PEPR: results for the quarter and nine months ended 30 September 2009
(Thomson Reuters ONE) - This press release is not an offer of securities for sale, or thesolicitation of an offer to buy securities, in the United States orelsewhere. The securities mentioned in this press release have notbeen and will not be registered pursuant to the US Securities Act of1933, as amended. They cannot be offered or sold in the United Statesabsent registration or an exemption from registration. No publicoffer of the securities has been or will be made in the United Statesor elsewhere.News releaseProLogis European Properties results for the quarter and nine months ended 30 September 2009 Resilient financial and operational performance and significant progress on refinancing initiativesLuxembourg - 22 October 2009 - ProLogis European Properties(Euronext: PEPR), Europe's largest owner of modern distributionfacilities, today reports results for the quarter and nine monthsended 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 * Evaluating further capital raising options as part of overall deleveraging plan Quarter to 30 September 2009 Nine months to 30 September 2009 * EPRA earnings(1) decreased to * EPRA earnings(1) per unit ?0.14 per unit (Q3 2008: decreased 11.4% to ?0.46 (2008: ?0.16 per unit), due to the ?0.52 per unit), due to the elimination of associate elimination of associate losses losses and inclusion of and inclusion of associate associate dividends in 2008 dividends in 2008 * IFRS earnings of ?0.14 per * IFRS loss of ?1.11 per unit for unit (Q3 2008: ?0.09 per the period (9M 2008 loss: ?¬0.01 unit), largely due to the per unit), due to portfolio share of IFRS losses of an devaluations and losses on associate and deferred tax asset sales charges recorded in 2008 * EPRA net asset value([1]) per * EPRA net asset value(1) per unit of ?¬6.82, a slight unit decreased 15%, to ?6.82 increase compared to 30 June over the period (2008: ?8.02 2009 (?6.74 per unit) due to per unit) as a result of retained earnings for the portfolio devaluations and period asset sales Quarter to 30 September 2009 Nine months to 30 September 2009 * IFRS net asset value per unit * IFRS net asset value per unit of ?6.48 (Q2 2009: ?6.40 per of ?6.48 (2008: ?7.38 per unit) unit) * 23 lease transactions * 57 lease transactions covering covering 217,800m2, 615,800m2, compared to 60 maintaining high portfolio transactions covering 479,400m2 occupancy in 9M 2008Commenting on the results, Peter Cassells, chief executive officer ofPEPR, said:"Our financial and operational performance for the first nine monthsof 2009 remained resilient during the continued challenging marketconditions, demonstrating our unrelenting focus on portfoliooccupancy and active asset management. Both our own portfoliomanagement activities and general logistics market trends have beenin line with our guidance for the year, and we remain well placed tocontinue to generate strong levels of income."Aside from maintaining portfolio performance through the downturn inthe market, our immediate focus remains on deleveraging our balancesheet, by reducing or refinancing near-term debt maturities, andimproving our future financial flexibility. To that end, I am pleasedto report that we have successfully completed approximately ?274million of new or extended secured debt packages to date, sold ?190million of assets and repaid approximately ?459 million of debtoutstanding at the end of 2008."2009 continues to be a testing time for the European commercialproperty sector. As such, in addition to our debt refinancinginitiatives, we are continuing to review capital raising alternativesto provide PEPR with additional financial flexibility. The planscurrently being evaluated include a possible offering of fullyunderwritten convertible preferred units to existing unitholders anda conversion to a SICAF structure, which would enable us to raiseequity at a discount to net asset value. We intend to adopt the planthat will be most beneficial to our investors and expect to announcethe plan later in the fourth quarter, once we have received theappropriate approvals."GuidanceManagement has maintained their guidance for 2009, with EPRA earningsexpected to be between ?0.55 and ?0.60 per unit for the year. IFRSlosses are expected to be in the range of ?1.50 to ?1.70 per unit anddistributable cash flow anticipated to be between ?0.55 and ?0.60 perunit.The terms of PEPR's unsecured credit facility, as amended in December2008, prohibit cash distributions whilst PEPR remains below certainfinancial thresholds. Accordingly, PEPR intends to use this cash topay down debt.Deleveraging initiativesIn December 2008 PEPR outlined a series of initiatives to delever thebalance sheet and address 2009 and 2010 debt maturities. The planincluded the suspension of dividends and the use of asset salesproceeds to reduce outstanding debt, the raising of new secured debtto substantially refinance the 2010 Commercial Mortgage BackedSecurities ("CMBS") maturities and requesting a maturity extensionfor a portion of the 2010 tranches of the ?900 million unsecuredcredit facility.During the first nine months of 2009, PEPR has repaid or refinancedapproximately ?585.5 million, or 44%, of the ?1.3 billion of debt dueto mature in 2009 and 2010.In the third quarter, PEPR completed the three-year extension, toMarch 2013, for ?126.0 million of the ?151.1 million secured bankloan that was due to mature in March 2010 and finalised a new £86.1million (?100 million) four-year secured bank loan with Eurohypo AG.PEPR also received a further ?22.2 million of net proceeds relatingto the agreed Dutch and German portfolio disposal taking total netproceeds from that disposal to ?114.5 million. The remaining ?3million of net proceeds are held in escrow and are expected to bereceived during the fourth quarter as certain agreed closingconditions are met.In October, post quarter end, PEPR entered into a new ?48 millionfive-year secured bank loan, split into two tranches - one of SEK332.5 million (approximately ?32.5 million) and another of ?15.5million - with a German landesbank. The loan is secured on aportfolio of four prime Swedish distribution facilities andrepresents the first secured financing by PEPR in Sweden. It willmature in October 2014 and has a blended fixed interest rate of5.69%.In addition, PEPR is currently in active discussions with a number oflenders with regard to six other secured finance packagesrepresenting over ?600 million of commitments. Good progress has beenmade on all packages during the quarter and PEPR is focused onclosing these expediently to eliminate outstanding 2010 maturities.To assist in the closing of these packages, PEPR intends to repay asignificant portion of the remaining CMBS debt in the fourth quarter,releasing the associated secured assets into the unsecured pool.PEPR's banking group has agreed to relax the tangible net worthcovenant in its ?900 million unsecured credit facility and remove thecurrent restriction on PEPR's ability to make dividend payments,provided PEPR raises ?200 million of equity. Given the current reviewof alternative capital raising options, PEPR is revisiting theseamendments with its banking group.An incremental equity raise remains likely, providing PEPR with anadditional source of liquidity to add to the significant progressalready achieved on its deleveraging initiatives.Under a fonds commun de placement ('FCP') structure, PEPR isrestricted from raising equity at a price below net asset value('NAV'). During the third quarter PEPR convened an ExtraordinaryGeneral Meeting ('EGM') to enable unitholders to vote on theconversion of PEPR's legal form from the current FCP to a Sociétéd'Investissement à Capital Fixe ('SICAF'). This conversion wouldimprove PEPR's financial flexibility by enabling it to issue newequity at a price below NAV. In addition, the proposed conversion wasalso to be used as an opportunity to improve and modernise PEPR'scorporate governance.On 28 September 2009, PEPR postponed the convened EGM followingobjections raised by a minority of unitholders. Whilst the proxiesreceived for the proposed conversion indicated an overwhelming levelof support for the conversion, PEPR felt it prudent to hold furtherdiscussions with investors to better understand their objections andalso to re-evaluate alternative capital raising options in light ofthe rapid improvement in both the equity and debt capital marketssince the conversion was initiated.As such, PEPR's management and advisors are currently finalisingalternatives for review by the PEPR Board and approval by theLuxembourg financial supervisory authority. These plans include thepossible offering of fully underwritten convertible preferred unitsto existing unitholders which would be executed in multiple tranches.Such an offering would be issued at PEPR's latest NAV with anappropriately sized coupon to compensate investors for the currentunit price discount to NAV. To facilitate a potential offering of upto ?60 million before the year end, PEPR is currently preparing adraft prospectus which will incorporate a full portfolio valuationreview as at 30 September 2009.PEPR has not ruled out a potential conversion to a SICAF with asubsequent equity issuance at a price below NAV, if required. Themanagement team and PEPR Board intend to adopt the plan that will bemost beneficial to investors.Regardless of which route is taken, PEPR remains fully committed togood corporate governance and confirms its intention to implement thesuggested corporate governance enhancements under the recentlyproposed SICAF conversion at PEPR's next scheduled general meeting.Portfolio performancePEPR's customer base remained resilient during the third quarterdespite the continued economic downturn. ProLogis (NYSE: PLD), PEPR'sexternal manager, has maintained strong leasing momentum during thethird quarter, with 23 lease transactions covering 217,800 squaremetres being completed. 16 leases, covering 141,300 square metres,were renewed with existing customers such as Design Sportwears, DHL,Geodis and Schenker. In addition, six new leases were agreed, for atotal of 73,500 square metres, and one lease was extended adding3,000 square metres of space to an existing customers' supply chain.These transactions resulted in a weighted average rental decline of6.5% over the prior rental level and an average of 4.6 years to leasebreak, or 6.5 years to lease expiry. These are encouraging signsgiven overall rental declines of between 5-10% across the markets andoccupier demand for shorter leases during these turbulent times.Given indexation increases on the remainder of the assets, the impacton rental income across the whole portfolio is broadly flat on alike-for-like basis.Of the 50 lease breaks and expiries in the first nine months of 2009,covering 417,200 square metres, only fifteen possible breaks orexpiries, or 84,400 square metres, resulted in vacancies implying acustomer retention rate of 80%. Of this, 53,900 square metres, or?3.1 million of rental income remains vacant.Furthermore, of the 28 lease breaks or expiries due in the fourthquarter, covering 284,100 square metres, the known retention rate is67% based on agreements already concluded with occupiers. Thepotential retention rate for the final quarter could increase to 74%,assuming all customers that have not informed PEPR of theirintentions decide to remain at the upcoming lease break or expiry.Whilst there were no further customer defaults in the third quarter,PEPR has a small number of customers on its current watchlist andanticipates that some 40,000 square metres of space may be returnedin the near term, equal to 0.8% of annualised rental income. Totalaccounts receivable from customers has remained flat at ?65.0million, compared to September 2008. Within this, over 60 daysaccounts receivable has increased over the previous quarter from ?2.7million to ?3.1 million. However, PEPR has a ?2.1 million provisionfor bad and doubtful debts as at the end of September 2009.In addition, PEPR anticipates generating additional income throughthe rental of 180,000 square metres of roof space in Spain toRecurrent Energy, a distributed power company and a leading providerof solar energy. ProLogis, through its recently formed 'GlobalRenewable Energy Group', will project manage the installation of anew, 4.8-megawatt solar project on eight of PEPR's rooftops atProLogis Park Sant Boi in Barcelona and ProLogis Park Alcalá inMadrid. Recurrent Energy, the owner and operator of the system, willuse the roof space to host the solar installation, and will sell theenergy produced to the local utility company through a feed-intariff. PEPR intends to extend this model across the portfolio wherefeasible.At the end of September 2009, the portfolio comprised 232distribution facilities, covering 4.9 million square metres across 11European countries with an estimated net market value of ?3.0billion. The portfolio risk profile remains attractive, withoccupancy at an industry-leading 96.3%, a diversified customer base,and on average 3.4 years to next lease break or 5.5 years to leaseexpiry. An overview of the portfolio is provided on page 22.Market outlookThe pan-European economy appears to be reaching the bottom of theslump, although recovery in the real estate markets is expected tolag the economic recovery. Occupancy rates, rental levels andproperty values have all fallen during 2009.Investment demand remains limited, with transaction volumes runningat less than half the levels of the corresponding period last year.As such there are too few transactions to gauge property valuationmovements with a high degree of precision, although property valuesin the UK have shown distinct signs of improvement with yieldscompressing since Q2 2009. Yields in Northern Europe appear to bestabilising. However, Southern and Central Europe values are stilldeclining, albeit at a slower pace.Occupier demand for distribution space remains weak, withpan-European market occupancy estimated to have fallen some 270 basispoints since mid 2008. However, leasing market conditions vary widelyand in general demand has continued to grow at a subdued pace,particularly in Northern and Southern Europe. Lease terms arebecoming increasingly favourable to occupiers, resulting in continuedpressure on rental levels, particularly in areas with competingspace.In this environment, PEPR's high-quality pan-European portfolio whichis leased to a diverse customer base, and proactive asset managementhas enabled it to maintain its defensive position and to continue todeliver strong operational performance in these challenging markets.Financial resultsEarningsIFRS earnings for the third quarter of ?26.1 million increasedsubstantially compared to earnings of ?17.1 million for the sameperiod in 2008, primarily due to the ?6.1 million loss on share of anassociate recorded in 2008 and a deferred income tax charge of ?3.1million in Q3 2008. Lower third quarter rental income was offset bylower finance expense.EPRA earnings were ?27.5 million for the quarter, or ?0.14 per unit,a 10.7% decrease from ?30.8 million, or ?0.16 per unit, for the sameperiod last year. The reduction is due to the receipt of ?4.4milllion in dividends, and the add back of our ?6.1 million share ofassociate losses from ProLogis European Properties Fund II ('PEPFII') in Q3 2008.PEPR recorded an IFRS loss of ?211.3 million for the nine months toSeptember 2009, compared to a loss of ?0.9 million for the ninemonths of 2008. This decline is predominantly the result of anincrease in unrealised portfolio devaluations recorded in 2009 of?307.8 million compared to ?113.1 million in the same period in 2008,together with the ?42.7 million loss on disposal of investmentproperties (9M 2008: ?1.5 million gain).Overall, EPRA earnings for the nine months decreased 11.4% to ?87.9million from ?99.2 million in 2008, due to the receipt of ?9.8million of dividends and the add back of our ?6.2 million share ofassociate losses in 2008. Excluding these adjustments, underlyingearnings for the nine months are ahead of the prior period.A reconciliation between IFRS and EPRA earnings is shown on page 13.Total revenueThird quarter rental and other property income fell by 10.8% to ?65.2million (Q3 2008: ?73.1 million), primarily related to the loss of?4.0 million of income from properties disposed of, a ?0.7 millionfall in UK sourced income when measured in euro, the loss of ?0.3million of rental income from space vacated following customerdefaults. In addition, Q3 2008 included a ?4.6 million non-recurringadjustment relating to rental income originally agreed when theproperties were acquired and ultimately settled in 2008.Rental and property income for the nine months 2009 fell by 8.8% to?202.1 million (9M 2008: ?221.7 million), as a result of a ?5.9million decline in UK sourced income when measured in euro, and theloss of ?4.0 million of income from properties sales and the loss of?1.9 million of rental income from the customer defaults. Inaddition, the nine months of 2008 included a ?9.4 millionnon-recurring adjustment relating to rental income originally agreedwhen the properties were acquired and ultimately settled in 2008.Operating expensesTotal operating expenses comprise the cost of operating the portfolioand managing PEPR as a fund.Cost of rental activities includes ground rents paid, propertymanagement fees, the provision for bad debt and other non-recoverableproperty related expenses, such as property insurance and propertytax. During the nine months of 2009 the cost of rental activitiesdecreased to ?19.4 million, from ?25.1 million in the comparableperiod, largely as a result of a ?2.7 million decrease in propertymanagement fees to ?11.4 million. These fees are directly correlatedto the gross market value of the portfolio which has been impacted byasset sales and negative valuation movements. In addition, PEPRrecorded a bad debt expense of ?2.8 million in the nine months of2008, as compared to a corresponding charge of ?1.0 million for thesame period in 2009.Fund expenses comprise the non-property related costs associated withour business, including fund management, custodian and professionalfees. These expenses declined 17.4%, to ?7.6 million, for the ninemonths of 2009 (9M 2008: ?9.2 million), as a result of ?1.0 millionnon-reclaimable VAT expense recorded in 2008 and a ?0.9 milliondecline in fund management fees, from ?4.7 million in 2008 to ?3.8million for 2009. These fund management fees are directly correlatedto the gross market value of the portfolio.Profit/(loss) on disposal of investment propertiesNet loss on disposal of ?42.6 million for the nine months of 2009relates to the two completed portfolio disposals. The first, nineDutch and German distribution facilities sold to AEW and the second,the disposal of five UK assets to Harbert.Property fair value movementsPEPR recorded a net loss of ?307.8 million for the nine months of2009 following its portfolio revaluation as at 30 June 2009. Theimpact of the independent valuation included ?324.9 million ofrevaluations losses, partially offset by ?1.1 million of revaluationgains and ?16.0 million reduction in the associated provision forpurchasers' costs.PEPR typically revalues its portfolio as at 30 June and 31 December.As part of its plans to review capital raising alternatives, PEPR iscurrently undertaking a full portfolio valuation review as at 30September 2009 which could form part of a draft prospectus linked toa potential equity raise.FinancingInterest income for the nine months of 2009 decreased substantiallyfrom ?4.3 million for the same period in 2008 to ?2.3 million, drivenby the higher level of cash on deposit during 2008 and lower interestrates received in 2009, offset by the receipt of a ?1.3 milliondividend from PEPF II in Q1 2009.Finance expense for the period, comprise interest expense, debtamortisation charges and foreign exchange gains/losses.+-------------------------------------------------------------------+| FINANCE EXPENSE ||-------------------------------------------------------------------|| ||-------------------------------------------------------------------|| Year ended | | | | Nine months ended ||-------------+---+-------------------+---+-------------------------|| 31 December | | | | 30 Sept. | | 30 Sept. || 2008 | | | | 2009 | | 2008 ||-------------+---+-------------------+---+----------+---+----------|| ?'000 | | | | ?'000 | | ?'000 ||-------------+---+-------------------+---+----------+---+----------|| 108,321 | | Interest expense | | 70,642 | | 80,133 ||-------------+---+-------------------+---+----------+---+----------|| | | Amortisation of | | | | || | | initial borrowing | | | | || 6,403 | | costs | | 7,445 | | 4,706 ||-------------+---+-------------------+---+----------+---+----------|| | | Net foreign | | | | || | | currency | | | | || 1,400 | | (gains)/losses | | (27) | | 79 ||-------------+---+-------------------+---+----------+---+----------|| 116,124 | | | | 78,060 | | 84,918 ||-------------+---+-------------------+---+----------+---+----------|| | | | | | | |+-------------------------------------------------------------------+Interest expense for the nine months decreased 11.8%, to ?70.6million, compared to the same period last year, primarily related tothe repayment of ?434.4 million of CMBS debt (in March and August2009), partially offset by increased borrowing during 2008 to investin PEPF II. These 2009 repayments were funded through the retentionof distributable cash flow, proceeds from asset sales and new securedfinancings. In addition, PEPR's weighted average interest rate forthe nine months fell to 4.5% from 5.3% for the comparable period lastyear.Amortisation charges increased by ?2.7 million in the firstthree-quarters of the year as a result of the early repayment of CMBSdebt, the completion of two secured financing packages and feesrelating to the tangible net worth covenant amendment in the ?900million unsecured credit facility agreed in December 2008.Debt structurePEPR's financing structure utilises a mix of secured and unsecureddebt sources. Two-thirds of secured debt within PEPR is in the formof two CMBS issuances, both of which are secured against specificpools of assets with no recourse to the security of the other CMBS orassets elsewhere within the business.PEPR has to comply with a number of financial debt covenants withinits credit facilities. At the end of September 2009, PEPR was incompliance with all covenants.+-------------------------------------------------------------------+| SUMMARY OF FINANCIAL DEBT COVENANTS ||-------------------------------------------------------------------|| ||-------------------------------------------------------------------|| | | Limit | | 30 Sept. | | 30 June || | | | | 2009 | | 2009 ||----------------------+---+-----------+---+----------+---+---------|| Unsecured debt: | | | | | | ||----------------------+---+-----------+---+----------+---+---------|| ?900m unsecured | | | | | | || facility | | | | | | ||----------------------+---+-----------+---+----------+---+---------|| Leverage | | less than | | | | || | | 60% | | 55% | | 57% ||----------------------+---+-----------+---+----------+---+---------|| Fixed charge | | a least | | | | || coverage | | 1.5x | | 2.1x | | 2.0x ||----------------------+---+-----------+---+----------+---+---------|| Unencumbered | | a least | | | | || interest coverage | | 1.5x | | 2.0x | | 2.2x ||----------------------+---+-----------+---+----------+---+---------|| Net Worth (excluding | | at least | | | | || intangible assets) | | ?1.1bn | | ?1.3bn | | ?1.3bn ||----------------------+---+-----------+---+----------+---+---------|| Unsecured debt as % | | | | | | || of unsecured | | less than | | | | || assets | | 65% | | 57% | | 57% ||----------------------+---+-----------+---+----------+---+---------|| ?500m 2014 Eurobond | | | | | | ||----------------------+---+-----------+---+----------+---+---------|| Secured debt as % of | | less than | | | | || total assets | | 40% | | 21% | | 21% ||----------------------+---+-----------+---+----------+---+---------|| | | | | | | ||----------------------+---+-----------+---+----------+---+---------|| Fonds commun de | | | | | | || placement structure: | | | | | | ||----------------------+---+-----------+---+----------+---+---------|| Loan to value (total | | | | | | || debt as percentage | | | | | | || of gross portfolio | | less than | | | | || value) - see page 14 | | 60%[2] | | 55.7% | | 58.6% ||----------------------+---+-----------+---+----------+---+---------|| | | | | | | |+-------------------------------------------------------------------+In addition to the covenants in the table above, the ?500 millionEurobond is redeemable at par if there is both a change of control ofPEPR and a subsequent downgrade of PEPR's credit rating to Ba1 orbelow within 120 days of that change of control. On 19 June 2009,PEPR was downgraded to a Ba1 rating, with negative outlook, byMoody's Investors Service.The only financial covenant applicable to the CMBS is that incomereceived from the secured assets must exceed interest cost by atleast 1.5 times for each quarter. A breach of this ratio does notconstitute a default but does require cash trapping within thebreached CMBS pool until the breach is remedied. As at 15 July 2009,the most recent reporting date, this ratio was 2.8x for CMBS III and2.9x for CMBS IV.Total outstanding debt, excluding transaction costs, as at 30September 2009 was ?1,735.9 million, a 6.4% decrease since end June2009 (?1,854.6 million), primarily due to the early repayment of?98.6 million of CMBS debt, the repayment of ?80.5 million of therevolving portion of the unsecured credit facility and a ?25 millionreduction in the principal of an existing secured bank loan, offsetby a £86.1 million new secured bank loan. At the end of the quarter,?300.0 million remains undrawn under the revolving credit facilityand PEPR has ?105.0 million cash on its Balance Sheet.PEPR intends to repay a significant portion of the remaining CMBSdebt in the fourth quarter, using a combination of cash on thebalance sheet, funds from the new five-year secured bank loan andundrawn funds under the revolving credit facility. This repaymentwill release of the related secured assets into the unsecured poolfor use in new financing packages.The weighted average interest rate for the nine months decreased to4.5%, compared to 5.3% for the same period in 2008, related to thedecrease in European and UK market interest rates during the period.At 30 September 2009, 67.4% of PEPR's debt was at fixed rates ofinterest, with the remaining floating debt based on EURIBOR or LIBORwith margins varying between 265 to 270 basis points.An overview of PEPR's outstanding debt is on page 21.TaxThe overall tax recorded in the Income Statement for the nine monthsof 2009 is a credit of ?39.8 million, comprising current income taxexpense of ?22.4 million offset by a large deferred tax credit of?62.1 million. This credit results primarily from the portfoliovaluation declines, which result in a partial reversal of deferredtax liabilities previously recorded on unrealised revaluation gains.The current income tax expense of ?22.4 million for the periodrepresents a substantial increase over 2008 (?15.9 million). ?5.7million of the increase related to income tax on capital gainsgenerated on the AEW asset sale. Adjusting for this one-off taxexpense, the 2009 current income tax expense represents an effectivetax rate of 16.8% for the nine months, using EPRA pre-tax earnings asa proxy for taxable income, compared to 13.7% for the same periodlast year.Distributable cash flow and distributionsIn December 2008, PEPR suspended future dividend payments as part ofthe business' deleveraging initiatives and as a condition for a debtcovenant amendment on PEPR's ?900 million unsecured credit facility.Distributable cash flow of ?0.14 per unit, or ?27.5 million, for thethird quarter will therefore be retained in the business to reducedebt and improve liquidity. Distributable cash flow for the ninemonths equalled ?0.46 per unit, or ?88.0 million, in line withManagement guidance for 2009.PEPR intends to revert to paying a dividend as soon as it is prudentto do so and when permitted under the terms of the ?900m unsecuredcredit facility.ProLogis European Properties Fund II ("PEPF II")PEPR received a pro-rata distribution of ?1.3 million from PEPF IIfor the first quarter of 2009.PEPF II is a private equity fund, established by ProLogis, to acquireassets from both ProLogis' development pipeline in Europe and fromthird-parties. In August 2007, PEPR committed to invest ?900 millionover a three-year period in PEPF II for a 30% stake.In December 2008 and February 2009, as part of its strategicderisking initiatives PEPR sold its entire investment and associatedfuture funding obligations in PEPF II. PEPR received cash proceeds of?58.1 million and eliminated future funding obligations of ?522million. As a result of this transaction, PEPR has no stake in PEPFII and no future funding obligations.Earnings webcast and conference call details:We invite you to access the live presentation webcast and conferencecall, held today, Thursday 22 October 2009, at 12 noon CET, byclicking on the link entitled "Third Quarter 2009 Financial ResultsWebcast" located on the homepage of our website, www.prologis-ep.com.To participate in the conference call please dial: Toll free TollInternational -- +44 (0)1452 555 566France 0805 632 056 +33 (0)1 76 74 24 28Luxembourg 800 27512 --The Netherlands 0800 023 5091 +31 (0) 20 717 6886UK 0800 694 0257 +44 (0)844 493 3800US 1 866 966 9439 --A replay and transcript of the webcast will be available in the"Presentations & Webcasts" page of the Investor Relations section ofthe PEPR website, www.prologis-ep.com.A replay of the conference call will be available from 4pm CET onThursday 22 October 2009 until Wednesday 4 November 2009. To accessthe conference call replay please dial one of the following numbers,using passcode 32429008#: Toll free TollInternational -- +44 (0)1452 550 000UK 0800 953 1533 +44 (0)845 245 5205US 1 866 247 4222 --For further information, please contact:Investor relations MediaProLogis European Properties M:Communications+44 20 7518 8708 +44 20 7153 1523 or 7153 1549Jennifer van der Eem, Investor Ed Orlebar/Charlotte McMullenRelations orlebar(at)mcomgroup.com/jvandereem(at)prologis.com mcmullen(at)mcomgroup.com[1] Based on EPRA (European Public Real Estate Association) BestPractices Policy Recommendations, issued in July 2009[2] Can be exceeded up to 65% for a maximum of six monthsFor the full statement, please click on the link belowhttp://hugin.info/139145/R/1349187/325092.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 22.10.2009 - 09:00 Uhr
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