ProLogis European Properties - ProLogis European Properties results for the quarter and year ended 31 December 2008

10/02/2009

ProLogis European Properties results for the quarter and year ended 31 December 2008

Deleveraging in the face of challenging financial markets

Luxembourg – 10 February 2009 – ProLogis European Properties (Euronext: PEPR), Europe’s largest owner of modern distribution facilities, today reports results for the quarter and year ended 31 December 2008.

2008 highlights

Execution of strategic initiatives to address liquidity concerns

Suspension of future dividends for the foreseeable future
Disposal of two-thirds investment and future commitment in ProLogis European Properties Fund II (PEPF II) for €43.7 million, saving PEPR €348 million of future equity commitments and implying a 30% discount to September 2008 NAV and those future commitments
Post year-end agreement to sell the remaining one-third stake for €14.4 million, saving €174 million of future commitments and implying a 28% discount to current NAV and those future commitments
97.3% occupancy at year end through proactive leasing
9.2% valuation decrease on the portfolio since 30 June 2008 (12.8% including foreign exchange adjustments)

Quarter to 31 December 2007		Year to 31 December 2007
EPRA net asset value¹per unit of €, a 31.4% decrease compared to 30 September 2008 (€11.69) movements IFRS net asset value per unit was €7.38 (Q3 2008: €10.84) EPRA earnings(1) decreased to €0.15 per unit (Q4 2007: €0.20 per unit), due to reversal of incentive fee provision, increased interest costs and currency movements IFRS loss of €577.0 million, or €3.02 per unit (Q4 2007 earnings: €2.7 million or €0.01 per unit), due to PEPF II disposal, portfolio devaluation and currency movements 22 lease transactions covering 182,300m2, maintaining high portfolio occupancy		EPRA net asset value per unit decreased 36.6%, to €8.02 over the year (2007: €12.65) as a result of portfolio devaluation, the PEPF II sale and currency movements IFRS net asset value per unit decreased 37.1% to €7.38 (2007: €11.73) EPRA earnings per unit decreased €0.13 to €0.67 (2007: €0.80), due to a one-off large lease termination fee in 2007, decreased rental income from portfolio changes and currency movements IFRS loss of €577.9 million, or €3.03 per unit for the year (2007 earnings: €171.3 million or €0.89 per unit) , due to PEPF II sale, portfolio devaluation and currency movements 82 lease transactions covering 661,700m2, compared to 85 transactions covering 506,800m2 in 2007( )

Based on EPRA (European Public Real Estate Association) Best Practices Policy Recommendations, issued in May 2008 Excluding 35 leases, covering 36,200 square metres related to the Garonor portfolio sold in July 2007

Commenting on the results, Peter Cassells, chief executive office of PEPR, said:

“Through this period of market turmoil, we have continued to deliver positive operating performance, benefiting from invaluable customer relationships, broadly spread across reputable names and businesses and ultimately delivering industry-leading occupancy levels across Europe.

“Since announcing our strategic initiatives to improve liquidity and address debt maturities, we have successfully amended our most pressing debt covenant and disposed of our entire investment in PEPF II. The disposal reduces outstanding debt and, more significantly, eliminates our obligation to finance further investments of €522 million in PEPF II over the next 18 months.

"We continue to aggressively take actions to strengthen the balance sheet, improve liquidity through active and open dialogue with our banking partners, complete new leases and renewals and serve our customer base so as to return the best possible long-term performance to our investors.”

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