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Prologis Co-CEO Walter Rakowich on growth domestically as well as overseas in countries such as Japan.
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-- but I was saying that you have some interesting developments in your business particularly big distribution centers but.
Let's get to the numbers first you beat on revenue which -- find more interesting than missing on the bottom line but let's talk about your occupancy rate.
That about -- 3% what's getting there.
You know this first -- -- we had our best quarter.
This quarter since the financial crisis it was it's it's what we've seen over the course of the last three years.
Is occupancy steadily rising as you said -- -- 93%.
And does that that's that's actually -- very strong number on for us and what we're beginning to see now is -- begin to bottom out.
In in some markets.
In the United States and globally rents now beginning to tick up so all of that is a great news.
-- okay you -- customers who -- your space is everybody from Amazon took FedEx to.
Home Depot for example and then of course there's the US government that's a that's a pretty big customer there but -- talk about this.
This business that you're suddenly doing in Japan because I was Nevada is Japan finally recovering -- -- some deals in Japan tells about the atmosphere there.
You know Japan on.
Notwithstanding the fact that it is in a slow growth environment has been for years and years and years decade -- right we built a heck of a business there and and one of the reasons is.
That that the distribution facilities that are in Japan are older and obsolete there has not been a lot of supply built.
I'm over the course of the last ten to twenty years and so you have companies there that need to reconfigure their supply chains and become more efficient.
It -- their bottom line and they're looking to move from some of those bigger obsolete facilities into the newer facilities that we built so that's been great for our business.
I see smack in the middle of this -- that we're showing that you do do quite a business in Europe and the question becomes your occupancy decline in Europe doesn't surprise me.
Europe is offering a bit but how long does that continue analysts are dying to know.
Well actually our our occupancies in Europe we're just down a smidgen ten basis points which is.
I pretty well it's really flat for the quarter they've been rising over the course of the last five or six quarters which might surprise you because.
What you hear I'm in what you read about is a little bit different than what we see on the ground not to say that the business is doing fabulous in Europe but.
Certainly we're holding our own our occupancy at 92%.
Is is relatively strong.
And we actually feel good and better about the prospects in Europe next year okay there's your headline we feel good about the prospects in Europe next year acknowledged that are hard to imagine -- -- our business is doing reasonably well there.
I'll take it definitely the solar business you've recently dipped -- toe into the solar business first of -- tell me how and secondly.
We hear negative things about the slowdown there that it's become a bottom ties to many Chinese companies are doing it power -- capitalizing on solar.
Well it's interest thing we have we -- 560.
Million square feet of space throughout the world if you can imagine that I think we're the largest landlord of properties.
On in the world and so interestingly enough we also have 560 million square feet of -- space.
I'm so many years ago we began to think well geez maybe there's an opportunity for us to -- some of that -- space that doesn't generate any income.
It to something that is good for our shareholders as well as environmentally good.
As -- so we we we began looking into ways of doing it and actually we've converted about I believe three or 4% of our roof space.
It to solar and we.
Basically you know harvest the -- if you will and then we sell that into the grid -- to -- you know various utilities throughout the a world that's.
Art people at ProLogis -- -- that idea at and I think people are liking the stock to what 21% year over year you've got a dividend of about three point 1%.
Great to see while they come back and when you're in town come to New York.
I'd love to live look to see it -- -- recollection of ProLogis is.
