The world’s industrial REIT leader - ranking second in this year’s A List - recently released its strong second-quarter 2006 results, noting that it had doubled its net income to $168.4 million (or 66 cents per share; NYSE: PLD) from a second-period 2005 net income of $77.2 million. Why? According to ProLogis, the continuing growth of global trade was instrumental. In July, the company announced that it had acquired more than 3.5 million square feet of high-quality industrial space and land in Mexico. And, according to an Aug. 11 COMTEX news report, the company is expected to grow even faster in the China market in the future (ProLogis debuted in China in 2003).
Building customer relationships that span the globe and employing the strength of an operating model that lets it access private equity to fund its growth, ProLogis’ explosive portfolio expansion is spurred by a customer base that began with local providers and grew to include multi-national corporations. Key to customer retention and repeat business is superior customer service, afforded by the ProLogis Operating System®, a unique structure based on the seamless integration of four groups of professional and highly experienced individuals all working toward the same goal. In addition to the company’s in-depth knowledge of available local resources, demographics, etc., as well as many value-added customer services, the company is also bound by the recently formalized ProLogis Code of Ethics and Business Conduct Program. According to CEO K. Dane Brooksher, “The Code defines our beliefs in ethical treatment of business affairs and relationships with each other, our customers, our suppliers, our communities, our shareholders, and our investor partner in our funds.” Although ProLogis has had a code of ethics for many years, this dedicated program is focused on documenting its standards of conduct; providing training, counsel, and guidance; and investigating inconsistent activities in response to a public outcry for business in general to hold itself accountable.
In addition to its substantial holdings - 388 million square feet of space in 2,300 industrial buildings (some of which are currently under construction) - ProLogis is a true leader in many other ways: It promotes sustainability company-wide, from warehouse development to its own corporate headquarters (which is LEED® certified); it has successfully completed several brownfield redevelopment projects worldwide; it regularly publishes industry research on such supply-chain topics as product proliferation, offshore outsourcing, and RFID technology; and it is working with the Chinese government and the Beijing Organizing Committee for the Games of the XXIX Olympiad as the primary provider of warehouse and distribution space for the 2008 Olympics. Clearly, this global organization offers the best of all worlds.