ProLogis European Properties results for the quarter ended 31 March 2008
24/04/2008
Strong operational performance demonstrates continued demand for prime industrial real estate
Luxembourg – 24 April 2008 – ProLogis European Properties (Euronext: PEPR), Europe’s largest owner of modern distribution facilities, today reports results for the quarter ended 31 March 2008.
Highlights
- €0.20 distribution per unit, in line with underlying distribution per unit of €0.20 in Q1 20071
- EPRA net asset value per unit2 of €12.57, a 1.9% decrease since 31 December 2007 primarily due to the movement in the sterling exchange rate; IFRS net asset value per unit of €11.59 (Q4 2007: €11.73)
- EPRA earnings2 per unit €0.18, a decrease of €0.03 per unit (Q1 2007: €0.21), primarily due to the Garonor portfolio disposal and the movement in the sterling exchange rate; IFRS earnings per unit of €0.10 (Q4 2007: €0.22)
- Continued execution of growth strategy with a further €91.7m investment in ProLogis European Properties Fund II (“PEPF II”)
- Improved operational performance: occupancy increased from 97.2% at the end of 2007 to 97.7% in our directly owned portfolio through proactive leasing, with 20 lease transactions covering 106,900m2
- Strong Balance Sheet with current loan to value of 47.8%, allowing for further growth
- Appointment of Gordon Keiser, previously senior vice president and treasurer at ProLogis, PEPR’s external manager, as chief executive officer replacing Robert Watson with effect from 1 June 2008
Commenting on the results, Robert Watson, chief executive office of PEPR, said:
“We are pleased to announce first quarter results in line with our forecasts, reflecting the financial stability of our business plan and the secure cash flows derived from our high-quality portfolio. As we revalue the portfolio semi-annually, our EPRA net asset value per unit for the quarter has been primarily impacted by the weakening of sterling versus the euro in the first three months of the year. Our strong operating results and stable cash flows from our high-quality portfolio enable us to pay a quarterly distribution of €0.20 per unit despite the impact of the weaker sterling exchange rate on our earnings.
“Our operational performance continues to deliver strong results, with occupancy in our wholly owned portfolio up to 97.7% from 97.2% at the year end. In addition, our recent investment in PEPF II improved combined portfolio occupancy to 98.2%. This performance not only reflects the outstanding quality of our portfolio but also the less volatile nature of the industrial sub-sector compared to other real estate classes.
“We continue to deliver on our strategy of revenue growth through investment in PEPF II, with a further €91.7 million investment at the end of the quarter. We have now invested €225 million, or 25%, of our total €900 million commitment.
“The outlook for the remainder of 2008 remains encouraging, with good occupier demand across all our major markets, driven by EU enlargement, continuing growth in world trade and our customer’s efforts to improve efficiency in their European supply chains. In addition, the strong fundamentals of our business enable us to remain confident in our ability to continue to drive unitholder value.”
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