PEPR results for the quarter and six months ended 30 June 2010
ProLogis European Properties results for the quarter and six months ended 30
PEPR maintains solid operating performance
and continues to reduce debt
Luxembourg - 22 July 2010 - ProLogis European Properties (Euronext: PEPR), one
of Europe's largest owners of modern distribution facilities, today reports
results for the second quarter and six months ended 30 June 2010.
* 0.3% increase in the portfolio value since 31 December 2009 resulting from a
valuation decrease of 1.1% more than offset by an improvement in foreign
* EPRA net asset value per ordinary unit up by 2.0% to â‚¬6.27 since end
2009, reflecting stabilising portfolio values and a further quarter of
retained earnings; IFRS net asset value per ordinary unit up to â‚¬5.99 from
â‚¬5.97 at end 2009
* Maintained high level of portfolio occupancy at 93.7%, comfortably above the
* Further progress on refinancing and deleveraging initiatives:
* all Commercial Mortgage-Backed Securities ("CMBS") fully repaid
* no significant debt maturities until December 2012
* in advanced discussions on new revolving credit facility
* Continued improvement of loan-to-value ratio: to 53.3% from 53.7% in March
and 55.0% at end 2009
* Revised guidance: EPRA earnings and distributable cash flow per ordinary
unit in the range of â‚¬0.40 to â‚¬0.44 due to slower forecasted growth in
occupier demand than previously anticipated
Quarter to 30 June 2010 Six months to 30 June 2010
* EPRA earnings â‚¬0.11 per ordinary * EPRA earnings â‚¬0.21 per ordinary
unit (Q2 2009: â‚¬0.16 per ordinary unit (HY 2009: â‚¬0.32 per ordinary
* IFRS loss â‚¬0.07 per ordinary unit * IFRS earnings â‚¬0.04 per ordinary
(Q2 2009 â‚¬1.40 loss per ordinary unit (HY 2009: â‚¬1.24 loss per
unit)Â ordinary unit)
* EPRA net asset value â‚¬6.27 per * EPRA net asset value â‚¬6.27 per
ordinary unit (Q1 2010: â‚¬6.26 per ordinary unit (YE 2009: â‚¬6.15 per
ordinary unit)Â ordinary unit)
* IFRS net asset value â‚¬5.99 per * IFRS net asset value â‚¬5.99 per
ordinary unit of (Q1 2010: â‚¬6.01 per ordinary unit (YE 2009: â‚¬5.97 per
ordinary unit)Â ordinary unit)
* 31 lease transactions covering * 62 lease transactions covering
249,500m2, compared to 18 701,800m2, compared to 34
transactions covering 219,600m2 in transactions covering 397,900m2 in
Q2 2009Â HY 2009
Commenting on the results, Peter Cassells, chief executive officer of PEPR,
said: "We have delivered solid operating performance and financial results
during what continues to be a challenging market environment. These results are
testament to the quality of PEPR's pan-European portfolio, established customer
relationships and the expertise of its management teams.
"The first half of the year was dominated by significant leasing activity as we
continue to prioritise for portfolio occupancy as a key objective. As a result
of this activity, we have maintained our occupancy levels at a high 93.7%, well
above the industry average, while at the same time removing some of the risks
surrounding future lease expiries, especially in weaker markets."
Chief Executive's review
Continued uncertainty over the pace and scale of economic recovery in Europe as
well as the introduction of austerity measures in a number of EU member
countries has hindered improvements in occupier market conditions and as a
result the rental markets remain soft. We believe that a patchy economic
recovery will lead to a gradual absorption of existing vacancy; this has been
borne out by the volume of leasing transactions witnessed in the UK over the
last six months as it begins to emerge from the recent economic crises. However,
we now do not anticipate any material improvement in market conditions across
the greater region until 2011.
Despite these challenges, we are pleased to report an increase in net asset
value per ordinary unit due to the stabilisation of property values across the
majority of markets, combined with the strengthening of sterling in the first
half of the year and the continued retention of earnings. Interestingly,
property values within all our markets moved within a tight band of plus or
minus 2% since year-end 2009, potentially signalling the trough of European
Our reported earnings for the second quarter and half year are broadly in line
with our expectations. However, we expect the slowdown in the pace of recovery
in Europe generally will impact our second half portfolio performance more than
previously anticipated, accordingly we are revising our full-year guidance for
both EPRA earnings and distributable cash flow to between â‚¬0.40 and â‚¬0.44 per
ordinary unit from between â‚¬0.45 and â‚¬0.50 per ordinary unit.
During the second half of 2010, we will strive to improve further our financial
metrics, continuing to reduce leverage and seeking a return to an investment
grade credit rating over time. In addition, we will ensure that we remain well
placed to capture the benefits of any improvements in occupier demand,
maintaining high portfolio occupancy through consistently strong leasing
performance and driving cash flow from the portfolio through proactive asset
management and exemplary customer service.
The market outlook continues to be challenging, with improvements seen in the
first quarter faltering during the latter part of the second quarter amidst
concerns over sovereign debt defaults. As a result, the pan-European economic
recovery remains slow and intermittent with some evidence of strengthening in a
Economic commentators are still forecasting continued slow but positive real GDP
growth of between zero and 1% a year in 2010 and 2011, with only a modest risk
of a double-dip recession. The strengthening of global currencies against the
Euro may be a positive development in driving exports and manufacturing in some
countries, especially Germany and France, which could consequently lead to an
increase in demand for warehouse space across the region.
While the investment markets have seen improving levels of activity resulting in
a marked reduction in cap rates on prime product with long leases, occupational
demand remains soft with limited net absorption of distribution space. Market
activity continues to be dominated by consolidation, particularly within the
third-party logistics sector, and reconfiguration of customer supply chains.
Customers continue to request greater flexibility in lease terms, resulting in
ongoing pressure on net effective rents, especially in areas with excess
existing stock. However, the majority of core European markets have seen rents
and incentives stabilise and indicators point to the worst of the decline in
values being over. Management nonetheless expect the occupier markets to remain
soft for the remainder of 2010.
The entire portfolio was independently revalued at 30 June 2010, with net market
value decreasing 1.1% from the valuation carried out at 31 December 2009 prior
to the effect of foreign exchange translations. Including the impact of foreign
exchange, the overall net market value increased 0.3% to â‚¬2,847.2 million as
compared to â‚¬2,839.2 million at year end 2009.
Continental European assets recorded an overall valuation decline of 1.4% from
â‚¬2,345.7 million to â‚¬2,312.2 million over the six months to June 2010, including
movements in the Swedish krona exchange rate. Excluding this currency effect,
continental European asset values fell 1.65% over the same period. Property
values in Northern Europe and Central Europe fell 2.05% and 1.95% respectively,
whilst Southern Europe suffered a more modest decline of 1.4%. These valuations
demonstrate a marked slowdown in the rate of portfolio value decline from the
6.2% fall suffered in the second half of 2009 and the 9.2% decline in the first
half of 2009, driven by a reduction in cap rates across most markets offset by
further softening of rental values and a repricing of shorter dated income
across the portfolio.
The UK witnessed a slight increase in values in the six months to June 2010,
increasing 1.2% to Â£444.5 million from Â£439.2 million at the end of 2009, driven
by improving market sentiment and strong demand from institutions, UK retail
funds and overseas investors. The strengthening of the sterling exchange rate
during the first half of 2010 took the total value of the UK portfolio up 8.4%
in euro terms, to â‚¬535.0 million from â‚¬493.5 million at end 2009.
The net initial yield of the portfolio at 30 June 2010 decreased to 7.7% from
8.4% at 31 December 2009, taking into account the slight decline in value and
lower annualised in-place rental income.
ProLogis (NYSE: PLD), PEPR's external manager, has maintained strong leasing
momentum during the second quarter, with 31 lease transactions covering 249,500
square metres being completed. Five leases, covering 41,900 square metres, were
new leases in Czech Republic, France, Germany and Poland. A further eight leases
were expansions, adding 9,800 square metres to existing customers' supply
chains. The remaining 18 transactions were lease renewals with customers such as
Carrefour, FM Logistics, Geodis, Iron Mountain and John Lewis.
These transactions resulted in a weighted average rental decline of 7.7% over
the expiring rental level, in line with management expectations given market
rental decreases of between 5-20% across Europe. The level of over-renting
inherent in the portfolio has reduced to 3.4% at 30 June 2010.
Of the 36 lease breaks and expiries during the first six months, covering
356,900 square metres, 12 were exercised representing 146,000 square metres.
This resulted in a customer retention rate of 65% by rental value for the
half-year, at the top end of PEPR's historical average customer retention rate.
It is likely that PEPR's customer retention rate and portfolio occupancy will
deteriorate in the third quarter before staging a recovery in the final quarter
and into 2011 given the continued weakness in the occupational markets.
The second quarter of the year saw two instances of customer defaults on leases
totalling 7,100 square metres, or less than 0.1% of annualised rental income.
PEPR remains focused on monitoring customer performance to minimise future risk.
Total accounts receivable from customers for half-year 2010 decreased to â‚¬46.4
million, from â‚¬48.9 million at 31 March 2010 and from â‚¬46.9 million at 31
December 2010. At the end of June 2010, PEPR held a â‚¬2.7 million provision for
bad and doubtful debts (HY 2009: â‚¬1.4 million).
At 30 June 2010, the portfolio comprised 232 distribution facilities, covering
4.9 million square metres across 11 European countries with a net market value
of â‚¬2.8 billion. The portfolio risk profile remains attractive, with high
occupancy of 93.7%, a diversified customer base, and on average 3.4 years to
next lease break or 5.4 years to lease expiry. An overview of the portfolio is
provided on page 23 of the full statement attached.
LIKE-FOR-LIKE PORTFOLIO OVERVIEW
AS AT 30 JUNE 2010
% of | 30 June Â | 30 June Â | 30 June
+------------ +------------ +------------
portfolio|2010 2009 Change|2010 2009 Change|2010 2009 Change
| | |
| Annualised rent | |
|in â‚¬ per leasable | Net market value | Occupancy
by m2| mÂ² | in â‚¬ per mÂ² | %
Southern 49%|46.94 49.79 -5.7%|1,301 1,401 -7.1%|95.3% 98.7% -3.5%
| | |
Northern 19%|53.97 58.63 -7.9%| 584 629 -7.2%|94.6% 96.6% -2.0%
| | |
Central 18%|38.57 46.44 -17.0%| 427 480 -11.1%|88.0% 92.5% -4.9%
| | |
UK 14%|64.38 68.48 -6.0%| 535 502 +6.6%|93.7% 96.4% -2.8%
Total / | | |
Averages 100%|49.32 53.57 -7.9%|2,847 3,012 -5.5%|93.7% 96.9% -3.4%
The like-for-like portfolio includes all properties owned by PEPR as at 30 June
On a like-for-like basis, average annualised rent per square metre decreased
7.9% over the year, partly as a result of rent incentives given on the
significant number of leases signed between the two periods and increased
Over the year, the total market value per square metre of the like-for-like
portfolio decreased by 5.5%, with continental European countries recording
valuation decreases of between 7.1% and 11.1% and the UK improving, up 6.6%.
PEPR management has lowered EPRA earnings and distributable cash flow guidance
for 2010 to between â‚¬0.40 and â‚¬0.44 per ordinary unit from between â‚¬0.45 and
â‚¬0.50 per ordinary unit given the slowdown in the pace of improvement in market
conditions. In addition, despite the significant strides made in enhancing
PEPR's financial metrics during the past year and a half, it is unlikely that
PEPR will return to an investment grade credit rating by 23 October 2010, the
annual coupon reset date on the â‚¬500 million Eurobond issuance. An investment
grade rating would reset the coupon on the Eurobond to 5.875% from 7.625% which
had previously been assumed in PEPR's guidance.
The terms of PEPR's â‚¬300 million unsecured credit facility currently prohibit
cash distributions to ordinary unitholders. As a result, PEPR does not
contemplate paying ordinary dividends in 2010, although it intends to revert to
paying an ordinary dividend as soon as it is prudent to do so and when permitted
under the terms of the facility.
PEPR recorded an IFRS loss for the second quarter of â‚¬10.5 million compared to a
â‚¬266.8 million loss for the same period in 2009, primarily due to significantly
lower portfolio fair value movements in 2010 and the loss on asset disposals and
the consequential tax impacts recorded in 2009. However, IFRS earnings for the
quarter were negatively impacted by an â‚¬8.2 million decline in total revenue and
a â‚¬1.5 million increase in operating costs.
EPRA earnings for ordinary unitholders, which provide a better guide to
underlying business performance, decreased from â‚¬31.2 million for Q2 2009 to
â‚¬21.2 million in Q2 2010. The reduction is primarily due to the decline in total
revenue between the two periods, a lower tax charge and â‚¬1.6 million of
For the half-year, IFRS earnings increased substantially to â‚¬11.9 million
compared to a loss of â‚¬237.5 million for half year 2009, the difference
primarily reflecting the lower unrealised portfolio valuation decline recorded
in half year 2010 and a â‚¬42.5 million loss on property disposals in 2009 and the
consequential tax impacts recorded in 2009. These impacts were partially offset
by â‚¬11.8 million lower total revenue and a â‚¬2.3 million increase in operating
EPRA earnings for ordinary unitholders for the half-year decreased to â‚¬40.4
million from â‚¬60.4 million for the comparable period, primarily due to lower
rental income, increased operating expenses, a higher tax charge and â‚¬3.2
million of preferred dividends, partially offset by reduced finance expense.
A reconciliation between IFRS and EPRA earnings is shown on page 14 of the full
Second quarter rental and other property income fell by â‚¬8.1 million to â‚¬60.6
million (Q2 2009: â‚¬68.7 million), primarily related to the loss of â‚¬4.4 million
of rental income from portfolio sales completed in 2009, a decline of â‚¬4.5
million in rental income due to lower market rents on new lease agreements and
the marginal decline in portfolio occupancy. This decline was partially offset
by a â‚¬0.5 million increase in UK sourced income when measured in euro.
Rental and other property income for the half-year fell by 8.6% to â‚¬125.1
million (HY 2009: â‚¬136.9 million), as a result of the loss of â‚¬8.7 million of
rental income from the portfolio sales, a decline of â‚¬6.8 million as a result of
leases rolling back to market and lower portfolio occupancy, partially offset by
a â‚¬1.0 million increase in UK sourced income when measured in euro. In addition,
as previously reported, half year 2010 included a â‚¬2.6 million non-recurring
receipt relating to the finalisation of insurance and legal claims.
Total operating expenses comprise the cost of operating the portfolio and
managing PEPR as a listed real estate fund.
Cost of rental activities includes ground rents paid, property management fees,
the provision for bad debt and other non-recoverable property related expenses.
The cost of rental activities increased to â‚¬7.8 million in Q2 2010 from â‚¬6.3
million in the comparable period. The key driver of this increase was a â‚¬1.3
million non-recurring charge arising from a reassessment of the recoverability
of service charges dating back over a number of years.
For the half-year, cost of rental activities increased to â‚¬14.1 million (HY
2009: â‚¬12.3 million) largely as a result of the â‚¬1.3 million non-recurring
charge and the recovery of an unusually high level of rental expenses in half
year 2009. Property management fees declined 14.2%, to â‚¬6.7 million for the six
months (HY 2009: â‚¬7.8 million) as they are directly correlated to gross
portfolio value which has been impacted by portfolio disposals and valuation
Fund expenses comprise the non-property related costs associated within our
business, including fund management, custodian and professional fees. These
expenses remained broadly flat in Q2 2010 at â‚¬2.9 million as compared to â‚¬2.7
million in the Q2 2009.
On a six month basis, fund expenses increased by â‚¬0.5 million, to â‚¬5.9 million,
primarily due to the write-off of â‚¬0.5 million of legal and advisory fees
associated with a potential second preferred equity raise reported in Q1 2010.
Underlying fund management fees declined to â‚¬2.2 million, from â‚¬2.6 million in
the prior period, as these fees are directly correlated to the gross market
value of the portfolio.
Property fair value movements
Total property fair value movements for Q2 2010 resulted in a net loss of â‚¬35.2
million, compared to a net loss of â‚¬306.7 million recorded in Q2 2009,
reflecting the stabilisation of property values across Europe, particularly in
Total property fair value movements for the half-year resulted in a net loss of
â‚¬36.6 million, comprising â‚¬65.5 million of revaluation losses, a â‚¬0.5 million
increase in associated provision for purchasers' costs, partially offset by
â‚¬29.4 million of revaluation gains.
Further details on the portfolio valuation movements are provided in the
Portfolio revaluation section on page 3 of the full statement attached.
Interest income for the half-year decreased to â‚¬0.2 million from â‚¬2.2 million in
the comparable period, primarily related to a â‚¬1.3 million dividend receipt
received from ProLogis European Properties Fund II in Q1 2009, lower levels of
cash on deposit and lower interest rates received on those deposits.
Finance costs comprise interest expense, debt amortisation charges and foreign
(Unless otherwise stated, amounts are expressed in thousands of euros)
Year ended Â Six months ended
31 December 2009 Â 30 June 2010 30 June 2009
Audited Unaudited Unaudited
96,173 Interest expense 45,032 49,535
Amortisation of initial borrowing
10,524 costs 5,507 4,758
Net foreign currency
1,092 (gains)/losses 339 873
----------------- -------------- -------------
107,789 Â 50,878 Â 55,166
Interest expense for the quarter decreased to â‚¬22.2 million from â‚¬24.0 million
in Q2 2009. Interest expense for the six month period decreased by 9.1% to â‚¬45.0
million (HY 2009: â‚¬49.5 million), primarily related to costs associated with the
early retirement of CMBS debt in 2009 and PEPR's successful deleveraging
initiatives. These include the repayment of â‚¬548.2 million of CMBS debt between
the two periods, largely offset by higher interest rates on secured debt
packages which increased average interest rates for the half-year to 5.4% from
4.5% in half year 2009.
Amortisation charges increased by â‚¬0.7 million in the first six months of 2010,
primarily reflecting accelerated amortisation related to the reduction in size
of the revolving portion of the unsecured credit facility and the early
repayment of the first â‚¬300 million tranche of that facility, originally due
PEPR's financing structure utilises a mix of secured and unsecured debt sources.
At the end of June 2010, 51.2% of outstanding debt was secured against specific
pools of assets with no recourse to the security of other debt or assets
elsewhere within the business.
Total outstanding debt as at 30 June 2010 was â‚¬1,594.5 million, a 0.5% decrease
since 31 March 2010 (â‚¬1,602.6 million), primarily due to the repayment of â‚¬54.0
million of CMBS, partially offset by the â‚¬24.2 million increase in funds drawn
under the â‚¬100 million revolving portion of the unsecured credit facility. At
the end of June, â‚¬75.8 million remains undrawn under the facility and PEPR has
â‚¬32.8 million cash.
Since the quarter end, PEPR has reduced the amount outstanding under the
revolving portion of its unsecured credit facility to â‚¬14.6 million, from â‚¬24.2
million, increasing undrawn debt capacity to â‚¬85.4 million. PEPR is currently in
advanced negotiations with a small group of banks to provide a new unsecured
bank facility to replace the existing â‚¬100 million revolving portion of the
unsecured credit facility, maturing in December 2010.
As anticipated, the weighted average interest rate for half-year 2010 increased
to 5.4%, compared to 4.5% in half-year 2009, primarily due to the 175 basis
point increase in the â‚¬500 million Eurobond coupon arising from the credit
rating downgrade in June 2009. In addition, the secured financing facilities
completed in Q4 2009 and Q1 2010 have higher average fixed interest rates than
the debt they replaced and 2010 has a higher proportion of debt at fixed rates
of interest. At 30 June 2010, 82.3% of debt was at fixed rates of interest with
the remaining floating debt, namely the â‚¬300 million unsecured credit facility,
currently at a margin of 270 basis points over EURIBOR or LIBOR.
PEPR has a number of financial debt covenants within its credit facilities. At
30 June 2010, PEPR was in compliance with all covenants.
SUMMARY OF FINANCIAL DEBT COVENANTS
Limit 30 June 2010 Â 31 March 2010
â‚¬300m unsecured credit facility
Â Â Leverage less than 60% 55% 55%
Â Â Fixed charge coverage a least 1.5x 1.9x 2.0x
Â Â Unencumbered interest coverage a least 1.5x 1.7x 1.8x
Â Â Net Worth (excluding
Intangible assets) at least â‚¬1.0bn â‚¬1.2bn â‚¬1.2bn
Â Â Unsecured debt as % of
unsecured assets less than 65% 60% 61%
â‚¬500m 2014 Eurobond
Â Â Secured debt as % of total
assets less than 40% 28% 29%
Fonds commun de placement
Â Â Loan to value (total debt as
percentage of gross portfolio
value) - see page 15 less than 60% 53.3% 53.7%
In addition to the covenants in the table above, the â‚¬500 million Eurobond is
redeemable at par if there is a change of control of PEPR and a subsequent
downgrade of PEPR's credit rating to Ba1 or below within 120 days. At 30 June
2010, PEPR was rated Ba1, with a stable outlook.
An overview of PEPR's outstanding debt is on page 22 of the full statement
PEPR recorded a small tax charge for Q2 2010 as compared to the â‚¬48.5 million
tax benefit in Q2 2009, which resulted from significant portfolio valuation
declines recorded in that period.
The overall tax charge for the half-year is â‚¬6.0 million compared to a benefit
of â‚¬45.4 million for the prior period, again primarily due to a significant
reduction in deferred income tax benefit.
The current income tax expense of â‚¬8.8 million for half year 2010 represents a
â‚¬7.1 million decrease over the comparable period (HY 2009: â‚¬15.9 million), of
which â‚¬4.6 million relates to income tax on capital gains generated by asset
sales in 2009. The remaining â‚¬2.5 million reduction is primarily due to the
introduction of tax strategies and initiatives, together with the impact of
lower rental income. The half year 2010 current income tax expense represents an
effective tax rate of 17.0%, using EPRA earnings before taxation as a proxy for
taxable income, down from 17.3% for half year 2009.
PEPR will continue to pursue strategies to manage its future tax expense and
anticipates a lower full year current income tax charge than the underlying
charge incurred in 2009. It therefore expects to maintain a relatively
consistent effective tax rate to that achieved in 2009.
Distributable cash flow and distributions
In December 2008, PEPR suspended future dividend payments as part of the
business' strategic initiatives to improve liquidity and as a condition for a
debt covenant amendment on PEPR's unsecured credit facility. Under the current
terms of that facility, PEPR is prohibited from paying an ordinary dividend
until either it raises â‚¬200 million of aggregate new equity (of which â‚¬61.1
million has been raised) or the facility is repaid.
Distributable cash flow of â‚¬20.3 million, or â‚¬0.11 per ordinary unit, for Q2
2010 will therefore be retained in the business to reduce debt and improve
liquidity. Distributable cash flow for ordinary unitholders for the six months
to 30 June 2010 equalled â‚¬0.23 per unit, or â‚¬44.6 million.
PEPR intends to revert to paying an ordinary dividend as soon as it is prudent
to do so and when permitted under the terms of its unsecured credit facility.
PEPR will pay a preferred dividend distribution to holders of its Class A(1)
convertible preferred units on 30 July 2010. The â‚¬0.157392 per unit distribution
relates to the period from 1 April 2010 to 30 June 2010. The ex-dividend date is
23 July 2010 and the record date 27 July 2010.
Net asset value
IFRS NAV per ordinary unit increased to â‚¬5.99 at 30 June 2010, compared to â‚¬5.97
at 31 December 2009, driven by continued retention of earnings and the positive
impact of sterling's appreciation against the euro on the cumulative currency
translation reserve. These are partially offset by the â‚¬3.2 million of preferred
dividend distributions and increases in hedging provisions as a flattening yield
curve has resulted in PEPR's interest rate hedges being further
EPRA NAV per ordinary unit, which makes adjustments for hedging instruments and
deferred tax movements, increased to â‚¬6.27 at 30 June 2010, compared to â‚¬6.15 at
31 December 2009.
A reconciliation between IFRS and EPRA NAV is shown on page 15 of the full
Earnings webcast and conference call details:
We invite you to access the live presentation webcast and conference call, held
today, Thursday 22 July 2010, at 12 noon CET, by clicking on the link entitled
"Second Quarter and Half Year 2010 Financial Results Webcast" located on the
homepage of our website,www.prologis-ep.com.
To participate in the conference call please dial one of the following numbers:
Toll free Toll
International -- +44 (0)1452 555 566
France 0805 632 056 +33 (0)1 76 74 24 28
Luxembourg 800 27512 --
The Netherlands 0800 023 5091 +31 (0)20 717 6886
UK 0800 694 0257 +44 (0)844 493 3800
US 1 866 966 9439 --
A replay of the presentation webcast and a transcript of the call will be
available in the Investor Relations section of the PEPR
A replay of the conference call will be available from 4pm CET on Thursday 22
July 2010 until Wednesday 4 August 2010. To access the conference call replay
please dial one of the following numbers, using passcode 83224794#:
Toll free Toll
International -- +44 (0)1452 550 000
UK 0800 953 1533 +44 (0)845 245 5205
US 1 866 247 4222 --
For further information, please contact:
Investor relations Media
ProLogis European Properties M:Communications
Jennifer Crooke Ed Orlebar / Charlotte McMullen
+44 207 518 8708 +44 20 7920 2323 or 7920 2349
email@example.com firstname.lastname@example.org / email@example.com
 Based on EPRA (European Public Real Estate Association) Best Practices
Policy Recommendations, issued in July 2009
 Annualised rent less non-recoverable property expenses such as empty rates,
expressed as a percentage of gross market value i.e. before the deduction of
notional purchasers' costs.
 Southern Europe comprises France, Italy and Spain
 Northern Europe comprises Belgium, Germany, The Netherlands and Sweden
 Central Europe comprises the Czech Republic, Hungary and Poland
 Sterling comparative figures have been re-translated using the June 2010
exchange rate for net market values and an average 2010 exchange rate for
 Can be exceeded up to 65% for a maximum of six months
PEPR Q2 2010 Results: http://hugin.info/139145/R/1433390/379260.pdf
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