ProLogis European Properties results for the quarter ended 31 March 2010

22/04/2010

PEPR maintains robust operational performance and continues to improve balance sheet leverage

Luxembourg – 22 April 2010 – ProLogis European Properties (Euronext: PEPR), Europe’s largest owner of modern distribution facilities, today reports results for the quarter ended 31 March 2010.

Highlights

• Received €392.6 million of new secured financing, eliminating all debt maturities until December 2012 and further reducing the loan-to-value ratio to 53.7% (2009: 55.0%)
• 31 lease transactions concluded, covering 452,300m², more than double the volume for Q1 2009 (16 lease transactions, covering 178,300m²)
• High portfolio occupancy at 94.8%, down 1.3% since end 2009
• EPRA net asset value per ordinary unit¹ of €6.26, a 1.8% increase since year end 2009 as a result of retained earnings; IFRS net asset value per ordinary unit of €6.01 (2009: €5.97)
• EPRA earnings per ordinary unit1 of €0.10, a decrease of €0.05 per unit (Q1 2009: €0.15), primarily related to declining rental income, accelerated loan amortisation costs, preferred dividends and higher taxes, partially offset by lower interest expense; IFRS earnings per ordinary unit of €0.11 (Q1 2009: €0.15)
• Moody’s Investor Service improves credit rating outlook to stable

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

“PEPR continues to achieve robust operational performance and financial results in spite of the sustained challenging market conditions. Portfolio occupancy remains high, at 94.8%, and continues to be a primary focus for us. The volume of leasing completed during the quarter demonstrates that our modern, pan-European portfolio remains highly sought-after to existing and prospective customers.

“EPRA earnings and distributable cash flow for the quarter, of €0.10 and €0.12 per ordinary unit respectively, are broadly in line with 2010 guidance. These results reflect the secure cash flows derived from our portfolio and the relative stability of logistics as a real estate asset class.

“During the quarter, we received a further €392.6 million of new secured financings, in what remains a tight and conservative credit market. These financings enabled us to repay all outstanding debt in 2010 and to begin to reduce our 2012 maturity. The subsequent improved liquidity profile was key to Moody’s improving PEPR’s credit rating outlook, an important first step in achieving our stated objective of returning to an investment grade credit rating.

“Our main operational priority for 2010 is to continue to drive cash flow from the portfolio through proactive asset management and exemplary customer service. Whilst the market outlook remains challenging and we continue to be cautious over net occupier demand and rental levels for the remainder of 2010, we believe that the strength of our pan-European portfolio and strong customer relationships leave PEPR well positioned for the future.”

View the full Results for the quarter ended 31 March 2010 in PDF format (118KB)

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