Prologis Announces Nippon Prologis REIT's Issuance of New Investment Units

Rhea-AI Summary

Prologis (NYSE: PLD) announced that Nippon Prologis REIT (NPR) will issue new investment units, with expected net proceeds of JPY 34.3 billion ($331.7 million). NPR aims to use these funds to acquire three Class-A properties valued at JPY 62.2 billion ($600.9 million) from Prologis' Japan portfolio on February 8, 2021. Prologis retains a 15% ownership interest in NPR, which is managed by Prologis' wholly owned subsidiary. The issuance is set to close on February 2, 2021.

Positive

• Nippon Prologis REIT's issuance of new investment units valued at JPY 34.3 billion ($331.7 million) signals confidence in the real estate market.
• Prologis retains a 15% ownership in NPR, maintaining a stake in future growth.
• The acquisition of three Class-A properties worth JPY 62.2 billion ($600.9 million) enhances Prologis’ Japanese portfolio.

Negative

• None.

SAN FRANCISCO, Jan. 20, 2021 /PRNewswire/ -- Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, today announced that Japanese real estate investment trust Nippon Prologis REIT, Inc. (NPR) will issue new investment units. Prologis will retain its 15-percent ownership interest in NPR.

NPR intends to use the net proceeds from the issuance, estimated at JPY 34.3 billion ($331.7 million), to acquire three Class-A properties for JPY 62.2 billion ($600.9 million) from Prologis' wholly owned Japan portfolio on February 8, 2021. The assets, which together comprise a net rentable area of 263,876 square meters (2.8 million square feet), were offered to NPR through its sponsor support agreement with Prologis. The issuance is expected to close in Japan on February 2, 2021. NPR is managed by a wholly owned subsidiary of Prologis.

ABOUT PROLOGIS

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of September 30, 2020, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 976 million square feet (91 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 5,500 customers principally across two major categories: business-to-business and retail/online fulfillment.

FORWARD-LOOKING STATEMENTS

The statements in this document 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 we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates," including 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, contribution and disposition activity, general conditions in the geographic areas where we operate, our debt, capital structure and financial position, our ability to form new co-investment ventures and the availability of capital in existing or new co-investment ventures — 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 and political climates; (ii) changes in global 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 status, tax structuring and changes in income tax laws and rates; (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, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; (x) risks related to the current coronavirus pandemic; and (xi) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.

 

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SOURCE Prologis, Inc.

FAQ

What is the significance of Nippon Prologis REIT's new investment units issuance for Prologis (PLD)?

The issuance allows Nippon Prologis REIT to raise JPY 34.3 billion to acquire properties, benefiting Prologis through its retained ownership stake.

When will Nippon Prologis REIT acquire the new properties from Prologis?

Nippon Prologis REIT plans to acquire the properties on February 8, 2021.

How much is Nippon Prologis REIT raising through the issuance of new investment units?

Nippon Prologis REIT is raising approximately JPY 34.3 billion ($331.7 million) through the issuance.

What will the proceeds from the new investment units be used for?

The proceeds will be used to acquire three Class-A properties from Prologis' Japan portfolio.

What is Prologis' ownership stake in Nippon Prologis REIT after the issuance?

Prologis retains a 15% ownership interest in Nippon Prologis REIT.