PLD Prologis

- Fourth Quarter Contributions Exceed Expectations - DENVER, Dec. 23 /PRNewswire-FirstCall/ -- ProLogis (NYSE:PLD), a leading global provider of distribution facilities, today announced that it made contributions of properties in North America, Europe and Japan during the fourth quarter for total proceeds of $1.26 billion. The contributions included a total of 59 properties in 12 countries, representing 15.2 million square feet of space. "As we outlined in November, we are de-risking our development business and preserving capital," said Walter C. Rakowich, chief executive officer. "The ongoing contribution of development properties into funds and sales to third parties is a critical element of our plan. We simultaneously decrease the size of our pipeline and generate proceeds that can be used to pay down debt, thereby helping us to accomplish our de-leveraging objectives." Property contributions to ProLogis North American Industrial Fund (NAIF), ProLogis Mexico Industrial Fund, European Properties Fund II, ProLogis Korea Fund and ProLogis Japan Properties Fund II have now been completed for the fourth quarter 2008. Additionally, incremental equity was called from NAIF investors to substantially reduce the outstanding balance of the NAIF warehouse line of credit. North American Industrial Fund (NAIF) Nine assets representing 3.8 million square feet of space were contributed to NAIF for total proceeds of $209 million. ProLogis Mexico Industrial Fund (MEX) Eight assets representing 1.1 million square feet of space were contributed to MEX for total proceeds of $64 million. ProLogis European Properties Fund II (PEPF II) Thirty-seven assets representing 8.8 million square feet of space were contributed to PEPF II for total proceeds of 539 euro($734) million. ProLogis Korea Fund (PKF) One asset representing 0.2 million square feet of space was contributed to PKF for total proceeds of $11 million. ProLogis Japan Properties Fund II (PJPF II) Three assets representing 1.1 million square feet of space were contributed to PJPF II for total proceeds of 19,180 billion yen ($193 million). In addition, the company closed on a 2.4 billion yen ($26.8 million) TMK bond financing for ProLogis Park Kiyama before year end, representing a loan-to-value of approximately 50 percent. Proceeds from this financing will be used to pay down ProLogis global lines of credit. In addition, the company announced that it has contributed the Seton Office Building in Austin, Texas, to a newly formed joint venture with an affiliate of Dividend Capital Total Realty Trust (TRT). The value assigned to the property in connection with the transfer was $44 million, and ProLogis retained a 10 percent interest in the property and will receive fees for the ongoing management of the building. TRT is a non-traded, real estate investment trust that invests in a diverse portfolio of real estate assets. Located at Catellus' Mueller mixed-use development, the 156,000 square-foot, four-story building is Seton's headquarters and houses approximately 650 of their associates. ProLogis Action Plan On November 13, 2008, the company outlined an action plan to de-leverage its balance sheet by at least $2 billion. The plan includes re-financing and/or renegotiating debt maturities on ProLogis' balance sheet and in its property funds, targeting regional portfolio sales, shrinking its development pipeline through fund contributions and a halt in new development starts and retaining capital through G&A cuts and a reduction of the dividend. The company has fully implemented a number of these initiatives and intends to continue to implement on others to quickly accomplish its objectives. About ProLogis ProLogis is the world's largest owner, manager and developer of distribution facilities, with operations in 136 markets across North America, Europe and Asia. The company had $40.8 billion of assets owned, managed and under development, comprising 548 million square feet (51 million square meters) in 2,898 properties as of September 30, 2008. ProLogis' customers include manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. DATASOURCE: ProLogis CONTACT: Investor Relations, Melissa Marsden, +1-303-567-5622, , or Media, Krista Shepard, +1-303-567-5907, both of ProLogis; or Financial Media, Suzanne Dawson of Linden Alschuler & Kaplan, Inc, +1-212-329-1420, Web Site: http://www.prologis.com/

Copyright