Thanks to $811 million of charges in part related to a drop inthe value of its real estate assets, ProLogis reported afourth-quarter FFO loss of $645.9 million, or $2.43 per share,which compares to a gain of $211.2 million, or $0.79 per share, inthe same year-earlier period. Without the one-time charges, FFO forthe final three months of the year was $0.61 per share, one pennyahead of analysts' average forecast. The company's 2009 forecast ofbetween $1.85 and $2.05 per share for all of 2009 also was in linewith analysts' average estimates.

"With economic weakness anticipated to persist through 2009 weare focused on our core industrial business in our existingmarkets," says company CFO William Sullivan. "Our guidance reflectsthat focus; however, sizeable asset sales or other corporateactions could alter our expectations, which we will reflect infuture guidance."

ProLogis is trying to reduce a heavy debt load that it built upduring its rapid expansion over the past few years, before thecredit freeze and the ensuing economic downturn made it difficultto refinance. As part of the plan, the company said Monday that ithad completed the previously announced $1.3 billion sale of itsChina operations and Japan property fund interests to GIC RealEstate, an investment arm of the Government of Singapore InvestmentCorp. The deal includes $500 million upon closing and an additional$800 million no later than the second quarter. GIC also willreimburse ProLogis for $45 million for development expenses relatedto the properties that have occurred since November.

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