This morning, we'll hear from Hamid Moghadam, Co-CEO and Chairman, to comment on the company's strategy and market environment. Then from Bill Sullivan, CFO, who will cover results and guidance. Walt Rakowich, Co-CEO, is joining us today from Europe. Additionally, we are joined by Gary Anderson, Mike Curless, Guy Jaquier, Tom Olinger and Gene Reilly.Before we begin the prepared remarks, I'd like to quickly state that this conference call will contain forward-looking statements under federal securities Laws. These statements are based upon current expectations, estimates and projections about the market and the industry in which Prologis operates, as well as management's beliefs and assumptions. Forward-looking statements are not guarantees of performance, and actual operating results may be affected by a variety of factors. For a list of those factors, please refer to the forward-looking statement notice in our 10-K or SEC filings. I'd also like to state that our third quarter results press release and supplemental package do contain financial measures, such as FFO and EBITDA, that are non-GAAP measures. And in accordance with Reg G, we have provided reconciliation to those measures. [Operator Instructions] Hamid, will you please begin? Hamid R. Moghadam Thanks, Tracy. Good morning, everyone, and thank you for joining us today. Let me start by saying that I'm very pleased with our third quarter results, our first full quarter of reporting as a combined company. The integration has come together better than expected, and we're already realizing important synergies that will provide long-term benefits to our organization and our shareholders. Execution is solid across all of our business lines, and the implementation of our strategic plan is ahead of schedule. You may recall from our second quarter conference call that we outlined the 4 priorities that will serve as our roadmap for the next 2 years. As a reminder, these priorities are: first, to further strengthen our financial position; second, to better align our portfolio with our investment strategy; third, to streamline our private capital business; and fourth, to build the most effective and efficient global organization in the industry.
Our first priority of balance sheet management revolves around dispositions and contributions. We've made great progress and completed $844 million in dispositions and contributions since the beginning of the second quarter. Given the number of transactions in the most recent quarter, the market has clearly spoken that there is no shortage of demand and that capital is available for quality industrial real estate. As a result, we have significantly increased our guidance for disposition and contribution activity for the second half of 2011. Bill will go -- take you through the specifics of that a little later.Our second strategic priority is to align our portfolio with our investment strategy. Last quarter, we completed the compressive review of our entire holdings to identify assets and markets that had a lower level strategic fit with the rest of our ownership. As part of this plan, we exited New Orleans and are well on our way to exiting Korea. On the deployment front, we invested $286 million into new acquisitions and development starts, specifically breaking ground on developments in Japan, Germany and Southern California, where customer demand exceeds existing supply, and we monetized over $20 million of our land bank in the process. In the current economic environment, we're being very selective with our capital deployment decisions, acquiring properties and commencing development only where demand is sound and where underwriting economics justify the risks. I'd now like to turn to our third priority, which is to streamline our private capital business. We've begun implementing a plan to rationalize our funds into a smaller number of differentiated investment vehicles, with appropriate fee structures reflective of the quality of the Prologis brand and the services we provide. In the third quarter and continuing into the fourth quarter, we sold our 20% interest in the ProLogis Korea Fund, liquidated the first phase of the Prologis North American Properties Fund I with the sale of $120 million of assets and completed the sale of the SGP portfolio into our U.S. Targeted Logistics Fund.
Looking into the near future, we're in the various stages of discussions with partners in 4 U.S. funds relating to liquidation, wind down or other restructurings, totaling about $3 billion in private capital assets. At the end of this process, we expect to have a fewer number of differentiated funds, covering the full array of our activities around the globe. These funds will have profitable fee structures and will provide our institutional partners with the best ways of investing in industrial real estate.Evidence of the acceptance of this plan is that we've already achieved the record year of capital raising and expect to see continued interest from our investing partners. Our top priority remains the recapitalization of our Japan assets, and we've commenced the marketing of 2 new funds in that region. In short, we feel great about the prospects for our private capital business. Read the rest of this transcript for free on seekingalpha.com