ProLogis Ups Common Dividend by 10 Percent, Adjusts 2008 Guidance Down

ProLogis has announced that its new annualized dividend level for 2009 will be $2.28 a share, or $0.57 per quarter, representing a 10.2 percent increase over 2008, but that 2008 and 2009 guidance would be moved down.The company revised its 2008 FFO guidance from $4.65 – $4.85 per share to $4.00 – $4.35 per share, due to a more conservative outlook for valuation and contribution timing in its CDFS business, as well as the appreciation of the dollar relative to the exchange rates assumed in previous guidance. Approximately 75 percent of second-half FFO per share is expected to be recognized in the fourth quarter, due to a larger volume of CDFS contributions. Previous net earnings per share guidance of $3.15 – $3.35 will now be expected to be $2.70 – $3.00.Based on the current environment, the company also anticipates 2009 FFO per share of $4.10 – $4.35 per share, or roughly flat compared with 2008, driven by continued growth in income from the company’s investment management business and a slightly higher level of income from the company’s property operations segment, offset by a lower level of CDFS income from dispositions. Net earnings per share for 2009 are expected to range from $2.75 – $3.00.