Prologis Reports Second Quarter Performance in Central and Eastern Europe
Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, today announced its second quarter activity in Central and Eastern Europe (CEE).
Operating Performance
The company leased more than 400,000 square metres of distribution space, an increase of more than 7 percent over the same period last year. Demand continues to be driven by reconfiguration of the supply chain and e-commerce.
Prologis ended the second quarter with 94.8 percent occupancy of the company’s operating portfolio, confirming the stabilisation of the market and strengthening of Prologis’ position in CEE.
At the end of the quarter, the company’s operating portfolio was 4.35 million square metres. Adding developments, the portfolio was 4.52 million square metres.
Notable transactions included:
| New leases (Q2 2016) | ||
| Space | Customer | Location |
| 34,200 sq m | Sportisimo | Prologis Park Prague-Rudna, Czech Republic |
| 20,500 sq m | Mall.cz | Prologis Park Prague-Jirny, Czech Republic |
| 17,200 sq m | Grupa Allegro | Prologis Park Błonie, Poland |
| 12,000 sq m | Food Producer | Prologis Park Wrocław, Poland |
| Renewals (Q2 2016) | ||
| 20,800 sq m | Fiege | Prologis Park Budapest-Harbor, Hungary |
| 12,800 sq m | Yusen Logistics | Prologis Park Wrocław IV, Poland |
| 11,700 sq m | OST SPED | Prologis Park Wrocław, Poland |
| 11,100 sq m | Raben Logistics | Prologis Park Nove Mesto, Slovakia |
Developments Starts
During the quarter, Prologis commenced construction of four distribution facilities, totalling more than 123,000 square metres, three of which are build-to-suit (BTS) facilities. The fourth one is a speculative facility, totalling 21,000 square metres, which is already 23 percent pre-leased. Including development starts in the first quarter, the company currently has nine buildings under construction, totalling 217,000 square metres. The majority of the developments are in existing Prologis parks, located in core logistics markets.
| Development Starts (Q2 2016) | ||
| Space | Type | Location |
| 34,200 sq m | BTS for Sportisimo | Prologis Park Prague-Rudna, Czech Republic |
| 22,200 sq m | BTS for a clothing company | Prologis Park Stryków, Poland |
| 21,000 sq m | Speculative — 23-percent pre-leased | Prologis Park Budapest-Sziget, Hungary |
| 11,740 sq m | BTS for a freight forwarder | Prologis Park Stryków, Poland |
“The second quarter of 2016 shows that the logistics real estate market in Central and Eastern Europe is growing steadily and offering encouraging prospects. There is a growing demand for logistics space and, consequently, the occupancy rate across our portfolio is on the increase, reaching nearly 95 percent,” said Martin Polak, senior vice president and regional head for Prologis CEE. “The expected growth in e-commerce and the consequent increase in logistics space occupancy rates has become a reality. A growing number of our customers are companies from that sector, which speaks of the quality and suitable location of Prologis facilities.”
With its active engagement in four CEE countries and a portfolio totalling 4.3 million square metres, Prologis is the leading provider of distribution facilities in Central and Eastern Europe (as of 30th June 2016).
ABOUT PROLOGIS
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of June 30, 2016, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 666 million square feet (62 million square metres) in 20 countries. Prologis leases modern distribution facilities to a diverse base of approximately 5,200 customers across two major categories: business-to-business and retail/online fulfillment.
FORWARD-LOOKING STATEMENTS
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management’s beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, development activity and changes in sales or contribution volume of properties, disposition activity, general conditions in the geographic areas where we operate, our debt, capital structure and financial position, our ability to form new co-investment ventures and the availability of capital in existing or new co-investment ventures — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust status, tax structuring and income tax rates (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures and funds, (viii) risks of doing business internationally, including currency risks, (ix) environmental uncertainties, including risks of natural disasters, and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading “Risk Factors.” We undertake no duty to update any forward-looking statements appearing in this document.