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25/10/2007

Solid results underpin quarter of substantial achievement

Luxembourg – 25 October 2007 – ProLogis European Properties (Euronext: PEPR), Europe’s largest owner of modern distribution facilities, today reports results for the quarter ended 30 September 2007.

Highlights

  • Active recycling of capital with €425m disposal of portfolio of assets in France, at a significant premium to net asset value
  • Successful execution of growth plan with initial investment of €82.35 million out of a total agreed investment of €900 million in ProLogis European Properties Fund II
  • Continued strong operating performance driving overall occupancy to 97.4%
  • Debut unsecured bond issue for €500 million well received, post quarter end

Quarter to 30 September 2007 Nine months to 30 September 2007
  • €0.20 distribution per unit, flat on the underlying second quarter distribution1
  • Adjusted net asset value per unit3 of €14.21, a €0.20 decrease since 30 June 2007 primarily due to unrealised movement in the sterling exchange rate; IFRS net asset value per unit was €12.08
  • Adjusted earnings4 increased 18.8% to €0.19 per unit for the third quarter (Q3 2006: €0.16 per unit) ; IFRS pre-tax profit was €49.5 million
  • 29 lease transactions covering 138,800m2
  • €0.65 distribution per unit, implying an annualised dividend yield of
    7.3%2
  • Adjusted net asset value per unit increased 1.7% to €14.21 over the nine months (2006: €13.97); IFRS net asset value per unit increased to €12.08 (2006: €11.88)
  • Adjusted earnings increased 3.4% to €0.61 per unit (2006: €0.59 per unit); IFRS pre-tax profit was €194.6 million
  • 101 lease transactions covering 471,100m2

Commenting on the results, Robert Watson, chief executive office of PEPR, said:

“We are pleased to report significant progress in our financial and operational results for the third quarter of 2007 as we mark the end of our first year as a listed company. Our adjusted earnings show a healthy increase of 18.8% for the quarter and we are delighted to achieve a €0.65 distribution per unit for the nine months to the end of September, implying an annualised dividend yield of 7.3%.

“We continue to deliver on our strategy of active asset management as set out at the time of the 1 After taking into the account the sizeable lease termination fee received in Q2 2 Based on the closing unit price on 28 September 2007 of €11.85 3 Adjusted net asset value per unit excludes deferred tax arising on revaluation movements and purchasers’ costs 4 PEPR’s measure of underlying earnings is calculated as IFRS post-tax profit excluding revaluation movements, result on disposal of properties and non-recurring events IPO, with just under half a million square metres of lease transactions over the course of this year. Our agreed investment of €900 million in ProLogis European Properties Fund II over the next three years is another significant development that will enable us to benefit from ProLogis’ unrivalled development pipeline in Europe and increase our critical mass in key markets. We are also excited to have issued our first unsecured bond; this represents a positive step in our financing strategy and, at two times oversubscribed, one that has been very well received by the market.

“Our continued focus on top quality distribution facilities in key logistics markets across Europe, deep customer relationships leading to exceptional occupancy rates and lease lengths, combined with the strength of our balance sheet gives us the competitive edge we need to outperform the industry.”

Note:
1 After taking into the account the sizeable lease termination fee received in Q2
2 Based on the closing unit price on 28 September 2007 of €11.85
3 Adjusted net asset value per unit excludes deferred tax arising on revaluation movements and purchasers’ costs
4 PEPR’s measure of underlying earnings is calculated as IFRS post-tax profit excluding revaluation movements, result on disposal of properties and non-recurring events
5 Historically, an independent valuation of approximately half of the portfolio was conducted every six months, with 49% by value of the 30 June 2007 portfolio revalued at that date. In future, the entire portfolio will be independently valued every six months, with the first full portfolio revaluation due as at 31 December 2007. In accordance with IFRS fair value accounting, valuations are reported net i.e. after deduction of purchasers’ costs


View the full ProLogis European Properties results for the quarter ended 30 September 2007 in PDF format (292KB)

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PEPR results for the quarter and year ended 31 December 2011

PEPR results for the quarter and year ended 31 December 2011 (81KB)


08 February 2012
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