ProLogis sells $1.02 billion of assets to Blackstone
ProLogis (PLD) sold $1.02 billion of assets to Blackstone Real Estate Advisors and plans to use proceeds to repay debt and fund development activity. The Denver-based distribution facilities giant said the assets include about 180 of its North American industrial properties, a minority interest in a hotel property, and interests in three property funds. ProLogis retains an interest in the assets, and the sale is expected to close next month. ProLogis has now disposed of about $1.6 billion of assets this year, which is slightly above its prior estimates. The company expects the most-recent sale to dilute its core funds from operations by up to 2 cents a share. William Sullivan, ProLogis chief financial officer, said "the uptick in the leasing environment we anticipated in the second half has been slow to materialize." Consequently, the company revised its estimate for core funds from operations for the year to between 53 cents and 56 cents a share. ProLogis still expects to report funds from operations of 70 cents to 78 cents a share, excluding items, and net earnings of 9 cents to 13 cents a share. Sullivan said the company still believes "market fundamentals are poised for improvement in 2011." Write to Jason Philyaw.