In the first six months, FFO per diluted share was $1.16. Net earnings per diluted share for the six months ended June 30 were $0.66 compared with $0.47 in the comparable period of 2003.
"Overall, we've noted significant improvement in global industrial fundamentals," says K. Dane Brooksher, chairman and chief executive officer. "Virtually every North American market is reporting positive net absorption and occupancy gains. Rental rate growth on lease renewals continues to be negative, although we are beginning to see positive rent growth in a few strategic submarkets. Conditions in Europe also have improved, with increased lease-up of inventory space and a significant pipeline of new build-to-suit requirements. In Japan, the pace of new development starts year to date is strong, as evidenced by ProLogis' current development pipeline."
Second quarter earnings reflect these improved market conditions, he says. In addition, ProLogis has seen a significant amount of new leasing, "which led to same store occupancy gains of 106 basis points and supported a higher level of Corporate Distribution Facilities Services contributions into our property funds and dispositions," he adds. "This accelerated activity helped us exceed the top end of our expected range for first-half FFO per share. As a result, we are raising the bottom end of our full-year FFO per share guidance, bringing our range to $2.37 to $2.45, before charges related to our preferred redemption and the relocation of our IT and corporate accounting functions from El Paso to Denver."
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