrowings outstanding

889

Series P

6.9%

Outstanding letters of credit

Series Q

8.5%

100

$1,161

Series R

6.8%

125

Series S

6.8%

125

101

7.1%

$582

$1,262

Less:

Current availability

Unrestricted cash

Total liquidity

Market Equity

Preferred Stock

Liquidity

Price

Aggregate lender commitments

(dollars and shares in millions)

$376

$483

$410

$1,269

$207

$1,476

$1,405

$2,881

$1,641

57.0%

4.4%

916

420

640

981

2,957

3,022

1,225

4,247

3,330

78.4%

3.6%

287

460

469

205

1,422

1,447

788

2,235

1,654

74.0%

3.5%

640

318

959

127

1,086

1,301

2,387

1,291

54.1%

5.3%

700

544

1,245

1,249

752

2,001

1,411

70.5%

4.2%

900

309

1,210

1,284

266

1,550

1,287

83.0%

5.0%

647

501

1,149

1,151

225

1,376

1,216

88.4%

5.4%

677

687

689

723

1,412

878

62.2%

5.9%

155

156

158

345

503

239

47.5%

3.4%

139

149

28.2%

5.8%

137

148

153

150

98.0%

7.4%

Subtotal

5,143

944

889

657

3,576

11,209

516

11,725

7,169

18,894

13,139

69.5%

(67)

77.8%

Subtotal

5,223

877

889

657

3,626

11,272

519

11,791

7,193

18,984

$13,209

69.6%

4.4%

(364)

(5,411)

(5,775)

Prologis share of debt

$5,223

$877

$889

$657

$3,626

$11,272

$155

$11,427

$1,782

$13,209

$4,547

$877

$55

$29

$1,689

$7,197

$130

$7,327

$886

9,395

$8,213

559

226

482

504

1,771

1,792

574

2,887

2,366

172

200

139

533

339

117

580

146

1,261

2,104

170

1,617

2,274

Prologis share of debt

$5,223

$877

$889

$657

$3,626

$11,272

$155

$11,427

$1,782

$13,209

Unamortized net premiums (discounts)

Third party share of debt

Prologis share of debt by local currency

Dollars

Euro

GBP

2019

2020

2021

Yen

Other

Thereafter

2022

2018

Entities

Consolidated

Entities

2016

Debt

Maturity

Debt

2013

2014

2015

Total

Mortgage

2017

Facilities

Debt

Senior

Exchangeable

Credit

Other

Prologis

Debt

Total Debt

Unsecured

Consolidated

Total

Unconsolidated

Secured

Debt

Prologis

Total

Share of

Wtd. Avg.

Interest

Rate (A)

Prologis

Share (%)

4.3

1.2

1.8

1.5

3.9

3.6

3.0

3.6

3.5

4.1

3.6

Weighted average remaining maturity in years

5.6%

4.6%

1.5%

1.8%

4.0%

4.4%

4.7%

4.4%

Weighted average interest rate (B)

2013 Prologis

Supplemental 4Q 2012

Capitalization

Debt Covenants and Other Metrics

(A)

These calculations are made in accordance with the respective debt agreements, may be different than other covenants or metrics presented and are not calculated in accordance with the

applicable SEC rules.

(B)

All metrics include both consolidated and Prologis share of unconsolidated entities.

(C)

See Notes and Definitions for calculation of amounts.

(dollars in thousands)

Covenant

Actual

Covenant

Actual

<60%

39.4%

<60%

39.4%

>1.5x

2.72x

>1.5x

2.71x

<40%

13.5%

<40%

13.5%

>150%

276.6%

>150%

276.6%

Covenant

Actual

<60%

43.0%

>1.5x

2.41x

>1.5x

3.33x

<35%

14.9%

>$10.0 billion

$15.4 billion

Fourth Quarter

Third Quarter

43.9%

44.7%

18.3%

19.5%

234.6%

227.1%

2.18x

2.26x

8.89x

9.00x

Unencumbered

Encumbered

Total

14,095,141

8,513,107

22,608,248

951,643

1,727,275

67,089

1,794,364

454,868

188,000

7,973

18,054

26,027

Total consolidated

17,236,900

8,786,250

26,023,150

1,210,593

3,195,839

4,406,432

109,073

5,011

114,084

Gross real estate assets

18,556,566

11,987,100

30,543,666

Unsecured

Secured

Debt

Mortgage Debt

Total

7,632,700

3,576,086

11,208,786

67,749

448,103

515,852

208,903

1,566,540

1,775,443

Total debt -

at par

7,909,352

5,590,729

13,500,081

(50,099)

(312,332)

(362,431)

Total

Prologis

debt

par

7,859,253

5,278,397

13,137,650

16,334

49,822

66,156

(1,733)

6,067

Total debt, net of premium (discount)

7,875,587

5,332,553

13,208,140

New Prologis Indenture

Legacy AMB Indenture

Debt as % of gross real estate assets

Debt/Adjusted EBITDA

Unencumbered debt service coverage ratio

Outstanding indebtedness to adjusted total assets

Maximum consolidated leverage to total asset value

Global Line

Debt Metrics (A) (B) (C)

Fixed charge coverage ratio

2012

Covenants as of December 31, 2012 (A)

Minimum net worth

Fixed charge coverage ratio

Maximum secured debt to adjusted total assets

Unencumbered assets ratio to unsecured debt

Fixed charge coverage ratio

Maximum secured debt to total asset value

Unconsolidated

development

portfolio

and

land

Prologis'

Operating properties

Unconsolidated

operating

properties

Prologis'

Encumbrances as of December 31, 2012

Secured debt as % of gross real estate assets

Unencumbered gross real estate assets to unsecured debt

Consolidated:

Development portfolio

Land

Other real estate investments

Notes receivable backed by real estate

Assets held for sale

Our share

premium

(discount)

unconsolidated

Premium

(discount)

consolidated

Secured and Unsecured Debt as of December 31, 2012

Prologis debt

Consolidated entities debt

Our share of unconsolidated entities debt

Third party share of consolidated debt premium (discount)

Third party share of consolidated debt

2013 Prologis

Supplemental 4Q 2012

Capitalization

Assets Under Management

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Europe

26.0%

Asia

13.7%

$ 30,730

$ 44,751

Debt

$13,209

Committed Equity/Investment

$1,791

Americas

60.3%

$ 44,751

Direct owned

and other

assets

$26,602

Equity

Cap

$16,939

AUM

Private

Capital

$18,149

Preferred Shares

$582

Investors' share of assets

in JVs/funds

$12,230

Prologis share of assets in

JVs/funds

$4,128

Total

Enterprise

Value

$30,730

Total Enterprise Value

Total AUM by Division

Assets Under Management

(dollars in millions)

2013 Prologis

Supplemental 4Q 2012

224,233

14,550,767

223,152

892,608

96.4%

61,222

4,525,590

85,220

340,880

95.7%

16,218

2,739,270

169

44,876

179,504

97.9%

2,128

8,512

301,673

21,815,627

353,248

355,376

1,421,504

96.3%

8,417

450,614

(2,966)

50.6%

3,905

245,959

(1,181)

15.2%

12,322

696,573

(4,147)

39.4%

313,995

22,512,200

349,101

355,376

1,421,504

94.1%

28,516

2,070,646

29,081

116,324

93.5%

20,720

1,984,071

29,737

118,948

94.8%

2,013

341,357

170

5,248

20,992

95.9%

1,297

5,188

51,249

4,396,074

64,066

65,363

261,452

94.1%

365,244

26,908,274

413,167

420,739

1,682,956

94.1%

Square Feet

1,651

109,514

125,652

9,223

29.6%

968

58,988

64,157

5,761

11.6%

2,166

303,912

317,070

146

24,242

64.2%

41.6%

8,133

236,348

593,669

40,522

1,225

40,657

108,029

8,465

3,858

202,224

510,377

132

38,418

18,001

951,643

1,718,954

126,631

1,190

59,452

116,281

13,020

7,205

9,820

103

576

251

5,082

14,000

1,149

1,536

71,739

140,101

14,745

19,537

1,023,382

1,859,055

141,376

Prologis share of unconsolidated operating portfolio

Americas

Asia

Properties under development

Total operating portfolio

CONSOLIDATED

Prestabilized

Annualized

Adjusted Cash

NOI

CONSOLIDATED OPERATING PORTFOLIO

Fourth Quarter

Adjusted Cash

NOI (Actual)

Americas

Gross Book Value

Americas

Europe

Prologis interest in unconsolidated operating portfolio

UNCONSOLIDATED OPERATING PORTFOLIO (Prologis Share)

Europe

Properties generating net operating loss

Sub-total

Pro forma adjustment for mid-quarter acquisitions/development completions

Total consolidated portfolio

Square Feet

Real Estate Operations

Europe

Asia

Properties generating net operating income

Percent

Occupied

GBV per Sq. Ft.

Fourth Quarter

Adjusted Cash

NOI (Pro Forma)

Development

TEI per Sq Ft.

Percent

Occupied

Investment

Balance

TEI

Pro forma adjustment for mid-quarter acquisitions/development completions

Prologis share of unconsolidated development portfolio

Europe

Asia

Annualized Pro

Forma NOI

Europe

Asia

Americas

Europe

Total development portfolio

Total consolidated portfolio

Asia

Americas

Development Platform (see development and pro rata operating information pages)

Americas

UNCONSOLIDATED (Prologis Share)

Prologis interest in unconsolidated development portfolio

Net Asset Value

Components

(in thousands, except for percentages and per square foot)

2013 Prologis

Supplemental 4Q 2012

Net Asset Value

Components -

Continued

(in thousands)

100,810

176,926

581,744

454,868

106,406

171,084

188,000

53,174

Investments in and advances to other unconsolidated joint ventures

182,702

7,693

2,023,407

611,770

455,160

39,342

174,137

447,272

704,319

2,432,000

28,466

2,976,621

1,794,364

42,345

1,836,709

Private capital revenue

31,715

126,860

Private capital expenses

(16,134)

(64,536)

Private Capital NOI

15,581

62,324

4,099

16,396

11,208,786

Consolidated

investee

debt

par

515,852

1,775,443

13,500,081

582,200

14,082,281

Outstanding shares of common stock

460,966

Preferred stock

Total debt and preferred stock

Debt and Preferred Stock

Private capital

Development management income

As of December 31,

2012

Prologis

debt

par

Prologis

unconsolidated

debt

par

Subtotal

debt

par

Current book value of land

Total

Private Capital / Development Management

Fourth Quarter

Annualized

Prologis share of book value of land in unconsolidated entities

Our share of original land basis

Tenant security deposits

Other liabilities

Noncontrolling interests

UNCONSOLIDATED

Prologis share of net assets (liabilities)

Land

Investment Balance

Total liabilities and noncontrolling interests

Value added tax and other tax liabilities

Deferred income taxes

Restricted cash

Deposits, prepaid assets and other tangible assets

Other real estate investments

Accounts receivable

Notes receivable backed by real estate

Assets held for sale, net of liabilities

Total other assets

Other liabilities

Prologis receivable from unconsolidated co-investment ventures

Accounts payable and other current liabilities

Prologis' share of value added operating properties

Cash and cash equivalents

Balance Sheet and Other Items

As of December 31,

2012

CONSOLIDATED

Other assets

2013 Prologis

Supplemental 4Q 2012

Notes and Definitions

Please refer to our annual and quarterly financial statements filed with the Securities and Exchange

Commission on Forms 10-K and 10-Q and other public reports for further information about us and

our business. Certain amounts from previous periods presented in the Supplemental Information

have been reclassified to conform to the current presentation.

Our real estate operations segment represents the direct, long-term ownership of industrial properties.

Our investment strategy in this segment focuses primarily on the ownership and leasing of industrial

properties in global and regional markets. Our intent is to hold and use these properties; however,

depending on market and other conditions, we may contribute or sell these properties to co-

investment ventures or sell to third parties. When we contribute to an unconsolidated co-investment

venture or sell properties we have developed, we recognize FFO to the extent the proceeds received

exceed our original investment (i.e. prior to depreciation) and present the results as Gain (Loss) on

are currently under development and land available for development that are part of this segment as

well. We may develop the land or sell to third parties, depending on market conditions, customer

demand and other factors. The private capital segment represents the long-term management of

unconsolidated co-investment ventures and other joint ventures.

In June 2011, AMB Property Corporation (“AMB”) and ProLogis combined through a merger of

equals (the “Merger”). As a result of the Merger, each outstanding ProLogis common share was

converted into 0.4464 shares of AMB common stock. At the time of the Merger, AMB changed its

name to Prologis, Inc. The Merger resulted in a reverse acquisition, in which AMB was considered

the “legal acquirer” and ProLogis was considered the ”accounting acquirer”. As such, the historical

results of AMB have not been included in the 2011 results.

During the second quarter of 2011, we increased our ownership of ProLogis European Properties

(“PEPR”), through open market purchases and a mandatory tender offer. Pursuant to the tender offer

and open-market purchases made during the tender period, we acquired additional ordinary units and

convertible preferred units of PEPR. After completion of the tender offer, we began consolidating

PEPR. Subsequently, in connection with the liquidation of PEPR, we have acquired all of the assets

and liabilities of PEPR during the third quarter of 2012.

During the first quarter of 2012, we acquired our partner’s 63% interest in and now own 100% of

Prologis North American Industrial Fund II. We also acquired our share of the assets and liabilities in

Prologis California. These two transactions increased our real estate by $2.1 billion and debt by $1.0

billion.

initial purchase price; the effects of marking assumed debt to market; if applicable, all due diligence

and lease intangibles; and estimated acquisition capital expenditures including leasing costs to

achieve stabilization.

liquidity. We calculate Adjusted EBITDA beginning with consolidated net earnings (loss) and

removing the affect of interest, income taxes, depreciation and amortization, impairment charges,

gains or losses from the acquisition or disposition of investments in real estate, gains or losses on

early extinguishment of debt and derivative contracts (including cash charges), similar adjustments

we make to our Adjusted FFO (see definition below), and other non-cash charges or gains (such as

stock based compensation amortization and unrealized gains or losses on foreign currency and

derivative activity), including our share of these items from unconsolidated entities.

We consider Adjusted EBITDA to provide investors relevant and useful information because it

permits investors to view income from operations on an unleveraged basis before the effects of

income tax, non-cash depreciation and amortization expense and other items (including stock-based

compensation amortization and certain unrealized gains and losses), gains or losses from the

acquisition or disposition of investments in real estate, items that affect comparability, and other

significant non-cash items. We also included a pro forma adjustment in Adjusted EBITDA to reflect a

full period of NOI on the operating properties we acquire in a significant transaction, such as the

Merger, PEPR acquisition, acquisition of our share of the assets from Prologis California and the

acquisition of Prologis North American Industrial Fund II. In addition, we excluded Merger,

Acquisition and Other Integration Expenses and costs associated with the natural disaster that

occurred in first quarter 2011 in Japan. By excluding interest expense EBITDA allows investors to

measure our operating performance independent of our capital structure and indebtedness and,

therefore, allows for a more meaningful comparison of our operating performance to that of other

companies, both in the real estate industry and in other industries. Gains and losses on the early

extinguishment of debt generally included the costs of repurchasing debt securities. Although difficult

to predict, these items may be recurring given the uncertainty of the current economic climate and its

adverse effects on the real estate and financial markets. While not infrequent or unusual in nature,

these items result from market fluctuations that can have inconsistent effects on our results of

operations. The economics underlying these items reflect market and financing conditions in the

short-term but can obscure our performance and the value of our long-term investment decisions and

strategies.

We believe that Adjusted EBITDA helps investors to analyze our ability to meet interest payment

obligations and to make quarterly preferred share dividends. We believe that investors should

consider Adjusted EBITDA in conjunction with net earnings (the primary measure of our performance

and the other required Generally Accepted Accounting Principles (“GAAP”) measures of our

performance and liquidity, to improve their understanding of our operating results and liquidity, and to

make more meaningful comparisons of our performance against other companies. By using Adjusted

EBITDA an investor is assessing the earnings generated by our operations, but not taking into

account the eliminated expenses or gains incurred in connection with such operations. As a result,

Adjusted EBITDA has limitations as an analytical tool and should be used in conjunction with our

required GAAP presentations. Adjusted EBITDA does not reflect our historical cash expenditures or

future cash requirements for working capital, capital expenditures distribution requirements or

contractual commitments. Adjusted EBITDA, also does not reflect the cash required to make interest

and principal payments on our outstanding debt.

While EBITDA is a relevant and widely used measure of operating performance, it does not represent

net income or cash flow from operations as defined by GAAP and it should not be considered as an

alternative to those indicators in evaluating operating performance or liquidity. Further, our

computation of Adjusted EBITDA may not be comparable to EBITDA reported by other companies.

We compensate for the limitations of Adjusted EBITDA by providing investors with financial

statements prepared according to GAAP, along with this detailed discussion of Adjusted EBITDA and

a reconciliation of Adjusted EBITDA to consolidated net earnings (loss), a GAAP measurement.

one operating property totaling 0.1 million square feet that met the criteria to be presented as held for

related assets and liabilities for each property.

During 2012, we recorded a gain of $65.9 million on the disposition of 200 properties aggregating

27.2 million square feet to third parties. In addition, we recorded impairment charges of $30.6 million

on properties that were disposed during 2012. During all of 2011, we disposed of land subject to

ground leases and 94 properties aggregating 10.7 million square feet to third parties.

The operations of the properties held for sale and properties that were disposed of to third parties

during a period, including the aggregate net gains or losses recognized upon their disposition, are

presented as discontinued operations in our Consolidated Statements of Operations for all periods

presented. The income attributable to these properties was as follows (in thousands):

sale.

The

amounts

included

Assets

Held

for

Sale

include

real

estate

investment

balances

and

the

Acquisitions

and

Dispositions

Investments

Real

Estate,

Net.

have

industrial

properties

that

Assets

Held

For

Sale

and

Discontinued

Operations.

December

31,

2012,

had

land

and

Adjusted

EBITDA.

use

Adjusted

EBITDA

measure

both

our

operating

performance

and

Acquisition

cost

represents

economic

cost

and

not

necessarily

what

capitalized.

includes

the

2013 Prologis

Supplemental 4Q 2012

Notes and Definitions

2012

2011

2012

2011

Rental income ……………………………………………………………

Rental expenses …………………………………………………………

Depreciation and amortization …………………………………..……..

Interest expense ………………………………………………..….…….

(156)

held for sale

$ 13,039

Income attributable to disposed properties and assets

Three Months

December 31,

Twelve Months

December 31,

$ 2,958

$ 27,632

$ 82,719

(1,791)

(4,344)

(27,478)

$ 9,249

(944)

(26,665)

$ 141,547

(51,035)

(1,217)

(38,657)

$ 41,236

(17,676)

(425)

(10,096)

Ended

Assets

Under

Management

(“AUM”)

represents

the

estimated

value

the

real

estate

own

manage through our consolidated entities and unconsolidated entities. We calculate AUM by adding

the

noncontrolling

interests’

the

estimated

fair

value

the

real

estate

investment

our

share of total market capitalization.

$ 50,638

Three Months Ended

December 31,

2012

2011

2012

2011

Net loss

$ (228,713)

$ (45,459)

$ (80,946)

Weighted average common shares outstanding

Basic and Diluted (a)

460,447

458,383

459,895

Net

loss

per

Basic and

Diluted

$ (0.50)

$ (0.10)

$(0.18)

FFO, as defined by Prologis

FFO, as defined by Prologis ……………………………………………………

$ (88,199)

$ 134,147

$ 552,435

Noncontrolling interest attributable

to exchangeable

limited

partnership

units …………………………………………………………………

FFO -

Diluted, as defined by Prologis

$ (88,199)

$ 134,255

$ 552,662

Weighted

average

common

outstanding

Basic (a)

………………

460,447

458,383

459,895

Incremental weighted average effect of exchange of limited partnership

units ……………………………………………………………………………..

3,361

3,238

Incremental weighted average effect of stock awards …………………….

1,258

2,173

Weighted

average

common

outstanding

Diluted

(a)

460,447

463,002

465,306

FFO per share

Diluted, as defined by

Prologis

$ (0.19)

$ 0.29

$ 1.19

Core FFO

Core FFO …………………………………………………………………………

$ 195,816

$ 203,945

$ 813,863

Noncontrolling interest attributable

exchangeable

limited

partnership units …………………………………………………………………

(708)

108

227

Interest

expense

convertible

debt

assumed

converted

…………….…

4,235

4,165

16,896

Core FFO -

Diluted

$ 199,343

$ 208,218

$ 830,986

Weighted

average

common

outstanding

Basic

…………………

460,447

458,383

459,895

Incremental weighted average effect of exchange of limited partnership

units ……………………………………………………………………………..

3,171

3,361

3,238

Incremental

weighted

average

effect

stock

awards

…………………….

2,195

1,258

2,173

Incremental weighted average effect of exchange of certain

exchangeable debt ……………………………………………………………...

11,879

Weighted

average

common

outstanding

Diluted

477,692

474,881

477,185

Core FFO per share -

Diluted

$ 0.42

$ 0.44

$ 1.74

$ (188,110)

370,534

$ (0.51)

$ 411,688

$ 411,977

370,534

2,095

1,452

374,081

$ 1.10

370,534

289

16,824

$ 611,030

2,095

1,452

11,879

385,960

$ 1.58

108

227

289

Committed Equity/Investment

acquired through the use of the equity commitments from our property fund or co-investment

venture partners, plus our funding obligations and estimated debt capitalization.

FFO, as defined by Prologis; Core FFO; AFFO (collectively referred to as “FFO”).

FFO is a non-GAAP measure that is commonly used in the real estate industry. The most directly

comparable GAAP measure to FFO is net earnings. Although the National Association of Real

Estate Investment Trusts (“NAREIT”) has published a definition of FFO, modifications to the

NAREIT calculation of FFO are common among REITs, as companies seek to provide financial

measures that meaningfully reflect their business.

Debt Metrics.

See below for the detailed calculations for the three months ended for the respective

period (

dollars

thousands

Three Months Ended

Dec. 31

Sept. 30

2012

Debt as a % of gross real estate assets:

Total

debt

par…………………………………………………………………………….

14,312,247

Less: cash and cash equivalents ………………………………………………..………

(100,810)

(158,188)

Total

debt,

net

cash

……………………………………………………………………..

13,399,271

Gross real

estate

assets

…………………………………………………………………..

30,543,666

43.9%

44.7%

Secured debt as a % of gross real estate assets:

Secured debt

par

……………………………………….…………………………….

6,169,183

Gross

real

estate

assets

…………………………………………………………………..

30,543,666

Secured debt as a % of gross real estate assets

18.3%

19.5%

Unencumbered gross real estate assets to unsecured debt:

Unencumbered

gross

real

estate

assets

…………………………………………………

18,489,287

Unsecured debt

at par ….………………………………………………………..……...

7,909,352

8,143,064

Unencumbered gross real

estate assets to unsecured debt

234.6%

227.1%

Adjusted EBITDA, including NOI from disposed properties…………………………

381,958

394,746

Interest expense……………………………………………………………………………….

123,623

123,161

Amortization and write-off of deferred loan costs …………………..…………………..

(3,748)

(3,902)

Amortization

debt

premium

(discount),

net

…………………….………………………

10,273

9,925

Capitalized interest …………………………………………………….…….………………

13,343

13,488

Preferred

stock

dividends

……………………………………………………….………….

10,305

Our share of fixed charges from unconsolidated entities ………….…..….……………

21,552

Total

fixed

charges

………….………………………………………………………….….

174,929

174,529

Fixed

charge coverage ratio

2.18x

2.26x

Debt to Adjusted EBITDA:

Total

debt,

net

cash

………………………………………………………………….….

14,154,059

Adjusted EBITDA-annualized……………………………………………………………..

1,507,760

1,573,484

8.89x

9.00x

18,556,566

Debt to Adjusted EBITDA ratio

5,590,729

31,699,291

13,500,081

14,154,059

31,699,291

13,399,271

21,133

Debt as a % of gross real estate assets

Committed

Equity/Investment

our

estimate

the

gross

real

estate,

which

could

NOI from disposed properties……………………………………….……………………

Adjusted EBITDA……………………………………………………………………………

376,940

393,371

5,018

1,375

Fixed Charge Coverage ratio:

$ 593,917

In periods with a net loss, the inclusion of any incremental shares is anti-dilutive, and therefore, both basic

and diluted shares are the same.

(a)

December 30,

Twelve Months Ended

Net loss

Calculation

Per

Amounts

follows

(in

thousands,

except

per

amounts):

2013 Prologis

Supplemental 4Q 2012

Notes and Definitions

FFO,

defined

Prologis,

are

subject

significant

fluctuations

from

period

FFO is not meant to represent a comprehensive system of financial reporting and does not present,

nor do we intend it to present, a complete picture of our financial condition and operating

performance. We believe net earnings computed under GAAP remains the primary measure of

performance and that FFO is only meaningful when it is used in conjunction with net earnings

computed under GAAP. Further, we believe our consolidated financial statements, prepared in

accordance with GAAP, provide the most meaningful picture of our financial condition and our

operating performance.

NAREIT’s FFO measure adjusts net earnings computed under GAAP to exclude historical cost

depreciation and gains and losses from the sales, along with impairment charges, of previously

depreciated properties. We agree that these NAREIT adjustments are useful to investors for the

following reasons:

(i)

historical cost accounting for real estate assets in accordance with GAAP assumes, through

depreciation charges, that the value of real estate assets diminishes predictably over time.

NAREIT stated in its White Paper on FFO “since real estate asset values have historically

risen or fallen with market conditions, many industry investors have considered presentations

of operating results for real estate companies that use historical cost accounting to be

insufficient by themselves.” Consequently, NAREIT’s definition of FFO reflects the fact that real

estate, as an asset class, generally appreciates over time and depreciation charges required

by GAAP do not reflect the underlying economic realities.

(ii)

REITs were created as a legal form of organization in order to encourage public ownership of

real estate as an asset class through investment in firms that were in the business of long-term

ownership and management of real estate. The exclusion, in NAREIT’s definition of FFO, of

gains and losses from the sales, along with impairment charges, of previously depreciated

operating real estate assets allows investors and analysts to readily identify the operating

results of the long-term assets that form the core of a REIT’s activity and assists in comparing

those operating results between periods. We include the gains and losses from dispositions

and impairment charges of land and development properties, as well as our proportionate

share of the gains and losses from dispositions and impairment charges recognized by our

unconsolidated entities, in our definition of FFO.

Our FFO Measures

At the same time that NAREIT created and defined its FFO measure for the REIT industry, it also

recognized that “management of each of its member companies has the responsibility and authority

to publish financial information that it regards as useful to the financial community.” We believe

stockholders, potential investors and financial analysts who review our operating results are best

served by a defined FFO measure that includes other adjustments to net earnings computed under

GAAP in addition to those included in the NAREIT defined measure of FFO. Our FFO measures

are used by management in analyzing our business and the performance of our properties and we

believe that it is important that stockholders, potential investors and financial analysts understand

the measures management uses.

We use these FFO measures, including by segment and region, to: (i) evaluate our performance

and the performance of our properties in comparison to expected results and results of previous

periods, relative to resource allocation decisions; (ii) evaluate the performance of our management;

(iii) budget and forecast future results to assist in the allocation of resources; (iv) assess our

performance as compared to similar real estate companies and the industry in general; and (v)

evaluate how a specific potential investment will impact our future results. Because we make

decisions with regard to our performance with a long-term outlook, we believe it is appropriate to

remove the effects of short-term items that we do not expect to affect the underlying long-term

performance of the properties. The long-term performance of our properties is principally driven by

rental income. While not infrequent or unusual, these additional items we exclude in calculating

that cause both positive and negative short-term effects on our results of operations in inconsistent

and unpredictable directions that are not relevant to our long-term outlook.

We use our FFO measures as supplemental financial measures of operating performance. We do

not use our FFO measures as, nor should they be considered to be, alternatives to net earnings

computed under GAAP, as indicators of our operating performance, as alternatives to cash from

operating activities computed under GAAP or as indicators of our ability to fund our cash needs.

FFO, as defined by Prologis

To arrive at FFO, as defined by Prologis, we adjust the NAREIT defined FFO measure to exclude:

(i)

deferred income tax benefits and deferred income tax expenses recognized by our

subsidiaries;

(ii)

current income tax expense related to acquired tax liabilities that were recorded as deferred

tax liabilities in an acquisition, to the extent the expense is offset with a deferred income tax

benefit in GAAP earnings that is excluded from our defined FFO measure;

(iii)

foreign currency exchange gains and losses resulting from debt transactions between us and

our foreign consolidated subsidiaries and our foreign unconsolidated entities;

(iv)

foreign currency exchange gains and losses from the remeasurement (based on current

foreign currency exchange rates) of certain third party debt of our foreign consolidated

subsidiaries and our foreign unconsolidated entities; and

(v)

mark-to-market adjustments associated with derivative financial instruments.

We calculate FFO, as defined by Prologis for our unconsolidated entities on the same basis as we

calculate our FFO, as defined by Prologis.

We believe investors are best served if the information that is made available to them allows them

to align their analysis and evaluation of our operating results along the same lines that our

management uses in planning and executing our business strategy.

Core FFO

In addition to FFO, as defined by Prologis, we also use Core FFO. To arrive at Core FFO, we

adjust FFO, as defined by Prologis, to exclude the following recurring and non-recurring items that

we recognized directly or our share recognized by our unconsolidated entities to the extent they are

included in FFO, as defined by Prologis:

(i)

gains or losses from acquisition, contribution or sale of land or development properties;

(ii)

income tax expense related to the sale of investments in real estate;

(iii)

impairment charges recognized related to our investments in real estate (either directly

or through our investments in unconsolidated entities) generally as a result of our

change in intent to contribute or sell these properties;

(iv)

impairment charges of goodwill and other assets;

(v)

gains or losses from the early extinguishment of debt;

(vi)

merger, acquisition and other integration expenses; and

(vii) expenses related to natural disasters.

We believe it is appropriate to further adjust our FFO, as defined by Prologis for certain recurring

items as they were driven by transactional activity and factors relating to the financial and real

estate markets, rather than factors specific to the on-going operating performance of our properties

or investments. The impairment charges we recognized were primarily based on valuations of real

estate, which had declined due to market conditions, that we no longer expected to hold for long-

term investment. We currently have and have had over the past several years a stated priority to

strengthen our financial position. We expect to accomplish this by reducing our debt, our

investment in certain low yielding assets, such as land that we decide not to develop and our

exposure to foreign currency exchange fluctuations. As a result, we have sold to third parties or

contributed to unconsolidated entities real estate properties that, depending on market conditions,

might result in a gain or loss. The impairment charges related to goodwill and other assets that we

have recognized were similarly caused by the decline in the real estate markets. Also in connection

with our stated priority to reduce debt and extend debt maturities, we have purchased portions of

2013 Prologis

Supplemental 4Q 2012

Notes and Definitions

Gains or losses from property acquisitions and dispositions or impairment charges related to

expected dispositions represent changes in the value of the properties. By excluding these

gains and losses, FFO does not capture realized changes in the value of acquired or disposed

properties arising from changes in market conditions.

The deferred income tax benefits and expenses that are excluded from our defined FFO

measures result from the creation of a deferred income tax asset or liability that may have to be

settled at some future point. Our defined FFO measures do not currently reflect any income or

expense that may result from such settlement.

The foreign currency exchange gains and losses that are excluded from our defined FFO

measures are generally recognized based on movements in foreign currency exchange rates

through a specific point in time. The ultimate settlement of our foreign currency-denominated

net assets is indefinite as to timing and amount. Our FFO measures are limited in that they do

not reflect the current period changes in these net assets that result from periodic foreign

currency exchange rate movements.

The impairment charges of goodwill and other assets that we exclude from Core FFO, have

been or may be realized as a loss in the future upon the ultimate disposition of the related

investments or other assets through the form of lower cash proceeds.

The gains and losses on extinguishment of debt that we exclude from our Core FFO, may

provide a benefit or cost to us as we may be settling our debt at less or more than our future

obligation.

The Merger, acquisition and other integration expenses and the natural disaster expenses that

we exclude from Core FFO are costs that we have incurred.

We compensate for these limitations by using our FFO measures only in conjunction with net

earnings computed under GAAP when making our decisions. To assist investors in compensating

for these limitations, we reconcile our defined FFO measures to our net earnings computed under

GAAP. This information should be read with our complete financial statements prepared under

GAAP.

Fixed Charge

Coverage

is defined as Adjusted EBITDA divided by total fixed charges. Fixed

Charges

consist

net

interest

expense

adjusted

for

amortization

finance

costs

and

debt

discount

(premium), capitalized interest, and preferred stock dividends. Prologis uses fixed charge coverage

to measure its liquidity. Prologis believes that the fixed charge coverage is relevant and useful to

investors

because

allows

fixed

income

investors

measure

Prologis’

ability to meet its interest

payments on outstanding debt, make distributions to its preferred unitholders and pay dividends to

its

preferred

stockholders.

Prologis’

computation of fixed charge coverage is not calculated in

accordance with applicable SEC rules and may not be comparable to fixed charge coverage

reported by other companies.

comprise the largest, most liquid markets benefiting from demand tied to global

trade. These markets are defined by large population centers with high consumption per capita and

typically feature major seaports, airports, and other transportation infrastructure tied to global trade.

While initial returns might be lower, global markets tend to outperform overall markets in terms of

growth and total return.

Global Markets

Gross G&A expense ............................................................

Reported as rental expense ................................................

Reported as private capital expenses ................................

Capitalized amounts ............................................................

Net G&A

Three Months Ended

Twelve Months Ended

December 31,

2012

2011

2012

2011

105,949

89,259

394,845

332,632

(9,517)

(7,484)

(35,954)

(24,741)

(16,134)

(15,734)

(63,820)

(54,962)

(19,690)

(15,244)

(67,003)

(57,768)

50,797

228,068

195,161

60,608

We analyze our operating performance primarily by the rental income of our real estate and the

revenue driven by our private capital business, net of operating, administrative and financing

expenses. This income stream is not directly impacted by fluctuations in the market value of our

investments in real estate or debt securities. As a result, although these items have had a material

impact on our operations and are reflected in our financial statements, the removal of the effects of

these items allows us to better understand the core operating performance of our properties over

the long-term.

We use Core FFO, including by segment and region, to: (i) evaluate our performance and the

performance of our properties in comparison to expected results and results of previous periods,

relative to resource allocation decisions; (ii) evaluate the performance of our management; (iii)

budget and forecast future results to assist in the allocation of resources; (iv) provide guidance to

the financial markets to understand our expected operating performance; (v) assess our operating

performance as compared to similar real estate companies and the industry in general; and (vi)

evaluate how a specific potential investment will impact our future results. Because we make

decisions with regard to our performance with a long-term outlook, we believe it is appropriate to

remove the effects of items that we do not expect to affect the underlying long-term performance of

the properties we own. As noted above, we believe the long-term performance of our properties is

principally driven by rental income. We believe investors are best served if the information that is

made available to them allows them to align their analysis and evaluation of our operating results

along the same lines that our management uses in planning and executing our business strategy.

AFFO

To arrive at AFFO, we adjust Core FFO to further exclude; (i) straight-line rents; (ii) amortization of

above- and below-market lease intangibles; (iii) recurring capital expenditures; (iv) amortization of

management contracts; (v) amortization of debt premiums and discounts, net of amounts

capitalized, and; (vi) stock compensation expense.

We believe AFFO provides a meaningful indicator of our ability to fund cash needs, including cash

distributions to our stockholders.

Limitations on Use of our FFO Measures

While we believe our defined FFO measures are important supplemental measures, neither

NAREIT’s nor our measures of FFO should be used alone because they exclude significant

economic components of net earnings computed under GAAP and are, therefore, limited as an

analytical tool. Accordingly, they are two of many measures we use when analyzing our business.

Some of these limitations are:

The current income tax expenses that are excluded from our defined FFO measures

represent the taxes that are payable.

Depreciation and amortization of real estate assets are economic costs that are excluded from

FFO. FFO is limited, as it does not reflect the cash requirements that may be necessary for

future replacements of the real estate assets. Further, the amortization of capital expenditures

and leasing costs necessary to maintain the operating performance of industrial properties are

not reflected in FFO.

our debt securities. As a result, we recognized net gains or losses on the early extinguishment of

certain debt due to the financial market conditions at that time.

We have also adjusted for some non-recurring items. The merger, acquisition and other integration

expenses include costs we incurred in 2011 and 2012 associated with the Merger and PEPR

Acquisition and the integration of our systems and processes. We have not adjusted for the

acquisition costs that we have incurred as a result of routine acquisitions but only the costs

associated with significant business combinations that we would expect to be infrequent in nature.

Similarly, the expenses related to the natural disaster in Japan that we recognized in 2011 are a

rare occurrence but we may incur similar expenses again in the future.

General

and

Administrative

Expenses

(“G&A”)

consisted

the

following

(in

thousands):

2013 Prologis

Supplemental 4Q 2012

Notes and Definitions

Three Months Ended

Twelve Months Ended

Gross interest expense ........................................................

Amortization of discount (premium), net ............................

Amortization of deferred loan costs ...................................

Interest

expense before capitalization ...............................

Capitalized amounts ..........................................................

Net interest expense

Termination, severance and transitional employee costs .......

Professional fees ........................................................................

Office closure, travel and other costs

........................................

Total

2012

2011

2012

2011

143,491

144,512

580,787

500,019

(10,273)

(5,682)

(36,687)

228

3,748

4,316

16,781

20,476

136,966

143,146

560,881

520,723

(13,343)

(14,091)

(53,397)

(52,651)

123,623

129,055

507,484

468,072

Three Months Ended

Nine Months Ended

December 31,

2012

2011

2012

2011

19,989

13,001

54,283

58,445

4,927

4,069

17,599

46,467

3,187

1,702

8,794

24,714

10,869

28,103

18,772

80,676

140,495

December 31,

is defined as the total number of outstanding shares of our common stock and

common limited partnership units multiplied by the closing price per share of our common stock at

period end.

In connection with the Merger, we have

incurred significant transaction, integration, and transitional costs. These costs include investment

banker advisory fees; legal, tax, accounting and valuation fees; termination and severance costs

(both cash and stock based compensation awards) for terminated and transitional employees; non-

capitalized system conversion costs; and other integration costs. These costs are expensed as

incurred, and we believe that majority of these costs have been realized. Certain of these costs

were obligations of AMB and expensed prior to the closing of the Merger by AMB. At the time of

the Merger, we terminated our existing credit facilities and wrote-off the remaining unamortized

deferred loan costs associated with such facilities, which is included as a merger expense. In

addition, we have included costs associated with the acquisition of a controlling interest in PEPR in

2011, the liquidation of PEPR in 2012, as well as some costs associated with restructuring the

finance organization in Europe. The following is a breakdown of Merger, Acquisition and Other

Integration costs incurred (in thousands):

Interest

Expense

consisted

the

following

(in

thousands):

Net Asset Value (“NAV”).

We consider NAV to be a useful supplemental measure of our operating

performance because it enables both management and investors to estimate the fair value of our

business. The assessment of the fair value of a particular segment of our business is subjective in that

it involves estimates and can be calculated using various methods. Therefore, in this supplemental

report, we have presented the financial results and investments related to our business segments that

we believe are important in calculating our NAV but have not presented any specific methodology nor

provided any guidance on the assumptions or estimates that should be used in the calculation.

The components of NAV do not consider the potential changes in rental and fee income streams or the

franchise value associated with our global operating platform, private capital platform, or development

platform.

Net

Gains

Acquisitions

and

Dispositions

Investments

Real

Estate

includes

the

gains

recognized from the acquisition of our share of the real estate properties in two of our unconsolidated

co-investment

ventures,

one in the first quarter of 2012 and one in the fourth quarter of 2012.

Net

Operating

Income

(“NOI”)

represents

rental

income

less

rental

expenses.

Market Equity

Merger, Acquisition and Other Integration Expenses.

Write-off of deferred loan costs

.................................................

Operating

Portfolio

includes

stabilized

operating

industrial

properties

own

that

manage

and

are owned by an unconsolidated investee accounted for by the equity method of accounting.

Operating

Segments

–

Real

Estate

Operations

represents

the

direct

long-term

ownership

industrial properties, including land and the development of properties.

Operating

Segments

–

Private

Capital

represents

the

management

unconsolidated

co-

investment ventures and other joint ventures and the properties they own.

Pre-stabilized

Development

represents

properties

that

are

complete

but

have

not

yet

reached

Stabilization.

Private

Capital

NOI

represents

private

capital

revenue

less

private

capital

expenditures.

Pro

forma

Adjusted Cash NOI

for

the properties in our operating portfolio reflects the NOI for a

full quarter of operating properties that were acquired, contributed or stabilized during the quarter. Pro

forma NOI for the properties in our development portfolio is based on current total expected

investment and an estimated stabilized yield.

A reconciliation of our rental income and rental expenses, computed under GAAP, to adjusted net

operating income (NOI) for the operating portfolio for purposes of the Net Asset Value calculation

as follows:

Calculation of Adjusted Cash NOI

(in thousands):

Rental income

Rental expenses

NOI

Net termination fees and adjustments (a)

Less: Actual NOI for development portfolio and other

Less: NOI on contributed properties (b)

Straight-lined rents (c)

Fourth quarter adjusted cash NOI

(131,696)

350,047

481,743

(12,373)

(11,058)

(225)

(4,360)

334,404

349,101

……………………………………………………………………………………………………….

…………………………………………………………………………………………………….

…………………………………………………………………………………………………………………….

………………………………………………………………………..

………………………………………………………….

…………………………………………………………………………

…………………………………………………………………………………………………

Adjusted NOI for operating portfolio owned at December 31, 2012

Free rent (c)…………………………………………………………………………………………………………….

16,767

Amortization of lease intangibles (c)

10,303

…………………………………………………………………………………

Regional

Markets,

similar

global

markets,

also

benefit

from

large-population

centers

and

demand.

They

are located at key crossroads in the supply chain and/or near economic centers for leading national or global

industries. Our assets reflect the highest quality class-A product in that market and are often less supply-

constrained and focus on delivering bulk goods to customers.

(a)

Net termination fees generally represent the gross fee negotiated at the time a customer is allowed to

terminate its lease agreement offset by that customer's rent leveling asset or liability, if any, that has been

previously recognized under GAAP. Removing the net termination fees from rental income allows for the

calculation of pro forma NOI to include only rental income that is indicative of the property's recurring

operating performance.

(b)

The actual NOI for properties that were contributed and not part of discontinued operations during the three-

month period is removed.

(c)

Straight-lined rents, adjusted for free rent amounts, and amortization of above and below market leases are

removed from rental income computed under GAAP for the operating portfolio to allow for the calculation of

a cash yield.

2013 Prologis

Supplemental 4Q 2012

Notes and Definitions

Rental Income

includes the following (in thousands):

Three Months Ended

Twelve Months Ended

December 31,

2012

2011

2012

2011

Rental income

Amortization of lease intangibles

Rental expense recoveries

Straight-lined rents

481,743

15,138

94,444

(10,173)

382,334

327,483

(8,720)

82,505

13,958

415,226

1,474,595

(39,587)

374,022

60,194

1,869,224

1,002,364

(22,009)

264,202

50,315

1,294,872

Same

Store.

evaluate

the

operating

performance

the

industrial

operating

properties

own

and

manage

using

“same

store”

analysis

because

the

population

properties

this

analysis

consistent

from period to period, thereby eliminating the effects of changes in the composition of the portfolio on

performance measures. We include all consolidated properties, and properties owned by property funds and

joint ventures that are managed by us and in which we have an equity interest (referred to as “unconsolidated

entities”), in our same store analysis. We have defined the same store portfolio, for the quarter ended

December

31,

2012,

those

operating

properties

operation

January

2011

that

were

operation

throughout the full periods in both 2011 and 2012 either by Prologis or AMB or their unconsolidated entities.

We have removed all properties that were disposed of to a third party from the population for both periods.

We believe the factors that impact rental income, rental expenses and net operating income in the same

store portfolio are generally the same as for the total operating portfolio. In order to derive an appropriate

measure

period-to-period

operating

performance,

remove

the

effects

foreign

currency

exchange

rate

movements

using

the

current

exchange

rate

translate

from

local currency

into

U.S.

dollars,

for

both

periods,

derive

the

same

store

results.

Same

Store

Average

Occupancy

represents

the

average

occupied

percentage

for

the

period.

Same

Store

Rental

Expense

represents

gross

property

operating

expenses.

computing

the percentage

change in rental expenses for the same store analysis, rental expenses include property management

expenses

for

our

direct

owned

properties

based

the

property

management

fee

that

has been computed as

provided in the individual agreements under which our wholly owned management companies provide

property management services to each property (generally, the fee is based on a percentage of revenues).

Same

Store

Change

Rental

Rate

represents

the

change

effective

rental

rates

(average

rate

over the

lease term) on new leases signed during the period as compared with the previous effective rental rates in

that same space.

Same

Store

Rental

Income

includes

the

amount

rental

expenses

that

are

recovered

from

customers

under the terms of their respective lease agreements. In computing the percentage change in rental income

for the same store analysis, rental income (as computed under GAAP) is adjusted to remove the net

termination fees recognized for each period. Removing the net termination fees for the same store calculation

allows us to evaluate the growth or decline in each property's rental income without regard to items that are

not indicative of the property's recurring operating performance.

Stabilization

defined

when

property

that

was

developed

has

been

completed

for

one

year

90%

occupied. Upon stabilization, a property is moved into our operating portfolio.

Tenant

Retention

the

square

footage

all

leases

rented

existing

tenants

divided

the

square footage

of all expiring and rented leases during the reporting period, excluding the square footage of tenants that

default or buy-out prior to expiration of their lease, short-term tenants and the square footage of month-to-

month leases.

…………………………………………..

…………………….

……………………………

……………………………………..

Total

Estimated

Investment

(“TEI”)

represents

total

estimated

cost

of development or

expansion,

including

land,

development

and

leasing

costs.

TEI

based

current

projections

and

subject to change. Non-U.S. dollar investments

are

translated

U.S.

dollars

using

the

exchange

rate

period

end or

the

date

development

start

for

purposes

calculating

development

starts in

any period.

Total

Market

Capitalization

defined

market

equity

plus

our

total

debt

and

preferred

stock.

Turnover

Costs

represent

the

costs

incurred

connection

with

the

signing

lease,

including

leasing commissions and tenant improvements. Tenant improvements include costs to prepare a

space for a new tenant and for a lease renewal with the same tenant. It excludes costs to prepare a

space that is being leased for the first time (i.e. in a new development property).

Value-Added

Acquisitions

(“VAA”)

are

properties

which

Prologis

acquires

as part of

management’s current belief that the discount in pricing attributed to the operating challenges of the

property could provide greater returns, once stabilized, than the returns of stabilized properties, which

are

not

value

added

acquisitions.

Value

Added

Acquisitions

must

have

one

the

following

characteristics: (i) existing vacancy in excess of 20%; (ii) short-term lease roll-over, typically during the

first two years of ownership; (iii) significant capital improvement requirements in excess of 10% of the

purchase price and must be invested within the first two years of ownership

Value-Added

Conversions

(“VAC”)

represent

the

repurposing

industrial properties to a higher

and

better

use,

including

office,

residential,

retail,

research

and

development,

data

center,

self

storage

manufacturing

with

the intent to ultimately sell the property once repositioned. Activities required to

prepare the property for conversion to a higher and better use may include such activities as re-zoning,

re-designing, re-constructing, and re-tenanting. The economic gain on sales of value added conversions

represents

the

amount

which

the

sales

proceeds

exceed

our

original

cost

dollars

and

percentages.

Value

Creation

represents

the

value

that

will

created

through

our development and leasing

activities at stabilization. We calculate value by estimating the NOI that the property will generate at

Stabilization and applying an estimated stabilized cap rate applicable to that property. The value

creation

calculated

the

amount

which

the

estimated

value

exceeds

our

total

expected

investment and does not include any fees or promotes we may earn.

Weighted

Average

Estimated

Stabilized

Yield

calculated

NOI adjusted to reflect stabilized

occupancy

divided

Acquisition

Cost

TEI,

applicable.

Prologis, Inc. - FORM 8-K - EX-99.1 - February 6, 2013

Attached files

Prologis, Inc. Reports