Amsterdam (23 January 2018) - Prologis, Inc., the global leader in logistics real estate, today announced fourth quarter and full year 2017 activity in Europe.

Operating Performance

Prologis Europe ended the fourth quarter with high occupancy, closing the year at 96.6 percent. The company signed 384,000 square metres of new leases and 650,000 square metres of renewals in the fourth quarter. For the full year 2017, new leases and renewals comprised 3.9 million square metres.

“2017 was yet another historic year for Prologis Europe. Strong demand on the continent has seen healthy supply increases and notable leasing activity, we were one of the most active developers of 2017,” said Ben Bannatyne, president, Prologis Europe. “Our development pipeline meets the high demand for new space and the growing expansion needs of our customers.”

Accelerated demand on the continent and sustained demand in the UK led to the strongest year of net absorption on record: 8.6 million square metres, an increase of 27 percent over 2016.

Notable new leasing activity in the fourth quarter included: 

• 81,740 square metres for Cdiscount at Moissy Chanteloup, France
• 45,144 square metres for Empik Group in Sochaczew, Poland
• 24,078 sqm for XPO Supply Chain at Isle d’Abeau in Lyon, France
• 11,238 square metres for Thethford B.V. Etten Leur, Netherlands

Development Starts

Supply of Class-A distribution facilities picked up, notably through supply in Poland and resurging development activity in the UK. In the fourth quarter, Prologis Europe started 15 developments in the Czech Republic, Italy, Spain, Slovakia and the UK totalling 216,000 square metres; 22 percent was build-to-suit and 78 percent speculative with 25 percent preleased. Over 2017, Prologis started 40 developments, totalling 917,500 square metres.

Development starts included:

• 35,585 square metre speculative build at Prologis Park Nitra DC2, 57 percent preleased, Slovakia 
• 27,572 square metre build-to-suit for SDA at Bologna DC17 and DC16, Italy
• 26,443 square metre build-to-suit for ID Logistics EU at Penedes, Barcelona in Spain
• 16,500 square metre build-to-suit for Kering Italia Spa at Padua, Italy

Acquisitions and DispositionsEuropean Fund Development

In the fourth quarter, Prologis acquired €37.5 million of buildings totalling 55,000 square metres and three land plots totalling 134,000 square metres in Italy, Sweden and the UK. Full year 2017 saw a total of €116.9 million of building acquisitions spanning 134,291 square metres and 24 land plots totalling 1.96 million square metres. During the year, Prologis sold assets in the Austria, the Czech Republic, France, Germany, Italy, the Netherlands, Poland, the UK and Slovakia for a total of €545.7 million. 

European Fund Development

Prologis streamlined and strengthened its European fund business in 2017. The formation of UK Logistics Venture (UKLV), a 7.6 million square metre portfolio, resulted in it’s first fund dedicated to the UK market. UKLV has a total expected value of approximately £1 billion GBP ($1.25B USD). The company also closed the combination of Prologis Targeted Europe Logistics Fund (PTELF) and Prologis European Properties Fund II (PEPF II) to create Prologis European Logistics Fund (PELF), an €8.2 billion sector-leading open-ended fund. These two highly complementary portfolios span 32,3 million square metres across 12 countries. In conjunction with its formation, S&P has rated the venture’s credit at A-.

“A key component of our business strategy in Europe is to hold our properties in a series of differentiated funds,” said Bannatyne. “UKLV and PELF are an extension of this strategy to meet the capital needs of today’s growth markets across Europe.”

At quarter-end, the company owned or had investments in, on a wholly-owned basis or through co-investment ventures, properties and development projects totalling 17.0 million square metres in Europe.

About Prologis

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of March 31, 2018, 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 683 million square feet (63 million square meters) in 19 countries. Prologis leases modern distribution facilities to a diverse base of approximately 5,000 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.