We’re pleased to share our third quarter 2022 activity for Prologis Europe. This summary includes operating performance highlights and insights into select milestones and achievements.

Ben Bannatyne, President, Prologis Europe:

“We saw a solid third quarter in our European business. Occupancy remained high, driven by demand and the quality of our portfolio and customer service. In this evolving macroeconomic environment, we are more focused than ever on anticipating our customers’ needs, especially around energy, labour and sustainability.”

Operating Performance – Third Quarter 2022:

• Total portfolio: 22.2 million square meters*
• Total leasing activity: 2,810,211 square meters: 
  • 688,934 square meters of new leases.
  • 2,121,277 square meters of lease renewals.
• Rent change: +14,3%**

* includes operating, development, held for sale, other and VAA/VAC 
** rent change is based on lease sign dates

Leasing Highlights:

• 39,243 square meters for electronics manufacturer at Prologis Park Budapest-Sziget, Hungary (new deal)
• 9,205 square metres for distributer of chemical  materials at Prologis Park Łódź, Poland (new deal)
• 40,400 square metres for Arvato Supply Chain Solutions at Prologis Park Stryków, Poland (renewal)

Capital Deployment – THIRD Quarter 2022

Q3 Development Starts:

There have been 12 new starts in the third quarter, comprising a total net rentable area of 296,658 square metres in the Czech Republic, France, German, Italy, Poland, Slovakia, Spain and the United Kingdom. There were four notable build-to-suits covering 52,604 square meters and eight speculative developments totalling 244,054 square meters in direct response to growing customer demand.

Q3 Acquisitions:

This quarter, Prologis Europe acquired 144 buildings with a total net rentable area of 1,155,158 square metres in gateway markets in Belgium, France, Germany, Italy, the Netherlands, Poland, Spain and the United Kingdom as well as two land parcels with a combined total area of 198,987 square metres in France and Slovakia.

Operating Performance Central Europe & Poland– third Quarter 2022:

• CE total portfolio: 4,665,883 square meters*
• CE Q3occupancy: 97.2 percent
• CE Q3 leasing activity was 374,500 square meters
  • 103,400 square metres of new leases
  • 193,940 square metres of lease renewals
• Poland total portfolio: 2,265,441 square meters*
• Poland Q3 occupancy: 96.0 percent
• Poland Q3 leasing activity was 226,620 square meters
  • 56,830 square metres of new leases
  • 104,070 square metres of lease renewals

*NRA – Net Rentable Area

Central Europe Capital Deployment - third Quarter 2022

Development Starts:

• Total development activity in Q3 2022 was three  developments: DC2 at Prologis Park Prague D1 Ostredek totaling 21,254 square metres, DC9B at Prologis Park Bratislava totaling 9,805 square meters and  DC4C at Prologis Park Wrocław IV totaling 4,683 square meters.
• Third quarter 2022 saw two development completions totalling 28,776 square meters (Prologis Budapest-Sziget II DC1B & Prologis Park Prague-Chrastany DC2).

Additional insight from Ben Bannatyne, President, Prologis Europe:

• While the fundamentals of our business are very strong, we are closely monitoring our customers’ needs and the overall environment. The ongoing war and growing energy challenges in Europe remain top of mind. We run our company to thrive over a variety of economic cycles, which puts us in an even better position to support our customers. 
• We continue to set our business and portfolio apart from the competition by listening to our customers and find innovative ways to support their growth and success. Take our energy offerings. We’re making capital investments and bringing on experienced new leaders to help our customers on their path to generating a lower-carbon footprint.  
• As an industry leader in renewable energy, we have set ambitious goals for increased solar generation, are investing in EV infrastructure and have committed to reaching net zero by 2040 across our value chain. We believe the private sector can meaningfully impact the resilience and efficiency of the global supply chain.

Additional Resources/Insights:

• Research: Strong Demant Sends True Months of Supply to New Low
• Research: 2021 Prologis Logistics Rent Index
• 2021-2022 Prologis ESG Sustainability Report
• Prologis is the #1 real estate investment trust (REIT) on the 2022 Global 100 Most Sustainable Corporations in the World list.
• Press release: Prologis expands urban infill portfolio in seven European countries following acquisition of Crossbay’s initial assets
• Press release: Q3 Global Earnings, 2022
• Event: Prologis Groundbreakers, 2022