ProLogis European Properties results for the quarter and nine months ended 30 September 2009

22/10/2009

Resilient financial and operational performance and significant progress on refinancing initiatives

Luxembourg – 22 October 2009 – ProLogis European Properties (Euronext: PEPR), Europe’s largest owner of modern distribution facilities, today reports results for the quarter and nine months ended 30 September 2009.

Highlights

• 44% of €1.3 billion debt maturities due in 2009/2010 refinanced or repaid
  • €226 million of secured bank loans completed during the quarter
  • €48 million new five-year secured bank loan completed, post quarter end
• Continued high portfolio occupancy of 96.3% at 30 September
  • 80% customer retention rate for nine months to 30 September
• €27.5 million of distributable cash flow generated in Q3, in line with management guidance
• Further €22.2 million received from portfolio disposal agreed in Q2 2009
• Negotiations in progress with regard to over €600 million of new secured debt financings
• Negotiations in progress with regard to over €600 million of new secured debt financings

Quarter to 30 September 2009 EPRA earnings(1) decreased to €0.14 per unit (Q3 2008: €0.16 per unit), due to the elimination of associate losses and inclusion of associate dividends in 2008 IFRS earnings of €0.14 per unit (Q3 2008: €0.09 per unit), largely due to the share of IFRS losses of an associate and deferred tax charges recorded in 2008 EPRA net asset value(1) per unit of €6.82, a slight increase compared to 30 June 2009 (€6.74 per unit) due to retained earnings for the period IFRS net asset value per unit of €6.48 (Q2 2009: €6.40 per unit) 23 lease transactions covering 217,800m 2, maintaining high portfolio occupancy

Nine months to 30 September 2009 EPRA earnings(1) per unit decreased 11.4% to €0.46 (2008: €0.52 per unit), due to the elimination of associate losses and inclusion of associate dividends in 2008 IFRS loss of €1.11 per unit for the period (9M 2008 loss: €0.01 per unit), due to portfolio devaluations and losses on asset sales EPRA net asset value(1) per unit decreased 15%, to €6.82 over the period (2008: €8.02 per unit) as a result of portfolio devaluations and asset sales IFRS net asset value per unit of €6.48 (2008: €7.38 per unit) 57 lease transactions covering 615,800m 2, compared to 60 transactions covering 479,400m 2 in 9M 2008

¹ Based on EPRA (European Public Real Estate Association) Best Practices Policy Recommendations, issued in July 2009

View the full Results for the quarter and nine months ended 30 September 2009 in PDF format (512KB)

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

"Our financial and operational performance for the first nine months of 2009 remained resilient during the continued challenging market conditions, demonstrating our unrelenting focus on portfolio occupancy and active asset management. Both our own portfolio management activities and general logistics market trends have been in line with our guidance for the year, and we remain well placed to continue to generate strong levels of income.

"Aside from maintaining portfolio performance through the downturn in the market, our immediate focus remains on deleveraging our balance sheet, by reducing or refinancing near-term debt maturities, and improving our future financial flexibility. To that end, I am pleased to report that we have successfully completed approximately €274 million of new or extended secured debt packages to date, sold €190 million of assets and repaid approximately €459 million of debt outstanding at the end of 2008.

"2009 continues to be a testing time for the European commercial property sector. As such, in addition to our debt refinancing initiatives, we are continuing to review capital raising alternatives to provide PEPR with additional financial flexibility. The plans currently being evaluated include a possible offering of fully underwritten convertible preferred units to existing unitholders and a conversion to a SICAF structure, which would enable us to raise equity at a discount to net asset value. We intend to adopt the plan that will be most beneficial to our investors and expect to announce the plan later in the fourth quarter, once we have received the appropriate approvals."

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