Prologis Summarizes First Quarter 2020 (in Central Europe)


Prologis, the global leader in logistics real estate, reported its first quarter 2020 earnings results on April 21, 2020. The company’s leadership team noted that it had entered the COVID-19 period in a position of strength, with significant liquidity and borrowing capacity. Together, the quality of the Prologis portfolio, the company’s customer base and the strength of its balance sheet are expected to mitigate COVID-19 headwinds through 2020.

The impact of the pandemic will play out differently across the company’s regions, including in Europe, where occupancy levels are expected to fall by 130 basis points due to changes in supply and demand dynamics. In the first quarter, the company posted higher-than-expected rental increases; however, the forecast currently is for flat rental growth for the full year.

Additional takeaways:

Prologis Europe first quarter activity in brief

Prologis’ European portfolio totaled 756 buildings and 18.5 million square metres, 96.0% occupied at the period end. Europe total development activity in the first quarter was 106,384 square meters, of this  84.1% was built-to-suit in key logistics markets close to consumption centres.

Central Europe (CE) key data as of March 31, 2020:

Operating Performance

Leasing agreements were signed for more than 380,000 square meters, which corresponds to an increase of 35% compared to the same period last year. Investment Activities

Charity and Community Support

Prologis Foundation has allocated $5 million in monetary donations to COVID-19 relief organizations globally, with an emphasis on feeding those in need and assisting medical communities that have been impacted so drastically.