26/07/2007
Strong operating performance produces an 11% increase in adjusted earnings and drives growth in distributions
26 July 2007 –Luxembourg –
ProLogis European Properties (Euronext: PEPR), Europe’s
largest owner of modern distribution facilities, today reports
results for the quarter and half year ended 30 June 2007.
Highlights
-
€220m acquisition of 15 distribution centres, including the
second quarter purchase of a
36,100m2 distribution
centre in Evry, France
- Assigned an A3 investment grade credit rating by Moody’s
Investors Service
- Strong operating performance, with 72 lease transactions covering
332,400m2
- €425m disposal of portfolio of French assets, at a
significant premium to net asset value, post quarter end
- Redeemed €344m of long-term secured debt, post quarter
end
Commenting on the results, Robert Watson, chief
executive office of PEPR, said:
“We are delighted to announce strong financial and operating
results for the first six months of 2007. Our adjusted NAV
increased 3.2% to €14.41 per unit, reflecting the 3.9% uplift
in the valuation of half our portfolio and demonstrating the
strength of our high quality platform. The double-digit
increase in adjusted earnings, our preferred measure of underlying
performance, to €81.6 million for the half year enabled us to
continue to deliver increasing quarterly distributions. Our
distribution for the second quarter is €0.23 per unit, a 4.8%
increase over the first quarter, and together with the first
quarter distribution implies an annualised dividend yield of
7.0%.”
“We continue to deliver on our strategy to actively manage
the portfolio, with the acquisition of 15 properties in the first
six months of the year and completion of leasing transactions on
over 332,000 square metres. In addition, since the end of
June we have exchanged contracts for the sale of a portfolio of
French buildings for €425 million, providing a significant
premium over current book value. These transactions not only
ensure we continue to drive returns from our portfolio but also
enable us to recycle capital into more accretive
investments.”
“The first half of the year has seen us continue to build
momentum across the business and we remain encouraged by current
market conditions, as demand continues to be strong in our core
markets. In addition, we are confident in our ability to grow
the business through investment in a new ProLogis sponsored private
equity fund by the end of the year.”
View the full
Results for the quarter ended 30 June 2007 in
PDF format.