SAN FRANCISCO—Prologis Inc., the leading global owner, operator and developer of industrial real estate, recently reported results for the first quarter, noting several improvements and a strong potential for growth.

“We concluded several priorities in the first quarter and are beginning to capitalize on growth opportunities,” said Hamid Moghadam, chairman and CEO. “Real estate fundamentals are solid and demand for our product is leading to rental growth. For the first time in 17 quarters, rent change on rollovers is positive.”
Core funds from operations per fully diluted share was $0.40 for the first quarter compared to $0.40 for the same period in 2012. Net earnings per fully diluted share was $0.57 for the first quarter compared to net earnings of $0.44 for the same period in 2012. In both periods, net earnings for the quarter were principally due to gains on real estate transactions.
The company leased 35.8 million square feet (3.3 million square meters) in its combined operating and development portfolios in the first quarter. Prologis' operating portfolio was 93.7% occupied on March 31, 2013. Tenant retention in the quarter was 78%. GAAP rental rates on leases signed in the first quarter increased by 2% from in-place rents. During the first quarter, same-store net operating income (NOI) increased 0.3%, and on an adjusted cash basis 1.8%.