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PEPR's financing structure utilises secured and unsecured debt sources with a spread of maturities.  PEPR hedges its interest rate exposure by swapping floating rate interest payments to fixed rate obligations.

In December 2008, PEPR announced a series of strategic initiatives to reduce debt and improve liquidity. These initiatives included the immediate suspension of dividend payments and the disposal of its investment in PEPF II to substantially improve liquidity.

In April 2009, PEPR repaid early the €335.9 million CMBS debt, due July 2009. There is no further debt to be repaid in 2009 and PEPR is focused on managing the €1 billion of debt maturing in 2010. PEPR intends to use a combination of cash flow from the suspension of dividends and property sales proceeds to reduce total outstanding debt and to use new secured financing to refinance the remaining portions of secured debt.

Debt Rating

The following table gives the current rating assigned to ProLogis European Properties

Rating Agency

Date last received Rating Outlook

Moody's Investors Service

March 2009

Baa3

Negative

 

Outstanding Debt

PEPR’s outstanding debt as at 31 March 2009 was:

Description Rating Issue date Issue size Coupon1 Maturity date Drawn amount Swapped rate Comments
Local ccy Euros

Listed on the London Stock Exchange

(CMBS issuances)

Pan European Industrial Properties Series III S.A AAA

AAA

AA
Feb 2003 €190.5m €151m:  +35bps
€17m:    +48bps
€23m:   +85bps
May 20102 €97.0m

£48.9m
€174.4m 4.61%

100% swapped

LTV: 53.5%

Pan European Industrial Properties Series IV S.A AAA

AA

AAA
Mar 2005 €389.0m €337m: +14bps
€32m:   +18bps
€20m:  +30bps
May 20102 €311.9m

£42.8m
€373.8m 3.58%

100% swapped

LTV: 58.3%

Listed on the Luxembourg Stock Exchange
ProLogis International Funding S.A. Baa2 Oct 2007 €500.0m 5.875% Oct 2014 €500.0m €500.0m 5.875%

Unsecured

Fixed rate

Other
Bank loan - Feb 2004 €151.1m + 137bps Mar 2010 €151.1m €151.1m n/a LTV: 53.7%

Senior unsecured

credit facility

- Dec 2007 €900.0m €300m:  +220bps
€300m:  +220bps
€300m:  +225bps
Dec 2010

Dec 2010
Dec 2012

€114.0m
£86.0m 
€300.0m

€129.0m
£123.5m 

€205.5m

€300.0m

€260.3m
n/a

Unsecured

Floating rate

€2,486.6m €1,965.1m

1 All coupons are three month EURIBOR or LIBOR+

2 Maturity dates relate to the repayment dates rather than legal maturity dates, which are typically three years later. It is expected that the debt will be repaid in full on or before the repayment dates

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