Based on land impairments, Barclays (NYSE:BCS) has lowered their NAV estimate on Prologis (NYSE:PLD), also citing the TPG deal as slightly dilutive.
Barclays said, "The TPG sale accounts for roughly half of the 2011 dispositions in our model; we are not altering any significant assumptions. Meanwhile, we are incorporating all of the 4Q10 charges into our published FFO estimates. However, our 2010 and 2011 core FFO estimates (ex all gains and one-time items) remain 0.54 per share and $0.64 per share, respectively. Finally, we are lowering our NAV estimate to $13.35 per share, from $14.87 per share, primarily to account for the land impairments; we estimate that the TPG transaction is also slightly NAV dilutive."
Barclays maintains an "Overweight" on ProLogis, which last closed at $14.21, down $0.10, or 0.70. Barclays has a price target on them of $14.
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