Earnings
Release
and
Supplemental
Information
Unaudited
Third Quarter 2012


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Table of Contents
Overview
Press Release
1
Highlights
Company Profile
4
Financial Information
Consolidated Balance Sheets
6
Consolidated Statements of Operations
7
Reconciliation of Net Earnings (Loss) to FFO
8
EBITDA Reconciliation
9
Pro-rata Information
10
Operations Overview
Operating Portfolio
12
Operating Metrics
15
Customer Information
16
Capital Deployment
Building Dispositions and Contributions
17
Building Acquisitions
18
Development Starts
19
Development Portfolio
21
Land Portfolio
22
Private Capital
Detail Fund Information
24
Fund Operating and Balance Sheet Information
25
Capitalization
Debt and Equity Summary
26
Debt Covenants and Other Metrics
27
Assets Under Management
28
Net Asset Value
Components
29
Notes and Definitions
31
Prologis
Rancho
Cucamonga,
Prologis
Park
Yokohama
Tsurumi,
Prologis
Swindon,
Cover: Prologis CCP Cajamar Park, São Paulo, Brazil
CA,
United
States
Japan
North
Hampton,
United
Kingdom


Copyright ©
2012 Prologis
Prologis, Inc. Announces Third Quarter 2012 Earnings Results
-
Record 39 million square feet of leasing -
-
Same Store NOI increases 2.7% over the third quarter 2011 -
-
Occupancy increases to 93.1 percent, 210 basis points over the third quarter 2011-
SAN FRANCISCO, Oct. 23, 2012 --
Prologis, Inc. (NYSE: PLD), the leading
global owner, operator and developer of industrial real estate, today reported
results for the third quarter 2012, the first period of year-over-year comparable
results for the combined company.
Core funds from operations (Core FFO) per fully diluted share was $0.49 for the
third quarter 2012 compared to $0.44 for the same period in 2011. The results
included a tax benefit of $0.06 per share in 2012 and $0.03 per share in 2011. 
Net loss per fully diluted share was $0.10 per share for the third quarter 2012
compared
to
net
income
of
$0.12
per
share
for
the
same
period
in
2011.
The
year-over-year change was primarily due to an unrealized gain on exchangeable
debt that was included in the 2011 results. 
“We delivered strong quarterly results highlighted by record leasing, as well as
increases in occupancy and effective rents,”
said Hamid R. Moghadam,
chairman and co-chief executive officer, Prologis. “A dearth of new construction,
supply chain reconfiguration, and growth in consumption are driving demand for
our properties around the world, even in the face of a slowing global economy.
Prologis has the highest-quality facilities located in the strongest global markets,
and we are well-positioned to capitalize on these market drivers moving
forward.”
Operating Portfolio Metrics 
During the quarter, the company leased a record 39.0 million square feet (3.6
million
square
meters)
in
its
combined
operating
and
development
portfolios.  Prologis ended the quarter above its forecast with 93.1 percent
occupancy in its operating portfolio, up 70 basis points over the prior quarter.
Tenant retention in the quarter was 87.5 percent, with renewals totaling 25.6
million square feet (2.4 million square meters).
Same-store net operating income (NOI) increased 2.7 percent over the third
quarter 2011, compared to an increase of 0.4 percent in the second quarter of 
2012. Rental rates  on leases signed in the third quarter same-store pool
decreased by 1.8 percent from in-place rents, as compared to a decrease of 3.9
percent in the second quarter 2012.
“One
of
the
main
storylines
coming
out
of
operations
this
quarter
is
the
improvement in rent change on rollover," said Moghadam. "Following three
years of rent roll downs, we appear to be at a positive inflection point. The
trend line is very clear and we expect rent change on rollovers
to be positive
for 2013.”
Dispositions and Contributions
During the quarter, the company completed approximately $174 million in
dispositions and contributions, of which $141 million was Prologis' share. The
building sales and contributions reflect a weighted average stabilized
capitalization rate of 7.0 percent. 
Development Starts and Building Acquisitions
Committed capital during the third quarter 2012 totaled approximately $620
million, of which $483 million was Prologis' share, including:
Development starts of $386 million, of which $332 million was Prologis’
share. These starts totaled 4.4 million square feet (408,000 square
meters), and monetized $91 million of land. Of the total expected
investment, 66 percent was in build-to-suit projects. The company’s
estimated share of value creation on development starts in the third
quarter is $72 million.
Acquisitions of $234 million, including $112 million in buildings with a
stabilized capitalization rate of 7.0 percent and an investment of $122
million in land and land infrastructure. Of the total acquisitions, $152
million was Prologis’
share.
At quarter end, Prologis' global development pipeline comprised 16.3 million
square feet (1.5 million square meters), with a total expected investment of
$1.5 billion, of which Prologis' share is $1.4 billion. The company’s share of
estimated value creation at stabilization is expected to be $259
million, with
a stabilized yield of 7.7 percent and a margin of approximately 18.5 percent.
1


Copyright ©
2012 Prologis
“A lack of supply and increasing demand for large, Class-A facilities is driving
stronger build-to-suit activity,”
said Walter C. Rakowich, co-chief executive
officer, Prologis. “Two-thirds of our development starts this quarter were for build-
to-suits in Japan, the United Kingdom and Mexico. Our global platform and
strategic
land
holdings
uniquely
position
us
to
fulfill
our
customers’
logistics
needs on a real-time basis.”
Private Capital Activity
Year-to-date through September 30, Prologis raised or received commitments for
$330 million in new third-party equity in its private capital business. In addition,
during the quarter, Prologis assumed all of ProLogis European Properties'
(PEPR) assets and liabilities and is actively working toward recapitalizing its
European platform.
Capital Markets
During the quarter, Prologis completed $378 million of debt financings, re-
financings and pay-downs on behalf of its property funds.
Guidance for 2012 
Prologis is increasing its full-year 2012 Core FFO guidance range to $1.72 to
$1.74 per diluted share, from $1.64 to $1.70 per diluted share. The company also
expects to recognize net earnings, for GAAP purposes, of $0.23 to $0.25 per
share. The difference between the company's Core FFO and net earnings
guidance for 2012 predominantly relates to real estate depreciation, recognized
gains on real estate transactions and merger-related expenses. 
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, and unrealized gains or losses on foreign currency or
derivative activity, as well as merger and integration costs. 
Webcast and Conference Call Information 
The company will host a webcast /conference call to discuss quarterly results,
current market conditions and future outlook today, October 23, 2012, 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 +1 877-447-
8218 (from the U.S. and Canada toll free) or +1 973-409-9692 (from all other
countries) and enter reservation code 34781721.
A telephonic replay will be available from October 23 through November 23, at
+1 855-859-2056 (from the U.S. and Canada) or +1 404-537-3406 (from all other
countries), with reservation code 34781721. 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
September 30, 2012, Prologis owned or had investments in, on a consolidated basis or
through unconsolidated joint ventures, properties and development projects expected to
total
approximately
565
million
square
feet
(52.5
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
2


Copyright ©
2012 Prologis
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 A. Ward
SVP, IR & Corporate Communications
Direct: +1 415 733 9565  
Email: tward@prologis.com 
Atle Erlingsson
VP, Corporate Communications
Direct: +1 415 733 9495
Email: aerlingsson@prologis.com
3


Copyright ©
2012 Prologis
Third Quarter 2012 Report
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 September 30, 2012, Prologis owned or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development
projects totaling 565 million square feet (52.5 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.
Highlights
Company Profile
4
(A)
Generally represents properties in which Prologis has an ownership interest but doesn’t manage (10 msf) and other properties owned by Prologis (9 msf), which includes properties held for
sale (7 msf).
(B)
Original cost basis for the total land portfolio is $3.1 billion.
Number of operating portfolio buildings
2,397
              
587
                 
77
                    
367
                 
136
                 
27
                    
8
                      
2
                      
6
                      
12
                    
6
                      
1
                      
Total (msf)
387
                 
144
                 
34
                    
$471
$179
$882
6,897
              
3,543
              
129
                 
$1,111
$759
$138
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
530
              
2,008
$         
1,532
$         
19
                
16
                
565
              
10,569
         
3,061
           


Third Quarter 2012 Report
2012
2011
2012
2011 (A)
512,105
$   
469,137
$   
1,511,045
$
1,008,382
$
(46,526)
55,436
147,767
(142,651)
205,891
207,730
640,634
278,071
231,962
206,433
618,047
390,502
170,001
147,546
452,395
284,047
393,371
386,321
1,175,922
1,122,800
Net earnings (loss) available for common stockholders
(0.10)
$       
0.12
$         
0.32
$        
(0.42)
$       
FFO, as defined by Prologis
0.44
0.45
1.37
0.81
Core FFO (B)
0.49
0.44
1.32
1.13
Three months ended September 30,
Nine months ended September 30,
Revenues
Net earnings (loss) available for common stockholders
(dollars in thousands, except per share data)
Per common share -
diluted:
FFO, as defined by Prologis
Core FFO
AFFO
Core EBITDA
$200
-
Highlights
Company Profile
5
(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.
(B)
Included
in
the
results
for
the
three
months
ended
September
30,
2012
and
2011
is
a
benefit
in
current
income
tax
expense
of
$.06
per
share
and
$.03
per
share,
respectively.
$-
$50
$100
$150
$200
$250
$300
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Funds from Operations (in millions)
Core FFO
FFO, as defined by Prologis
92.2%
92.3%
92.4%
93.1%
85%
90%
95%
100%
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Period Ending Occupancy %
Operating Portfolio -
Owned and Managed
Copyright ©
2012 Prologis


Third Quarter 2012 Report
Financial Information
Consolidated Balance Sheets
6
(in thousands)
$
23,304,246
                    
$
23,442,394
                    
$
21,552,548
                    
774,821
                         
656,561
                         
860,531
                         
1,924,626
                      
1,881,062
                      
1,984,233
                      
457,373
                         
442,280
                         
390,225
                         
26,461,066
                    
26,422,297
                    
24,787,537
                    
2,389,214
                      
2,256,101
                      
2,157,907
                      
Net investments in properties
24,071,852
                    
24,166,196
                    
22,629,630
                    
2,242,075
                      
2,220,172
                      
2,857,755
                      
243,979
                         
245,654
                         
322,834
                         
376,642
                         
50,672
                           
444,850
                         
Net investments in real estate
26,934,548
                    
26,682,694
                    
26,255,069
                    
158,188
                         
293,631
                         
176,072
                         
172,515
                         
151,184
                         
71,992
                           
181,855
                         
168,008
                         
147,999
                         
1,129,316
                      
1,120,046
                      
1,072,780
                      
Total assets
$
28,576,422
                    
$
28,415,563
                    
$
27,723,912
                    
$
12,578,060
                    
$
12,433,585
                    
$
11,382,408
                    
1,823,841
                      
1,812,411
                      
1,886,030
                      
Total liabilities
14,401,901
                    
14,245,996
                    
13,268,438
                    
582,200
                         
582,200
                         
582,200
                         
4,609
                             
4,606
                             
4,594
                             
16,395,797
                    
16,373,438
                    
16,349,328
                    
(165,100)
                        
(333,811)
                        
(182,321)
                        
(3,335,757)
                     
(3,159,462)
                     
(3,092,162)
                     
Total stockholders' equity
13,481,749
                    
13,466,971
                    
13,661,639
                    
639,631
                         
649,389
                         
735,222
                         
53,141
                           
53,207
                           
58,613
                           
Total equity
14,174,521
                    
14,169,567
                    
14,455,474
                    
Total liabilities and equity
$
28,576,422
                    
$
28,415,563
                    
$
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
September 30, 2012
Investments in real estate assets:
June 30, 2012
Assets:
Other real estate investments
Copyright ©
2012 Prologis


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Financial Information
Consolidated Statements of Operations
7
(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)
$
479,374
            
$
430,283
            
$
1,410,122
         
$
893,478
            
31,714
              
34,578
              
95,064
              
97,389
              
1,017
                
4,276
                
5,859
                
17,515
              
512,105
            
469,137
            
1,511,045
         
1,008,382
         
130,820
            
119,949
            
382,679
            
254,078
            
15,730
              
17,080
              
47,686
              
39,228
              
55,886
              
53,341
              
167,460
            
144,364
            
20,659
              
12,683
              
52,573
              
121,723
            
9,778
                
-
                     
12,963
              
-
                     
194,622
            
182,774
            
560,563
            
377,193
            
5,580
                
3,971
                
17,142
              
14,242
              
433,075
            
389,798
            
1,241,066
         
950,828
            
79,030
              
79,339
              
269,979
            
57,554
              
2,378
                
27,855
              
15,289
              
48,422
              
185
                    
3,120
                
5,158
                
7,593
                
6,399
                
4,960
                
17,192
              
14,063
              
(123,161)
           
(135,863)
           
(384,489)
           
(339,306)
           
-
                     
-
                     
(16,135)
             
(103,823)
           
12,677
              
8,396
                
280,968
            
114,650
            
(3,549)
               
52,208
              
(17,351)
             
36,921
              
-
                     
(298)
                   
4,919
                
(298)
                   
(105,071)
           
(39,622)
             
(94,449)
             
(221,778)
           
(26,041)
             
39,717
              
175,530
            
(164,224)
           
(19,983)
             
(2,838)
               
216
                    
9,960
                
(6,058)
               
42,555
              
175,314
            
(174,184)
           
4,618
                
11,903
              
19,889
              
34,716
              
(31,458)
             
11,410
              
(10,335)
             
21,545
              
(26,840)
             
23,313
              
9,554
                
56,261
              
(32,898)
             
65,868
              
184,868
            
(117,923)
           
(3,323)
               
(23)
                     
(6,180)
               
(308)
                   
(36,221)
             
65,845
              
178,688
            
(118,231)
           
10,305
              
10,409
              
30,921
              
24,420
              
$
(46,526)
             
$
55,436
              
$
147,767
            
$
(142,651)
           
460,079
            
462,408
            
464,938
            
340,923
            
$
(0.10)
                 
$
0.12
                   
$
0.32
                   
$
(0.42)
                 
Less preferred stock dividends
Net earnings (loss) available for common stockholders
Total discontinued operations
Net earnings (loss) per share available for common stockholders - Diluted
Weighted average common shares outstanding - Diluted (B)
Income attributable to disposed properties and assets held for sale
Net gain (loss) on dispositions, including related impairment charges and taxes
Consolidated net earnings (loss)
Net earnings attributable to noncontrolling interests
Net earnings (loss) attributable to controlling interests
Discontinued operations:
Impairment of other assets
Gain 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)
Earnings (loss) before income taxes
Income tax expense (benefit) - current and deferred
Earnings (loss) from continuing operations
Interest expense
Earnings from other unconsolidated entities, 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
Other income (expense):
Earnings from unconsolidated co-investment ventures, net
Interest income
Other expenses
2012
2011 (A)
Nine Months Ended
September 30,
Expenses:
2012
2011
Revenues:
Rental income
Private capital revenue
Development management and other income
Total revenues
Three Months Ended
September 30,


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Financial Information
Reconciliations of Net Earnings (Loss) to FFO
8
(A) The financial results include Prologis for the full period and AMB and PEPR results from approximately June 1, 2011.
(in thousands)
$
(46,526)
$
55,436
$
147,767
$
(142,651)
190,063
176,719
547,654
363,072
21,660
-
21,660
-
6,622
6,468
(165,238)
7,954
(6,084)
(8,756)
(22,088)
(11,160)
35,309
31,393
104,291
103,730
201,044
261,260
634,046
320,945
5,841
(53,688)
15,558
(45,036)
(1,884)
1,773
(6,642)
2,755
890
(1,615)
(2,328)
(593)
205,891
207,730
640,634
278,071
15,527
-
34,847
106,482
-
(400)
-
5,210
20,659
12,683
52,573
121,723
(11,575)
(11,018)
(115,468)
(120,338)
-
298
(4,919)
298
-
-
-
1,916
Our share of reconciling items included in earnings from unconsolidated entities
1,460
(2,860)
10,380
(2,860)
26,071
(1,297)
(22,587)
112,431
$
231,962
$
206,433
$
618,047
$
390,502
(4,217)
(10,540)
(22,210)
(33,609)
(25,938)
(24,939)
(54,107)
(43,445)
(22,459)
(18,569)
(68,596)
(41,417)
(14,031)
(12,500)
(37,148)
(29,166)
Amortization of management contracts
1,606
3,496
4,614
4,824
Amortization of debt discounts/(premiums) and financing costs, net of capitalization
(5,359)
(4,841)
(12,811)
14,731
Stock compensation expense
8,438
9,008
24,605
21,626
AFFO
$
170,002
$
147,548
$
452,394
$
284,046
Common stock dividends
$
129,769
$
128,731
$
391,362
$
257,760
2011 (A)
Nine Months Ended
September 30,
2012
2011
Three Months Ended
September 30,
Unrealized foreign currency and derivative losses (gains), net
Deferred income tax expense (benefit)
Our share of reconciling items included in earnings from unconsolidated entities
Impairment charges on certain real estate properties
2012
Straight-lined rents and amortization of lease intangibles
Property improvements
Tenant improvements
Leasing commissions
Reconciliation of net earnings (loss) to FFO
Subtotal-NAREIT defined FFO
FFO, as defined by Prologis
Reconciling items related to noncontrolling interests
Core FFO
Net earnings (loss) available for common stockholders
Add (deduct) NAREIT defined adjustments:
Add (deduct) our defined adjustments:
Real estate related depreciation and amortization
Net loss (gain) on non-FFO dispositions and acquisitions
Our share of reconciling items included in earnings from unconsolidated entities
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
Gain on acquisitions and dispositions of investments in real estate, net


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Financial Information
EBITDA Reconciliation
9
(A) Adjustments for the effects of the Prologis North American Industrial Fund II and Prologis California acquisitions to reflect NOI for the full period. See Notes and Definitions for more detail.
(in thousands)
Reconciliation of consolidated net earnings (loss) to Core EBITDA
$
(46,526)
$
55,436
$
147,767
$
(142,651)
(8,628)
(19,806)
(298,042)
(140,770)
194,622
182,774
560,563
377,193
123,161
135,863
384,489
339,306
37,187
-
56,507
106,482
20,659
12,683
52,573
121,723
-
298
(4,919)
298
(19,983)
(2,838)
216
11,876
-
-
12,352
263,994
(4,618)
(11,903)
(19,889)
(34,716)
6,917
2,200
22,056
3,322
3,323
23
6,180
308
10,305
10,409
30,921
24,420
14,279
(44,680)
40,163
(23,410)
-
(400)
-
5,210
330,698
320,059
990,937
912,585
357
(2,860)
1,695
(2,860)
35,309
31,393
101,284
103,730
22,328
38,043
69,722
105,051
-
-
5,999
-
1,563
-
3,146
-
2,226
1,301
5,467
4,661
890
(1,615)
(2,328)
(593)
-
-
-
226
$
393,371
$
386,321
$
1,175,922
$
1,122,800
Our share of reconciling items from unconsolidated entities:
Income attributable to disposed properties and assets held for sale
Net losses (gains) on disposition of real estate, net
Other adjustments made to arrive at Core FFO
Core EBITDA, prior to our share of unconsolidated entities
Unrealized losses (gains) and stock compensation expense, net
Loss on early extinguishment of debt
Net earnings attributable to noncontrolling interest
Preferred stock dividends
Impairment of real estate properties and other assets
NOI attributable to assets held for sale
Loss (gain) on early extinguishment of debt
Core EBITDA
Interest expense
Current income tax expense
Realized losses on derivative activity
Depreciation and amortization
Unrealized
losses
(gains)
and
deferred
income
tax
expense
(benefit)
Nine Months Ended
September 30,
2012
2011
Net
gain
on
acquisitions
and
dispositions
of
investments
in
real
estate
Net earnings (loss) available for common stockholders
Three Months Ended
September 30,
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


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Financial Information
Pro-rata Balance Sheet Information
10
(in thousands)
$
23,304,246
$
(911,895)
$
4,547,125
$
26,939,476
$
14,251,233
$
41,190,709
3,156,820
(46,167)
70,479
3,181,132
152,231
3,333,363
(2,389,214)
30,922
(386,046)
(2,744,338)
(1,160,790)
(3,905,128)
24,071,852
(927,140)
4,231,558
27,376,270
13,242,674
40,618,944
2,242,075
(60,997)
(2,181,078)
-
60,997
60,997
2,262,495
(146,125)
23,939
2,140,309
927,726
3,068,035
Total assets
$
28,576,422
$
(1,134,262)
$
2,074,419
$
29,516,579
$
14,231,397
$
43,747,976
-
Liabilities:
$
12,578,060
$
(390,402)
$
1,817,868
$
14,005,526
$
5,811,349
$
19,816,875
1,823,841
(51,088)
256,551
2,029,304
818,316
2,847,620
Total liabilities
14,401,901
(441,490)
2,074,419
16,034,830
6,629,665
22,664,495
Equity:
13,481,749
-
-
13,481,749
7,601,732
21,083,481
692,772
(692,772)
-
-
-
-
Total equity
14,174,521
(692,772)
-
13,481,749
7,601,732
21,083,481
Total liabilities and equity
$
28,576,422
$
(1,134,262)
$
2,074,419
$
29,516,579
$
14,231,397
$
43,747,976
Plus PLD Share of
Unconsolidated
Co-Investment
Ventures
Other liabilities
Gross operating properties
Other real estate
Less accumulated depreciation
Debt
Stockholders' / partners' equity
PLD Total
Share
Investors'
Share of
Ventures
Total Owned
and Managed
Assets:
Net investments in properties
Pro-rata Balance Sheet Information as of
September 30, 2012
Consolidated
Less Non
Controlling
Interest
Noncontrolling interests
Investments in unconsolidated investees
Other assets
Liabilities and 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.


Copyright ©
2012 Prologis
Third Quarter 2012 Report
479,374
(19,708)
85,594
545,260
270,382
815,642
31,714
-
-
31,714
-
31,714
1,017
-
233
1,250
221
1,471
512,105
(19,708)
85,827
578,224
270,603
848,827
-
130,820
(5,282)
19,951
145,489
64,168
209,657
15,730
-
-
15,730
-
15,730
55,886
(553)
3,934
59,267
11,886
71,153
20,659
-
-
20,659
-
20,659
9,778
-
1,563
11,341
4,142
15,483
194,622
(6,464)
31,556
219,714
98,937
318,651
5,580
(469)
696
5,807
3,404
9,211
433,075
(12,768)
57,700
478,007
182,537
660,544
79,030
(6,940)
28,127
100,217
88,066
188,283
65,051
-
(65,051)
-
-
-
249,290
(8,776)
36,924
277,438
107,798
385,236
393,371
(15,716)
-
377,655
195,864
573,519
-
-
343,991
(13,957)
65,180
395,214
203,031
598,245
15,984
-
-
15,984
-
15,984
65,051
-
(65,051)
-
-
-
(31,655)
(1,759)
(129)
(33,543)
(7,167)
(40,710)
393,371
(15,716)
-
377,655
195,864
573,519
Total reconciling items to Core EBITDA
Core EBITDA (A)
Core EBITDA
Private Capital NOI
General and aministrative and other expenses
Our share of co-investment ventures
Core EBITDA by segment:
Real Estate Operations NOI
Total Owned
and Managed
Plus PLD Share of
Unconsolidated
Co-Investment
Ventures
PLD Total
Share
Impairment of real estate properties
Less Non
Controlling
Interest
Total revenues
Pro-rata Operating Information for
Three Months Ended September 30, 2012
Consolidated
General and administrative expenses
Merger, acquisition and other integration expenses
Depreciation and amortization
Other expenses
Total expenses
Operating income
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
Financial Information
Pro-rata Operating Information
(in thousands)
(A)
See
reconciliation
of
Net
Earnings
(Loss)
to
Core
EBITDA
on
page
9.
(B)
Represents Value Creation for development properties that reached Stabilization during the quarter and moved into the Operating Portfolio.
Prologis’
Share (in millions)
Real Estate Operations NOI
Private Capital NOI
Development Value Creation  (B)
$ 395.2 (97%)
$ 16.0 (3%)
$ 19.9
11
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Operations Overview
Operating Portfolio –
Square Feet, Occupied and Leased
12
(A)  Selected and ordered by Prologis share of NOI ($).
(square feet in thousands)
Region
# of Buildings
Total Owned and
Managed
Prologis
Share
Prologis
Share (%)
%  of Total
Total Owned and
Managed
Prologis
Share
Total Owned and
Managed
Prologis
Share
Atlanta
East
125
15,973
12,048
75.4%
3.2%
84.7%
84.5%
84.9%
84.7%
Baltimore/Washington
East
68
8,095
5,361
66.2%
1.4%
92.8%
93.8%
92.9%
93.9%
Central Valley
Northwest
24
8,970
7,128
79.5%
1.9%
91.3%
91.3%
91.3%
91.3%
Central & Eastern PA
East
27
14,049
7,137
50.8%
1.9%
95.9%
96.8%
95.9%
96.8%
Chicago
Central
211
35,573
27,521
77.4%
7.4%
89.5%
91.1%
90.0%
91.6%
Dallas/Ft. Worth
Central
160
23,240
18,747
80.7%
5.0%
94.3%
95.0%
94.4%
95.1%
Houston
Central
82
9,838
7,111
72.3%
1.9%
98.0%
98.4%
98.1%
98.5%
New Jersey/New York City
East
182
22,353
16,042
71.8%
4.3%
94.2%
93.2%
94.2%
93.2%
San Francisco Bay Area
Northwest
242
19,803
17,071
86.2%
4.6%
92.8%
92.9%
93.1%
93.2%
Seattle
Northwest
70
8,643
4,774
55.2%
1.3%
92.7%
93.3%
92.7%
93.3%
South Florida
East
91
10,553
7,611
72.1%
2.0%
95.8%
95.3%
95.8%
95.3%
Southern California
Southwest
308
56,708
46,435
81.9%
12.4%
97.6%
98.0%
97.9%
98.3%
On Tarmac
Various
31
2,598
2,376
91.5%
0.6%
91.9%
91.2%
92.0%
91.3%
East
19
6,383
5,081
79.6%
1.4%
99.5%
99.4%
99.5%
99.4%
Latin America
183
29,703
17,105
57.6%
4.6%
92.2%
92.0%
92.8%
92.6%
Latin America
6
1,845
365
19.8%
0.1%
100.0%
100.0%
100.0%
100.0%
Americas total
1,829
274,327
201,913
73.6%
54.0%
93.7%
94.0%
93.9%
94.3%
Northern
9
2,016
1,654
82.0%
0.4%
99.6%
99.6%
99.6%
99.6%
Southern
128
30,185
21,412
70.9%
5.7%
94.4%
93.6%
94.6%
93.8%
Northern
85
17,626
8,475
48.1%
2.3%
98.2%
96.5%
98.2%
96.5%
Northern
53
10,720
6,457
60.2%
1.7%
89.2%
89.8%
91.8%
92.1%
CEE
96
20,779
12,382
59.6%
3.3%
86.0%
83.9%
88.3%
86.4%
Southern
26
7,126
6,006
84.3%
1.6%
76.5%
77.1%
83.2%
80.0%
UK
73
17,194
10,483
61.0%
2.8%
95.7%
95.0%
95.7%
95.0%
470
105,646
66,869
63.3%
17.8%
92.0%
90.7%
93.2%
91.7%
China
25
5,499
2,312
42.0%
0.6%
91.9%
95.8%
91.9%
95.8%
Japan
47
20,781
14,977
72.1%
4.0%
97.6%
97.4%
97.6%
97.4%
Singapore
5
942
942
100.0%
0.3%
100.0%
100.0%
100.0%
100.0%
77
27,222
18,231
67.0%
4.9%
96.5%
97.4%
96.5%
97.4%
2,376
407,195
287,013
70.5%
76.7%
93.4%
93.4%
93.9%
93.9%
Southern
27
8,378
7,690
91.8%
2.1%
89.6%
89.4%
89.6%
89.4%
CEE
29
6,821
5,096
74.7%
1.4%
91.3%
88.4%
91.8%
89.1%
Central
60
6,298
4,878
77.5%
1.3%
93.3%
93.1%
93.5%
93.4%
Central
39
10,309
8,046
78.0%
2.2%
95.8%
94.6%
96.4%
95.4%
Northern
10
3,808
2,738
71.9%
0.7%
100.0%
100.0%
100.0%
100.0%
CEE
30
5,346
3,822
71.5%
1.0%
85.2%
87.1%
87.7%
89.8%
Northwest
33
5,208
4,138
79.5%
1.1%
93.9%
93.0%
94.7%
93.8%
Central
17
6,270
5,475
87.3%
1.5%
100.0%
100.0%
100.0%
100.0%
Central
27
6,663
4,144
62.2%
1.1%
97.3%
95.6%
98.9%
98.2%
Central
11
4,341
3,810
87.8%
1.0%
93.3%
93.5%
93.3%
93.5%
Various
114
18,516
11,497
62.1%
3.1%
93.6%
90.9%
93.9%
91.2%
397
81,958
61,334
74.8%
16.5%
93.8%
92.8%
94.4%
93.4%
Various
288
41,131
24,838
60.4%
6.8%
88.8%
91.6%
89.2%
91.9%
3,061
530,284
373,185
70.4%
100.0%
93.1%
93.2%
93.6%
93.7%
Italy -
Europe
Columbus -
Americas
San Antonio -
Americas
Louisville -
Americas
Regional markets total
Remaining other regional (5 markets)
Denver -
Americas
Cincinnati -
Americas
Memphis -
Americas
Hungary -
Europe
Czech Republic -
Europe
Sweden -
Europe
Other markets (18 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


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Operations Overview
Operating Portfolio –
NOI and Gross Book Value
13
(A)  Selected and ordered by Prologis share of NOI ($).
(dollars in thousands)
Region
Atlanta
East
$8,923
$6,447
72.3%
1.6%
$697,177
$497,708
71.4%
1.8%
Baltimore/Washington
East
10,215
6,743
66.0%
1.7%
618,744
375,349
60.7%
1.3%
Central Valley
Northwest
6,690
5,463
81.7%
1.3%
468,905
363,990
77.6%
1.3%
Central & Eastern PA
East
12,632
6,316
50.0%
1.6%
867,258
405,031
46.7%
1.5%
Chicago
Central
24,472
17,924
73.2%
4.4%
2,143,922
1,608,178
75.0%
5.8%
Dallas/Ft. Worth
Central
14,577
11,257
77.2%
2.8%
1,109,690
846,422
76.3%
3.0%
Houston
Central
8,792
5,955
67.7%
1.5%
532,164
333,000
62.6%
1.2%
New Jersey/New York City
East
26,248
17,449
66.5%
4.3%
1,962,078
1,300,591
66.3%
4.7%
San Francisco Bay Area
Northwest
27,704
22,697
81.9%
5.6%
1,954,729
1,681,713
86.0%
6.0%
Seattle
Northwest
10,214
5,496
53.8%
1.4%
818,764
445,618
54.4%
1.6%
South Florida
East
13,256
9,677
73.0%
2.4%
1,026,564
767,747
74.8%
2.8%
Southern California
Southwest
63,777
52,596
82.5%
12.9%
5,065,090
4,102,355
81.0%
14.8%
On Tarmac
Various
7,604
6,784
89.2%
1.7%
313,351
275,467
87.9%
1.0%
East
9,421
7,493
79.5%
1.8%
648,377
511,787
78.9%
1.8%
Latin America
31,192
16,255
52.1%
4.0%
1,766,689
968,724
54.8%
3.5%
Latin America
3,223
161
5.0%
0.0%
166,123
30,464
18.3%
0.1%
278,940
198,713
71.2%
49.0%
20,159,625
14,514,144
72.0%
52.2%
Northern
2,759
2,139
77.5%
0.5%
168,135
131,484
78.2%
0.5%
Southern
36,962
24,804
67.1%
6.1%
2,524,390
1,716,202
68.0%
6.2%
Northern
25,117
12,039
47.9%
3.0%
1,500,816
691,448
46.1%
2.5%
Northern
14,603
8,313
56.9%
2.1%
1,006,015
559,926
55.7%
2.0%
CEE
17,947
10,502
58.5%
2.6%
1,362,427
739,458
54.3%
2.7%
Southern
8,276
7,366
89.0%
1.8%
601,717
526,847
87.6%
1.9%
UK
32,748
19,303
58.9%
4.8%
2,078,581
1,157,578
55.7%
4.2%
138,412
84,466
61.0%
20.9%
9,242,081
5,522,943
59.8%
20.0%
China
4,142
1,347
32.5%
0.3%
282,643
88,651
31.4%
0.3%
Japan
67,221
47,716
71.0%
11.8%
4,510,810
3,149,239
69.8%
11.3%
Singapore
2,389
2,389
100.0%
0.6%
148,647
148,647
100.0%
0.5%
73,752
51,452
69.8%
12.7%
4,942,100
3,386,537
68.5%
12.1%
491,104
334,631
68.1%
82.6%
34,343,806
23,423,624
68.2%
84.3%
Southern
7,521
6,837
90.9%
1.7%
545,588
492,648
90.3%
1.8%
CEE
7,857
5,740
73.1%
1.4%
542,947
386,583
71.2%
1.4%
Central
5,502
4,326
78.6%
1.1%
282,779
208,533
73.7%
0.7%
Central
5,917
4,312
72.9%
1.1%
389,569
294,728
75.7%
1.1%
Northern
5,625
3,993
71.0%
1.0%
350,964
247,518
70.5%
0.9%
CEE
5,295
3,794
71.7%
0.9%
375,078
238,445
63.6%
0.9%
Northwest
4,379
3,489
79.7%
0.8%
291,192
236,204
81.1%
0.8%
Central
3,475
3,008
86.6%
0.7%
206,822
178,716
86.4%
0.6%
Central
5,088
2,796
55.0%
0.7%
267,710
150,391
56.2%
0.5%
Central
2,865
2,496
87.1%
0.6%
174,623
154,571
88.5%
0.6%
Various
14,110
7,588
53.8%
1.9%
934,916
536,353
57.4%
1.9%
67,634
48,379
71.5%
11.9%
4,362,188
3,124,690
71.6%
11.2%
Various
35,668
22,239
62.4%
5.5%
2,423,777
1,262,445
52.1%
4.5%
$594,406
$405,249
68.2%
100.0%
$41,129,771
$27,810,759
67.6%
100.0%
Third Quarter NOI
Total Owned and
Managed
Prologis
Share ($)
Prologis
Share (%)
%  of Total
Total Owned and
Managed
Prologis
Share ($)
Prologis
Share (%)
Gross Book Value
%  of Total
Global Markets
U.S.
Canada
Mexico 
Brazil
Americas total
Belgium
France
Germany
Netherlands
Poland
Spain
United Kingdom
Europe total
China
Italy -
Europe
Sweden -
Europe
Columbus -
Americas
San Antonio -
Americas
Japan
Singapore
Asia total
Total global markets
Regional markets (A)
Hungary -
Europe
Cincinnati -
Americas
Czech Republic -
Europe
Louisville -
Americas
Regional markets total
Denver -
Americas
Memphis -
Americas
Remaining other regional (5 markets)
Other markets (18 markets)
Total operating portfolio -
owned and managed


Copyright ©
2012 Prologis
Third Quarter 2012 Report
14
Operations Overview
Operating Portfolio –
Summary by Region
(square feet and dollars in thousands)
# of Buildings
Total Owned
and Managed
Prologis
Share
Prologis
Share (%)
% of Total
Total Owned
and Managed
Prologis
Share
Total Owned
and Managed
Prologis
Share
1,567
234,268
234,268
100.0%
62.8%
93.9%
93.9%
94.3%
94.3%
294
69,149
69,149
100.0%
18.5%
89.8%
89.8%
90.6%
90.6%
33
16,218
16,218
100.0%
4.4%
97.6%
97.6%
97.6%
97.6%
Total
operating
portfolio
-
consolidated
1,894
319,635
319,635
100.0%
85.7%
93.2%
93.2%
93.6%
93.6%
830
133,162
31,699
23.8%
8.5%
92.2%
92.4%
92.4%
92.6%
293
66,483
19,838
29.8%
5.3%
94.3%
94.2%
95.7%
95.6%
44
11,004
2,013
18.3%
0.5%
94.9%
95.4%
94.9%
95.4%
Total
operating
portfolio
-
unconsolidated
1,167
210,649
53,550
25.4%
14.3%
93.0%
93.2%
93.6%
93.8%
2,397
367,430
265,967
72.4%
71.3%
93.3%
93.7%
93.6%
94.1%
587
135,632
88,987
65.6%
23.8%
92.0%
90.8%
93.1%
91.7%
77
27,222
18,231
67.0%
4.9%
96.5%
97.4%
96.5%
97.4%
Total
operating
portfolio
-
owned
and
managed
3,061
530,284
373,185
70.4%
100.0%
93.1%
93.2%
93.6%
93.7%
4
706
706
100.0%
9.1%
9.1%
9.1%
9.1%
4
372
93
25.0%
11.8%
11.8%
11.8%
11.8%
Total owned and managed
3,069
531,362
373,984
70.4%
93.0%
93.0%
93.4%
93.5%
$213,899
$213,899
100.0%
52.8%
$15,082,154
$15,082,154
100.0%
54.2%
81,010
81,010
100.0%
20.0%
5,176,335
5,176,335
100.0%
18.6%
46,082
46,082
100.0%
11.3%
3,011,911
3,011,911
100.0%
10.8%
$340,991
$340,991
100.0%
84.1%
$23,270,400
$23,270,400
100.0%
83.6%
$135,335
$31,741
23.5%
7.8%
$9,688,543
$2,291,255
23.6%
8.3%
90,410
27,147
30.0%
6.7%
6,240,639
1,874,478
30.0%
6.8%
27,670
5,370
19.4%
1.4%
1,930,189
374,626
19.4%
1.3%
$253,415
$64,258
25.4%
15.9%
$17,859,371
$4,540,359
25.4%
16.4%
$349,234
$245,640
70.3%
60.6%
$24,770,697
$17,373,409
70.1%
62.5%
171,420
108,157
63.1%
26.7%
11,416,974
7,050,813
61.8%
25.4%
73,752
51,452
69.8%
12.7%
4,942,100
3,386,537
68.5%
12.1%
$594,406
$405,249
68.2%
100.0%
$41,129,771
$27,810,759
67.6%
100.0%
(215)
(215)
100.0%
33,846
33,846
100.0%
(61)
(15)
24.6%
27,092
6,766
25.0%
$594,130
$405,019
68.2%
$41,190,709
$27,851,371
67.6%
Occupied
Leased
Europe
Consolidated
Europe
Total
operating
portfolio
-
consolidated
Americas
Asia
Americas
Consolidated
Americas
Europe
Asia
Unconsolidated
Total Owned
and Managed
Value
added
properties
-
unconsolidated
Asia
Total 
Total
operating
portfolio
-
owned
and
managed
Unconsolidated
Europe
Asia
Total
operating
portfolio
-
unconsolidated
Americas
Americas
% of Total
Prologis
Share ($)
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
Third Quarter NOI
Americas
Europe
Asia
Total 
Value
added
properties
-
consolidated


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Operations Overview
Operating Metrics –
Owned and Managed
15
(square feet and dollars in thousands)
92.2%
91.6%
96.0%
92.2%
92.1%
92.1%
96.2%
92.3%
92.2%
92.1%
96.8%
92.4%
93.3%
92.0%
96.5%
93.1%
85%
90%
95%
100%
Q4 2011   Q1 2012  
Q2 2012   Q3 2012
Q4 2011   Q1 2012  
Q2 2012   Q3 2012
Q4 2011   Q1 2012  
Q2 2012   Q3 2012
Q4 2011   Q1 2012  
Q2 2012   Q3 2012
(A)   See the Notes and Definitions for further explanations.
(B)   Turnover costs per foot represent expected costs based on the leases signed during the quarter, rather than costs incurred as presented in 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.
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2011
Q1 2012
Q2 2012
Q3 2012
1,365
1,017
2,863
2,279
538,400
522,571
519,939
514,031
New leases
13,663
10,023
11,947
12,102
0.9%
(0.6%)
1.5%
2.3%
Renewals
22,533
19,812
20,189
24,599
2.0%
(6.6%)
4.8%
1.1%
37,561
30,852
34,999
38,980
0.4%
1.7%
0.4%
2.7%
80.1%
78.3%
82.4%
87.5%
Net
operating
income
-
adjusted
cash
N/A
3.1%
2.3%
3.0%
$        1.40
$        1.14
$        1.50
$        1.50
1.6%
2.6%
2.9%
2.3%
32,159
28,227
30,127
33,852
Q4 2011
Q1 2012
Q2 2012
Q3 2012
(4.5%)
(1.1%)
(3.9%)
(1.8%)
32,297
$  
17,100
$  
21,056
$  
33,704
$  
0.06
$           
0.03
$           
0.04
$           
0.06
$           
29,418
28,598
29,243
31,515
23,674
16,401
18,523
21,483
Total turnover costs
53,092
44,999
47,766
52,998
85,389
$  
62,099
$  
68,822
$  
86,702
$  
11.5%
(C)
11.9%
(C)
12.0%
(C)
12.7%
66.5%
76.9%
72.2%
72.0%
56,770
$  
47,734
$  
49,689
$  
62,428
$  
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)
Rental income
Rental expenses
Operating properties:
Weighted average customer retention
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
Period Ending Occupancy by Region
Total
Asia
Americas
Europe


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Operations Overview
Customer
Information
Owned
and
Managed
16
(square feet and dollars in thousands)
1
DHL
2.2%
11,887
Month to month customers
$
48,256
1.7%
11,865
2.4%
2
Kuehne & Nagel
1.3%
7,140
2012
48,522
1.7%
8,663
1.8%
3
CEVA Logistics
1.3%
6,916
2013
421,081
14.9%
75,205
15.2%
4
Geodis
1.1%
5,666
2014
442,099
15.6%
77,694
15.7%
5
Amazon.com, Inc.
0.9%
3,664
2015
397,437
14.1%
75,610
15.3%
6
Home Depot, Inc.
0.8%
4,317
2016
343,681
12.2%
60,520
12.3%
7
Panasonic Logistics Co. Ltd.
0.8%
2,143
Thereafter
1,126,933
39.8%
184,273
37.3%
8
United States Government
0.8%
1,833
Total
$
2,828,009
100%
493,830
100%
9
FedEx Corporation
0.7%
2,172
10
PepsiCo
0.7%
4,126
10.6%
49,864
11
Tesco PLC
0.7%
2,693
12
Nippon Express Group
0.6%
1,419
Month to month customers
$
27,839
1.4%
8,599
2.5%
13
Sagawa Express
0.6%
935
2012
36,993
1.9%
6,500
1.8%
14
Kraft Foods, Inc.
0.6%
3,530
2013
305,355
15.7%
54,807
15.7%
15
Hitachi Ltd
0.6%
1,541
2014
311,574
16.0%
58,376
16.8%
16
Wal-Mart Stores
0.5%
3,234
2015
275,194
14.1%
53,563
15.4%
17
Panalpina, Inc.
0.5%
2,359
2016
249,663
12.8%
44,773
12.9%
18
Catepillar Logistics Services
0.5%
1,344
Thereafter
741,017
38.1%
121,235
34.9%
19
Unilever
0.5%
3,920
Total
$
1,947,635
100%
347,853
100%
20
DB Schenker
0.4%
2,410
21
ND Logistics
0.4%
2,356
22
LG
0.4%
2,540
23
UPS SCS (United Parcel Service Inc.)
0.4%
2,169
24
Schneider Electric S.A.
0.4%
1,646
25
La Poste
0.4%
1,278
18.1%
83,238
Percentage
of Total
Top Customers
Lease Expirations -
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 -
Prologis Share
Year
Annual Base
Rent
Percentage
of Total
Occupied
Square Feet
Percentage
of Total


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Capital Deployment
Building Dispositions and Contributions (A)
17
(A)
Amounts
include
industrial
building
dispositions,
but
do
not
include
dispositions
of
non-industrial
buildings
or
land
subject
to
ground
leases
of
$7.0
million
for
the
quarter
and
$13.4
million
year
to
date,
of
which
$7.0
million
and
$12.1
million
is
Prologis’
share,
respectively.
(B) Prologis share reflects actual ownership on consolidated funds. For contributions, this amount reflects cash proceeds to Prologis (net of units received for partial consideration).
(C) This is a consolidated fund.
(D) 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
2,123
              
2,123
              
78,971
            
78,971
            
100.0%
7,198
              
7,198
              
381,887
          
381,887
          
100.0%
Prologis Institutional Alliance Fund II (C)
-
                       
-
                       
-
                       
-
                       
-
                          
430
                 
121
                 
29,000
            
8,164
              
28.2%
Prologis North American Properties Fund XI
100
                 
20
                    
3,597
              
719
                 
20.0%
3,616
              
723
                 
138,959
          
27,791
            
20.0%
Prologis North American Industrial Fund
-
                       
-
                       
-
                       
-
                       
-
                          
60
                    
14
                    
2,400
              
554
                 
23.1%
Prologis Targeted U.S. Logistics Fund
66
                    
16
                    
3,632
              
907
                 
25.0%
66
                    
16
                    
3,632
              
907
                 
25.0%
Total Americas
2,289
              
2,159
              
86,200
            
80,597
            
93.5%
11,370
            
8,072
              
555,878
          
419,303
          
75.4%
Prologis wholly owned
-
                       
-
                       
-
                       
-
                       
-
                          
2,176
              
2,176
              
135,022
          
135,022
          
100.0%
Prologis European Properties (D)
-
                       
-
                       
-
                       
-
                       
-
                          
3,670
              
3,439
              
338,862
          
317,513
          
93.7%
Prologis European Properties Fund II
-
                       
-
                       
-
                       
-
                       
-
                          
2,043
              
608
                 
150,174
          
44,630
            
29.7%
Prologis Targeted Europe Logistics Fund
217
                 
70
                    
8,368
              
2,686
              
32.1%
217
                 
70
                    
8,368
              
2,686
              
32.1%
Total Europe
217
                 
70
                    
8,368
              
2,686
32.1%
8,106
              
6,293
              
632,426
          
499,851
          
79.0%
Asia
Prologis wholly owned
-
                       
-
                       
-
                       
-
                       
-
                          
592
                 
592
                 
36,938
            
36,938
            
100.0%
Prologis Japan Fund 1
8
                      
2
                      
993
                 
199
                 
20.0%
8
                      
2
                      
993
                 
199
                 
20.0%
Total Asia
8
                      
2
                      
993
                 
199
                 
20.0%
600
                 
594
                 
37,931
            
37,137
            
97.9%
Total Third Party Building Dispositions
2,514
              
2,231
              
$95,561
$83,482
87.4%
20,076
            
14,959
            
$1,226,235
$956,291
78.0%
Brazil Fund and related joint ventures
300
                 
75
                    
28,362
            
7,091
              
25.0%
300
                 
75
                    
28,362
            
7,091
              
25.0%
Prologis Mexico Fondo Logistico (C)
-
                       
-
                       
-
                       
-
                       
-
                          
755
                 
755
                 
40,650
            
32,520
            
80.0%
Total Americas
300
                 
75
                    
28,362
            
7,091
              
25.0%
1,055
              
830
                 
69,012
            
39,611
            
57.4%
Prologis European Properties Fund II
136
                 
136
                 
16,014
            
16,014
            
100.0%
136
                 
136
                 
16,014
            
16,014
            
100.0%
Europe Logistics Venture 1
-
                       
-
                       
-
                       
-
                       
-
                          
139
                 
139
                 
16,875
            
14,343
            
85.0%
Total Europe
136
                 
136
                 
16,014
            
16,014
            
100.0%
275
                 
275
                 
32,889
            
30,357
            
92.3%
Asia
Total Asia
-
                       
-
                       
-
                       
-
                       
-
                          
-
                       
-
                       
-
                       
-
                       
-
                         
436
                 
211
                 
$44,376
$23,105
52.1%
1,330
              
1,105
              
$101,901
$69,968
68.7%
2,950
              
2,442
              
$139,937
$106,587
76.2%
21,406
            
16,064
            
$1,328,136
$1,026,259
77.3%
7.0%
7.2%
Building Contributions and Dispositions to Co-Investment Ventures
Third Party Building Dispositions
Americas
Europe
Square Feet
Weighted average stabilized cap rate
Americas
Europe
Total Contributions and Dispositions to Co-Investment Ventures
Total Building Dispositions and Contributions
Prologis Share
of Square Feet
Prologis Share
of Proceeds ($)
Total Proceeds
Q3 2012
FY 2012
Prologis Share of
Proceeds (%)
Prologis Share
of Square Feet
Prologis Share of
Proceeds (%) (B)
Total Proceeds
Prologis Share
of Proceeds ($)
Square Feet


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Capital Deployment
Third Party Building Acquisitions
18
(square feet and dollars in thousands)
(A) This is a consolidated fund.
Prologis Share of
Prologis Share of
Acquisition
Cost (%)
Acquisition
Cost (%)
Third Party Building Acquisitions
Prologis wholly owned
132
132
$  10,401
$  10,401
100.0%
1,007
1,007
$  57,043
$  57,043
100.0%
Prologis Mexico Fondo Logistico (A)
290
58
10,275
2,055
20.0%
290
58
10,275
2,055
20.0%
Prologis North American Industrial Fund
-
-
-
-
-
41
9
2,886
667
23.1%
Prologis Targeted U.S. Logistics Fund
424
106
65,307
16,311
25.0%
971
254
109,961
28,333
25.8%
Total Americas
846
296
85,983
28,767
33.5%
2,309
1,328
180,165
88,098
48.9%
Europe Logistics Venture 1
415
62
25,901
3,885
15.0%
762
114
50,194
7,529
15.0%
Prologis European Properties Fund II
-
-
-
-
-
717
213
36,812
10,940
29.7%
Total Europe
415
62
25,901
3,885
15.0%
1,479
327
87,006
18,469
21.2%
Asia
-
-
-
-
-
-
-
-
-
-
1,261
358
$  111,884
$  32,652
29.2%
3,788
1,655
$  267,171
$  106,567
39.9%
7.0%
7.0%
Americas
Weighted average stabilized cap rate
Prologis Share
of Square
Feet
Total Third Party Acquisitions
Europe
Q3 2012
FY 2012
Prologis Share of
Acquisition     
Cost ($)
Prologis
Share of
Square Feet
Square Feet
Acquisition
Cost
Prologis Share of
Acquisition     
Cost ($)
Acquisition
Cost
Square Feet


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Capital Deployment
Development Starts –
Current Quarter
19
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
1,806
$105,173
$58
5.5%
1,806
$105,173
$58
5.5%
100.0%
100.0%
Brazil Fund and related joint ventures
415
34,319
83
100.0%
104
8,580
83
100.0%
25.0%
25.0%
Total Americas
2,221
139,492
63
23.2%
1,910
113,753
60
10.7%
86.0%
81.5%
Europe
375
34,746
93
100.0%
375
34,746
93
100.0%
100.0%
100.0%
375
34,746
93
100.0%
375
34,746
93
100.0%
100.0%
100.0%
Asia
1,161
177,983
153
100.0%
1,161
177,983
153
100.0%
100.0%
100.0%
Prologis China Logisitics Venture I
598
33,774
56
0.0%
90
5,066
56
0.0%
15.0%
15.0%
1,759
211,757
120
66.0%
1,251
183,049
146
92.8%
71.1%
86.4%
Total
4,355
             
$385,995
$89
47.1%
3,536
             
$331,548
$94
49.2%
81.2%
85.9%
Weighted average estimated stabilized yield
8.2%
$31,652
Weighted average estimated cap rate at stabilization
6.7%
$86,423
Estimated development margin
22.4%
Prologis share of value creation on development starts (A)
83.4%
Prologis share of value creation on development starts (A)
$72,077
Prologis share of value creation realized on VACs (B)
22,844
$72,330
Prologis Share ($) - Q3
Prologis Share (%) - Q3
Consolidated
Total Europe
Consolidated
Total Prologis share of estimated and realized value creation
this quarter
Pro forma NOI
Estimated value creation (A)
Total Asia
Total Q3 2012
Consolidated
(in thousands, except percent and per square foot)
(A) Value creation excludes fees or promotes that we may earn. See complete definition in the Notes and Definitions section.


Copyright ©
2012 Prologis
Third Quarter 2012 Report
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2009
2010
2011
Q3 -
YTD
Americas
Europe
Asia
Capital Deployment
Development
Starts
Year
to
Date
20
Year to Date 2012 Development Starts
Historical Development Starts (TEI)
(in thousands, except percent and per square foot)
$313,877
$758,905
$1,016,763
$825,594
Americas
Europe
Asia
Prologis Share
Partners’
Share
Speculative
Build to Suit
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
4,853
$234,603
$48
33.3%
4,853
$234,603
$48
33.3%
100.0%
100.0%
Brazil Fund and related joint ventures
732
68,254
93
100.0%
183
17,064
93
100.0%
25.0%
25.0%
Total Americas
5,585
302,857
54
42.0%
5,036
251,667
50
35.7%
90.2%
83.1%
Europe
889
63,553
71
70.3%
889
63,553
71
70.3%
100.0%
100.0%
889
63,553
71
70.3%
889
63,553
71
70.3%
100.0%
100.0%
Asia
2,551
425,410
167
100.0%
2,551
425,410
167
100.0%
100.0%
100.0%
Prologis China Logisitics Venture I
598
33,774
56
0.0%
90
5,066
56
0.0%
15.0%
15.0%
3,149
459,184
146
81.0%
2,641
430,476
163
96.6%
83.9%
93.7%
Total
9,623
$825,594
$86
57.4%
8,566
$745,696
$87
58.1%
89.0%
90.3%
Weighted average estimated stabilized yield
7.9%
$65,222
Weighted average estimated cap rate at stabilization
6.5%
$177,822
Estimated development margin
21.5%
Prologis share of value creation on development starts (A)
88.1%
Prologis share of value creation on development starts (A)
$156,661
Prologis share of value creation realized on VAC buildings (B)
10,954
$167,615
Total Prologis share of estimated and realized value creation
year to date
Pro forma NOI
Estimated value creation (A)
Total Asia
Total YTD 2012
Consolidated
Prologis Share ($) -
YTD 2012
Prologis Share (%) -
YTD 2012
Consolidated
Total Europe
Consolidated
$459,184
56%
$302,857
37%
$79,898
9%
$63,553
7%
$745,696
91%
$216,107
27%
$609,487
73%
Value creation excludes fees or promotes that we may earn. See complete definition in the Notes and Definitions section.
This represents the economic gain realized from the sale of a Value Added Conversion “VAC” property during the year.  The gain represents the amount by which the sales proceeds exceeds 
the amount included in NAV for this property. 
(A)
(B)


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Capital Deployment
Development Portfolio
21
(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 $
TEI $
Prologis share of
TEI $
%  of Total
Leased %
147
$7,731
-
$-
1,052
$41,086
1,052
$41,086
$48,817
$48,817
3.6%
41.6%
706
73,111
-
-
1,612
69,163
1,612
69,163
142,274
142,274
10.4%
63.7%
-
-
-
-
241
16,141
241
16,141
16,141
16,141
1.2%
0.0%
415
26,637
-
-
800
48,128
800
48,128
74,765
74,765
5.5%
0.0%
U.S. Total
1,268
107,479
-
-
3,705
174,518
3,705
174,518
281,997
281,997
20.7%
39.7%
140
6,324
383
19,414
279
18,175
662
37,589
43,913
43,913
3.2%
27.4%
Americas total
1,408
113,803
383
19,414
3,984
192,693
4,367
212,107
325,910
325,910
23.9%
38.0%
659
49,467
-
-
-
-
-
-
49,467
49,467
3.6%
50.1%
507
37,874
-
-
-
-
-
-
37,874
37,874
2.8%
21.8%
-
-
201
9,919
74
4,254
275
14,173
14,173
14,173
1.0%
100.0%
-
-
-
-
331
33,270
331
33,270
33,270
33,270
2.5%
100.0%
Europe total
1,166
87,341
201
9,919
405
37,524
606
47,443
134,784
134,784
9.9%
59.1%
2,163
353,725
-
-
2,551
435,409
2,551
435,409
789,134
789,134
57.8%
77.7%
Asia total
2,163
353,725
-
-
2,551
435,409
2,551
435,409
57.8%
77.7%
4,737
554,869
584
29,333
6,940
665,626
7,524
694,959
1,249,828
1,249,828
91.6%
56.3%
-
-
-
-
486
22,729
486
22,729
22,729
22,729
1.7%
0.0%
264
14,441
-
-
-
-
-
-
14,441
14,441
1.1%
0.0%
264
14,441
-
-
486
22,729
486
22,729
37,170
37,170
2.8%
0.0%
5,001
569,310
584
29,333
7,426
688,355
8,010
717,688
1,286,998
1,286,998
94.4%
53.1%
Prologis Targeted U.S. Logistics Fund
272
29,378
-
-
-
-
-
-
29,378
7,338
0.5%
0.0%
Brazil Fund and related joint ventures
-
-
672
59,144
415
34,318
1,087
93,462
93,462
46,731
3.4%
67.3%
Prologis Targeted Europe Logistics Fund
-
-
48
5,214
249
24,230
297
29,444
29,444
9,464
0.7%
0.0%
Prologis China Logistics Venture I
-
-
-
-
1,676
92,528
1,676
92,528
92,528
13,879
1.0%
0.0%
272
29,378
720
64,358
2,340
151,076
3,060
215,434
244,812
77,412
5.6%
22.0%
5,273
$ 598,688
1,304
$        93,691
9,766
$       839,431
11,070
$      933,122
$     1,531,810
$    1,364,410
100.0%
46.7%
5,069
576,647
935
60,581
7,965
727,182
8,900
787,763
1,364,410
52.1%
96.1%
96.3%
71.7%
64.7%
81.6%
86.6%
80.4%
84.4%
89.1%
$     48,082
$        32,036
$      547,478
$      579,514
$        627,596
$     45,402
$        19,570
$      478,515
$      498,085
$        543,487
3.44%
25.6%
76.7%
72.7%
43.5%
n/a
39.7%
51.1%
49.7%
7.4%
11.2%
7.6%
7.9%
7.7%
117,949
Weighted average estimated cap rate at stabilization
6.5%
$       282,790
Estimated development margin
18.5%
259,318
91.7%
Total unconsolidated development portfolio
Total regional and other markets
Regional and other markets
Americas
Unconsolidated
Total consolidated development portfolio
Total Development Portfolio
Consolidated
Total Under
Development
U.S.
2013 and thereafter
Expected Completion
2012 Expected
Completion
Pre-Stabilized
Developments
Central Europe
Prologis share of value creation (A)
Prologis share of cost to complete
Percent build to suit (based on Prologis share)
Pre-leased percent
Prologis share of value creation (A)
Pro forma NOI
Estimated value creation (A)
Weighted average estimated stabilized yield
Japan
Asia
Total global markets
Total
development
portfolio
-
Prologisshare (%)
Under Development
Total
development
portfolio
-
owned
&
managed
Total
development
portfolio
-
Prologisshare
Cost to complete
Central
East
Northwest
United Kingdom
Europe
Southwest
Northern Europe
Southern Europe
Latin America
Europe
789,134
789,134
$
$


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Capital Deployment
Land Portfolio –
Owned and Managed
22
(A) Ordered by our share of current book value.
(dollars in thousands)
Region
Prologis
Prologis
Prologis
Prologis
% of
Share 
Share (%)
Share ($)
Share (%)
Total
Atlanta
616
616
100.0%
$  25,132
$  25,132
100.0%
1.3%
Baltimore/Washington
106
106
100.0%
14,645
14,645
100.0%
0.7%
Central Valley
183
183
100.0%
17,897
17,897
100.0%
0.9%
Central & Eastern PA
311
311
100.0%
26,770
26,770
100.0%
1.4%
Chicago
626
626
100.0%
61,402
61,402
100.0%
3.1%
Dallas/Ft. Worth
398
398
100.0%
22,094
22,094
100.0%
1.1%
Houston
65
65
100.0%
7,918
7,918
100.0%
0.4%
New Jersey/New York City
372
372
100.0%
146,601
146,601
100.0%
7.5%
South Florida
377
377
100.0%
147,116
147,116
100.0%
7.5%
Southern California
843
843
100.0%
144,729
144,729
100.0%
7.4%
228
228
100.0%
115,444
115,444
100.0%
5.9%
939
939
100.0%
189,037
189,037
100.0%
9.6%
353
177
50.0%
79,354
39,677
50.0%
2.0%
5,417
5,241
96.8%
998,139
958,462
96.0%
48.8%
30
30
100.0%
10,238
10,238
100.0%
0.5%
503
503
100.0%
87,476
87,476
100.0%
4.5%
156
156
100.0%
36,203
36,203
100.0%
1.8%
63
63
100.0%
57,911
57,911
100.0%
2.9%
807
807
100.0%
114,057
114,057
100.0%
5.8%
100
100
100.0%
19,995
19,995
100.0%
1.0%
979
979
100.0%
271,806
271,806
100.0%
13.8%
2,638
2,638
100.0%
597,686
597,686
100.0%
30.3%
50
43
86.0%
15,687
12,338
78.7%
0.6%
79
79
100.0%
122,352
122,352
100.0%
6.2%
129
122
94.6%
138,039
134,690
97.6%
6.8%
8,184
8,001
97.8%
1,733,864
1,690,838
97.5%
85.9%
338
338
100.0%
46,526
46,526
100.0%
2.4%
247
247
100.0%
39,402
39,402
100.0%
2.0%
107
107
100.0%
32,065
32,065
100.0%
1.6%
129
129
100.0%
25,686
25,686
100.0%
1.3%
95
95
100.0%
16,439
16,439
100.0%
0.9%
229
229
100.0%
13,097
13,097
100.0%
0.7%
66
66
100.0%
8,727
8,727
100.0%
0.5%
165
165
100.0%
7,293
7,293
100.0%
0.4%
199
199
100.0%
6,692
6,692
100.0%
0.3%
127
127
100.0%
4,472
4,472
100.0%
0.2%
15
15
100.0%
1,316
1,316
100.0%
0.1%
13
13
100.0%
425
425
100.0%
0.0%
1,730
1,730
100.0%
202,140
202,140
100.0%
10.4%
Total other markets
(11 markets)
655
655
100.0%
71,916
71,916
100.0%
3.7%
Total
land
portfolio
-
owned
and
managed
10,569
10,386
98.3%
$  2,007,920
$  1,964,894
97.9%
100.0%
Original Cost Basis
$  3,115,835
$  3,074,359
Denver
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
Louisville
Total regional markets
Central Florida
Savannah
Slovakia
Memphis
Indianapolis
Czech Republic
Italy
Hungary
Belgium
France
Germany
East
East
Northwest
East
Central
Central
Central
East
East
Southwest
Canada
Mexico
Brazil
Northern
Southern
Northern
Northern
CEE
Southern
UK
China
Japan
C.E.E.
C.E.E.
Southern
East
C.E.E.
East
Northwest
Central
Central
Central
Central
Central
Various


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Capital Deployment
Land
Portfolio
Summary
and
Roll
Forward
23
Investment at
Acres
% of Total
September 30, 2012
% of Total
6,544
                          
61.9%
1,032,025
$                
51.4%
Brazil Fund and related joint ventures
353
                             
3.4%
79,354
4.0%
Total Americas
6,897
                          
65.3%
1,111,379
                   
55.4%
3,543
                          
33.5%
758,502
                      
37.8%
121
1.1%
134,099
6.7%
Prologis China Logistics Venture 1
8
0.1%
3,940
0.1%
Total Asia
129
                             
1.2%
138,039
                      
6.8%
10,569
                        
100.0%
2,007,920
$                
100.0%
Americas
Europe
Asia
Total
1,077,799
$                
736,182
$                    
160,794
$                    
1,974,775
$                
Acquisitions
39,968
28,517
22,006
90,491
Dispositions (A)
(9,872)
(8,951)
-
(18,823)
Development starts
(36,709)
(9,494)
(44,793)
(90,996)
Infrastructure costs
28,163
2,626
528
31,317
Reclasses
5,733
-
(749)
4,984
Impairment charges
(535)
(6,148)
-
(6,683)
Effect of changes in foreign exchange rates and other
6,832
18,368
253
25,453
Reclass to "Assets Held for Sale"
-
(2,598)
-
(2,598)
1,111,379
$                
758,502
$                    
138,039
$                    
2,007,920
$                
Land Portfolio Summary
Consolidated
Americas
Total land portfolio - owned and managed
Consolidated
Europe
Asia
Consolidated
As of September 30, 2012
Land Roll Forward - Owned and Managed
As of June 30, 2012
(dollars in thousands)
(A) Includes 278 acres that were sold for $27.2 million in proceeds.


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Private Capital
Detail Fund Information
24
(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
Fund Investment Information
Co-Investment Ventures
Type
Investment Type
Geographic Focus
Ownership
Date Established
Term
Prologis Institutional Alliance Fund II
Core
Consolidated
US
28.2%
June 2001
Closed end
Prologis AMS
Core
Consolidated
US
38.5%
June 2004
Closed end
Prologis Mexico Fondo Logistico (A)
Core/Development
Consolidated
Mexico
20.0%
July 2010
Closed end
Prologis North American Properties Fund I
Core
Unconsolidated
US
41.3%
June 2000
Closed end
Prologis Targeted U.S. Logistics Fund (A)
Core
Unconsolidated
US
25.0%
October 2004
Open end
Prologis North American Industrial Fund
Core
Unconsolidated
US
23.1%
March 2006
Open end
Prologis DFS Fund I
Development
Unconsolidated
US
15.0%
October 2006
Closed end
Prologis North American Industrial Fund III
Core
Unconsolidated
US
20.0%
July 2007
Closed end
Prologis SGP Mexico (A)
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
32.1%
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
(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.
properties
in
Brazil.
During
2011
and
2012,
the
Brazil
Fund
sold
90%
of
four
operating
properties
to
a
third
party
and
retained
a
10%
ownership
interest
in
the
properties
(“Brazil
JVs”).
Therefore,
we
effectively
own
25%
of
the
Brazil
Fund
and
2.5%
of
the
operating
properties
in
the
Brazil
JVs,
which
are
included
in
our
Owned
and
Managed
operating
pool.
Prologis Investment In
and Advances To
6,239
$4,864
$267,074
$107,444
$2,010
$8,040
$44,374
$433
$32,999
48,881
41,426
2,966,444
1,192,165
9,569
38,276
274,913
4,953
212,750
17,655
13,247
1,281,857
648,596
2,650
10,600
129,719
(3,536)
22,775
43,039
53,636
4,028,440
1,512,907
13,396
53,584
377,870
(2,050)
653,265
9,500
8,585
593,662
214,149
1,717
6,868
42,830
1,103
51,562
6,374
10,293
412,035
216,183
2,223
8,892
46,696
(11,149)
34,007
1,846
3,223
166,123
-
161
644
-
3,716
112,497
Americas
133,534
135,274
9,715,635
3,891,444
31,726
126,904
916,402
(6,530)
1,119,855
53,725
68,778
4,664,683
1,646,943
20,441
81,764
489,471
(19,661)
395,308
11,416
20,192
1,468,570
639,601
6,490
25,960
205,579
(19,986)
236,415
Europe Logistics Venture I
1,342
1,440
107,386
-
216
864
-
2,068
16,674
Europe
66,483
90,410
6,240,639
2,286,544
27,147
108,588
695,050
(37,579)
648,397
7,255
24,382
1,701,963
945,827
4,877
19,508
189,165
18,107
165,883
3,749
3,288
228,226
115,000
493
1,972
17,250
3,890
31,599
Asia
11,004
27,670
1,930,189
1,060,827
5,370
21,480
206,415
21,997
197,482
211,021
$253,354
$17,886,463
$7,238,815
$64,243
$256,972
$1,817,867
$(22,112)
$1,965,734
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 related joint ventures
Prologis European Properties Fund II
Prologis Targeted Europe Logistics Fund
Prologis Japan Fund 1
Prologis China Logistics Venture 1
Prologis North American Properties Fund I
Prologis North American Industrial Fund
Information by Unconsolidated Co-investment Venture (C):
Prologis' Share
Third
Gross Book Value of
Third
Annualized
Total Other Tangible
Debt
Quarter NOI
(in thousands)
Square Feet
Quarter NOI
Operating Buildings


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Private Capital
Fund Operating and Balance Sheet Information
25
(A)
Includes the unconsolidated co-investment ventures listed on the previous page.
(B)
Represents the entire entity, not our proportionate share.
(dollars in thousands)
$
184,809
$
115,502
$
35,957
$
336,268
(47,540)
(23,064)
(8,233)
(78,837)
137,269
92,438
27,724
257,431
6,562
(2,612)
265
4,215
(8,280)
4,826
(85)
(3,539)
(7,055)
(12,929)
(5,112)
(25,096)
(59,694)
(24,962)
(5,263)
(89,919)
(3,513)
(2,400)
(809)
(6,722)
65,289
54,361
16,720
136,370
(74,165)
(37,804)
(12,060)
(124,029)
60
(800)
(285)
(1,025)
(8,127)
(6,123)
-
(14,250)
242
-
(168)
74
$
(16,701)
$
9,634
$
4,207
$
(2,860)
$
15,183
$
16,444
$
3,696
$
35,323
550
8
56
614
15,733
16,452
3,752
35,937
16,937
9,546
5,131
31,614
$
32,670
$
25,998
$
8,883
$
67,551
$
(4,462)
$
5,850
$
376
$
1,764
550
8
56
614
(3,912)
5,858
432
2,378
16,937
9,546
5,131
31,614
$
13,025
$
15,404
$
5,563
$
33,992
$
9,715,634
$
6,240,639
$
1,930,190
$
17,886,463
(995,809)
(444,198)
(75,907)
(1,515,914)
131,513
20,064
32,453
184,030
434,404
438,342
210,897
1,083,643
$
9,285,742
$
6,254,847
$
2,097,633
$
17,638,222
$
3,891,444
2,286,544
1,060,827
$
7,238,815
321,218
528,645
100,864
950,727
$
4,212,662
$
2,815,189
$
1,161,691
$
8,189,542
23.9%
30.0%
19.3%
25.5%
Foreign currency exchange and unrealized derivative gains (losses), net
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 September 30, 2012
Third party debt
Total assets
Operating industrial properties, before depreciation
Accumulated depreciation
Properties under development and land
Prologis' share of the co-investment ventures' net earnings (loss)
Interest income
Prologis' share of the co-investment ventures' FFO
Interest income
Fees earned by Prologis
Total FFO recognized by Prologis, net
FFO from unconsolidated co-investment ventures, net
For the Three Months Ended September 30, 2012
Prologis' Share of FFO and Net Earnings (Loss) of the Unconsolidated Co-Investment Ventures (A)
Loss 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
Interest expense
Current income tax expense
FFO of the unconsolidated co-investment ventures
Real estate related depreciation and amortization
General and administrative expenses
Americas
Europe
Asia
Total
Rental income
For the Three Months Ended September 30, 2012
FFO and Net Earnings (Loss) of the Co-Investment Ventures, Aggregated (A)(B)
Rental expenses
Net operating income from properties
Other income (expense), net
Gain (loss) on dispositions of investments in real estate, impairment charges and early extinguishment of debt, net


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Capitalization
Debt and Equity Summary
26
(dollars and shares in millions)
$0
$0
-
$0
$9
$9
$34
$43
$238
$281
$98
34.9%
376
483
-
1
518
1,378
255
1,633
1,516
3,149
1,821
57.8%
903
-
465
645
1,137
3,150
62
3,212
1,056
4,268
3,457
81.0%
287
460
744
1
214
1,706
27
1,733
994
2,727
2,007
73.6%
640
-
-
1
316
957
123
1,080
1,265
2,345
1,282
54.7%
700
9
-
1
579
1,289
3
1,292
778
2,070
1,459
70.5%
900
-
-
1
330
1,231
73
1,304
265
1,569
1,310
83.5%
647
-
-
1
528
1,176
1
1,177
220
1,397
1,241
88.8%
690
-
-
1
10
701
1
702
408
1,110
801
72.2%
-
-
-
-
171
171
1
172
333
505
258
51.1%
-
-
-
10
143
153
1
154
139
293
190
64.8%
Subtotal
5,143
952
1,209
662
$3,955
11,921
581
12,502
$7,212
19,714
13,924
70.6%
87
(70)
-
-
56
73
3
76
27
103
81
78.6%
Subtotal
5,230
882
1,209
662
4,011
11,994
584
12,578
7,239
19,817
$14,005
70.7%
-
-
-
-
-
-
(391)
(391)
(5,421)
(5,812)
Prologis share of debt
$5,230
$882
$1,209
$662
$4,011
$11,994
$193
$12,187
$1,818
$14,005
$4,552
$882
$308
$30
$1,728
$7,500
$160
$7,660
$924
9,395
$   
$8,584
548
-
235
470
689
1,942
30
1,972
553
2,887
2,525
-
-
1
-
182
183
-
183
139
533
322
130
-
665
162
1,389
2,346
-
2,346
189
1,617
2,535
-
-
-
-
23
23
3
26
13
35
39
Prologis share of debt
$5,230
$882
$1,209
$662
$4,011
$11,994
$193
$12,187
$1,818
$14,005
5.6%
4.6%
1.4%
1.8%
4.0%
4.4%
4.4%
4.4%
4.6%
5.0%
4.3%
4.6
1.5
2.0
1.8
4.0
3.7
2.5
3.7
3.4
4.1
3.7
Weighted average interest rate (A)
Weighted average remaining maturity in years
Unamortized net (discounts) premiums
Third party share of debt
Prologis share of debt by local currency
Dollars
Euro
GBP
2019
2020
2021
Yen
Other
Thereafter
2018
Entities
Consolidated
Entities
2016
Debt
Debt
Debt
Maturity
Debt
Debt
2012
2013
2014
2015
Total
Mortgage
Debt
2017
Facilities
Debt
Senior
Convertible
Credit
Other
Prologis
Unsecured
Consolidated
Total
Unconsolidated
Secured
Prologis
Share (%)
Prologis
Total
Share of
Debt
Total Debt
(A) Interest rate is based on the effective rate (which includes the amortization of related premiums and discounts) and weighted based on borrowings outstanding.
Dividend
Security
Shares
Value
Series
Rate
Value
Common Stock
460.1
$35.03
$16,117
Series L
6.5%
$49
$2,179
Partnership Units
3.2
$35.03
112
Series M
6.8%
58
Total
463.3
$16,229
Series O
7.0%
75
Borrowings outstanding
1,209
Series P
6.9%
50
Outstanding letters of credit
67
Series Q
8.5%
100
$903
Series R
6.8%
125
Series S
6.8%
125
158
7.1%
$582
$1,061
Less:
Current availability
Unrestricted cash
Total liquidity
Market Equity
Preferred Stock
Liquidity
Price
Aggregate lender commitments


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Capitalization
Debt Covenants and Other Metrics
27
(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%
40.5%
<60%
40.5%
>1.5x
2.82x
>1.5x
2.81x
<40%
14.8%
<40%
14.8%
>150%
267.5%
>150%
267.5%
Covenant
Actual
<60%
45.0%
>1.5x
2.99x
>1.5x
3.50x
<35%
16.2%
>$10.0 billion
$15.8 billion
Third Quarter
Second Quarter
44.7%
44.2%
19.5%
19.5%
227.1%
227.5%
2.25x
2.20x
9.00x
8.76x
Unencumbered
Encumbered
Total
13,940,332
$           
9,363,914
$             
23,304,246
$           
774,821
-
774,821
1,890,340
34,286
1,924,626
457,373
-
457,373
-
243,979
243,979
358,974
17,668
376,642
Total consolidated
17,421,840
9,659,847
27,081,687
1,002,117
3,545,008
4,547,125
65,330
5,149
70,479
Gross real estate assets
18,489,287
$           
13,210,004
$           
31,699,291
$           
Unsecured
Secured
Debt
Mortgage Debt
Total
7,966,094
$             
3,954,580
$             
11,920,674
$           
67,937
512,965
580,902
109,033
1,701,638
1,810,671
Total debt -
at par
8,143,064
6,169,183
14,312,247
(50,249)
(338,564)
(388,813)
8,092,815
5,830,619
13,923,434
17,613
58,871
76,484
-
(2,015)
(2,015)
-
7,197
7,197
Total debt, net of premium (discount)
8,110,428
$             
5,894,672
$             
14,005,100
$           
New Prologis Indenture
Legacy AMB Indenture
Debt as % of gross real estate assets
Debt/Core 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 September 30, 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'
share
Operating properties
Unconsolidated
operating
properties
-
Prologis'
share
Encumbrances as of September 30, 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
of
premium
(discount)
-
unconsolidated
Premium
(discount)
-
consolidated
Secured and Unsecured Debt as of September 30, 2012
Prologis debt
Consolidated entities debt
Our share of unconsolidated entities debt
Third party share of premium (discount)
Third
party
share
of
consolidated
debt
Total
Prologis
share
of
debt
-
at
par


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Capitalization
Assets  Under Management
28
Total Enterprise Value
Total AUM by Division
Assets Under Management
(dollars in millions)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Europe
26.0%                 
Asia
14.4%                 
$ 30,816
$ 44,995
Debt
$14,005
Committed Equity/Investment
$2,080
Americas
59.6%             
$ 44,995
Direct owned and other 
assets
$26,635
Equity
Cap
$16,229
AUM
Private
Capital
$18,360
Preferred Shares
$582
Investors'  share of assets
in JVs/funds
$12,099
Prologis share of assets
in JVs/funds $4,181
Total
Enterprise
Value
$30,816


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Net Asset Value
Components
29
(in thousands, except for percentages and per square foot)
224,888
$
14,592,018
$
65
$
224,826
$
224,826
$
899,304
95.9%
64,190
4,863,985
76
88,238
88,238
352,952
95.4%
16,218
3,011,911
186
47,145
47,145
188,580
97.6%
685
2,740
305,296
22,467,914
74
360,209
360,894
1,443,576
96.0%
9,380
490,136
52
(3,609)
46.4%
4,959
312,350
63
(1,600)
17.6%
14,339
802,486
56
(5,209)
36.5%
319,635
$
23,270,400
$
73
$
355,000
$
360,894
$
1,443,576
93.2%
31,699
$
2,291,255
$
72
$
31,217
$
31,217
$
124,868
92.4%
19,838
1,874,478
94
29,865
29,865
119,460
94.2%
2,013
374,626
186
5,463
5,463
21,852
95.4%
276
1,104
53,550
$
4,540,359
$
85
$
66,545
$
66,821
$
267,284
93.2%
373,185
$
27,810,759
$
75
$
421,545
$
427,715
$
1,710,860
93.2%
Square Feet
1,408
$
96,462
$
113,803
$
81
$
7,849
34.4%
1,430
91,092
101,782
71
8,802
7.7%
2,163
335,082
353,725
164
25,542
40.8%
29.5%
4,853
70,233
234,836
48
17,424
606
21,692
47,443
78
3,284
2,551
160,260
435,409
171
32,459
13,011
$
774,821
$
1,286,998
$
99
$
95,360
612
$
19,485
$
54,069
$
88
3,305
95
6,449
9,464
100
558
251
4,277
13,879
55
1,139
958
$
30,211
$
77,412
$
81
$
5,002
13,969
$
805,032
$
1,364,410
$
98
$
100,362
Prologis share of unconsolidated operating portfolio
Americas
Asia
Properties under development
Total operating portfolio
CONSOLIDATED
Prestabilized
Annualized
Adjusted  Cash
NOI
CONSOLIDATED OPERATING PORTFOLIO
Third 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
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.
Third 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


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Net Asset Value
Components -
Continued
30
(in thousands)
$
158,188
172,515
555,696
457,373
40,612
181,855
243,979
16,102
Investments in and advances to other unconsolidated entities
276,341
342,325
$
2,444,986
625,873
564,266
28,687
184,151
386,547
692,772
$
2,482,296
$
(22,112)
$
3,074,359
$
1,924,626
40,268
$
1,964,894
Private capital revenue
$
31,714
$
126,856
Private capital expenses
(15,730)
(62,920)
Private capital NOI
$
15,984
$
63,936
$
1,017
$
4,068
$
11,920,674
Consolidated
investee
debt
-
at
par
580,902
1,810,671
14,312,247
582,200
$
14,894,447
Outstanding
shares
of
common
stock
460,093
Preferred
stock
Total
debt
and
preferred
stock
Debt and Preferred Stock
Private capital
Development management income
As of September 30,
2012
Prologis
debt
-
at
par
Prologis
share
of
unconsolidated
debt
-
at
par
Subtotal
debt
-
at
par
Current book value of land
Total
Private Capital / Development Management
Third 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 September 30,
2012
CONSOLIDATED
Other assets


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Notes and Definitions
31
2012
2011
2012
2011
Rental income ……………………………………………………………
Rental expenses …………………………………………………………
Depreciation and amortization …………………………………..……..
Interest expense ………………………………………………..….…….
-
held for sale
$ 11,903
Income attributablle to disposed properties and assets
Three Months Ended
September 30,
Three Months Ended
September 30,
$ 4,618
$ 19,889
$ 34,716
$ 50,830
(3,674)
(2,975)
(17,335)
$ 11,267
(161)
(13,445)
$ 86,479
(28,387)
(503)
(22,873)
$ 36,671
(15,256)
(325)
(9,187)
We include the gains or losses from disposition and impairment charges of land parcels and development
properties in the calculation of FFO as defined by Prologis, including those classified as discontinued
operations.
Assets
Under
Management
(AUM)
represents
the
estimated
value
of
the
real
estate
we
own
or
manage through our consolidated entities and unconsolidated entities. We calculate AUM by adding
the
noncontrolling
interests
share
of
the
estimated
fair
value
of
the
real
estate
investment
to
our
share of total market capitalization.
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):
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  Gains (Losses) on Acquisition and Dispositions of Investments in Real  Estate, Net.  We have
industrial properties that 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.  After consideration of all applicable factors pursuant to the business
combination accounting rules, 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 that were funded through borrowings under our
existing credit facilities and a new €500 million bridge facility, which was subsequently repaid with
proceeds received from our June 2011 equity offering. After completion of the tender offer, we
began consolidating PEPR. Subsequently in connection with the liquidation, 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. 
During the nine months ended September 30, 2012, we recorded a gain of $17.1 million on
the  disposition of 113 properties aggregating 14.4 million square feet to third parties. In
addition, we recorded impairment charges of $27.4 million on assets held for sale at
September 30, 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.
Acquisition
cost
represents
economic
cost
and
not
necessarily
what
is
capitalized.
It
includes the initial purchase price; the effects of marking assumed debt to market; if
applicable, all due diligence and closing costs; lease intangibles; and estimated acquisition
capital expenditures including leasing costs to achieve stabilization.
Assets
Held
For
Sale
and
Discontinued
Operations.
As
of
September
30,
2012,
we
had
land
and
23 operating properties totaling 7.4 million square feet that met the criteria to be presented
as held for sale.  The amounts included in Assets Held for Sale include real estate investment
balances and the related assets and liabilities for each property.


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Notes and Definitions
32
Three Months Ended
Nine Months Ended
September 30,
September 30,
2012(a)
2011
2012
2011(a)
Net earnings (loss)
Net earnings (loss) ……………………………………………………………..
$ (46,526)
$ 55,436
$ 147,767
$ (142,651)
Noncontrolling
interest attributable
to
exchangeable
limited partnership
units
-
(485)
935
-
Adjusted
net
earnings
(loss)
-
Diluted
$ (46,526)
$ 54,951
$ 148,702
$ (142,651)
Weighted
average
common
shares
outstanding
-
Basic …………………..
460,079
458,256
459,720
340,923
Incremental weighted average effect on exchange of limited partnership
units  ……………………………………………………………………………..
-
3,362
3,260
-
Incremental
weighted
average
effect
of
stock
awards
……………………..
-
790
1,958
-
Weighted average common shares outstanding
-
Diluted
460,079
462,408
464,938
340,923
Net
earnings
(loss)
per
share
-
Basic
$ (0.10)
$ 0.12
$ 0.32
$ (0.42)
Net
earnings
(loss)
per
share
-
Diluted
$ (0.10)
$ 0.12
$ 0.32
$ (0.42)
FFO, as defined by Prologis
FFO, as defined by Prologis ……………………………………………………
$ 205,891
$ 207,730
$ 640,634
$ 278,071
Noncontrolling interest attributable
to exchangeable
limited partnership
units
(134)
(485)
935
(349)
Interest expense on exchangeable debt assumed converted ………………
4,229
4,114
12,661
-
FFO -
Diluted, as defined by Prologis
$ 209,986
$ 211,359
$ 654,230
$ 277,722
Weighted
average
common
shares
outstanding
-
Basic
…………………
460,079
458,256
459,720
340,923
Incremental weighted average effect of exchange of limited partnership
units ……………………………………………………………………………..
3,185
3,362
3,260
1,668
Incremental weighted average effect of stock awards …………………….
1,882
790
1,958
1,070
Incremental weighted average effect of exchange of certain
exchangeable debt …………………………………………………………….
11,879
11,879
11,879
-
Weighted
average
common
shares
outstanding
-
Diluted
477,025
474,287
476,817
343,661
FFO per share
-
Diluted, as defined by
Prologis
$ 0.44
$ 0.45
$ 1.37
$ 0.81
Core FFO
Core FFO …………………………………………………………………………
$ 231,962
$ 206,433
$ 618,047
$ 390,502
Noncontrolling interest attributable
to
exchangeable
limited partnership units
(134)
(485)
935
(349)
Interest
expense
on
exchangeable
debt
assumed
converted
…………….…..
4,229
4,114
12,661
12,659
Core FFO -
Diluted
$ 236,057
$ 210,062
$ 631,643
$ 402,812
Weighted
average
common
shares
outstanding
-
Basic
…………………
460,079
458,256
459,720
340,923
Incremental weighted average effect of exchange of limited partnership
units ……………………………………………………………………………..
3,185
3,362
3,260
1,668
Incremental
weighted
average
effect
of
stock
awards
…………………….
1,882
790
1,958
1,070
Incremental weighted average effect of exchange of certain
exchangeable debt ……………………………………………………………...
11,879
11,879
11,879
11,879
Weighted
average
common
shares
outstanding
-
Diluted
477,025
474,287
476,817
355,540
Core FFO per share -
Diluted
$ 0.49
$ 0.44
$ 1.32
$ 1.13
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)
We consider Core 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 Core 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 Core 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 Core 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 Core 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, Core EBITDA
has limitations as an analytical tool and should be used in conjunction with our 
required GAAP presentations. Core EBITDA does not reflect our historical cash
expenditures or future cash requirements for working capital, capital expenditures
distribution requirements or contractual commitments. Core 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 Core EBITDA may not be comparable to EBITDA reported by
other companies. We compensate for the limitations of Core EBITDA by
providing investors with financial statements prepared according to GAAP,
along with this detailed discussion of Core EBITDA and a reconciliation of
Core EBITDA to consolidated net earnings (loss), a GAAP measurement.
We use Core EBITDA to measure both our operating performance and 
liquidity. We calculate Core 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 Core 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.
is as follows (in thousands, except per share amounts):
Calculation of Per Share Amounts
Core EBITDA.


Copyright ©
2012 Prologis
Third Quarter 2012 Report
FFO is not mean 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:  
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.  
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 FFO, as defined by Prologis, are subject to significant fluctuations from period to period 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. 
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.
Notes and Definitions
33
Debt Metrics.
See below for the detailed calculations for the three months ended for the respective
period (
dollars
in
thousands
Three Months Ended
Sept. 30
June 30
2012
2012
Debt as a % of gross real estate assets:
Total
debt
-
at
par…………………………………………………………………………….
$
$
14,137,793
Less: cash and cash equivalents ………………………………………………..……….…
(158,188)
(293,631)
Total
debt,
net
of
cash
……………………………………………………………………..
$
14,154,059
$
Gross real
estate
assets
…………………………………………………………………..
$
31,699,291
$
44.7%
44.2%
Secured debt as a % of gross real estate assets:
Secured debt
-
at
par
……………………………………….…………………………….
$
$
6,117,614
Gross
real
estate
assets
…………………………………………………………………..
$
31,699,291
$
Secured debt as a % of gross real estate assets
19.5%
19.5%
Unencumbered gross real estate assets to unsecured debt:
Unencumbered
gross
real
estate
assets
…………………………………………………
$
$
18,246,262
Unsecured debt
-
at par ….………………………………………………………..……...
$
8,143,064
$
8,020,179
Unencumbered gross real
estate assets to unsecured debt
227.1%
227.5%
Fixed Charge Coverage ratio:
Core EBITDA………………………………………………………………………………..
..
$
393,371
$
395,147
Interest expense……………………………………………………………………………….$
123,161
$
128,042
Amortization and write-off of deferred loan costs …………………..…………………..….
(3,902)
(4,175)
Amortization
of
debt
premium
(discount),
net
…………………….………………………
9,925
9,753
Capitalized interest …………………………………………………….…….………………
13,488
12,946
Preferred
stock
dividends
……………………………………………………….………….
10,305
10,049
Our share of fixed charges from unconsolidated entities ………….…..….……………..…
22,744
Total
fixed
charges
………….………………………………………………………….….
$
174,529
$
179,359
Fixed
charge coverage ratio
2.25x
2.20x
Debt to Core EBITDA:
Total
debt,
net
of
cash
………………………………………………………………….….
$
$
13,844,162
Core EBITDA-annualized…………………………………………………………………...
$
1,573,484
$
1,580,588
9.00x
8.76x
-
18,489,287
Debt to Core EBITDA ratio
6,169,183
31,318,125
14,312,247
13,844,162
31,318,125
14,154,059
21,552
Debt as a % of gross real estate assets
Committed
Equity/Investment
(i)
(ii)
):
is
our
estimate
of
the
gross
real
estate,
which
could
be


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Notes and Definitions
34
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
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 that we expect to incur in 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. 
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.


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Notes and Definitions
35
Gross G&A expense .............................................................
Reported as rental expense ................................................
Reported as private capital expenses ................................
Capitalized amounts .............................................................
Net G&A
Three Months Ended
Nine 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
$
142,672
154,123
$
437,925
$
355,796
(9,925)
(7,079)
(26,415)
5,910
3,902
3,572
13,033
16,160
136,649
150,616
424,543
377,866
(13,488)
(14,753)
(40,054)
(38,560)
$
123,161
$
135,863
$
384,489
$
339,306
$
Three Months Ended
Nine Months Ended
September 30,
September 30,
2012
2011
2012
2011
$
95,486
94,741
$
287,967
$
243,373
(9,430)
(7,192)
(26,438)
(17,257)
(15,730)
(17,080)
(47,686)
(39,228)
$
(14,440)
(17,128)
(46,383)
(42,524)
$
55,886
53,341
$
167,460
$
$
144,364
Three Months Ended
Nine Months Ended
September 30,
September 30,
2012
2011
2012
2011
$
14,757
$
11,107
$
34,294
$
45,444
3,718
909
12,672
42,398
2,184
667
5,607
23,012
-
-
-
10,869
$
20,659
$
12,683
$
52,573
$
121,723
  
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. 
September 30,
September 30,
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; system conversion; and other integration costs. Certain of these costs
were obligations of AMB and were expensed prior to the closing of the Merger by AMB. The
remainder of the costs  are being expensed by us as incurred, which in some cases will be
through the end of 2012. In addition, we have included costs associated with the acquisition of a
controlling interest in PEPR and reduction in workforce charges associated with dispositions
made in 2011. The following is a breakdown of the costs incurred: 
Global Markets
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.
Interest
Expense
consisted
of
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
on
Acquisitions
and
Dispositions
of
Investments
in
Real
Estate
includes
the
gains
we
recognized from the acquisition of our share of the real estate properties in one of our unconsolidated
co-investment
ventures,
Prologis
California
in
the
first
quarter
of
2012.
Net
Operating
Income
(“NOI”)
represents
rental
income
a
rental
expenses.
Fixed
Charge Coverage
is defined as Core EBITDA divided by total fixed charges. Fixed charges
consist of net interest expense adjusted for amortization of 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
it
allows
fixed
income
investors
to
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.
Market Equity
Merger, Acquisition and Other Integration Expenses.
Write-off of deferred loan costs
.................................................
General
and
Administrative
Expenses
(“G&A”)
consisted
of
the
following
(In
thousands):


Copyright ©
2012 Prologis
Third Quarter 2012 Report
(in thousands)
Reconciliation of NOI
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 and amortization of lease intangibles (c)
Third quarter adjusted cash NOI
Rental Income
includes the following (in thousands):
Three Months Ended
Nine Months Ended
September 30,
September 30,
2012
2011
2012
2011
$
(130,820)
348,554
$
479,374
15,038
(5,772)
(2,784)
(36)
339,962
355,000
Rental income
Amortization of lease intangibles
Rental expense recoveries
Straight-lined rents
Total
$
479,374
11,822
97,081
(10,239)
$
380,710
$
$
335,403
(11,479)
89,165
17,194
430,283
$
1,109,262
(30,245)
285,469
45,636
$
1,410,122
$
684,416
(13,572)
185,734
36,900
$
893,478
Operating
Portfolio
includes
stabilized
operating
industrial
properties
we
own
or
that
we
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
of
industrial
properties, including land and the development of properties. 
Operating
Segments
Private
Capital
represents
the
management
of
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
expeditures.
Pro
forma
NOI
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
is
as
follows:
(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,
net
of
free
rent
amounts,
and
amortization
of
above
and
below
market
leases
are
removed
from
rental income computed under GAAP to allow for the calculation of a cash yield.
Regional
Markets,
similar
to
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. 
Same
Store.
We
evaluate
the
operating
performance
of
the
industrial
operating
properties
we
own
and
manage
using
a
“same
store”
analysis
because
the
population
of
properties
in
this
analysis
is
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 September 30, 2012, as those operating properties in operation at January 1, 2011 that
were in 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 of period-to-period operating performance, we remove the effects
of
foreign
currency
exchange
rate
movements
by
using
the
current
exchange
rate
to
translate
from
local
currency
into
U.S.
dollars,
for
both
periods,
to
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.
In
computing
the
percentage change in rental expenses for the same store analysis, rental expenses include property
management
expenses
for
our
direct
owned
properties
based
on
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
in
Rental
Rate
represents
the
change
in
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
of
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
is
defined
when
a
property
that
was
developed
has
been
completed
for
one
year
or
is
90%
occupied. Upon stabilization, a property is moved into our operating portfolio.
Tenant
Retention
is
the
square
footage
of
all
leases
rented
by
existing
tenants
divided
by
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.
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Notes and Definitions


Copyright ©
2012 Prologis
Third Quarter 2012 Report
Notes and Definitions
Total
Estimated
Investment
(TEI)
represents
total
estimated
cost
of
development or expansion, including land, development and leasing costs. TEI is
based on current projections and is subject to change. Non-U.S. Dollar
investments
are
translated
to
U.S.
Dollars
using
the
exchange
rate
at
period
end
or
the
date
of
development
start
for
purposes
of
calculating
development
starts in any
period.
Total
Market
Capitalization
is
defined
as
market
equity
plus
our
share
of
total debt
and preferred stock.
Turnover Costs
represent the costs incurred in connection with the signing of a
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 managements 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 or more of 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
of
industrial
properties to a higher and better use, including office, residential, retail,
research
and
development,
data
center,
self
storage
or
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 by which the
sales proceeds
exceed
our
original
cost
in
dollars
and
percentages.
Value
Creation
represents
the
value
that
will
be
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 is calculated as
the amount by 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
is
calculated
as
NOI adjusted  to
reflect stabilized occupancy divided by Acquisition Cost or TEI,
as applicable.
37