NEW YORK (
( AMB) and
( AMB), industrial
real estate investment trusts, completed their merger, forming one REIT called ProLogis.
The newly combined company began trading Friday on the New York Stock Exchange.
Under the terms of the merger, each former ProLogis share was converted into the right to receive 0.4464 of a newly issued share of the combined company's stock. Each AMB share remained as a single share of the new company.
Former ProLogis shareholders maintained around a 60% stake in the new company, with AMB investors holding the rest.
AMB's former CEO, Hamid R. Moghadam, and ProLogis' former CEO, Walter C. Rakowich, were tapped as co-CEOs of the newly combined company through the end of 2012. After that Rakowich will retire, and Moghadam will serve as the sole CEO and chairman of the board. Following his retirement, Rakowich will serve as chairman of the board's executive committee.
On April 20
( AMB) and
( AMB) reported improved quarterly results, boosted by stronger demand for warehouse and distribution space.
Industrial real estate interest has grown in recent months as global economies continue to recover, lifting demand for modern storage spaces for a range of goods and products. Occupancies at AMB and ProLogis properties increased in the recent quarter, but rents continued to slide though at a slower rate than previously reported.
ProLogis CEO Rakowich commented that while demand has improved, the pace of the rebound eased in the first quarter this year as higher energy costs, concerns over sovereign debt issues, global military actions and the Japan earthquake tempered demand.
For the recent quarter, AMB booked funds from operations of $56.1 million, or 32 cents per share, up 25.8% from year-earlier results of $44.6 million, or 29 cents per share. The line item matched analysts' expectations.
ProLogis posted quarterly FFO of $74.4 million, or 13 cents per share, up 42.3% from $52.3 million, or 11 cents a share, booked in the year-earlier quarter. Despite the surge, results missed expectations by two cents per share.
Both AMB and ProLogis incurred charges in the quarter related to damages at their properties in Japan, a result of the catastrophic earthquake and tsunami that hit the country in early March. AMB booked damages of $2.7 million related to its Japan portfolio, while ProLogis incurred $7 million in damages.
-- Written by Miriam Marcus Reimer in New York.
>To contact the writer of this article, click here:
>To follow the writer on Twitter, go to
>To submit a news tip, send an email to:
READERS ALSO LIKE:
Get more stock ideas and investing advice on our sister site,
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.