Net earnings per diluted share was $0.40 for the quarter compared with $0.71 for the third quarter of 2019. Core funds from operations* was $0.90 per diluted share, compared with $0.97 for the same period in 2019. Excluding net promote income, Core FFO was $0.92 in 2020 compared with $0.79 in 2019.

"Activity in our portfolio is robust and broadening – a reflection of increased demand in the quarter across multiple sectors, the adoption of e-commerce and the need for higher levels of inventory," said Hamid R. Moghadam, chairman and CEO, Prologis. "We remain focused on addressing customer pain points through our investments in data, labor solutions, technology and innovation."

OPERATING PERFORMANCE





	
		
			
			Owned & Managed
			
			
			3Q20
			
			
			Notes
			
		
		
			
			Period End Occupancy   
			
			
			95.6%
			
			 
		
		
			
			Leases Commenced
			
			
			48.8MSF
			
			
			41.7MSF operating portfolio and 7.1MSF
			development portfolio
			
		
		
			
			Retention
			
			
			72.8%
			
			
			Down 810bps from 2Q 2020
			
		
		
			 
			 
			 
		
		
			
			Prologis Share
			
			
			3Q20
			
			
			Notes
			
		
		
			
			Net Effective Rent Change
			
			
			25.9%
			
			
			Led by U.S. at 30.7%
			
		
		
			
			Cash Rent Change
			
			
			11.7%
			
			 
		
		
			
			Cash Same Store NOI*
			
			
			2.2%
			
			
			Impacted by 110bps of lower average
			occupancy and 35bps of bad debt
			
		
	





DEPLOYMENT ACTIVITY





	
		
			
			Prologis Share                    
			
			
			3Q20
			
		
		
			
			Building Acquisitions$195M
			
		
		
			
			Weighted avg stabilized cap rate
			
			
			4.3%
			
		
		
			
			Development Stabilizations
			
			
			$554M
			
		
		
			
			Estimated weighted avg yield
			
			
			6.6%
			
		
		
			
			Estimated weighted avg margin
			
			
			47.0%
			
		
		
			
			Estimated value creation
			
			
			$260M
			
		
		
			
			Development Starts
			
			
			$392M
			
		
		
			
			Estimated weighted avg margin
			
			
			31.4%
			
		
		
			
			Estimated value creation
			
			
			$123M
			
		
		
			
			% Build-to-suit
			
			
			87.5%
			
		
		
			
			Total Dispositions and Contributions
			
			
			$578M

			Weighted avg stabilized cap rate (excluding land and other real estate) 

      
			
			
			4.5%
			
		
	

BALANCE SHEET & LIQUIDITY During the quarter, Prologis and its co-investment ventures completed $2.4 billion of debt refinancing at a weighted average rate of 1.4 percent and a weighted average term of 12 years. This activity includes a $750 million green bond issued at 1.25 percent in August.

Debt as a percentage of total market capitalization was 19.2 percent and the company's weighted average rate on its share of total debt was 2.1 percent with a weighted average remaining term of 9.9 years. At September 30, the company's unconsolidated co-investment ventures had liquidity of approximately $2.6 billion and a loan-to-value ratio of approximately 21 percent. The combined investment capacity of Prologis and its open-ended vehicles, at levels in line with their current credit ratings, is $13 billion.

2020 GUIDANCE "Our outlook continues to improve based on results, leasing and lower credit losses," said Thomas S. Olinger, chief financial officer, Prologis. "Year-over-year Core FFO growth is sector leading at 13.7 percent at the midpoint, excluding promotes, while keeping leverage flat. Additionally, we continue to maintain significant dividend coverage of 1.6x and expect 2020 free cash flow after dividends of $1.1 billion."

	
		
			
			2020 GUIDANCE
			
			
			January 2020July 2020
			
			
			Current 
			
		
		
			
			Earnings (per diluted share) 
			
		
		
			
			Net Earnings                                
			
			
			$1.98 to $2.13$2.06 to $2.18$2.20 to $2.24
			
		
		
			
			Core FFO*
			
			
			$3.67 to $3.75$3.70 to $3.75$3.76 to $3.78
			
		
		
			 
		
		
			
			Operations  
			
		
		
			
			Year-end occupancy                         
			
			
			96.0% to 97.0%
			
			
			95.0% to 96.0%
			
			
			95.25% to 95.75%
			
		
		
			
			Cash Same Store NOI* - Prologis share    
			
			
			4.25% to 5.25%
			
			
			 2.5% to 3.5%   
			
			
			 2.75% to 3.25%1 
			
		
		
			 
		
		
			
			Capital Deployment – Prologis Share (in millions)   
			
		
		
			
			Development stabilizations                   
			
			
			$2,200 to $2,500$1,900 to $2,200$2,300 to $2,500
			
		
		
			
			Development starts
			
			
			$2,000 to $2,400$800 to $1,200$1,600 to $2,000
			
		
		
			
			Building acquisitions
			
			
			$500 to $700$500 to $600$700 to $800
			
		
		
			
			Building contributions
			
			
			$600 to $900$700 to $900$1,100 to $1,200
			
		
		
			
			Building and land dispositions
			
			
			$1,300 to $1,500$500 to $800$900 to $1,100
			
		
		
			
			Realized development gains
			
			
			$300 to $400$300 to $400$425 to $475
			
		
		
			
			Net proceeds (Uses)     
			
			
			($600) to ($700)
			
			
			($100)
			
			
			($300) to ($500)
			
		
		
			 
		
		
			
			Strategic Capital (in millions)   
			
		
		
			
			Strategic capital revenue,                     
			excl promote revenue                 
			
			
			$350 to $360$360 to $370$380 to $385
			
		
		
			
			Net promote income,
			incl in Core FFO* range
			
			
			$115$150$158
			
		
		
			 
		
		
			
			G&A (in millions)  
			
		
		
			
			General & administrative expenses              
			
			
			$275 to $285$265 to $275$280 to $285
			
		
	









	
		
			 
			 
		
		
			
			1.
			
			

			At the midpoint, this includes approximately 50 basis points of bad debt

expense. 
			
		
		
			 
			 
		
		
			
			*
			
			
			This is a non-GAAP financial measure. See the Notes and Definitions in 

our supplemental

			information for further explanation and a reconciliation to the most 

directly comparable GAAP measure.

• Prologis Inc