Shock and Awe in ProLogis Share Price Plunge

Oh, how the mighty have fallen.
Less than one year ago shares in ProLogis Inc., the world’s largest developer and owner of distribution/logistics centres, were trading at over (US)$71. Today, as of this posting they trade at (US)$3.35 (hopefully not too many employees took their compensation in the form of share options!)
The current share price gives the company a market cap of (US)$880 Million (versus a Market Cap of well over $18 BILLION at it’s high point).
According to various reports the company has nearly 550 million square feet of space in North America, Europe, and Asia. Those properties are said to be worth upwards of $41 Billion. Chairman and CEO, Jeffrey Schwartz, resigned 2 weeks ago in a stunning move. The company has said that it does not plan any new development activity going forward and the company has cut it’s previously announced dividend of $2.28 per share down to $1. The company has total debt of $14.6 billion versus total equity of $11.3 billion (as of the end of the Third Quarter). The company’s development pipeline stood at a whopping $8 Billion.
My lowly opinion is that ProLogis will start to sell off certain assets in order to generate funds to pay down outstanding debt. The credit markets are currently too tight and expensive to be of much help in securing funds. And the company would be loathe to even consider selling shares at this level even if they could find investors willing to buy! However, having said that, look at the “SIDE NOTE” below.
SIDE NOTE: Just to see how other companies are struggling with raising capital look at A-B InBev’s recent takeover of US beer giant Anheuser-Busch. InBev took on $54.8 Billion in debt to fund this mega-acquisition. Part of the financing was an Equity Bridge Financing component of $9.8 Billion. Yesterday, in a stunning move, it unveiled an $8.2 Billion rights offering at a whopping 69% discount to Friday’s closing share price. Such a huge discount to the existing share price virtually ensures that the rights will be purchased by the existing shareholders making this issue a slam dunk. But what a price to pay! Even with this capital being raised the company is still looking at selling assets to pay off the $1.6 Billion balance. What a market!!