Earnings
Release
and
Supplemental
Information
Unaudited
Fourth Quarter 2012


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Table of Contents
Overview
Press Release
1
Highlights
Company Profile
4
Company Performance
5
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
Third Party Building Acquisitions
18
Development Starts
19
Development Portfolio
21
Land Portfolio
22
Private Capital
Detail Information
24
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
Park
Dallas,
TX,
United
States
Prologis
Park
Zama
1,
Zama,
Japan
Milton
Keynes
Marston
Gate,
Bedfordshire,
United
Kingdom
Cover:
Prologis
Park
Isle
d'Abeau
Distribution
Center,
France


Copyright ©
2013 Prologis
1
Prologis, Inc. Announces Fourth Quarter 2012 Earnings Results
-
Record 40.5 million square feet of leasing in Q4; 145 million in 2012 -
-
Occupancy increases to 94.0 percent at year end -
-
$1.3 billion in contributions and dispositions in Q4; $2.7 billion in 2012 -
-
Ahead of schedule on 10 Quarter Strategic Plan -
SAN FRANCISCO (Feb. 6, 2013) – Prologis, Inc. (NYSE: PLD), the leading
global owner, operator and developer of industrial real estate, today reported
results for the fourth quarter and full year 2012.
Core funds from operations (Core FFO) per fully diluted share was $0.42 for
the fourth quarter 2012 compared to $0.44 for the same period in 2011. Core
FFO per fully diluted share for full year 2012 was $1.74 compared to $1.58 for
full year 2011.
Net loss per fully diluted share was $0.50 for the fourth quarter 2012 compared
to a net loss of $0.10 for the same period in 2011. Net loss per share was
$0.18 for the full year 2012 compared to a net loss of $0.51 for the same period
in 2011. The net loss for the quarter and year was principally due to impairment
charges and losses on the early extinguishment of debt which were partially
offset by gains on acquisitions and dispositions of real estate.
“This marks the first full year as a combined company and Prologis delivered
very strong results,” said Hamid Moghadam, chairman and CEO, Prologis. “We
are ahead of schedule on our 10 Quarter Plan and we’ve built a solid
foundation upon which we will continue to grow the company.”
Operating Portfolio Metrics 
The company leased a record 40.5 million square feet (3.8 million square
meters) in its combined operating and development portfolios in the fourth
quarter, and 145.3 million square feet (13.5 million square meters) in the full
year 2012. Prologis ended the quarter with 94.0 percent occupancy in its
operating portfolio, up 90 basis points over the prior quarter and 180 basis
points over year end 2011. Tenant retention in the quarter was 87.3 percent,
with tenant renewals totaling 25.1 million square feet (2.3 million square
meters).
“Our team did an exceptional job setting another quarterly record for leasing
around the globe,” said Moghadam. “Increasing demand and lack of supply
remain the theme in most markets, and we expect our overall rent change on
rollover to turn positive this year. In the United States, in particular, occupancy
in our small spaces increased 280 basis points year over year, and we expect
this trend will continue given improvements in the housing market.”
Same-store net operating income (NOI) increased 0.1 percent in the fourth
quarter and 1.3 percent in the full year 2012. Rental rates on leases signed in
the fourth quarter same-store pool decreased by 2.4 percent from in-place
rents.
Dispositions and Contributions
Prologis completed $1.3 billion in contributions and dispositions in the fourth
quarter, of which more than $1.0 billion was Prologis’ share. This includes
approximately: 
$878 million of third-party building and land dispositions primarily in the
United States and Europe, of which $700 million was the company's
share; and
$401 million of contributions to Prologis European Properties Fund II,
Prologis Europe Logistics Venture, Prologis Targeted Europe Logistics
Fund, and joint ventures in Brazil, of which $325 million was the
company’s share.
In the full year 2012, contributions and dispositions totaled $2.7 billion, of which
more than $2.1 billion was the company's share.
Additionally, the company has approximately $5 billion of operating portfolio
assets in Japan and Europe scheduled for contribution in the first quarter of
2013, in connection with Nippon Prologis REIT (NPR) and Prologis European
Logistics Partners Sàrl (PELP), subject to the listing of NPR and customary
closing conditions. The combination of these transactions, in conjunction with
fourth quarter activity, positions the company ahead of its 10 Quarter Plan.
“We continue to make excellent progress executing on our priority to realign
our portfolio,” said Thomas Olinger, chief financial officer, Prologis. “These
dispositions and contributions reflect the diversity of our activities as well as the
market’s demand for high quality industrial real estate.”


Copyright ©
2013 Prologis
2
Development Starts and Building Acquisitions 
Committed capital during the fourth quarter 2012 totaled approximately $1.2
billion, of which $909 million was Prologis' share, including:
Development starts of $727 million, of which $613 million was
Prologis’ share. These starts totaled 7.3 million square feet (675,000
square meters), and monetized $190 million of land. The company’s
estimated share of value creation on development starts in the fourth
quarter was $71 million.
Acquisitions of $458 million, including $276 million in buildings with a
stabilized capitalization rate of 7.4 percent and an investment of $182
million in land and land infrastructure. Of the total acquisitions, $295
million was Prologis’ share.
Capital committed during the year totaled approximately $2.5 billion, of which
$2.0 billion was the company’s share. This included development starts of $1.6
billion, of which 57 percent were build-to-suits, and acquisitions of $983 million,
including $544 million in buildings with a stabilized capitalization rate of 7.3
percent and an investment of $439 million in land and land infrastructure.
At quarter end, Prologis' global development pipeline comprised 22.5 million
square feet (2.1 million square meters), with a total expected investment of
$2.1 billion, of which Prologis' share was $1.9 billion. The company’s share of
estimated value creation at stabilization is expected to be $354 million, with a
weighted average stabilized yield of 7.8 percent and a margin of approximately
19 percent.
Private Capital Activity
In 2012, Prologis raised or received commitments for $1.9 billion in new, third-
party equity. This was primarily due to PELP, and also included Prologis
Targeted U.S. Logistics Fund and Prologis Targeted Europe Logistics Fund.
The company continued streamlining its co-investment ventures into fewer,
more profitable and differentiated investment vehicles, rationalizing six funds in
2012. 
In the fourth quarter, Prologis concluded the Prologis North American Fund I.
Two of the fund’s assets were sold to third parties with the remaining portfolio
divided up between the partners, of which Prologis’ share was $117 million.
Capital Markets
Prologis completed approximately $1.1 billion of capital markets activity in the
fourth quarter and $4.8 billion for the full year 2012. This includes debt
financings, re-financings, and pay-downs.
Subsequent to quarter end, the company paid off $141 million of its 1.875
percent convertible notes and repaid $319 million of secured debt.
Guidance for 2013 
Prologis established a full-year 2013 Core FFO guidance range of $1.60 to
$1.70 per diluted share. On a GAAP basis, the company expects to recognize
a range of a net loss of ($0.07) per share to net earnings of $0.03 per share.
From a fourth quarter run rate perspective, this slight decline from 2012 is
primarily due to near-term dilution from disposition and contribution activities,
which are expected to significantly deleverage the company by the end of the
first quarter.
The Core FFO and earnings guidance reflected above excludes any potential
future gains (losses) recognized from real estate transactions. In reconciling
from net earnings to Core FFO, Prologis makes certain adjustments, including
but not limited to real estate depreciation and amortization expense,
impairment charges, deferred taxes, early extinguishment of debt, and
unrealized gains or losses on foreign currency or derivative activity. 
The difference between the company's Core FFO and net earnings guidance
for 2013 predominantly relates to real estate depreciation and recognized
gains on real estate transactions. 
The principal drivers supporting Prologis’ 2013 guidance include the following:
Year end occupancy in its operating portfolio between 94 to 95
percent (consistent with historical seasonal trends, the company
expects occupancy to decrease in the first quarter and trend higher
through the remainder of the year);
Same-store NOI growth of 1.5 to 2.5 percent, excluding the impact of
foreign exchange movements;
Development starts of $1.5 to $1.8 billion, of which approximately 75
percent is expected to be the company’s share;
Building acquisitions of $400 to $600 million, of which approximately
35 percent is expected to be the company’s share;
Building and land dispositions and contributions of $7.5 to $10.0
billion, of which approximately 60 percent is expected to be the
company’s share; and
A euro exchange rate of $1.35; and a yen exchange rate of JPY 92
per U.S. dollar.


Copyright ©
2013 Prologis
3
Webcast and Conference Call Information 
The company will host a webcast /conference call to discuss quarterly results,
current market conditions and future outlook today, Feb. 6, 2013, at 12:00 p.m.
U.S. Eastern Time. Interested parties are encouraged to access the live
webcast by clicking the microphone icon located near the top of the opening
page of the Prologis Investor Relations website (http://ir.prologis.com).
Interested parties also can participate via conference call by dialing +1 877-
256-7020 (from the U.S. and Canada toll free) or +1 973-409-9692 (from all
other countries) and enter conference code 86463676
A telephonic replay will be available from Feb. 6 through March 6 at +1 855-
859-2056 (from the U.S. and Canada) or +1 404-537-3406 (from all other
countries), with conference code 86463676. The webcast and podcast replay
will be posted when available in the "Financial Information" section of Investor
Relations on the Prologis website. 
About Prologis
Prologis, Inc., is the leading owner, operator and developer of industrial real
estate, focused on global and regional markets across the Americas, Europe
and Asia. As of Dec. 31, 2012, Prologis owned or had investments in, on a
consolidated basis or through unconsolidated joint ventures, properties and
development projects expected to total approximately 554 million square feet
(51.5 million square meters) in 21 countries. The company leases modern
distribution facilities to more than 4,500 customers, including manufacturers,
retailers, transportation companies, third-party logistics providers and other
enterprises.
The statements in this release that are not historical facts are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are based on current
expectations, estimates and projections about the industry and markets in which
Prologis operates, management's beliefs and assumptions made by
management. Such statements involve uncertainties that could significantly
impact Prologis' financial results. Words such as "expects," "anticipates,"
"intends," "plans," "believes," "seeks," "estimates," variations of such words and
similar expressions are intended to identify such forward-looking statements,
which generally are not historical in nature. All statements that address
operating performance, events or developments that we expect or anticipate will
occur in the future — including statements relating to rent and occupancy
growth, development activity and changes in sales or contribution volume of
developed properties, disposition activity, general conditions in the geographic
areas where we operate, synergies to be realized from our recent merger
transaction, our debt and financial position, our ability to form new property
funds and the availability of capital in existing or new property funds — are
forward-looking statements. These statements are not guarantees of future 
performance and involve certain risks, uncertainties and assumptions that are
difficult to predict. Although we believe the expectations reflected in any
forward-looking statements are based on reasonable assumptions, we can give
no assurance that our expectations will be attained and therefore, actual
outcomes and results may differ materially from what is expressed or 
forecasted in such forward-looking statements. Some of the factors that may
affect outcomes and results include, but are not limited to: (i) national,
international, regional and local economic climates, (ii) changes in financial
markets, interest rates and foreign currency exchange rates, (iii) increased or
unanticipated competition for our properties, (iv) risks associated with
acquisitions, dispositions and development of properties, (v) maintenance of
real estate investment trust ("REIT") status and tax structuring, (vi) availability of
financing and capital, the levels of debt that we maintain and our credit ratings,
(vii) risks related to our investments in our co-investment ventures and funds,
including our ability to establish new co-investment ventures and funds, (viii)
risks of doing business internationally, including currency risks, (ix)
environmental uncertainties, including risks of natural disasters, and (x) those
additional factors discussed in reports filed with the Securities and Exchange
Commission by Prologis under the heading "Risk Factors." Prologis undertakes
no duty to update any forward-looking statements appearing in this release
Media Contacts
Tracy Ward, Tel: +1 415 733 9565, tward@prologis.com, San Francisco
Atle Erlingsson, Tel: +1 415 733 9495, aerlingsson@prologis.com, San
Francisco


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Highlights
Company Profile
4
(A)
Generally represents properties in which Prologis has an ownership interest but does not manage (6 msf) and other properties owned by Prologis (4 msf), which includes value added
properties (3 msf).
(B)
Original cost basis for the total land portfolio is $3.0 billion.
Number of operating portfolio buildings
2,330
              
585
                 
77
                    
360
                 
135
                 
27
                    
12
                    
2
                      
8
                      
8
                      
1
                      
1
                      
Total (msf)
380
                 
138
                 
36
                    
$968
$203
$921
7,614
              
3,485
              
170
                 
$1,074
$710
$109
Land (acres)
Land gross book value (millions) (B)
AMERICAS (4 countries)
ASIA (3 countries)
EUROPE (14 countries)
Operating Portfolio (msf)
Development Portfolio (msf)
Other (msf)  (A)
Development portfolio TEI (millions)
TOTAL
522
              
1,893
$         
2,092
$         
10
                
22
                
554
              
11,269
         
2,992
           
Prologis, Inc. is the leading owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia.
As of December 31, 2012, Prologis owned or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development
projects totaling 554 million square feet (51.5 million square meters) in 21 countries. The company leases modern distribution facilities to more than 4,500
customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Highlights
Company Performance
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.
2012
2011
2012
2011 (A)
517,557
$    
456,777
$    
2,005,961
$
1,451,327
(228,713)
    
(45,459)
      
(80,946)
      
(188,110)
    
(88,199)
      
134,147
      
552,435
     
411,688
      
195,816
      
203,945
      
813,863
     
593,917
      
110,786
      
147,934
      
563,180
     
431,450
      
376,940
      
386,965
      
1,516,263
  
1,514,150
   
Net loss available for common stockholders
(0.50)
$        
(0.10)
$        
(0.18)
$        
(0.51)
$        
FFO, as defined by Prologis
(0.19)
          
0.29
            
1.19
           
1.10
            
Core FFO
0.42
            
0.44
            
1.74
           
1.58
            
Per common share - diluted:
FFO, as defined by Prologis
Core FFO
AFFO
Adjusted EBITDA
Year ended December 31,
Revenues
Net loss available for common stockholders
(dollars in thousands, except per share data)
Three months ended December 31,
$-
$50
$100
$150
$200
$250
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Core FFO (in millions)
92.3%
92.4%
93.1%
94.0%
85%
90%
95%
100%
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Operating
Portfolio
-
Owned
and
Managed
Period
Ending
Occupancy
%


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Financial Information
Consolidated Balance Sheets
6
(in thousands)
$
22,608,248
                    
$
23,304,246
                    
$
21,552,548
                    
951,643
                         
774,821
                         
860,531
                         
1,794,364
                      
1,924,626
                      
1,984,233
                      
454,868
                         
457,373
                         
390,225
                         
25,809,123
                    
26,461,066
                    
24,787,537
                    
2,480,660
                      
2,389,214
                      
2,157,907
                      
Net investments in properties
23,328,463
                    
24,071,852
                    
22,629,630
                    
2,195,782
                      
2,242,075
                      
2,857,755
                      
188,000
                         
243,979
                         
322,834
                         
26,027
                           
376,642
                         
444,850
                         
Net investments in real estate
25,738,272
                    
26,934,548
                    
26,255,069
                    
100,810
                         
158,188
                         
176,072
                         
176,926
                         
172,515
                         
71,992
                           
171,084
                         
181,855
                         
147,999
                         
1,123,053
                      
1,129,316
                      
1,072,780
                      
Total assets
$
27,310,145
                    
$
28,576,422
                    
$
27,723,912
                    
$
11,790,794
                    
$
12,578,060
                    
$
11,382,408
                    
1,746,015
                      
1,823,841
                      
1,886,030
                      
Total liabilities
13,536,809
                    
14,401,901
                    
13,268,438
                    
582,200
                         
582,200
                         
582,200
                         
4,618
                             
4,609
                             
4,594
                             
16,411,855
                    
16,395,797
                    
16,349,328
                    
(233,563)
                        
(165,100)
                        
(182,321)
                        
(3,696,093)
                     
(3,335,757)
                     
(3,092,162)
                     
Total stockholders' equity
13,069,017
                    
13,481,749
                    
13,661,639
                    
653,125
                         
639,631
                         
735,222
                         
51,194
                           
53,141
                           
58,613
                           
Total equity
13,773,336
                    
14,174,521
                    
14,455,474
                    
Total liabilities and equity
$
27,310,145
                    
$
28,576,422
                    
$
27,723,912
                    
Noncontrolling interests - limited partnership unitholders
Preferred stock
Accounts payable, accrued expenses, and other liabilities
Debt
Distributions in excess of net earnings
Equity:
Common stock
Additional paid-in capital
Accumulated other comprehensive loss
Noncontrolling interests
Stockholders' equity:
Other assets
Liabilities:
Less accumulated depreciation
Restricted cash
Accounts receivable
Cash and cash equivalents
Liabilities and Equity:
December 31, 2011
Investments in and advances to unconsolidated entities
Land
Assets held for sale
Operating properties
Development portfolio
Notes receivable backed by real estate
December 31, 2012
Investments in real estate assets:
September 30, 2012
Assets:
Other real estate investments


Copyright ©
2013 Prologis
Supplemental 4Q 2012
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)
$
481,743
            
$
415,226
            
$
1,869,224
         
$
1,294,872
         
31,715
              
40,230
              
126,779
            
137,619
            
4,099
                
1,321
                
9,958
                
18,836
              
517,557
            
456,777
            
2,005,961
         
1,451,327
         
131,696
            
110,169
            
505,499
            
358,559
            
16,134
              
15,734
              
63,820
              
54,962
              
60,608
              
50,797
              
228,068
            
195,161
            
28,103
              
18,772
              
80,676
              
140,495
            
243,138
            
21,237
              
252,914
            
21,237
              
187,770
            
180,628
            
739,981
            
552,849
            
9,414
                
9,789
                
26,556
              
24,031
              
676,863
            
407,126
            
1,897,514
         
1,347,294
         
(159,306)
           
49,651
              
108,447
            
104,033
            
10,414
              
904
                    
25,703
              
49,326
              
815
                    
3,016
                
5,973
                
10,609
              
5,107
                
5,780
                
22,299
              
19,843
              
(123,623)
           
(129,055)
           
(507,484)
           
(468,072)
           
-
                     
(22,609)
             
(16,135)
             
(126,432)
           
24,639
              
(2,966)
               
305,607
            
111,684
            
(2,567)
               
(3,584)
               
(19,918)
             
33,337
              
(19,033)
             
556
                    
(14,114)
             
258
                    
(104,248)
           
(147,958)
           
(198,069)
           
(369,447)
           
(263,554)
           
(98,307)
             
(89,622)
             
(265,414)
           
3,364
                
(8,184)
               
3,580
                
1,776
                
(266,918)
           
(90,123)
             
(93,202)
             
(267,190)
           
2,958
                
13,039
              
27,632
              
50,638
              
48,620
              
37,069
              
35,098
              
58,614
              
51,578
              
50,108
              
62,730
              
109,252
            
(215,340)
           
(40,015)
             
(30,472)
             
(157,938)
           
(3,068)
               
4,832
                
(9,248)
               
4,524
                
(218,408)
           
(35,183)
             
(39,720)
             
(153,414)
           
10,305
              
10,276
              
41,226
              
34,696
              
$
(228,713)
           
$
(45,459)
             
$
(80,946)
             
$
(188,110)
           
460,447
            
458,383
            
459,895
            
370,534
            
$
(0.50)
                 
$
(0.10)
                 
$
(0.18)
                 
$
(0.51)
                 
2012
2011 (A)
Twelve Months Ended
December 31,
Expenses:
2012
2011
Revenues:
Rental income
Private capital revenue
Development management and other income
Total revenues
Three Months Ended
December 31,
Interest expense
Earnings from other unconsolidated joint ventures, net
Rental expenses
Private capital expenses
General and administrative expenses
Impairment of real estate properties
Depreciation and amortization
Merger, acquisition and other integration expenses
Total expenses
Operating income (loss)
Other income (expense):
Earnings from unconsolidated co-investment ventures, net
Interest income
Other expenses
Discontinued operations:
Impairment of other assets
Gain (loss) on acquisitions and dispositions of investments in real estate, net
Foreign currency and derivative gains (losses) and other income (expenses), net
Gain (loss) on early extinguishment of debt, net
Total other income (expense)
Loss before income taxes
Income tax expense (benefit) - current and deferred
Loss from continuing operations
Income attributable to disposed properties and assets held for sale
Net gain on dispositions, including related impairment charges and taxes
Consolidated net loss
Net loss (earnings) attributable to noncontrolling interests
Net loss attributable to controlling interests
Less preferred stock dividends
Net loss available for common stockholders
Total discontinued operations
Net loss per share available for common stockholders - Diluted
Weighted average common shares outstanding - Diluted (B)


Copyright ©
2013 Prologis
Supplemental 4Q 2012
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.
$
(228,713)
           
$
(45,459)
             
$
(80,946)
             
$
(188,110)
           
182,134
            
175,754
             
721,436
            
533,854
             
13,141
              
5,300
                 
34,801
              
5,300
                 
(65,866)
             
(20,265)
             
(222,752)
           
(7,338)
               
(5,592)
               
(8,199)
               
(27,680)
             
(19,889)
             
23,032
              
43,879
               
127,323
            
147,608
             
(81,864)
             
151,010
             
552,182
            
471,425
             
(666)
                   
6,002
                 
14,892
              
(39,034)
             
(2,162)
               
(22,558)
             
(8,804)
               
(19,803)
             
(3,507)
               
(307)
                   
(5,835)
               
(900)
                   
(88,199)
             
134,147
             
552,435
            
411,688
             
229,997
            
38,546
               
264,844
            
145,028
             
-
                         
-
                         
-
                         
5,210
                 
28,103
              
18,772
               
80,676
              
140,495
             
(5,835)
               
2,538
                 
(121,303)
           
(117,800)
           
19,033
              
(556)
                   
14,114
              
(258)
                   
-
                         
5,415
                 
-
                         
7,331
                 
Our share of reconciling items included in earnings from unconsolidated entities
12,717
              
5,083
                 
23,097
              
2,223
                 
284,015
            
69,798
               
261,428
            
182,229
             
$
195,816
            
$
203,945
             
$
813,863
            
$
593,917
             
(5,543)
               
(8,678)
               
(27,753)
             
(42,287)
             
(36,037)
             
(21,473)
             
(90,144)
             
(64,918)
             
(26,970)
             
(19,558)
             
(95,566)
             
(60,975)
             
(19,481)
             
(15,739)
             
(56,629)
             
(44,905)
             
Amortization of management contracts
1,805
                
1,925
                 
6,419
                
6,749
                 
Amortization of debt discounts/(premiums) and financing costs, net of capitalization
(6,877)
               
(2,344)
               
(19,688)
             
12,387
               
Stock compensation expense
8,073
                
9,856
                 
32,678
              
31,482
               
AFFO
$
110,786
            
$
147,934
             
$
563,180
            
$
431,450
             
Common stock dividends
$
131,624
            
$
130,573
             
$
522,986
            
$
388,333
             
Adjustments to arrive at Adjusted FFO ("AFFO"), including our share of unconsolidated entities:
Adjustments to arrive at Core FFO, including our share of unconsolidated entities:
Adjustments to arrive at Core FFO
Impairment charges
Japan disaster expenses
Merger, acquisition and other integration expenses
Loss (gain) on early extinguishment of debt, net
Income tax expense on dispositions
Loss (gain) on acquisitions and dispositions of investments in real estate, net
Straight-lined rents and amortization of lease intangibles
Property improvements
Tenant improvements
Leasing commissions
Reconciliation of net loss to FFO
Subtotal-NAREIT defined FFO
FFO, as defined by Prologis
Reconciling items related to noncontrolling interests
Core FFO
Net loss available for common stockholders
Add (deduct) NAREIT defined adjustments:
Add (deduct) our defined adjustments:
Real estate related depreciation and amortization
Net gain on non-FFO dispositions and acquisitions
Our share of reconciling items included in earnings from unconsolidated entities
Unrealized foreign currency and derivative losses (gains), net
Deferred income tax benefit
Our share of reconciling items included in earnings from unconsolidated entities
Impairment charges on certain real estate properties
2012
2011 (A)
Twelve Months Ended
December 31,
2012
2011
Three Months Ended
December 31,
(in thousands)


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Financial Information
EBITDA Reconciliation
9
(A) Adjustments
during
2012
include
the
effects
of
Prologis
North
American
Industrial
Fund
II
and
Prologis
California
to
reflect
NOI
for
the
full
period.
See
Notes
and
Definitions
for
more
detail.
Reconciliation of consolidated net loss to Adjusted EBITDA
$
(228,713)
           
$
(45,459)
             
$
(80,946)
             
$
(188,110)
           
(73,492)
             
(35,403)
             
(371,534)
           
(176,173)
           
187,770
            
180,628
            
739,981
            
552,849
            
123,623
            
129,055
            
507,484
            
468,072
            
243,138
            
43,846
              
299,645
            
150,328
            
28,103
              
18,772
              
80,676
              
140,495
            
19,033
              
(556)
                   
14,114
              
(258)
                   
3,597
                
(6,884)
               
3,813
                
4,992
                
-
                         
-
                         
12,352
              
263,994
            
(2,958)
               
(13,039)
             
(27,632)
             
(50,638)
             
(113)
                   
8,560
                
(431)
                   
21,551
              
3,068
                
(4,832)
               
9,248
                
(4,524)
               
10,305
              
10,276
              
41,226
              
34,696
              
7,407
                
15,858
              
47,570
              
(7,551)
               
-
                         
-
                         
-
                         
5,210
                
320,768
            
300,822
            
1,275,566
         
1,214,933
         
(2,330)
               
5,083
                
1,993
                
5,083
                
32,101
              
43,879
              
129,547
            
147,608
            
22,659
              
37,231
              
92,381
              
142,282
            
5,674
                
-
                         
11,673
              
-
                         
304
                    
-
                         
4,200
                
-
                         
1,271
                
257
                    
6,738
                
4,918
                
(3,507)
               
(307)
                   
(5,835)
               
(900)
                   
-
                         
-
                         
-
                         
226
                    
$
376,940
            
$
386,965
            
$
1,516,263
         
$
1,514,150
         
Depreciation and amortization from continuing operations
Pro forma adjustment (A)
2011
2012
Interest expense from continuing operations
Current and deferred income tax expense (benefit)
Impairment charges
Merger, acquisition and other integration expenses
Twelve Months Ended
December 31,
2012
2011
Net gain on acquisitions and dispositions of investments in real estate
Net loss available for common stockholders
Three Months Ended
December 31,
Loss (gain) on early extinguishment of debt
Adjusted EBITDA
Interest expense
Current income tax expense
Realized losses on derivative activity
Depreciation and amortization
Unrealized gains and deferred income tax benefit
Our share of reconciling items from unconsolidated entities:
Income attributable to disposal properties and assets held for sale
Net loss (gain) on disposition of real estate, net
Other adjustments made to arrive at Core FFO
Adjusted EBITDA, prior to our share of unconsolidated entities
Unrealized losses (gains) and stock compensation expense, net
Loss on early extinguishment of debt
Net earnings (loss) attributable to noncontrolling interest
Preferred stock dividends
Impairment of real estate properties and other assets
NOI attributable to assets held for sale
(in thousands)


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Financial Information
Pro-rata Balance Sheet Information
10
(in thousands)
Investments in real estate assets:
22,608,248
  
$
(894,076)
     
$
4,406,432
          
$
26,120,604
$
14,113,579
 
$
40,234,183
3,200,875
    
(58,135)
       
114,084
             
3,256,824
  
232,721
      
3,489,545
  
(2,480,660)
  
35,533
         
(359,453)
            
(2,804,580)
(1,129,630)
  
(3,934,210)
23,328,463
  
(916,678)
     
4,161,063
          
26,572,848
13,216,670
 
39,789,518
2,195,782
    
(63,210)
       
(2,132,572)
         
-
                
63,210
        
63,210
       
1,785,900
    
(227,350)
     
19,225
               
1,577,775
  
1,085,806
   
2,663,581
  
Total assets
27,310,145
  
$
(1,207,238)
  
$
2,047,716
          
$
28,150,623
$
14,365,686
 
$
42,516,309
-
                
Liabilities:
11,790,794
  
$
(364,164)
     
$
1,781,510
          
$
13,208,140
$
5,775,205
   
$
18,983,345
1,746,015
    
(138,755)
     
266,206
             
1,873,466
  
866,752
      
2,740,218
  
Total liabilities
13,536,809
  
(502,919)
     
2,047,716
          
15,081,606
6,641,957
   
21,723,563
Equity:
13,069,017
  
-
                   
-
                          
13,069,017
7,723,729
   
20,792,746
704,319
       
(704,319)
     
-
                          
-
                
-
                   
-
                
Total equity
13,773,336
  
(704,319)
     
-
                          
13,069,017
7,723,729
   
20,792,746
Total liabilities and equity
$
27,310,145
  
$
(1,207,238)
  
$
2,047,716
          
$
28,150,623
$
14,365,686
 
$
42,516,309
Net investments in properties
Pro-rata Balance Sheet Information as of
December 31, 2012
Consolidated
Less Non
Controlling
Interest
Liabilities and Equity:
Gross operating properties
Other real estate
Less accumulated depreciation
Investments in unconsolidated investees
Other assets
PLD Total
Share
Investors'
Share of
Ventures
Total Owned
and Managed
Assets:
Plus PLD Share of
Unconsolidated
Co-Investment
Ventures
Noncontrolling interests
Debt
Other liabilities
Stockholders' / partners' equity
On this page and the following page, we present balance sheet and income statement information on a pro-rata basis reflecting our proportionate economic
ownership of each entity included in our Total Owned and Managed portfolio.
The consolidated amounts shown are derived from, and prepared on a consistent basis with, our consolidated financial statements. The PLD Share of
Unconsolidated Co-Investment Ventures column was derived on an entity-by-entity basis by applying our ownership percentage to each line item to calculate
our share of that line item. For purposes of balance sheet data, we used our ownership percentage at the end of the period and for operating information, we
used our average ownership percentage for the period, consistent with how we calculate our share of net income (loss) during the period.  We used a similar
calculation to derive the noncontrolling interests’ share of each line item. In order to present the Total Owned and Managed portfolio, we added our investors’
share of each line item in the unconsolidated co-investment ventures and the noncontrolling interests share of each line item to the PLD Total Share. 


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Financial Information
Pro-rata Operating Information
11
(in thousands)
Prologis’
Share (in millions)
Real Estate Operations NOI
Private Capital NOI
Development Value Creation  (B)
$
481,743
$
(19,004)
$
87,793
$
550,532
$
272,664
$
823,196
31,715
(16)
-
31,699
16
31,715
4,099
-
381
4,480
355
4,835
517,557
(19,020)
88,174
586,711
273,035
859,746
131,696
(5,854)
22,475
148,317
71,433
219,750
16,134
-
-
16,134
-
16,134
60,608
(479)
3,258
63,387
10,796
74,183
28,103
-
-
28,103
-
28,103
243,138
-
1,684
244,822
4,375
249,197
187,770
(7,242)
32,585
213,113
105,744
318,857
9,414
(510)
1,596
10,500
7,399
17,899
676,863
(14,085)
61,598
724,376
199,747
924,123
(159,306)
(4,935)
26,576
(137,665)
73,288
(64,377)
66,586
-
(66,586)
-
-
469,660
(8,163)
40,010
501,507
121,931
623,438
$
376,940
$
(13,098)
$
-
$
363,842
$
195,219
$
559,061
$
344,732
$
(12,640)
$
64,103
$
396,195
$
194,187
$
590,382
15,581
(16)
-
15,565
16
15,581
66,586
-
(66,586)
-
-
-
(49,959)
(442)
2,483
(47,918)
1,016
(46,902)
$
376,940
$
(13,098)
$
-
$
363,842
$
195,219
$
559,061
Total reconciling items to Adjusted EBITDA
Adjusted EBITDA (A)
Adjusted EBITDA
Private Capital NOI
General and administrative and other expenses
Our share of co-investment ventures
Adjusted EBITDA by segment:
Real Estate Operations NOI
Total Owned
and Managed
Plus PLD Share of
Unconsolidated
Co-Investment
Ventures
PLD Total
Share
Impairment of real estate properties
Less Non
Controlling
Interest
Total revenues
Pro-rata Operating Information for
Three Months Ended December 31, 2012
Consolidated
General and administrative expenses
Merger, acquisition and other integration expenses
Depreciation and amortization
Other expenses
Total expenses
Operating income (loss)
Our share of co-investment ventures
Investors'
Share of
Ventures
Development management and other income
Expenses:
Rental expenses
Private capital expenses
Revenues:
Rental income
Private capital revenue
$-
$100
$200
$300
$400
$500
$396.6 (96%)
$15.6 (4%)
$13.2
(A)
See reconciliation of Consolidated Net Loss to Adjustd EBITDA on page 9.
(B)
Represents Value Creation for development properties that reached Stabilization during the quarter and moved into the Operating Portfolio.
-


Copyright ©
2013 Prologis
Supplemental 4Q 2012
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
117
14,053
11,320
80.6%
3.1%
86.1%
86.1%
86.1%
86.1%
Baltimore/Washington
East
68
8,095
5,340
66.0%
1.5%
95.3%
94.8%
95.3%
94.8%
Central Valley
Northwest
24
8,970
7,127
79.5%
1.9%
91.9%
92.3%
93.4%
94.2%
Central & Eastern PA
East
27
14,049
7,136
50.8%
1.9%
94.2%
96.4%
95.1%
96.8%
Chicago
Central
221
36,329
28,355
78.1%
7.8%
91.4%
91.7%
91.4%
91.7%
Dallas/Ft. Worth
Central
159
22,878
18,863
82.5%
5.2%
95.3%
95.8%
95.7%
96.2%
Houston
Central
77
9,420
6,815
72.3%
1.9%
98.2%
98.6%
98.2%
98.6%
New Jersey/New York City
East
169
21,656
15,940
73.6%
4.4%
95.5%
94.7%
95.5%
94.7%
San Francisco Bay Area
Northwest
242
19,992
17,007
85.1%
4.6%
91.7%
92.0%
91.7%
92.1%
Seattle
Northwest
76
10,205
5,018
49.2%
1.4%
96.3%
96.9%
96.3%
96.9%
South Florida
East
91
10,553
7,579
71.8%
2.1%
96.5%
95.5%
96.5%
95.5%
Southern California
Southwest
300
55,794
45,426
81.4%
12.4%
97.9%
98.3%
98.2%
98.6%
On Tarmac
Various
31
2,598
2,373
91.3%
0.6%
91.9%
91.2%
91.9%
91.2%
East
19
6,383
5,080
79.6%
1.4%
99.9%
100.0%
99.9%
100.0%
Latin America
185
29,832
17,243
57.8%
4.7%
93.4%
92.9%
93.4%
92.9%
Latin America
7
2,161
292
13.5%
0.1%
100.0%
100.0%
100.0%
100.0%
Americas total
1,813
272,968
200,914
73.6%
55.0%
94.5%
94.6%
94.7%
94.8%
Northern
9
2,016
1,245
61.8%
0.3%
99.6%
99.4%
99.6%
99.4%
Southern
124
29,505
20,925
70.9%
5.7%
94.8%
94.1%
94.8%
94.1%
Northern
88
18,284
7,932
43.4%
2.2%
99.7%
99.6%
99.7%
99.6%
Northern
53
10,699
5,496
51.4%
1.5%
89.8%
89.2%
93.6%
92.6%
CEE
95
20,572
11,793
57.3%
3.2%
87.0%
85.4%
90.7%
89.3%
Southern
26
7,126
6,006
84.3%
1.6%
81.1%
82.6%
88.0%
85.8%
UK
73
17,231
10,520
61.1%
2.9%
97.5%
96.9%
97.5%
96.9%
468
105,433
63,917
60.6%
17.4%
93.2%
92.2%
94.8%
93.5%
China
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%
4.1%
98.0%
97.8%
98.0%
97.8%
Singapore
5
942
942
100.0%
0.3%
100.0%
100.0%
100.0%
100.0%
77
27,222
18,231
67.0%
5.0%
96.9%
97.7%
96.9%
97.7%
2,358
405,623
283,062
69.8%
77.4%
94.3%
94.3%
94.9%
94.7%
CEE
29
6,824
5,099
74.7%
1.4%
95.0%
93.3%
97.8%
97.1%
Southern
27
8,378
7,690
91.8%
2.1%
86.0%
85.5%
86.0%
85.5%
CEE
30
5,346
3,822
71.5%
1.1%
85.1%
86.2%
86.5%
88.2%
Central
17
6,270
5,474
87.3%
1.5%
99.8%
99.8%
99.8%
99.8%
Columbus -
Americas
Central
37
9,727
7,763
79.8%
2.1%
96.4%
95.6%
96.4%
95.6%
Central
50
5,606
4,185
74.7%
1.2%
94.2%
95.1%
94.3%
95.3%
Sweden -
Europe
Northern
10
3,807
2,546
66.9%
0.7%
100.0%
100.0%
100.0%
100.0%
Northwest
33
5,208
4,254
81.7%
1.2%
96.6%
95.9%
96.6%
95.9%
Central
27
6,663
4,142
62.2%
1.2%
98.9%
98.2%
98.9%
98.2%
Central
35
4,360
3,425
78.6%
0.9%
91.0%
89.3%
91.0%
89.3%
Various
87
17,591
11,745
66.8%
3.2%
95.9%
94.9%
95.9%
94.9%
382
79,780
60,145
75.4%
16.6%
94.5%
93.7%
94.9%
94.2%
Various
252
36,769
22,037
59.9%
6.0%
89.8%
92.9%
90.0%
93.1%
2,992
522,172
365,244
69.9%
100.0%
94.0%
94.1%
94.5%
94.5%
Czech Republic -
Europe
Italy -
Europe
San Antonio -
Americas
Orlando -
Americas
Regional markets total
Remaining other regional (5 markets)
Denver -
Americas
Cincinnati -
Americas
Memphis -
Americas
Hungary -
Europe
Other markets (14 markets)
Total operating portfolio -
owned and managed
Regional markets (A)
Asia total
Total global markets
Occupied
Leased
Japan
Global Markets
U.S.
Canada
Belgium
Mexico 
Brazil
Square Feet
Netherlands
Poland
Spain
Europe total
United Kingdom
Singapore
China
France
Germany
`


Copyright ©
2013 Prologis
Supplemental 4Q 2012
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
$8,792
$6,771
77.0%
1.7%
$635,503
$474,398
74.6%
1.8%
Baltimore/Washington
East
9,252
5,746
62.1%
1.4%
620,631
374,892
60.4%
1.4%
Central Valley
Northwest
5,917
4,747
80.2%
1.2%
470,376
365,198
77.6%
1.4%
Central & Eastern PA
East
12,388
6,289
50.8%
1.6%
804,849
393,751
48.9%
1.5%
Chicago
Central 
26,725
20,529
76.8%
5.2%
2,167,484
1,634,526
75.4%
6.1%
Dallas/Ft. Worth
Central 
14,554
11,425
78.5%
2.9%
1,093,351
849,441
77.7%
3.1%
Houston
Central 
10,008
5,958
59.5%
1.5%
523,766
330,740
63.1%
1.2%
New Jersey/New York City
East
25,861
16,937
65.5%
4.3%
1,896,226
1,265,329
66.7%
4.7%
San Francisco Bay Area
Northwest
26,018
23,469
90.2%
5.9%
1,973,782
1,683,632
85.3%
6.3%
Seattle
Northwest
11,164
5,246
47.0%
1.3%
947,506
468,153
49.4%
1.7%
South Florida
East
12,954
9,882
76.3%
2.5%
1,031,022
768,108
74.5%
2.8%
Southern California
Southwest
59,561
48,975
82.2%
12.4%
5,017,690
4,042,857
80.6%
15.0%
On Tarmac
Various
7,489
6,681
89.2%
1.7%
313,749
275,344
87.8%
1.0%
East
8,576
6,709
78.2%
1.7%
639,332
504,677
78.9%
1.9%
Latin America
27,321
16,193
59.3%
4.1%
1,783,499
979,633
54.9%
3.6%
Latin America
4,449
666
15.0%
0.2%
196,065
23,292
11.9%
0.1%
271,029
196,223
72.4%
49.6%
20,114,831
14,433,971
71.8%
53.6%
Northern
2,018
1,297
64.3%
0.3%
168,167
101,488
60.3%
0.4%
Southern
39,647
25,946
65.4%
6.5%
2,470,341
1,651,308
66.8%
6.1%
Northern
25,175
11,001
43.7%
2.8%
1,587,730
641,633
40.4%
2.4%
Northern
12,816
6,998
54.6%
1.8%
1,013,788
495,569
48.9%
1.8%
CEE
18,645
10,814
58.0%
2.7%
1,371,702
711,538
51.9%
2.6%
Southern
8,864
7,925
89.4%
2.0%
599,207
522,722
87.2%
1.9%
UK
33,058
19,646
59.4%
5.0%
2,048,259
1,135,565
55.4%
4.2%
140,223
83,627
59.6%
21.1%
9,259,194
5,259,823
56.8%
19.4%
China
4,220
1,383
32.8%
0.4%
286,301
89,696
31.3%
0.3%
Japan
63,554
45,253
71.2%
11.4%
4,067,908
2,841,262
69.8%
10.6%
Singapore
2,493
2,493
100.0%
0.6%
149,669
149,669
100.0%
0.6%
70,267
49,129
69.9%
12.4%
4,503,878
3,080,627
68.4%
11.5%
481,519
328,979
68.3%
83.1%
33,877,903
22,774,421
67.2%
84.5%
CEE
8,519
6,444
75.6%
1.6%
545,279
385,017
70.6%
1.4%
Southern
6,729
6,082
90.4%
1.5%
543,882
489,656
90.0%
1.8%
CEE
5,449
3,828
70.3%
1.0%
377,890
237,827
62.9%
0.9%
Central
4,459
3,789
85.0%
1.0%
207,423
179,302
86.4%
0.7%
Central
4,945
3,697
74.8%
0.9%
371,554
287,153
77.3%
1.1%
Central
4,585
3,513
76.6%
0.9%
256,149
181,775
71.0%
0.7%
Northern
5,563
3,482
62.6%
0.9%
346,701
216,557
62.5%
0.8%
Northwest
4,386
3,427
78.1%
0.9%
291,347
241,816
83.0%
0.9%
Central
5,622
3,089
54.9%
0.8%
268,989
151,460
56.3%
0.6%
Central
3,501
2,585
73.8%
0.6%
283,619
212,581
75.0%
0.8%
Various
12,933
7,473
57.8%
1.9%
800,379
475,936
59.5%
1.8%
66,691
47,409
71.1%
12.0%
4,293,212
3,059,080
71.3%
11.5%
Various
31,376
19,466
62.0%
4.9%
1,923,762
1,074,773
55.9%
4.0%
$579,586
$395,854
68.3%
100.0%
$40,094,877
$26,908,274
67.1%
100.0%
Sweden -
Europe
Other markets (14 markets)
Total operating portfolio -
owned and managed
Orlando -
Americas
Regional markets total
Denver -
Americas
Cincinnati -
Americas
Remaining other regional (5 markets)
Italy -
Europe
San Antonio -
Americas
Columbus -
Americas
Memphis -
Americas
Japan
Singapore
Asia total
Total global markets
Regional markets (A)
Czech Republic -
Europe
Hungary -
Europe
Poland
Spain
United Kingdom
Europe total
China
Americas total
Belgium
France
Germany
Netherlands
Global Markets
U.S.
Canada
Mexico 
Brazil
Total Owned and
Managed
Prologis
Share ($)
Prologis
Share (%)
Gross Book Value
%  of Total
Fourth Quarter NOI
Total Owned and
Managed
Prologis
Share ($)
Prologis
Share (%)
%  of Total


Copyright ©
2013 Prologis
Supplemental 4Q 2012
14
Operations Overview
Operating Portfolio –
Summary by Division
(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
1,529
232,650
232,650
100.0%
63.7%
94.7%
94.7%
94.9%
94.9%
273
65,127
65,127
100.0%
17.9%
90.9%
90.9%
92.1%
92.1%
33
16,218
16,218
100.0%
4.4%
97.9%
97.9%
97.9%
97.9%
Total
operating
portfolio
-
consolidated
1,835
313,995
313,995
100.0%
86.0%
94.1%
94.1%
94.5%
94.5%
801
126,879
28,516
22.5%
7.8%
93.3%
93.5%
93.5%
93.6%
312
70,294
20,720
29.5%
5.6%
94.9%
94.8%
96.6%
96.5%
44
11,004
2,013
18.3%
0.6%
95.4%
95.9%
95.4%
95.9%
Total
operating
portfolio
-
unconsolidated
1,157
208,177
51,249
24.6%
14.0%
94.0%
94.1%
94.6%
94.9%
2,330
359,529
261,166
72.6%
71.5%
94.2%
94.6%
94.4%
94.8%
585
135,421
85,847
63.4%
23.5%
93.0%
91.8%
94.4%
93.1%
77
27,222
18,231
67.0%
5.0%
96.9%
97.7%
96.9%
97.7%
Total
operating
portfolio
-
owned
and
managed
2,992
522,172
365,244
69.9%
100.0%
94.0%
94.1%
94.5%
94.5%
18
2,352
2,352
100.0%
45.6%
45.6%
45.6%
45.6%
6
576
138
24.0%
36.0%
36.0%
36.0%
36.0%
Total owned and managed
3,016
525,100
367,734
70.0%
93.8%
93.8%
94.2%
94.2%
$211,946
$211,946
100.0%
53.6%
$15,001,381
$15,001,381
100.0%
55.7%
78,405
78,405
100.0%
19.8%
4,771,549
4,771,549
100.0%
17.7%
44,053
44,053
100.0%
11.1%
2,739,270
2,739,270
100.0%
10.2%
$334,404
$334,404
100.0%
84.5%
$22,512,200
$22,512,200
100.0%
83.6%
$124,010
$27,955
22.5%
7.0%
$9,147,380
$2,070,646
22.7%
7.7%
94,958
28,419
29.9%
7.2%
6,670,689
1,984,071
29.7%
7.4%
26,214
5,076
19.4%
1.3%
1,764,608
341,357
19.3%
1.3%
$245,182
$61,450
25.1%
15.5%
$17,582,677
$4,396,074
25.0%
16.4%
$335,956
$239,901
71.4%
60.6%
$24,148,761
$17,072,027
70.7%
63.4%
173,363
106,824
61.6%
27.0%
11,442,238
6,755,620
59.0%
25.1%
70,267
49,129
69.9%
12.4%
4,503,878
3,080,627
68.4%
11.5%
$579,586
$395,854
68.3%
100.0%
$40,094,877
$26,908,274
67.1%
100.0%
162
162
100.0%
96,048
96,048
100.0%
104
25
24.0%
43,258
10,358
23.9%
$579,852
$396,041
68.3%
$40,234,183
$27,014,680
67.1%
Occupied
Leased
Europe
Consolidated
Europe
Total
operating
portfolio
-
consolidated
Americas
Asia
Americas
Consolidated
Americas
Europe
Asia
Unconsolidated
Total Owned
and Managed
Value
added
properties
-
unconsolidated
Asia
Total 
Total
operating
portfolio
-
owned
and
managed
Unconsolidated
Europe
Asia
Total
operating
portfolio
-
unconsolidated
Americas
Americas
% of Total
Prologis
Share ($)
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
Fourth Quarter NOI
Americas
Europe
Asia
Total 
Value
added
properties
-
consolidated


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2012
Q2 2012
Q3 2012
Q4 2012
         1,017
         2,863
         2,279
         3,772
522,571
519,939
514,031
501,957
New leases
       10,023
       11,947
       12,102
       11,571
(0.6%)
1.5%
2.3%
1.8%
Renewals
       19,812
       20,189
       24,599
       25,118
(6.6%)
4.8%
1.1%
6.8%
30,852
     
34,999
     
38,980
     
40,461
     
1.7%
0.4%
2.7%
0.1%
78.3%
82.4%
87.5%
87.3%
Net operating income - adjusted cash
3.1%
2.3%
3.0%
0.8%
$        1.14
$        1.50
$        1.50
$        1.36
2.6%
2.9%
2.3%
2.1%
28,227
30,127
33,852
34,758
Q1 2012
Q2 2012
Q3 2012
Q4 2012
(1.1%)
(3.9%)
(1.8%)
(2.4%)
17,100
$   
21,056
$   
33,704
$   
47,517
$   
0.03
$            
0.04
$            
0.06
$            
0.09
$            
28,598
29,243
31,515
36,715
16,401
18,523
21,483
25,166
Total turnover costs
44,999
47,766
52,998
61,881
62,099
$   
68,822
$   
86,702
$   
109,398
11.9%
(C)
12.0%
(C)
12.7%
13.9%
76.9%
72.2%
72.0%
75.4%
47,734
$   
49,689
$   
62,428
$   
82,488
$   
  Same Store Information (A)
Prologis share
Weighted average ownership percent
  Leasing Activity
Total square feet of leases signed
Properties under development
Trailing four quarters - % of gross NOI
$ per square foot
Average occupancy
Total capital expenditures
Leasing commissions
Property improvements
Rental income
Rental expenses
Operating portfolio:
Weighted average customer retention
Percentage change in rental rates
Tenant improvements
  Capital Expenditures Incurred
Square feet of leases signed:
Square feet of population
Percentage change:
Net operating income - GAAP
Square feet of leasing activity
Turnover costs (per square foot) (B)
92.1%
92.1%
96.2%
92.3%
92.2%
92.1%
96.8%
92.4%
93.3%
92.0%
96.5%
93.1%
94.2%
93.0%
96.9%
94.0%
85%
90%
95%
100%
Total
Asia
Americas
Europe
Q1 2012   Q2 2012   Q3 2012   Q4 2012
Q1 2012   Q2 2012   Q3 2012   Q4 2012
Q1 2012   Q2 2012   Q3 2012   Q4 2012
Q1 2012   Q2 2012   Q3 2012   Q4 2012
Operations Overview
Operating Metrics –
Owned and Managed
15
(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.
(square feet and dollars in thousands)
Period Ending Occupancy by Division


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Operations Overview
Customer Information –
Owned and Managed
16
1
DHL
2.0%
12,074
      
Month to month customers
$
39,295
     
1.5%
11,851
      
2.4%
2
CEVA Logistics
1.4%
6,872
        
2013
342,020
   
12.6%
64,196
      
13.1%
3
Kuehne & Nagel
1.3%
7,074
        
2014
388,289
   
14.3%
75,030
      
15.3%
4
Geodis
1.0%
5,726
        
2015
411,423
   
15.2%
79,793
      
16.2%
5
Amazon.com, Inc.
0.9%
4,678
        
2016
350,782
   
13.0%
63,626
      
13.0%
6
Home Depot, Inc.
0.9%
4,326
        
2017
328,410
   
12.1%
60,939
      
12.4%
7
FedEx Corporation
0.8%
2,376
        
Thereafter
846,453
   
31.3%
135,657
    
27.6%
8
PepsiCo
0.8%
5,350
        
Total
$
2,706,672
100%
491,092
100%
9
Hitachi Ltd
0.8%
2,141
        
10
United States Government
0.8%
1,483
        
10.7%
52,100
      
11
Panasonic Logistics Co. Ltd.
0.7%
2,248
        
12
Tesco PLC
0.7%
2,693
        
Month to month customers
$
27,321
     
1.5%
8,570
        
2.5%
13
Sagawa Express
0.6%
1,112
        
2013
249,631
   
13.4%
47,004
      
13.7%
14
Nippon Express Group
0.6%
1,575
        
2014
278,486
   
15.0%
56,068
      
16.3%
15
ND Logistics
0.6%
2,724
        
2015
275,210
   
14.8%
54,968
      
16.0%
16
Wal-Mart Stores
0.6%
3,239
        
2016
249,409
   
13.4%
46,316
      
13.5%
17
Panalpina, Inc.
0.6%
2,457
        
2017
215,577
   
11.6%
39,881
      
11.6%
18
Kraft Foods, Inc.
0.5%
3,020
        
Thereafter
561,431
30.3%
90,893
26.4%
19
Unilever
0.5%
3,920
        
Total
$
1,857,065
100%
343,700
100%
20
UPS SCS (United Parcel Service Inc.)
0.5%
2,217
        
21
DB Schenker
0.5%
2,410
        
22
Caterpillar Logistics Services
0.4%
1,153
        
23
APL (Neptune Orient Lines)
0.4%
3,983
        
24
LG
0.4%
2,540
        
25
La Poste
0.4%
1,278
        
18.7%
88,669
Percentage
of Total
   Top Customers
   Lease Expirations - Operating Portfolio - Owned and Managed
Year
Percentage
of Total
% of Annual
Base Rent
Total Square
Feet
Occupied
Square Feet
Annual Base
Rent
Top 10 Customers
Top 25 Customers
   Lease Expirations - Operating Portfolio - Prologis Share
Year
Annual Base
Rent
Percentage
of Total
Occupied
Square Feet
Percentage
of Total
(square feet and dollars in thousands)


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Capital Deployment
Dispositions and Contributions
17
(A) Prologis share reflects our effective ownership. For contributions, this amount reflects cash proceeds to Prologis (net of units received for partial consideration).
(B) This is a consolidated fund.
(C) This was a consolidated fund through the second quarter of 2012. Beginning in the third quarter, the assets and liabilities of this fund are now wholly owned.
(square feet and dollars in thousands)
Prologis wholly owned
7,216
             
7,216
              
$332,488
$332,488
100.0%
14,414
           
14,414
            
$714,375
$714,375
100.0%
Prologis AMS (B)
204
                
78
                    
14,560
           
5,604
              
38.5%
204
                
78
                    
14,560
           
5,604
              
38.5%
Prologis Institutional Alliance Fund II (B)
420
                
118
                 
33,693
           
9,485
              
28.2%
850
                
239
                 
62,693
           
17,649
            
28.2%
Prologis North American Industrial Fund
1,541
             
355
                 
56,817
           
13,102
            
23.1%
1,601
             
369
                 
59,217
           
13,656
            
23.1%
Prologis North America Properties Fund I
1,406
             
581
                 
58,769
           
24,272
            
41.3%
1,406
             
581
                 
58,769
           
24,272
            
41.3%
Prologis North American Properties Fund XI
-
                      
-
                       
-
                      
-
                       
-
                      
3,616
             
723
                 
138,959
         
27,791
            
20.0%
Prologis Targeted U.S. Logistics Fund
753
                
180
                 
52,449
           
12,561
            
23.9%
819
                
196
                 
56,081
           
13,468
            
24.0%
Total Americas
11,540
           
8,528
              
548,776
         
397,512
          
72.4%
22,910
           
16,600
            
1,104,654
      
816,815
          
73.9%
Prologis wholly owned
5,214
             
5,214
              
251,114
         
251,114
          
100.0%
7,390
             
7,390
              
386,136
         
386,136
          
100.0%
Prologis European Properties (C)
-
                      
-
                       
-
                      
-
                       
-
                      
3,670
             
3,439
              
338,862
         
317,513
          
93.7%
Prologis European Properties Fund II
553
                
164
                 
30,569
           
9,085
              
29.7%
2,596
             
772
                 
180,743
         
53,715
            
29.7%
Prologis Targeted Europe Logistics Fund
128
                
41
                    
7,445
             
2,393
              
32.1%
345
                
111
                 
15,813
           
5,079
              
32.1%
Total Europe
5,895
             
5,419
              
289,128
         
262,592
90.8%
14,001
           
11,712
            
921,554
         
762,443
          
82.7%
Asia
Prologis wholly owned
-
                      
-
                       
-
                      
-
                       
-
                          
592
                
592
                 
36,938
           
36,938
            
100.0%
Prologis Japan Fund 1
-
                      
-
                       
-
                      
-
                       
-
                          
8
                     
2
                      
993
                
199
                 
20.0%
Total Asia
-
                      
-
                       
-
                      
-
                       
-
                          
600
                
594
                 
37,931
           
37,137
            
97.9%
Total Third Party Building Dispositions
17,435
           
13,947
            
$837,904
$660,104
78.8%
37,511
           
28,906
            
$2,064,139
$1,616,395
78.3%
Brazil Fund and joint ventures
515
                
129
                 
$52,482
$13,121
25.0%
815
                
204
                 
$80,844
$20,211
25.0%
Prologis Mexico Fondo Logistico (B)
-
                      
-
                       
-
                      
-
                       
-
                          
755
                
755
                 
40,650
           
32,520
            
80.0%
Total Americas
515
                
129
                 
52,482
           
13,121
            
25.0%
1,570
             
959
                 
121,494
         
52,731
            
43.4%
Prologis European Properties Fund II
2,104
             
2,104
              
169,933
         
169,933
          
100.0%
2,240
             
2,240
              
185,947
         
185,947
          
100.0%
Europe Logistics Venture 1
1,781
             
1,781
              
131,633
         
111,888
          
85.0%
1,920
             
1,920
              
148,508
         
126,231
          
85.0%
Prologis Targeted Europe Logistics Fund
624
                
624
                 
47,434
           
29,690
            
62.6%
624
                
624
                 
47,434
           
29,690
            
62.6%
Total Europe
4,509
             
4,509
              
349,000
         
311,511
          
89.3%
4,784
             
4,784
              
381,889
         
341,868
          
89.5%
Asia
Total Asia
-
                      
-
                       
-
                      
-
                       
-
                          
-
                      
-
                       
-
                      
-
                       
-
                          
5,024
             
4,638
              
$401,482
$324,632
80.9%
6,354
             
5,743
              
$503,383
$394,599
78.4%
22,459
           
18,585
            
$1,239,386
$984,736
79.5%
43,865
           
34,649
            
$2,567,522
$2,010,994
78.3%
36,435
           
36,435
            
100.0%
91,306
           
91,306
            
100.0%
3,412
             
3,412
              
100.0%
16,836
           
15,455
            
91.8%
$1,279,233
$1,024,583
80.1%
$2,675,664
$2,117,755
79.1%
7.3%
7.3%
Americas
FY 2012
Prologis Share of
Proceeds (%) (A)
Prologis Share
of Square Feet
Prologis Share of
Proceeds (%) (A)
Total Proceeds
Prologis Share
of Proceeds ($)
Square Feet
Prologis Share
of Square Feet
Prologis Share
of Proceeds ($)
Total Proceeds
Weighted average stabilized cap rate on building dispositions and
contributions
Grand Total Dispositions and Contributions
Europe
Square Feet
Q4 2012
Land dispositions and contributions
Other real estate dispositions
Americas
Europe
Total Contributions and Dispositions to Co-Investment Ventures
Total Building Dispositions and Contributions
Building Contributions and Dispositions to Co-Investment Ventures
Third Party Building Dispositions


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Capital Deployment
Third Party Building Acquisitions
18
Prologis Share of
Prologis Share of
Acquisition
Cost (%) (A)
Acquisition
Cost (%) (A)
Third Party Building Acquisitions
Prologis wholly owned (B)
2,556
            
2,556
           
$  111,976
$  111,976
100.0%
3,563
        
3,563
        
$  169,019
$  169,019
100.0%
Prologis Mexico Fondo Logistico (C)
159
               
32
                
6,773
            
1,355
                
20.0%
449
           
90
             
17,048
           
3,410
                
20.0%
Prologis North American Industrial Fund
-
                    
-
                    
-
                    
-
                         
-
                         
41
             
9
               
2,886
             
667
                    
23.1%
Prologis Targeted U.S. Logistics Fund
2,154
            
516
              
157,718
        
37,766
              
23.9%
3,125
        
770
           
267,679
         
66,099
              
24.7%
Total Americas (D)
4,869
            
3,104
           
276,467
        
151,097
            
54.7%
7,178
        
4,432
        
456,632
         
$  239,195
52.4%
Europe Logistics Venture 1
-
                    
-
                    
-
                    
-
                         
-
                         
762
           
114
           
50,194
           
7,529
                
15.0%
Prologis European Properties Fund II
-
-
-
-
-
717
           
213
           
36,812
           
10,940
              
29.7%
Total Europe
-
                    
-
                    
-
                    
-
                         
-
                         
1,479
        
327
           
87,006
           
18,469
              
21.2%
Asia
-
                    
-
                    
-
                    
-
                         
-
                         
-
                
-
                
-
                     
-
                         
-
                         
4,869
            
3,104
           
$  276,467
$  151,097
54.7%
8,657
        
4,759
        
$  543,638
$  257,664
47.4%
7.4%
7.3%
Q4 2012
FY 2012
Prologis Share of
Acquisition    
Cost ($)
Prologis
Share of
Square Feet
Square Feet
Acquisition
Cost
Prologis Share of
Acquisition     
Cost ($)
Acquisition
Cost
Square Feet
Americas
Weighted average stabilized cap rate
Prologis Share
of Square
Feet
Total Third Party Building Acquisitions
Europe
(square feet and dollars in thousands)
(A)
Prologis share reflects our effective ownership.
(B)
Includes properties totaling 2.4 million square feet for total acquisition costs of $97.8 million that were acquired upon dissolution of one of our other unconsolidated joint ventures during the
fourth quarter.
(C)
This is a consolidated fund.
(D)
Includes properties acquired in the fourth quarter and designated as Value Added Acquisitions totaling 2.2 million square feet for total acquisition costs of $107.8 million, of which 1.7 million
square
feet
and
$76.4
million
of
acquisition
costs
were
Prologis’
share.


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Capital Deployment
Development Starts –
Current Quarter
19
(in thousands, except percent and per square foot)
(A)
Prologis share reflects our effective ownership.
(B)
Value Creation excludes fees or promotes that we may earn. See complete definition in the Notes and Definitions section.
Square Feet
Total Expected
Investment
Cost Per
Square Foot
Leased % at
Start
Square Feet
Total Expected
Investment
Cost Per
Square Foot
Leased % at
Start
Square Feet
Total Expected
Investment
Americas
3,661
$377,958
$103
47.9%
3,661
$377,958
$103
47.9%
100.0%
100.0%
Brazil Fund and joint ventures
1,478
151,600
103
45.7%
370
37,900
102
45.7%
25.0%
25.0%
Total Americas
5,139
529,558
103
47.3%
4,031
415,858
103
47.7%
78.4%
78.5%
Europe
820
70,086
85
100.0%
820
70,086
85
100.0%
100.0%
100.0%
820
70,086
85
100.0%
820
70,086
85
100.0%
100.0%
100.0%
Asia
1,308
127,547
98
33.5%
1,308
127,547
98
33.5%
100.0%
100.0%
1,308
127,547
98
33.5%
1,308
127,547
98
33.5%
100.0%
100.0%
Total
7,267
             
$727,191
$100
50.8%
6,159
             
$613,491
$100
51.7%
84.8%
84.4%
Prologis Share ($) - Q4
Prologis Share (%) - Q4 (A)
Consolidated
Total Europe
Consolidated
Total Asia
Total Q4 2012
Consolidated
Weighted average estimated stabilized yield
7.9%
$57,095
Weighted average estimated cap rate at stabilization
6.8%
$106,640
Estimated development margin
14.7%
Prologis share of value creation on development starts (B)
66.4%
Prologis share of value creation on development starts (B)
$70,776
Pro forma NOI
Estimated value creation (B)


Copyright ©
2013 Prologis
Supplemental 4Q 2012
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
2009
2010
2011
2012
Americas
Europe
Asia
Capital Deployment
Development Starts –
FY 2012
20
(A)
Prologis share reflects our effective ownership.
(B)
Value Creation excludes fees or promotes that we may earn. See complete definition in the Notes and Definitions section.
(C)
This
represents
the
economic
gain
realized
from
the
sale
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.
FY 2012 Development Starts
Historical Development Starts (TEI)
(in thousands, except percent and per square foot)
$313,877
$758,905
$1,016,763
$1,552,785
Americas
Europe
Asia
Prologis Share
Partners’
Share
Speculative
Build to Suit
$133,639
9%
$193,598
12%
$671,263
43%
$832,415
53%
$586,731
38%
$1,359,187
88%
$881,522
57%
Square Feet
Total Expected
Investment
Cost Per
Square Foot
Leased % at
Start
Square Feet
Total Expected
Investment
Cost Per
Square Foot
Leased % at
Start
Square Feet
Total Expected
Investment
Americas
8,514
$612,561
$72
39.6%
8,514
$612,561
$72
39.6%
100.0%
100.0%
Brazil Fund and joint ventures
2,210
219,854
99
63.7%
553
54,964
99
63.7%
25.0%
25.0%
Total Americas
10,724
832,415
78
44.6%
9,067
667,525
74
41.1%
84.5%
80.2%
Europe
1,709
133,639
78
84.5%
1,709
133,639
78
84.5%
100.0%
100.0%
1,709
133,639
78
84.5%
1,709
133,639
78
84.5%
100.0%
100.0%
Asia
3,859
552,957
143
77.5%
3,859
552,957
143
77.5%
100.0%
100.0%
Prologis China Logistics Venture I
598
33,774
56
0.0%
90
5,066
56
0.0%
15.0%
15.0%
4,457
586,731
132
67.1%
3,949
558,023
141
75.7%
88.6%
95.1%
Total
16,890
$1,552,785
$92
54.5%
14,725
$1,359,187
$92
55.4%
87.2%
87.5%
Weighted average estimated stabilized yield
7.9%
$122,624
Weighted average estimated cap rate at stabilization
6.7%
$281,006
Estimated development margin
18.1%
Prologis share of value creation on development starts (B)
79.8%
Prologis share of value creation on development starts (B)
$224,262
Prologis share of value creation realized on VAC buildings (C)
10,954
$235,216
Prologis Share ($) -
FY 2012
Prologis Share (%) -
FY 2012 (A)
Consolidated
Total Europe
Consolidated
Total Prologis share of estimated and realized value creation
year to date
Pro forma NOI
Estimated value creation (B)
Total Asia
Total FY 2012
Consolidated


Copyright ©
2013 Prologis
Supplemental 4Q 2012
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
$7,717
1,334
$57,250
-
$0
1,334
$57,250
$64,967
$64,967
3.5%
33.7%
706
71,717
1,612
69,182
879
101,742
2,491
170,924
242,641
242,641
13.1%
75.5%
-
-
1,258
134,220
-
-
1,258
134,220
134,220
134,220
7.2%
80.9%
415
26,850
800
48,145
-
-
800
48,145
74,995
74,995
4.0%
0.0%
U.S. Total
1,268
106,284
5,004
308,797
879
101,742
5,883
410,539
516,823
27.8%
55.0%
-
-
910
107,351
-
-
910
107,351
107,351
107,351
5.8%
0.0%
383
19,368
854
53,085
-
-
854
53,085
72,453
72,453
3.9%
8.1%
Americas total
1,651
125,652
6,768
469,233
879
101,742
7,647
570,975
696,627
37.5%
43.3%
-
-
-
-
-
-
-
-
-
-
0.0%
0.0%
507
38,862
-
-
262
16,681
262
16,681
55,543
55,543
3.0%
48.4%
201
10,647
265
14,773
-
-
265
14,773
25,420
25,420
1.4%
100.0%
-
-
698
76,575
-
-
698
76,575
76,575
76,575
4.1%
100.0%
Europe total
708
49,509
963
91,348
262
16,681
1,225
108,029
157,538
157,538
8.5%
79.5%
2,166
317,070
2,203
333,298
1,087
154,166
3,290
487,464
804,534
804,534
43.3%
79.2%
-
-
568
22,913
-
-
568
22,913
22,913
22,913
1.2%
77.0%
Asia total
2,166
317,070
2,771
356,211
1,087
154,166
3,858
510,377
827,447
827,447
44.5%
79.0%
4,525
492,231
10,502
916,792
2,228
272,589
12,730
1,189,381
1,681,612
1,681,612
90.5%
59.9%
-
-
486
22,694
-
-
486
22,694
22,694
22,694
1.2%
0.0%
260
14,648
-
-
-
-
-
-
14,648
14,648
0.8%
0.5%
260
14,648
486
22,694
-
-
486
22,694
37,342
37,342
2.0%
0.2%
4,785
506,879
10,988
939,486
2,228
272,589
13,216
1,212,075
1,718,954
1,718,954
92.5%
57.4%
Prologis Targeted U.S. Logistics Fund
272
32,196
-
-
-
-
-
-
32,196
7,709
0.4%
0.0%
Brazil Fund and joint ventures
-
-
2,249
217,144
-
-
2,249
217,144
217,144
108,572
5.8%
48.5%
Prologis Targeted Europe Logistics Fund
47
5,862
250
24,691
-
-
250
24,691
30,553
9,820
0.5%
0.0%
Prologis China Logistics Venture I
-
-
598
34,067
1,078
59,264
1,676
93,331
93,331
14,000
0.8%
0.0%
319
38,058
3,097
275,902
1,078
59,264
4,175
335,166
373,224
140,101
7.5%
24.3%
5,104
$   544,937
14,085
$  1,215,388
3,306
$        331,853
17,391
1,547,241
$          2,092,178
$   1,859,055
100.0%
50.8%
4,865
$    516,472
12,283
$  1,061,104
2,389
$         281,478
14,672
$       1,342,582
$          1,859,054
55.7%
95.3%
94.8%
87.2%
87.3%
72.3%
84.8%
84.4%
86.8%
88.9%
$      38,087
$     651,527
$        253,386
$          904,913
$             943,000
$      32,845
$     575,552
$        219,301
$          794,853
$             827,698
0.0%
64.0%
23.5%
55.5%
40.1%
53.7%
52.0%
40.8%
49.9%
50.8%
7.6%
7.9%
7.5%
7.9%
7.8%
$            163,113
Weighted average estimated cap rate at stabilization
6.5%
$            398,151
Estimated development margin
19.0%
$            354,340
89.0%
Total Development Portfolio
Consolidated
Total Under
Development
U.S.
2014 and thereafter
Expected Completion
2013 Expected
Completion
Pre-Stabilized
Developments
Prologis share of value creation (A)
Prologis share of cost to complete
Percent build to suit (based on Prologis share)
Leased percent
Prologis share of value creation (A)
Pro forma NOI
Estimated value creation (A)
Weighted average estimated stabilized yield
Cost to complete
Central
East
Northwest
United Kingdom
Europe
Southwest
Northern Europe
Southern Europe
Latin America
Europe
Central Europe
Japan
Asia
China
Canada
Under Development
Total
development
portfolio
-
owned
&
managed
Total global markets
Total
unconsolidated
development
portfolio
Total regional and other markets
Regional and other markets
Americas
Unconsolidated
Total
consolidated
development
portfolio
516,823
696,627
Total
development
portfolio
-
Prologis
share
(%)
Total
development
portfolio
-
Prologis
share
$


Copyright ©
2013 Prologis
Supplemental 4Q 2012
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
East
616
616
100.0%
$  25,656
$  25,656
100.0%
1.4%
Baltimore/Washington
East
106
106
100.0%
13,137
13,137
100.0%
0.7%
Central Valley
Northwest
1,155
1,155
100.0%
37,521
37,521
100.0%
2.0%
Central & Eastern PA
East
311
311
100.0%
27,187
27,187
100.0%
1.5%
Chicago
Central
567
567
100.0%
49,233
49,233
100.0%
2.7%
Dallas/Ft. Worth
Central
459
459
100.0%
26,909
26,909
100.0%
1.5%
Houston
Central
47
47
100.0%
5,422
5,422
100.0%
0.3%
New Jersey/New York City
East
323
323
100.0%
132,340
132,340
100.0%
7.2%
South Florida
East
377
377
100.0%
148,691
148,691
100.0%
8.1%
Southern California
Southwest
882
882
100.0%
184,053
184,053
100.0%
10.0%
Canada
183
183
100.0%
62,451
62,451
100.0%
3.4%
Mexico
901
901
100.0%
177,060
177,060
100.0%
9.6%
Brazil
269
135
50.0%
78,508
39,254
50.0%
2.1%
6,196
6,062
97.8%
968,168
928,914
95.9%
50.5%
Northern
30
30
100.0%
10,363
10,363
100.0%
0.6%
Southern
503
503
100.0%
89,911
89,911
100.0%
4.9%
Northern
116
116
100.0%
22,405
22,405
100.0%
1.2%
Northern
68
68
100.0%
67,839
67,839
100.0%
3.7%
CEE
775
775
100.0%
96,606
96,606
100.0%
5.3%
Southern
100
100
100.0%
15,717
15,717
100.0%
0.9%
UK
987
987
100.0%
257,055
257,055
100.0%
14.0%
2,579
2,579
100.0%
559,896
559,896
100.0%
30.6%
China
103
31
30.1%
29,063
11,550
39.7%
0.6%
Japan
67
67
100.0%
80,071
80,071
100.0%
4.4%
170
98
57.6%
109,134
91,621
84.0%
5.0%
8,945
8,739
97.7%
1,637,198
1,580,431
96.5%
86.1%
C.E.E.
247
247
100.0%
40,530
40,530
100.0%
2.2%
C.E.E.
338
338
100.0%
38,111
38,111
100.0%
2.1%
Southern
107
107
100.0%
32,840
32,840
100.0%
1.8%
East
129
129
100.0%
25,686
25,686
100.0%
1.4%
C.E.E.
95
95
100.0%
16,915
16,915
100.0%
0.9%
East
229
229
100.0%
13,097
13,097
100.0%
0.7%
Northwest
66
66
100.0%
8,727
8,727
100.0%
0.5%
Central
165
165
100.0%
7,293
7,293
100.0%
0.4%
Central
199
199
100.0%
6,692
6,692
100.0%
0.4%
Central
127
127
100.0%
4,474
4,474
100.0%
0.2%
Central
15
15
100.0%
1,480
1,480
100.0%
0.1%
1,717
1,717
100.0%
195,845
195,845
100.0%
10.7%
Total other markets
(10  markets)
Various
607
607
100.0%
60,433
60,433
100.0%
3.2%
Total
land
portfolio
-
owned
and
managed
11,269
11,063
98.2%
1,893,476
$     
1,836,709
$     
97.0%
100.0%
Original Cost Basis
3,017,610
$     
2,976,621
$     
Columbus
Regional markets (A)
Netherlands
Poland
Spain
Total global markets
China
Japan
Asia total
Europe total
United Kingdom
Land by Market
Total Owned &
Managed
Current Book Value
Brazil
Mexico 
Acres
Global markets
U.S.
Canada
Cincinnati
Americas total
Total Owned &
Managed
Total regional markets
Central Florida
Savannah
Slovakia
Memphis
Indianapolis
Hungary
Italy
Czech Republic
Belgium
France
Germany
Denver


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Capital Deployment
Land Portfolio –
Summary and Roll Forward
23
Investment at
Acres
% of Total
December 31, 2012
% of Total
7,345
                          
65.2%
996,161
$                    
52.6%
Brazil Fund and joint ventures
269
                             
2.4%
78,508
4.1%
Total Americas
7,614
                          
67.6%
1,074,669
                   
56.7%
3,485
                          
30.8%
709,673
                      
37.5%
85
0.8%
88,530
4.7%
Prologis China Logistics Venture 1
85
0.8%
20,604
1.1%
Total Asia
170
                             
1.6%
109,134
                      
5.8%
11,269
                        
100.0%
1,893,476
$                
100.0%
Americas
Europe
Asia
Total
1,111,379
$                
758,502
$                    
138,039
$                    
2,007,920
$                
Acquisitions
103,706
24,167
16,348
144,221
Dispositions
(9,262)
(15,906)
(7,651)
(32,819)
Development starts
(143,986)
(18,550)
(27,603)
(190,139)
Infrastructure costs
30,324
5,461
1,917
37,702
Reclasses
7,628
-
-
7,628
Impairment charges
(21,144)
(56,403)
-
(77,547)
Effect of changes in foreign exchange rates and other
(3,976)
12,402
(11,916)
(3,490)
1,074,669
$                
709,673
$                    
109,134
$                    
1,893,476
$                
Land Portfolio Summary
Consolidated
Americas
Total land portfolio - owned and managed
Consolidated
Europe
Asia
Consolidated
As of December 31, 2012
Land Roll Forward - Owned and Managed
As of September 30, 2012
(dollars in thousands)
.


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Private Capital
Detail Information
24
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 Targeted U.S. Logistics Fund (A)
Core
Unconsolidated
US
23.9%
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
Core
Unconsolidated
Mexico
21.6%
December 2004
Closed end
Prologis Mexico Industrial Fund
Core
Unconsolidated
Mexico
20.0%
August 2007
Closed end
Prologis Brazil Logistics Partners Fund I (A)(B)
Development
Unconsolidated
Brazil
50.0%
December 2010
Closed end
Prologis Targeted Europe Logistics Fund (A)
Core
Unconsolidated
Europe
32.4%
June 2007
Open end
Prologis European Properties Fund II (A)
Core
Unconsolidated
Europe
29.7%
August 2007
Open end
Europe Logistics Venture 1 (A)
Core
Unconsolidated
Europe
15.0%
February 2011
Open end
Prologis Japan Fund 1
Core
Unconsolidated
Japan
20.0%
June 2005
Closed end
Prologis China Logistics Venture 1 (A)
Core/Development
Unconsolidated
China
15.0%
March 2011
Closed end
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
properties in Brazil and has sold properties to an entity in which it maintains an equity interest. We also have other joint ventures that we account for using the equity method.  We show our
ownership in these entities at our effective ownership and include the properties in our owned and managed pool.
(C)
Values represent Prologis’ stepped up basis and may not be comparable to values reflected in the entities’ stand alone financial statements calculated on a different basis.
Prologis Investment In
and Advances To
47,340
$41,914
$2,888,458
$1,192,165
$9,665
$38,660
$274,913
$13,693
209,580
17,655
12,993
941,724
647,774
2,599
10,396
129,555
28,872
20,860
44,436
50,726
4,151,258
1,566,099
12,146
48,584
375,004
2,492
645,241
9,502
7,931
598,120
214,149
1,586
6,344
42,830
669
50,681
6,361
6,101
415,013
215,282
1,318
5,272
46,501
(11,272)
33,245
2,161
4,449
196,065
-
666
2,664
-
(2,951)
152,224
Americas
127,455
124,114
9,190,638
3,835,469
27,980
111,920
868,803
31,503
1,111,831
55,275
71,174
4,881,068
1,734,126
21,153
84,612
515,382
(47,626)
398,291
11,896
21,578
1,545,944
650,100
6,935
27,740
208,954
21,152
280,430
Europe Logistics Venture I
3,123
2,206
243,677
-
331
1,324
-
906
44,027
Europe
70,294
94,958
6,670,689
2,384,226
28,419
113,676
724,336
(25,568)
722,748
7,255
22,876
1,533,307
848,856
4,575
18,300
169,771
18,218
144,352
3,749
3,338
231,301
124,000
501
2,004
18,600
4,313
34,149
Asia
11,004
26,214
1,764,608
972,856
5,076
20,304
188,371
22,531
178,501
208,753
$245,286
$17,625,935
$7,192,551
$61,475
$245,900
$1,781,510
$28,466
$2,013,080
Information by Unconsolidated Co-investment Venture (C):
Prologis' Share
Fourth
Gross Book Value of
Fourth
Annualized
Debt
Quarter NOI
(in thousands)
Square Feet
Quarter NOI
Operating Buildings
Pro forma NOI
Debt
Assets (Liabilities)
Total
Prologis North American Industrial Fund III
Prologis Targeted U.S. Logistics Fund
Prologis Mexico Industrial Fund
Prologis SGP Mexico
Brazil Fund and joint ventures
Prologis European Properties Fund II
Prologis Targeted Europe Logistics Fund
Prologis Japan Fund 1
Prologis China Logistics Venture 1
Prologis North American Industrial Fund
Total Other Tangible


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Private Capital
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)
$
(99)
             
$
10,136
        
$
(323)
           
$
9,714
           
632
             
12
               
56
               
700
              
533
             
10,148
        
(267)
           
10,414
         
17,602
        
9,164
          
4,896
          
31,662
         
$
18,135
        
$
19,312
        
$
4,629
          
$
42,076
         
$
9,190,638
   
$
6,670,689
   
$
1,764,608
   
$
17,625,935
  
(878,707)
    
(492,243)
    
(82,600)
      
(1,453,550)
  
211,773
      
22,415
        
54,482
        
288,670
       
546,718
      
404,297
      
200,520
      
1,151,535
    
$
9,070,422
   
$
6,605,158
   
$
1,937,010
   
$
17,612,590
  
$
3,835,469
   
2,384,226
   
972,856
      
$
7,192,551
    
334,942
      
569,615
      
89,645
        
994,202
       
$
4,170,411
   
$
2,953,841
   
$
1,062,501
   
$
8,186,753
    
23.2%
29.7%
19.2%
25.1%
Properties under development and land
Prologis' share of the co-investment ventures' net earnings (loss)
Interest income
Earnings (loss) from unconsolidated co-investment ventures, net
Weighted average ownership
Other assets
Other liabilities
Total liabilities
Fees earned by Prologis
Condensed Balance Sheet of the Unconsolidated Co-Investment Ventures, Aggregated (A)(B)
Total earnings recognized by Prologis, net
As of December 31, 2012
Third party debt
Total assets
Operating industrial properties, before depreciation
Accumulated depreciation
$
178,349
      
$
128,412
      
$
34,692
        
$
341,453
       
(49,672)
      
(29,904)
      
(8,478)
        
(88,054)
       
128,677
      
98,508
        
26,214
        
253,399
       
(4,311)
        
(3,123)
        
(122)
           
(7,556)
         
(40,273)
      
(13,742)
      
(2,257)
        
(56,272)
       
(3,631)
        
(4,952)
        
(4,992)
        
(13,575)
       
(57,224)
      
(29,178)
      
(5,030)
        
(91,432)
       
(1,207)
        
(1,719)
        
(1,076)
        
(4,002)
         
22,031
        
45,794
        
12,737
        
80,562
         
(76,670)
      
(40,094)
      
(14,245)
      
(131,009)
     
3,667
          
(372)
           
900
             
4,195
           
38,048
        
8,844
          
-
             
46,892
         
(2,381)
        
9,701
          
(52)
             
7,268
           
$
(15,305)
      
$
23,873
        
$
(660)
           
$
7,908
           
$
7,466
          
$
16,031
        
$
3,433
          
$
26,930
         
632
             
12
               
56
               
700
              
8,098
          
16,043
        
3,489
          
27,630
         
17,602
        
9,164
          
4,896
          
31,662
         
General and administrative expenses
Americas
Europe
Asia
Total
Rental income
For the Three Months Ended December 31, 2012
FFO and Net Earnings (Loss) of the Co-Investment Ventures, Aggregated (A)(B)
Rental expenses
Net operating income from properties
Other expense, net
Loss on dispositions of investments in real estate, impairment charges and early extinguishment of debt, net
Interest expense
Current income tax expense
FFO of the unconsolidated co-investment ventures
Real estate related depreciation and amortization
For the Three Months Ended December 31, 2012
Prologis' Share of FFO and Net Earnings (Loss) of the Unconsolidated Co-Investment Ventures (A)
Gain on dispositions of investments in real estate, net
Deferred tax benefit (expense) and other income (expense), net
Net earnings (loss) of the unconsolidated co-investment ventures
Prologis' share of the co-investment ventures' FFO
Interest income
Fees earned by Prologis
FFO from unconsolidated co-investment ventures, net
Foreign currency exchange and unrealized derivative gains (losses), net
Total FFO recognized by Prologis, net
$
25,700
$
25,207
8,385
$
59,292
$


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Capitalization
Debt and Equity Summary
26
(A) Based on Prologis share of the total debt.  Interest rate is based on the effective rate (which includes the amortization of related premiums and discounts) assuming the net premiums (discounts)
associated with the respective debt were included in the maturities by year.
(B) Interest rate is based on the effective rate and weighted based on borrowings outstanding.
Dividend
Security
Shares
Value
Series
Rate
Value
Common Stock
461.0
          
$36.49
$16,822
Series L
6.5%
$49
$2,118
Partnership Units
3.2
              
$36.49
117
                
Series M
6.8%
58
                   
Total
464.2
          
$16,939
Series O
7.0%
75
                   
Borrowings outstanding
889
         
Series P
6.9%
50
                   
Outstanding letters of credit
68
           
Series Q
8.5%
100
                
$1,161
Series R
6.8%
125
                
Series S
6.8%
125
                
101
         
7.1%
$582
$1,262
Less:
Current availability
Unrestricted cash
Total liquidity
Market Equity
Preferred Stock
Liquidity
Price
Aggregate lender commitments
(dollars and shares in millions)
$376
$483
$0
$0
$410
$1,269
$207
$1,476
$1,405
$2,881
$1,641
57.0%
4.4%
916
        
-
420
       
640
        
981
        
2,957
      
65
           
3,022
        
1,225
          
4,247
      
3,330
      
78.4%
3.6%
287
        
460
        
469
       
1
            
205
        
1,422
      
25
           
1,447
        
788
             
2,235
      
1,654
      
74.0%
3.5%
640
        
-
-
1
            
318
        
959
         
127
         
1,086
        
1,301
          
2,387
      
1,291
      
54.1%
5.3%
700
        
-
-
1
            
544
        
1,245
      
4
             
1,249
        
752
             
2,001
      
1,411
      
70.5%
4.2%
900
        
-
-
1
            
309
        
1,210
      
74
           
1,284
        
266
             
1,550
      
1,287
      
83.0%
5.0%
647
        
-
-
1
            
501
        
1,149
      
2
             
1,151
        
225
             
1,376
      
1,216
      
88.4%
5.4%
677
        
-
-
1
            
9
            
687
         
2
             
689
           
723
             
1,412
      
878
         
62.2%
5.9%
-
-
-
1
            
155
        
156
         
2
             
158
           
345
             
503
         
239
         
47.5%
3.4%
-
-
-
-
7
            
7
             
3
             
10
             
139
             
149
         
42
           
28.2%
5.8%
-
1
            
-
10
          
137
        
148
         
5
             
153
           
-
                   
153
         
150
         
98.0%
7.4%
Subtotal
5,143
     
944
        
889
       
657
        
3,576
     
11,209
    
516
         
11,725
      
7,169
          
18,894
    
13,139
    
69.5%
80
          
(67)
        
-
            
-
            
50
          
63
           
3
             
66
             
24
               
90
           
70
           
77.8%
Subtotal
5,223
     
877
        
889
       
657
        
3,626
     
11,272
    
519
         
11,791
      
7,193
          
18,984
    
$13,209
69.6%
4.4%
-
            
-
            
-
            
-
            
-
            
-
              
(364)
        
(364)
          
(5,411)
         
(5,775)
     
Prologis share of debt
$5,223
$877
$889
$657
$3,626
$11,272
$155
$11,427
$1,782
$13,209
$4,547
$877
$55
$29
$1,689
$7,197
$130
$7,327
$886
9,395
$    
$8,213
559
        
-
226
       
482
        
504
        
1,771
      
21
           
1,792
        
574
             
2,887
      
2,366
-
-
28
         
-
172
        
200
         
-
              
200
           
139
             
533
         
339
117
        
-
580
       
146
        
1,261
     
2,104
      
-
2,104
        
170
             
1,617
      
2,274
-
-
-
-
-
            
-
              
4
             
4
               
13
               
35
           
17
Prologis share of debt
$5,223
$877
$889
$657
$3,626
$11,272
$155
$11,427
$1,782
$13,209
Unamortized net premiums (discounts)
Third party share of debt
Prologis share of debt by local currency
Dollars
Euro
GBP
2019
2020
2021
Yen
Other
Thereafter
2022
2018
Entities
Consolidated
Entities
2016
Debt
Debt
Debt
Maturity
Debt
Debt
2013
2014
2015
Total
Mortgage
2017
Facilities
Debt
Senior
Exchangeable
Credit
Other
Prologis
Debt
Total Debt
Unsecured
Consolidated
Total
Unconsolidated
Secured
Debt
Prologis
Total
Share of
Wtd. Avg.
Interest
Rate (A)
Prologis
Share (%)
4.3
1.2
1.8
1.5
3.9
3.6
3.0
3.6
3.5
4.1
3.6
Weighted average remaining maturity in years
5.6%
4.6%
1.5%
1.8%
4.0%
4.4%
4.4%
4.4%
4.7%
4.4%
Weighted average interest rate (B)


Copyright ©
2013 Prologis
Supplemental 4Q 2012
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%
39.4%
<60%
39.4%
>1.5x
2.72x
>1.5x
2.71x
<40%
13.5%
<40%
13.5%
>150%
276.6%
>150%
276.6%
Covenant
Actual
<60%
43.0%
>1.5x
2.41x
>1.5x
3.33x
<35%
14.9%
>$10.0 billion
$15.4 billion
Fourth Quarter
Third Quarter
43.9%
44.7%
18.3%
19.5%
234.6%
227.1%
2.18x
2.26x
8.89x
9.00x
Unencumbered
Encumbered
Total
14,095,141
$           
8,513,107
$             
22,608,248
$           
951,643
-
951,643
1,727,275
67,089
1,794,364
454,868
-
454,868
-
188,000
188,000
7,973
18,054
26,027
Total consolidated
17,236,900
8,786,250
26,023,150
1,210,593
3,195,839
4,406,432
109,073
5,011
114,084
Gross real estate assets
18,556,566
$           
11,987,100
$           
30,543,666
$           
Unsecured
Secured
Debt
Mortgage Debt
Total
7,632,700
$             
3,576,086
$             
11,208,786
$           
67,749
448,103
515,852
208,903
1,566,540
1,775,443
Total debt -
at par
7,909,352
5,590,729
13,500,081
(50,099)
(312,332)
(362,431)
Total
Prologis
share
of
debt
-
at
par
7,859,253
5,278,397
13,137,650
16,334
49,822
66,156
-
(1,733)
(1,733)
-
6,067
6,067
Total debt, net of premium (discount)
7,875,587
$             
5,332,553
$             
13,208,140
$           
New Prologis Indenture
Legacy AMB Indenture
Debt as % of gross real estate assets
Debt/Adjusted EBITDA
Unencumbered debt service coverage ratio
Outstanding indebtedness to adjusted total assets
Maximum consolidated leverage to total asset value
Global Line
Debt Metrics (A) (B) (C)
Fixed charge coverage ratio
2012
Covenants as of December 31, 2012 (A)
Minimum net worth
Fixed charge coverage ratio
Maximum secured debt to adjusted total assets
Unencumbered assets ratio to unsecured debt
Fixed charge coverage ratio
Maximum secured debt to total asset value
Unconsolidated
development
portfolio
and
land
-
Prologis'
share
Operating properties
Unconsolidated
operating
properties
-
Prologis'
share
Encumbrances as of December 31, 2012
Secured debt as % of gross real estate assets
Unencumbered gross real estate assets to unsecured debt
Consolidated:
Development portfolio
Land
Other real estate investments
Notes receivable backed by real estate
Assets held for sale
Our share
of
premium
(discount)
-
unconsolidated
Premium
(discount)
-
consolidated
Secured and Unsecured Debt as of December 31, 2012
Prologis debt
Consolidated entities debt
Our share of unconsolidated entities debt
Third party share of consolidated debt premium (discount)
Third party share of consolidated debt


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Capitalization
Assets  Under Management
28
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
13.7%   
$ 30,730
$ 44,751
Debt
$13,209
Committed Equity/Investment
$1,791
Americas
60.3%      
$ 44,751
Direct owned
and other 
assets
$26,602
Equity
Cap
$16,939
AUM
Private
Capital
$18,149
Preferred Shares
$582
Investors'  share of assets
in JVs/funds
$12,230
Prologis share of assets in
JVs/funds
$4,128
Total
Enterprise
Value
$30,730
Total Enterprise Value
Total AUM by Division
Assets Under Management
(dollars in millions)


Copyright ©
2013 Prologis
Supplemental 4Q 2012
224,233
$
14,550,767
$
65
$
223,152
$
223,152
$
892,608
96.4%
61,222
4,525,590
74
85,220
85,220
340,880
95.7%
16,218
2,739,270
169
44,876
44,876
179,504
97.9%
2,128
8,512
301,673
21,815,627
72
353,248
355,376
1,421,504
96.3%
8,417
450,614
54
(2,966)
50.6%
3,905
245,959
63
(1,181)
15.2%
12,322
696,573
57
(4,147)
39.4%
313,995
$
22,512,200
$
72
$
349,101
$
355,376
$
1,421,504
94.1%
28,516
$
2,070,646
$
73
$
29,081
$
29,081
$
116,324
93.5%
20,720
1,984,071
96
29,737
29,737
118,948
94.8%
2,013
341,357
170
5,248
5,248
20,992
95.9%
1,297
5,188
51,249
$
4,396,074
$
86
$
64,066
$
65,363
$
261,452
94.1%
365,244
$
26,908,274
$
74
$
413,167
$
420,739
$
1,682,956
94.1%
Square Feet
1,651
$
109,514
$
125,652
$
76
$
9,223
29.6%
968
58,988
64,157
66
5,761
11.6%
2,166
303,912
317,070
146
24,242
64.2%
41.6%
8,133
236,348
593,669
73
40,522
1,225
40,657
108,029
88
8,465
3,858
202,224
510,377
132
38,418
18,001
$
951,643
$
1,718,954
$
95
$
126,631
1,190
$
59,452
$
116,281
$
98
13,020
95
7,205
9,820
103
576
251
5,082
14,000
56
1,149
1,536
$
71,739
$
140,101
$
91
$
14,745
19,537
$
1,023,382
$
1,859,055
$
95
$
141,376
Prologis share of unconsolidated operating portfolio
Americas
Asia
Properties under development
Total operating portfolio
CONSOLIDATED
Prestabilized
Annualized
Adjusted Cash
NOI
CONSOLIDATED OPERATING PORTFOLIO
Fourth Quarter
Adjusted Cash
NOI (Actual)
Americas
Gross Book Value
Americas
Europe
Prologis interest in unconsolidated operating portfolio
UNCONSOLIDATED OPERATING PORTFOLIO (Prologis Share)
Europe
Properties generating net operating loss
Sub-total
Sub-total
Pro forma adjustment for mid-quarter acquisitions/development completions
Total consolidated portfolio
Square Feet
Real Estate Operations
Europe
Asia
Properties generating net  operating income
Percent
Occupied
GBV per Sq. Ft.
Fourth Quarter
Adjusted Cash
NOI (Pro Forma)
Development
TEI per Sq Ft.
Percent
Occupied
Investment
Balance
TEI
Pro forma adjustment for mid-quarter acquisitions/development completions
Prologis share of unconsolidated development portfolio
Europe
Asia
Annualized Pro
Forma NOI
Europe
Asia
Americas
Europe
Total development portfolio
Total consolidated portfolio
Asia
Americas
Development Platform (see development and pro rata operating information pages)
Americas
UNCONSOLIDATED (Prologis Share)
Prologis interest in unconsolidated development portfolio
Net Asset Value
Components
29
(in thousands, except for percentages and per square foot)


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Net Asset Value
Components -
Continued
30
(in thousands)
$
100,810
176,926
581,744
454,868
106,406
171,084
188,000
53,174
Investments in and advances to other unconsolidated joint ventures
182,702
7,693
$
2,023,407
611,770
455,160
39,342
174,137
447,272
704,319
$
2,432,000
$
28,466
$
2,976,621
$
1,794,364
42,345
$
1,836,709
Private capital revenue
$
31,715
$
126,860
Private capital expenses
(16,134)
(64,536)
Private Capital NOI
$
15,581
$
62,324
$
4,099
$
16,396
$
11,208,786
Consolidated
investee
debt
-
at
par
515,852
1,775,443
13,500,081
582,200
$
14,082,281
Outstanding shares of common stock
460,966
Preferred stock
Total debt and preferred stock
Debt and Preferred Stock
Private capital
Development management income
As of December 31,
2012
Prologis
debt
-
at
par
Prologis
share
of
unconsolidated
debt
-
at
par
Subtotal
debt
-
at
par
Current book value of land
Total
Private Capital / Development Management
Fourth Quarter
Annualized
Prologis share of book value of land in unconsolidated entities
Our share of original land basis
Tenant security deposits
Other liabilities
Noncontrolling interests
UNCONSOLIDATED
Prologis share of net assets (liabilities)
Land
Investment Balance
Total liabilities and noncontrolling interests
Value added tax and other tax liabilities
Deferred income taxes
Restricted cash
Deposits, prepaid assets and other tangible assets
Other real estate investments
Accounts receivable
Notes receivable backed by real estate
Assets held for sale, net of liabilities
Total other assets
Other liabilities
Prologis receivable from unconsolidated co-investment ventures
Accounts payable and other current liabilities
Prologis' share of value added operating properties
Cash and cash equivalents
Balance Sheet and Other Items
As of December 31,
2012
CONSOLIDATED
Other assets


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Notes and Definitions
31
Please refer to our annual and quarterly financial statements filed with the Securities and Exchange
Commission on Forms 10-K and 10-Q and other public reports for further information about us and
our business. Certain amounts from previous periods presented in the Supplemental Information
have been reclassified to conform to the current presentation. 
Our real estate operations segment represents the direct, long-term ownership of industrial properties.
Our investment strategy in this segment focuses primarily on the ownership and leasing of industrial
properties in global and regional markets. Our intent is to hold and use these properties; however,
depending on market and other conditions, we may contribute or sell these properties to co-
investment ventures or sell to third parties. When we contribute to an unconsolidated co-investment
venture or sell properties we have developed, we recognize FFO to the extent the proceeds received
exceed our original investment (i.e. prior to depreciation) and present the results as Gain (Loss) on
are currently under development and land available for development that are part of this segment as
well. We may develop the land or sell to third parties, depending on market conditions, customer
demand and other factors. The private capital segment represents the long-term management of
unconsolidated co-investment ventures and other joint ventures. 
In June 2011, AMB Property Corporation (“AMB”) and ProLogis combined through a merger of
equals (the “Merger”). As a result of the Merger, each outstanding ProLogis common share was
converted into 0.4464 shares of AMB common stock. At the time of the Merger, AMB changed its
name to Prologis, Inc. The Merger resulted in a reverse acquisition, in which AMB was considered
the “legal acquirer” and ProLogis was considered the ”accounting acquirer”. As such, the historical
results of AMB have not been included in the 2011 results. 
During the second quarter of 2011, we increased our ownership of ProLogis European Properties
(“PEPR”), through open market purchases and a mandatory tender offer. Pursuant to the tender offer
and open-market purchases made during the tender period, we acquired additional ordinary units and
convertible preferred units of PEPR. After completion of the tender offer, we began consolidating
PEPR. Subsequently, in connection with the liquidation of PEPR, we have acquired all of the assets
and liabilities of PEPR during the third quarter of 2012.  
During the first quarter of 2012, we acquired our partner’s 63% interest in and now own 100% of
Prologis North American Industrial Fund II. We also acquired our share of the assets and liabilities in
Prologis California. These two transactions increased our real estate by $2.1 billion and debt by $1.0
billion. 
initial purchase price; the effects of marking assumed debt to market; if applicable, all due diligence
and lease intangibles; and estimated acquisition capital expenditures including leasing costs to
achieve stabilization. 
liquidity. We calculate Adjusted EBITDA beginning with consolidated net earnings (loss) and
removing the affect of interest, income taxes, depreciation and amortization, impairment charges,
gains or losses from the acquisition or disposition of investments in real estate, gains or losses on
early extinguishment of debt and derivative contracts (including cash charges), similar adjustments
we make to our Adjusted FFO (see definition below), and other non-cash charges or gains (such as
stock based compensation amortization and unrealized gains or losses on foreign currency and
derivative activity), including our share of these items from unconsolidated entities. 
We consider Adjusted EBITDA to provide investors relevant and useful information because it
permits investors to view income from operations on an unleveraged basis before the effects of
income tax, non-cash depreciation and amortization expense and other items (including stock-based
compensation amortization and certain unrealized gains and losses), gains or losses from the
acquisition or disposition of investments in real estate, items that affect comparability, and other 
significant non-cash items. We also included a pro forma adjustment in Adjusted EBITDA to reflect a
full period of NOI on the operating properties we acquire in a significant transaction, such as the
Merger, PEPR acquisition, acquisition of our share of the assets from Prologis California and the
acquisition of Prologis North American Industrial Fund II.  In addition, we excluded Merger,
Acquisition and Other Integration Expenses and costs associated with the natural disaster that
occurred in first quarter 2011 in Japan. By excluding interest expense EBITDA allows investors to
measure our operating performance independent of our capital structure and indebtedness and,
therefore, allows for a more meaningful comparison of our operating performance to that of other
companies, both in the real estate industry and in other industries. Gains and losses on the early
extinguishment of debt generally included the costs of repurchasing debt securities. Although difficult
to predict, these items may be recurring given the uncertainty of the current economic climate and its
adverse effects on the real estate and financial markets. While not infrequent or unusual in nature,
these items result from market fluctuations that can have inconsistent effects on our results of
operations. The economics underlying these items reflect market and financing conditions in the
short-term but can obscure our performance and the value of our long-term investment decisions and
strategies
We believe that Adjusted EBITDA helps investors to analyze our ability to meet interest payment
obligations and to make quarterly preferred share dividends. We believe that investors should
consider Adjusted EBITDA in conjunction with net earnings (the primary measure of our performance
and the other required Generally Accepted Accounting Principles (“GAAP”) measures of our
performance and liquidity, to improve their understanding of our operating results and liquidity, and to
make more meaningful comparisons of our performance against other companies. By using Adjusted
EBITDA an investor is assessing the earnings generated by our operations, but not taking into
account the eliminated expenses or gains incurred in connection with such operations.  As a result,
Adjusted EBITDA has limitations as an analytical tool and should be used in conjunction with our
required GAAP presentations. Adjusted EBITDA does not reflect our historical cash expenditures or
future cash requirements for working capital, capital expenditures distribution requirements or
contractual commitments. Adjusted EBITDA, also does not reflect the cash required to make interest
and principal payments on our outstanding debt.  
While EBITDA is a relevant and widely used measure of operating performance, it does not represent
net income or cash flow from operations as defined by GAAP and it should not be considered as an
alternative to those indicators in evaluating operating performance or liquidity. Further, our
computation of Adjusted EBITDA may not be comparable to EBITDA reported by other companies.
We compensate for the limitations of Adjusted EBITDA by providing investors with financial
statements prepared according to GAAP, along with this detailed discussion of Adjusted EBITDA and
a reconciliation of Adjusted EBITDA to consolidated net earnings (loss), a GAAP measurement. 
one operating property totaling 0.1 million square feet that met the criteria to be presented as held for
related assets and liabilities for each property. 
During 2012, we recorded a gain of $65.9 million on the disposition of 200 properties aggregating
27.2 million square feet to third parties. In addition, we recorded impairment charges of $30.6 million
on properties that were disposed during 2012. During all of 2011, we disposed of land subject to
ground leases and 94 properties aggregating 10.7 million square feet to third parties.  
The operations of the properties held for sale and properties that were disposed of to third parties
during a period, including the aggregate net gains or losses recognized upon their disposition, are
presented as discontinued operations in our Consolidated Statements of Operations for all periods
presented. The income attributable to these properties was as follows (in thousands): 
sale.
The
amounts
included
in
Assets
Held
for
Sale
include
real
estate
investment
balances
and
the
Acquisitions
and
Dispositions
of
Investments
in
Real
Estate,
Net.
We
have
industrial
properties
that
Assets
Held
For
Sale
and
Discontinued
Operations.
As
of
December
31,
2012,
we
had
land
and
Adjusted
EBITDA.
We
use
Adjusted
EBITDA
to
measure
both
our
operating
performance
and
Acquisition
cost
represents
economic
cost
and
not
necessarily
what
is
capitalized.
It
includes
the


Copyright ©
2013 Prologis
Supplemental 4Q 2012
-
Notes and Definitions
32
2012
2011
2012
2011
Rental income ……………………………………………………………
Rental expenses …………………………………………………………
Depreciation and amortization …………………………………..……..
Interest expense ………………………………………………..….…….
(156)
held for sale
$ 13,039
Income attributable to disposed properties and assets
Three Months
December 31,
Twelve Months
December 31,
$ 2,958
$ 27,632
$ 82,719
(1,791)
(4,344)
(27,478)
$ 9,249
(944)
(26,665)
$ 141,547
(51,035)
(1,217)
(38,657)
$ 41,236
(17,676)
(425)
(10,096)
Ended
Ended
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.
$ 50,638
Three Months Ended
December 31,
2012
2011
2012
2011
Net loss
$ (228,713)
$ (45,459)
$ (80,946)
Weighted average common shares outstanding
-
Basic and Diluted (a)
460,447
458,383
459,895
Net
loss
per
share
-
Basic and
Diluted
$ (0.50)
$ (0.10)
$(0.18)
FFO, as defined by Prologis
FFO, as defined by Prologis ……………………………………………………
$ (88,199)
$ 134,147
$ 552,435
Noncontrolling interest attributable
to exchangeable
limited
partnership
units …………………………………………………………………
FFO -
Diluted, as defined by Prologis
$ (88,199)
$ 134,255
$ 552,662
Weighted
average
common
shares
outstanding
-
Basic (a)
………………
460,447
458,383
459,895
Incremental weighted average effect of exchange of limited partnership
units ……………………………………………………………………………..
-
3,361
3,238
Incremental weighted average effect of stock awards …………………….
1,258
2,173
Weighted
average
common
shares
outstanding
-
Diluted
(a)
460,447
463,002
465,306
FFO per share
-
Diluted, as defined by
Prologis
$ (0.19)
$ 0.29
$ 1.19
Core FFO
Core FFO …………………………………………………………………………
$ 195,816
$ 203,945
$ 813,863
Noncontrolling interest attributable
to
exchangeable
limited
partnership units …………………………………………………………………
(708)
108
227
Interest
expense
on
convertible
debt
assumed
converted
…………….…
4,235
4,165
16,896
Core FFO -
Diluted
$ 199,343
$ 208,218
$ 830,986
Weighted
average
common
shares
outstanding
-
Basic
…………………
460,447
458,383
459,895
Incremental weighted average effect of exchange of limited partnership
units ……………………………………………………………………………..
3,171
3,361
3,238
Incremental
weighted
average
effect
of
stock
awards
…………………….
2,195
1,258
2,173
Incremental weighted average effect of exchange of certain
exchangeable debt ……………………………………………………………...
11,879
11,879
11,879
Weighted
average
common
shares
outstanding
-
Diluted
477,692
474,881
477,185
Core FFO per share -
Diluted
$ 0.42
$ 0.44
$ 1.74
$ (188,110)
370,534
$ (0.51)
$ 411,688
$ 411,977
370,534
2,095
1,452
374,081
$ 1.10
370,534
289
16,824
$ 611,030
2,095
1,452
11,879
385,960
$ 1.58
108
227
289
-
Committed Equity/Investment  
acquired through the use of the equity commitments from our property fund or co-investment 
venture partners, plus our funding obligations and estimated debt capitalization.
FFO, as defined by Prologis; Core FFO; AFFO (collectively referred to as “FFO”). 
FFO is a non-GAAP measure that is commonly used in the real estate industry. The most directly 
comparable GAAP measure to FFO is net earnings. Although the National Association of Real
Estate Investment Trusts (“NAREIT”) has published a definition of FFO, modifications to the 
NAREIT calculation of FFO are common among REITs, as companies seek to provide financial 
measures that meaningfully reflect their business.
Debt Metrics.
See below for the detailed calculations for the three months ended for the respective
period (
dollars
in
thousands
Three Months Ended
Dec. 31
Sept. 30
2012
2012
Debt as a % of gross real estate assets:
Total
debt
-
at
par…………………………………………………………………………….
$
$
14,312,247
Less: cash and cash equivalents ………………………………………………..………
(100,810)
(158,188)
Total
debt,
net
of
cash
……………………………………………………………………..
$
13,399,271
$
Gross real
estate
assets
…………………………………………………………………..
$
30,543,666
$
43.9%
44.7%
Secured debt as a % of gross real estate assets:
Secured debt
-
at
par
……………………………………….…………………………….
$
$
6,169,183
Gross
real
estate
assets
…………………………………………………………………..
$
30,543,666
$
Secured debt as a % of gross real estate assets
18.3%
19.5%
Unencumbered gross real estate assets to unsecured debt:
Unencumbered
gross
real
estate
assets
…………………………………………………
$
$
18,489,287
Unsecured debt
-
at par ….………………………………………………………..……...
$
7,909,352
$
8,143,064
Unencumbered gross real
estate assets to unsecured debt
234.6%
227.1%
Adjusted EBITDA, including NOI  from disposed properties…………………………
$
381,958
$
394,746
Interest expense……………………………………………………………………………….
$
123,623
$
123,161
Amortization and write-off of deferred loan costs …………………..…………………..
(3,748)
(3,902)
Amortization
of
debt
premium
(discount),
net
…………………….………………………
10,273
9,925
Capitalized interest …………………………………………………….…….………………
13,343
13,488
Preferred
stock
dividends
……………………………………………………….………….
10,305
10,305
Our share of fixed charges from unconsolidated entities ………….…..….……………
21,552
Total
fixed
charges
………….………………………………………………………….….
$
174,929
$
174,529
Fixed
charge coverage ratio
2.18x
2.26x
Debt to Adjusted EBITDA:
Total
debt,
net
of
cash
………………………………………………………………….….
$
$
14,154,059
Adjusted EBITDA-annualized……………………………………………………………..
$
1,507,760
$
1,573,484
8.89x
9.00x
-
18,556,566
Debt to Adjusted EBITDA ratio
5,590,729
31,699,291
13,500,081
14,154,059
31,699,291
13,399,271
21,133
Debt as a % of gross real estate assets
Committed
Equity/Investment
):
is
our
estimate
of
the
gross
real
estate,
which
could
be
NOI from disposed properties……………………………………….……………………
Adjusted EBITDA……………………………………………………………………………
376,940
393,371
5,018
1,375
Fixed Charge Coverage  ratio:
$ 593,917
$
$
In periods with a net  loss, the inclusion of any incremental shares is anti-dilutive, and therefore, both basic
and diluted shares are the same.
(a)
December 30,
Twelve Months Ended
Net loss
Calculation
of
Per
Share
Amounts
is
as
follows
(in
thousands,
except
per
share
amounts):


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Notes and Definitions
33
FFO,
as
defined
by
Prologis,
are
subject
to
significant
fluctuations
from
period
to
period
FFO is not meant to represent a comprehensive system of financial reporting and does not present,
nor do we intend it to present, a complete picture of our financial condition and operating
performance. We believe net earnings computed under GAAP remains the primary measure of
performance and that FFO is only meaningful when it is used in conjunction with net earnings
computed under GAAP. Further, we believe our consolidated financial statements, prepared in
accordance with GAAP, provide the most meaningful picture of our financial condition and our
operating performance. 
NAREIT’s FFO measure adjusts net earnings computed under GAAP to exclude historical cost
depreciation and gains and losses from the sales, along with impairment charges, of previously
depreciated properties. We agree that these NAREIT adjustments are useful to investors for the
following reasons: 
(i)
historical cost accounting for real estate assets in accordance with GAAP assumes, through
depreciation charges, that the value of real estate assets diminishes predictably over time.
NAREIT stated in its White Paper on FFO “since real estate asset values have historically
risen or fallen with market conditions, many industry investors have considered presentations
of operating results for real estate companies that use historical cost accounting to be
insufficient by themselves.” Consequently, NAREIT’s definition of FFO reflects the fact that real
estate, as an asset class, generally appreciates over time and depreciation charges required
by GAAP do not reflect the underlying economic realities. 
(ii)
REITs were created as a legal form of organization in order to encourage public ownership of
real estate as an asset class through investment in firms that were in the business of long-term
ownership and management of real estate. The exclusion, in NAREIT’s definition of FFO, of
gains and losses from the sales, along with impairment charges, of previously depreciated
operating real estate assets allows investors and analysts to readily identify the operating
results of the long-term assets that form the core of a REIT’s activity and assists in comparing
those operating results between periods. We include the gains and losses from dispositions
and impairment charges of land and development properties, as well as our proportionate
share of the gains and losses from dispositions and impairment charges recognized by our
unconsolidated entities, in our definition of FFO. 
Our FFO Measures 
At the same time that NAREIT created and defined its FFO measure for the REIT industry, it also
recognized that “management of each of its member companies has the responsibility and authority
to publish financial information that it regards as useful to the financial community.” We believe
stockholders, potential investors and financial analysts who review our operating results are best
served by a defined FFO measure that includes other adjustments to net earnings computed under
GAAP in addition to those included in the NAREIT defined measure of FFO.  Our FFO measures
are used by management in analyzing our business and the performance of our properties and we
believe that it is important that stockholders, potential investors and financial analysts understand
the measures management uses. 
We use these FFO measures, including by segment and region, to: (i) evaluate our performance
and the performance of our properties in comparison to expected results and results of previous
periods, relative to resource allocation decisions; (ii) evaluate the performance of our management;
(iii) budget and forecast future results to assist in the allocation of resources; (iv) assess our
performance as compared to similar real estate companies and the industry in general; and (v)
evaluate how a specific potential investment will impact our future results. Because we make
decisions with regard to our performance with a long-term outlook, we believe it is appropriate to
remove the effects of short-term items that we do not expect to affect the underlying long-term
performance of the properties. The long-term performance of our properties is principally driven by
rental income. While not infrequent or unusual, these additional items we exclude in calculating 
that cause both positive and negative short-term effects on our results of operations in inconsistent
and unpredictable directions that are not relevant to our long-term outlook. 
We use our FFO measures as supplemental financial measures of operating performance. We do
not use our FFO measures as, nor should they be considered to be, alternatives to net earnings
computed under GAAP, as indicators of our operating performance, as alternatives to cash from
operating activities computed under GAAP or as indicators of our ability to fund our cash needs. 
FFO, as defined by Prologis 
To arrive at FFO, as defined by Prologis, we adjust the NAREIT defined FFO measure to exclude:
(i)
deferred income tax benefits and deferred income tax expenses recognized by our
subsidiaries; 
(ii)
current income tax expense related to acquired tax liabilities that were recorded as deferred
tax liabilities in an acquisition, to the extent the expense is offset with a deferred income tax
benefit in GAAP earnings that is excluded from our defined FFO measure;
(iii)
foreign currency exchange gains and losses resulting from debt transactions between us and
our foreign consolidated subsidiaries and our foreign unconsolidated entities; 
(iv)
foreign currency exchange gains and losses from the remeasurement (based on current
foreign currency exchange rates) of certain third party debt of our foreign consolidated
subsidiaries and our foreign unconsolidated entities; and   
(v)
mark-to-market adjustments associated with derivative financial instruments. 
We calculate FFO, as defined by Prologis for our unconsolidated entities on the same basis as we
calculate our FFO, as defined by Prologis. 
We believe investors are best served if the information that is made available to them allows them
to align their analysis and evaluation of our operating results along the same lines that our
management uses in planning and executing our business strategy. 
Core FFO 
In addition to FFO, as defined by Prologis, we also use Core FFO. To arrive at Core FFO, we
adjust FFO, as defined by Prologis, to exclude the following recurring and non-recurring items that
we recognized directly or our share recognized by our unconsolidated entities to the extent they are
included in FFO, as defined by Prologis
(i)
gains or losses from acquisition, contribution or sale of land or development properties; 
(ii)
income tax expense related to the sale of investments in real estate;
(iii)
impairment charges recognized related to our investments in  real estate (either directly
or through our investments in unconsolidated entities) generally as a result of our 
change in intent to contribute or sell these properties;
(iv)
impairment charges of goodwill and other assets; 
(v)
gains or losses from the early extinguishment of debt; 
(vi)
merger, acquisition and other integration expenses; and 
(vii) expenses related to natural disasters. 
We believe it is appropriate to further adjust our FFO, as defined by Prologis for certain recurring
items as they were driven by transactional activity and factors relating to the financial and real
estate markets,  rather than factors specific to the on-going operating performance of our properties
or investments. The impairment charges we recognized were primarily based on valuations of real
estate, which had declined due to market conditions, that we no longer expected to hold for long-
term investment. We currently have and have had over the past several years a stated priority to
strengthen our financial position. We expect to accomplish this by reducing our debt, our
investment in certain low yielding assets, such as land that we decide not to develop and our
exposure to foreign currency exchange fluctuations. As a result, we have sold to third parties or
contributed to unconsolidated entities real estate properties that, depending on market conditions,
might result in a gain or loss. The impairment charges related to goodwill and other assets that we
have recognized were similarly caused by the decline in the real estate markets. Also in connection
with our stated priority to reduce debt and extend debt maturities, we have purchased portions of


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Notes and Definitions
34
  
Gains or losses from property acquisitions and dispositions or impairment charges related to
expected dispositions represent changes in the value of the properties. By excluding these
gains and losses, FFO does not capture realized changes in the value of acquired or disposed
properties arising from changes in market conditions. 
 
The deferred income tax benefits and expenses that are excluded from our defined FFO
measures result from the creation of a deferred income tax asset or liability that may have to be
settled at some future point. Our defined FFO measures do not currently reflect any income or
expense that may result from such settlement. 
 
The foreign currency exchange gains and losses that are excluded from our defined FFO
measures are generally recognized based on movements in foreign currency exchange rates
through a specific point in time. The ultimate settlement of our foreign currency-denominated
net assets is indefinite as to timing and amount. Our FFO measures are limited in that they do
not reflect the current period changes in these net assets that result from periodic foreign
currency exchange rate movements.   
 
The impairment charges of goodwill and other assets that we exclude from Core FFO, have
been or may be realized as a loss in the future upon the ultimate disposition of the related
investments or other assets through the form of lower cash proceeds.   
The gains and losses on extinguishment of debt that we exclude from our Core FFO, may
provide a benefit or cost to us as we may be settling our debt at less or more than our future
obligation.  
 
The Merger, acquisition and other integration expenses and the natural disaster expenses that
we exclude from Core FFO are costs that we have incurred.  
We compensate for these limitations by using our FFO measures only in conjunction with net
earnings computed under GAAP when making our decisions. To assist investors in compensating
for these limitations, we reconcile our defined FFO measures to our net earnings computed under
GAAP. This information should be read with our complete financial statements prepared under
GAAP. 
Fixed Charge
Coverage
is defined as Adjusted EBITDA divided by total fixed charges. Fixed
Charges
consist
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.
comprise the largest, most liquid markets benefiting from demand tied to global
trade. These markets are defined by large population centers with high consumption per capita and
typically feature major seaports, airports, and other transportation infrastructure tied to global trade. 
While initial returns might be lower, global markets tend to outperform overall markets in terms of
growth and total return.
Global Markets
Gross G&A expense .............................................................
Reported as rental expense ................................................
Reported as private capital expenses ................................
Capitalized amounts .............................................................
Net G&A
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2012
2011
2012
2011
$
105,949
89,259
$
394,845
$
332,632
(9,517)
(7,484)
(35,954)
(24,741)
(16,134)
(15,734)
(63,820)
(54,962)
$
(19,690)
(15,244)
(67,003)
(57,768)
$
50,797
$
228,068
$
$
195,161
60,608
We analyze our operating performance primarily by the rental income of our real estate and the
revenue driven by our private capital business, net of operating, administrative and financing
expenses. This income stream is not directly impacted by fluctuations in the market value of our
investments in real estate or debt securities.  As a result, although these items have had a material
impact on our operations and are reflected in our financial statements, the removal of the effects of
these items allows us to better understand the core operating performance of our properties over
the long-term. 
We use Core FFO, including by segment and region, to: (i) evaluate our performance and the
performance of our properties in comparison to expected results and results of previous periods,
relative to resource allocation decisions; (ii) evaluate the performance of our management; (iii)
budget and forecast future results to assist in the allocation of resources; (iv) provide guidance to
the financial markets to understand our expected operating performance; (v) assess our operating
performance as compared  to similar real estate companies and the industry in general; and (vi)
evaluate how a specific potential investment will impact our future results. Because we make
decisions with regard to our performance with a long-term outlook, we believe it is appropriate to
remove the effects of items that we do not expect to affect the underlying long-term performance of
the properties we own. As noted above, we believe the long-term performance of our properties is
principally driven by rental income. We believe investors are best served if the information that is
made available to them allows them to align their analysis and evaluation of our operating results
along the same lines that our management uses in planning and executing our business strategy.  
AFFO
To arrive at AFFO, we adjust Core FFO  to further exclude; (i) straight-line rents; (ii) amortization of
above- and below-market lease intangibles; (iii) recurring capital expenditures; (iv) amortization of
management contracts; (v) amortization of debt premiums and discounts, net of amounts
capitalized, and; (vi) stock compensation expense.
We believe AFFO provides a meaningful indicator of our ability to fund cash needs, including cash
distributions to our stockholders. 
Limitations on Use of our FFO Measures
While we believe our defined FFO measures are important supplemental measures, neither
NAREIT’s nor our measures of FFO should be used alone because they exclude significant
economic components of net earnings computed under GAAP and are, therefore, limited as an
analytical tool. Accordingly, they are two of many measures we use when analyzing our business.
Some of these limitations are:
The current income tax expenses that are excluded from our defined FFO measures
represent the taxes that are payable.
Depreciation and amortization of real estate assets are economic costs that are excluded from
FFO. FFO is limited, as it does not reflect the cash requirements that may be necessary for
future replacements of the real estate assets. Further, the amortization of capital expenditures
and leasing costs necessary to maintain the operating performance of industrial properties are
not reflected in FFO.
our debt securities. As a result, we recognized net gains or losses on the early extinguishment of
certain debt due to the financial market conditions at that time. 
We have also adjusted for some non-recurring items. The merger, acquisition and other integration
expenses include costs we incurred in 2011 and 2012 associated with the Merger and PEPR
Acquisition and the integration of our systems and processes. We have not adjusted for the
acquisition costs that we have incurred as a result of routine acquisitions but only the costs
associated with significant business combinations that we would expect to be infrequent in nature.
Similarly, the expenses related to the natural disaster in Japan that we recognized in 2011 are a
rare occurrence but we may incur similar expenses again in the future. 
General
and
Administrative
Expenses
(“G&A”)
consisted
of
the
following
(in
thousands):


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Notes and Definitions
35
Three Months Ended
Twelve Months Ended
Gross interest expense .........................................................
Amortization of discount (premium), net ............................
Amortization of deferred loan costs ...................................
Interest
expense before capitalization  ...............................
Capitalized amounts ..........................................................
Net interest expense
Termination, severance and transitional employee costs .......
Professional fees .........................................................................
Office closure, travel and other costs
........................................
Total
2012
2011
2012
2011
$
143,491
144,512
$
580,787
$
500,019
(10,273)
(5,682)
(36,687)
228
3,748
4,316
16,781
20,476
136,966
143,146
560,881
520,723
(13,343)
(14,091)
(53,397)
(52,651)
$
123,623
$
129,055
$
507,484
$
468,072
$
Three Months Ended
Nine Months Ended
December 31,
December 31,
2012
2011
2012
2011
$
19,989
$
13,001
$
54,283
$
58,445
4,927
4,069
17,599
46,467
3,187
1,702
8,794
24,714
-
-
-
10,869
$
28,103
$
18,772
$
80,676
$
140,495
December 31,
December 31,
is defined as the total number of outstanding shares of our common stock and
common limited partnership units multiplied by the closing price per share of our common stock at
period end.  
    
In connection with the Merger, we have
incurred significant transaction, integration, and transitional costs. These costs include investment
banker advisory fees; legal, tax, accounting and valuation fees; termination and severance costs
(both cash and stock based compensation awards) for terminated and transitional employees; non-
capitalized system conversion costs; and other integration costs. These costs are expensed as
incurred, and we believe that majority of these costs have been realized. Certain of these costs
were obligations of AMB and expensed prior to the closing of the Merger by AMB. At the time of
the Merger, we terminated our existing credit facilities and wrote-off the remaining unamortized
deferred loan costs associated with such facilities, which is included as a merger expense. In
addition, we have included costs associated with the acquisition of a controlling interest in PEPR in
2011, the liquidation of PEPR in 2012, as well as some costs associated with restructuring the
finance organization in Europe. The following is a breakdown of Merger, Acquisition and Other
Integration costs incurred (in thousands):
Interest
Expense
consisted
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 two of our unconsolidated
co-investment
ventures,
one in the first quarter of 2012 and one in the fourth quarter of 2012.
Net
Operating
Income
(“NOI”)
represents
rental
income
less
rental
expenses.
Market Equity
Merger, Acquisition and Other Integration Expenses.
Write-off of deferred loan costs
.................................................
Operating
Portfolio
includes
stabilized
operating
industrial
properties
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
expenditures.
Pro
forma
Adjusted Cash NOI
for
the properties in our operating portfolio reflects the NOI for a
full quarter of operating properties that were acquired, contributed or stabilized during the quarter. Pro
forma NOI for the properties in our development portfolio is based on current total expected
investment and an estimated stabilized yield.
A reconciliation of our rental income and rental expenses, computed under GAAP, to adjusted net
operating income (NOI) for the operating portfolio for purposes of the Net Asset Value calculation
is
as follows:
Calculation of Adjusted Cash NOI
(in thousands):
Rental income
Rental expenses
NOI
Net termination fees and adjustments (a)
Less: Actual NOI for development portfolio and other
Less: NOI on contributed properties (b)
Straight-lined rents (c)
Fourth quarter adjusted cash NOI
$
(131,696)
350,047
$
481,743
(12,373)
(11,058)
(225)
(4,360)
334,404
349,101
……………………………………………………………………………………………………….
…………………………………………………………………………………………………….
…………………………………………………………………………………………………………………….
………………………………………………………………………..
………………………………………………………….
…………………………………………………………………………
…………………………………………………………………………………………………
Adjusted NOI for operating portfolio owned at December 31, 2012
Free rent (c)…………………………………………………………………………………………………………….
16,767
Amortization of lease intangibles (c)
10,303
…………………………………………………………………………………
Regional
Markets,
similar
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. 
 
 
(a)
Net termination fees generally represent the gross fee negotiated at the time a customer is allowed to
terminate its lease agreement offset by that customer's rent leveling asset or liability, if any, that has been
previously recognized under GAAP.  Removing the net termination fees from rental income allows for the
calculation of pro forma NOI to include only rental income that is indicative of the property's recurring
operating performance.
(b)
The actual NOI for properties that were contributed and not part of discontinued operations during the three-
month period is removed.
 
(c)
Straight-lined rents, adjusted for free rent amounts, and amortization of above and below market leases are
removed from rental income computed under GAAP for the operating portfolio to allow for the calculation of
a cash yield.


Copyright ©
2013 Prologis
Supplemental 4Q 2012
Notes and Definitions
36
Rental Income
includes the following (in thousands):
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2012
2011
2012
2011
Rental income
Amortization of lease intangibles
Rental expense recoveries
Straight-lined rents
$
481,743
15,138
94,444
(10,173)
$
382,334
$
$
327,483
(8,720)
82,505
13,958
415,226
$
1,474,595
(39,587)
374,022
60,194
$
1,869,224
$
1,002,364
(22,009)
264,202
50,315
$
1,294,872
Same
Store.
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
December
31,
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.
…………………………………………..
…………………….
……………………………
……………………………………..
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.