PEPR: Annual General Meeting Statement
(Thomson Reuters ONE) -
Luxembourg - 20 May 2010 -Peter Cassells, CEO of ProLogis European Properties
(Euronext: PEPR), Europe's largest owner of modern distribution facilities, will
make the following statements at today's AGM to be held from 09:00am CET at
Sofitel Luxembourg Hotel, 4 Rue du Fort Niedergrunewald, Quartier Européen Nord,
Plateau de Kirchberg, L-2015, Luxembourg
In February this year, PEPR reported financial results for 2009 in line with
guidance and strong operating performance. We maintained high occupancy levels
throughout the sustained market downturn and completed record levels of leasing
in 2009, resulting in an extremely high level of customer retention for the
year. In addition, we completed our 2009 deleveraging initiatives, repaying or
refinancing 95% of the ?1.3 billion of debt outstanding in 2009 and 2010 in what
remains an extremely tight and conservative credit market.
During 2009 and Q1 2010, we completed over ?680 million of new secured debt
packages, including one of the largest syndicated real estate loans finalised
since September 2008, and extended ?126 million of existing secured debt for a
further three years. This, combined with the retention of some ?157 million of
distributable cash flow for the year, the disposal of two real estate portfolios
for net proceeds of ?189.1 million and the raising of ?54 million (net) of
convertible preferred equity has meant that we now have no debt maturing until
December 2012.
The first quarter 2010 results, announced in April, saw PEPR continue to achieve
robust operational performance and financial results in line with guidance 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.
Market outlook
2010 remains a testing time for the European commercial property sector, given
the slow and intermittent recovery of the pan-European economy. The below-trend
growth projections for 2010 suggest that the markets will stabilise but not
rebound. However, world trade, a key indicator for logistics real estate,
appears to be increasing faster than market commentators had predicted.
Improving investor sentiment has led to a steady increase in the volume of
investment transactions in the logistics sector since summer 2009 and to
improving portfolio yields across the majority of sectors, particularly the UK
and core Western European markets, after nearly 2½ years of decline.
Occupier demand continues to be driven by customer consolidation and business
rationalisation, with little net absorption for the time being. Nonetheless,
certain market segments such as food and discount retailers have continued to
expand their supply chains. We remain cautious about net occupier demand and
short-term rental declines.
New speculative development remains non-existent across all markets. There is
limited build-to-suit activity as financing of these developments remains
relatively difficult to source. The impact of these demand and supply metrics
has meant that net effective rents remain under downward pressure.
Looking ahead, we believe that the patchy economic recovery will lead to a
gradual absorption of existing vacancy over the coming months and as such we do
not expect to see material improvement in the occupier markets until later in
2010.
PEPR's future priorities
Having achieved our objectives for 2009, 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.
-Ends-
For further information, please contact:
Investor relations
ProLogis European Properties
Jennifer van der Eem
+44 207 518 8708
jvandereem(at)prologis.com
Media
M:Communications
Ed Orlebar / Charlotte McMullen
+44 20 7920 2323 or 7920 2349
orlebar(at)mcomgroup.com
About ProLogis European Properties (PEPR)
ProLogis European Properties, or PEPR, is one of the largest pan-European owners
of high quality distribution and logistics facilities. PEPR was established in
1999 as a closed-end, real estate investment fund, externally managed by a
subsidiary of ProLogis (NYSE: PLD), a leading global provider of industrial
distribution facilities. In September 2006, PEPR was listed on Euronext
Amsterdam.
As at 31 March 2010, PEPR has a portfolio of 232 buildings, covering 4.9 million
square metres in 11 European countries, with an estimated market value of ?2.8
billion. The portfolio has an occupancy level of 94.8% and an average of 3.3
years to the next lease break or 5.4 years to lease expiry.
[HUG#1417444]
Unternehmensinformation / Kurzprofil:
Datum: 20.05.2010 - 09:01 Uhr
Sprache: Deutsch
News-ID 21211
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