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Prologis Research: Global Logistics Rents to Grow More than 5 Percent Annually

Prologis Research: Global Logistics Rents to Grow More than 5 Percent Annually

New Report Points to Structural Drivers, Recovery in Operating Fundamentals as
Key Catalysts of Rent Growth

PR Newswire

SAN FRANCISCO, Oct. 1, 2013

SAN FRANCISCO, Oct. 1, 2013 /PRNewswire/ --Prologis, Inc. (NYSE: PLD), the
leading global owner, operator and developer of industrial real estate, today
published an in-depth analysis of global rents for logistics facilities in a
paper titled "Entering the Sweet Spot in the Cycle for Logistics Real Estate:
An Extended Rental Rate Expansion."

In the report, the company's research team estimates overall rents will grow
by more than 5 percent per year from 2014 to 2017, reaching a total increase
of 20 to 25 percent during the four-year period. This outlook is supported by
a trend in structural drivers and a recovery in operating fundamentals.

"Rents today still don't broadly support new construction, but tightening
vacancy rates are reversing that dynamic," said Chris Caton, vice president
and head, Prologis Research. "In addition, as replacement costs rise with
global economic expansion, we expect the rent required to justify new
construction to rise in kind and lead to an extended period of pronounced rent
increases, particularly in cyclical recovery global markets in the U.S. and
Europe."

The complete report is available online in the Research section only at
www.prologis.com.

Prologis Research monitors, analyzes and reports on key trends and dynamics in
both real estate and supply chain management to provide customers, investors
and the general public with insight from a global and large-scale perspective.

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 June 30, 2013, Prologis, Inc. owned or had investments
in, on a wholly owned basis or through co-investment ventures, properties and
development projects expected to total approximately 563 million square feet
(52.3 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.



SOURCE Prologis, Inc.

Website: http://www.prologis.com
Contact: San Francisco, Tracy Ward, Tel: +1 415 733 9565, tward@prologis.com,
or Atle Erlingsson, Tel: +1 415 733 9495, aerlingsson@prologis.com
 
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