We’re pleased to share our fourth quarter 2022 activity, and full year operating performance for Prologis Europe & Central Europe. This summary includes operating performance highlights and insights into select milestones and achievements.

Ben Bannatyne, President, Prologis Europe:

“2022 was a record-breaking year for us. Our milestone acquisitions across major European cities throughout the year allow us to provide our customers with the premium real estate and Essentials solutions they have come to expect from us where they need it most.

We continue to focus on our customers and the partnership they need to grow their business. Our position of financial strength and innovative solutions, particularly within the energy business, help us stay ahead of the fast-evolving needs of our customers.”

Operating Performance – Fourth Quarter and Full Year 2022 (Europe):

• Total portfolio: 22.3 million square meters*
• Q4 2022 leasing activity:**
  • 622,416 square metres total leased.
  • 154,961 square metres new leases.
  • 467,455 square metres renewals
• Q4 Rent change: +18%***
• Full year occupancy: 98.7%
• Full year 2022 leasing activity:

  • 3,451,415 square metres total leased

  • 849,493 square metres new leases

  • 2,601,922 square metres renewals

Operating Performance – Fourth Quarter and Full Year 2022 Central Europe & Poland:

• CE total portfolio: 4,704,974 square meters*
• CE Q4 occupancy: 97.5 percent
• CE full year 2022 leasing activity:

  • 1,278,779 square metres total leased

  • 438,176 square metres new leases

  • 840,603 square metres renewals

• Poland total portfolio: 2,290,036 square meters*
• Poland Q4 occupancy: 96.4 percent
• Poland Q4 leasing activity was 86,848 square meters
  • 23,907 square metres of new leases
  • 62,941 square metres of lease renewals
     

* includes operating, development, held for sale, other and VAA/VAC 
** as of 31 December 2022 
*** based on lease start date

Leasing Highlights:

• 28,660 square metres at Prologis Park Grolsheim DC1, Germany
• 6,566 square metres at Prologis Park Budapest-Harbor DC11, Hungary
• 5,736 square metres at Prologis Park San Fernando DC2, Spain

Capital Deployment – Fourth Quarter and Full Year 2022

Development Starts:

There have been 5 new starts in the fourth quarter, comprising a total net rentable area of 68,004 square metres in the Czech Republic, Poland, Slovakia, Italy and Sweden. There were three notable build-to-suits covering 35,396 square metres which are already 100% leased and two speculative developments totalling 32,608 square metres in direct response to growing customer demand.

There have been 31 development starts in 2022, comprising a total net rentable area of 747,673 square metres. Of this, 10 were built-to-suits, covering 159,370 square metres which are 100% leased and 21 speculative developments totalling 588,303 square metres. In Central Europe there have been nine development starts totalling 180,091 square meters (three in Slovakia, three in Poland, two in Czech Republic and one in Hungary).

Acquisitions and Dispositions:

In the fourth quarter 2022, Prologis Europe acquired a 14,280-square-metre property in Madrid, Spain and our land acquisitions total 521,079 square metres in Italy, Spain, UK, Poland and Germany. The company disposed of one building in Germany totalling 3,561 square metres and 2 land parcels in UK and Slovakia, totalling 255,982 square metres.

This brings the year’s acquisitions to a total of 165 buildings across 1,636,677 square metres and 21 land parcels totalling 1,311,980 square metres across Europe. In 2022 we disposed of 4 buildings with a total 82,758 square metres and 6 land parcels totalling 677,644 square metres.

Insights from Ben Bannatyne, president, Prologis Europe:

In 2022, we have augmented our portfolio through substantial acquisitions and new development deliveries across the 12 markets in Europe adding a record 1,636,677 square metres to the portfolio. This puts us in an even better position to fulfil the growing demand of our customers for premium space, especially in high barrier, high-growth markets.

While adhering to our capital deployment and operational strategies, we continue to innovate beyond the traditional commercial real estate offering. The Prologis Essentials platform now delivers the next generation of solutions to address some of the critical challenges our customers face in operations, energy & sustainability, mobility and workforce.

With the performance of the fourth quarter of 2022 and the Rent Index data, we are cautiously optimistic going into 2023. We continue to work with our customers and our teams on the grounds to overcome the challenges that go along with the ongoing restructuring of global supply chains.

Additional Resources/Insights:

• Research: Strong Demant Sends True Months of Supply to New Low
• Research: 2022 Prologis Logistics Rent Index
• Research: Future Flow of Goods, updated Nov 22, 2022
• 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 reports strong fourth quarter and full year 2022 earnings
• Press release: Prologis expands urban infill portfolio in seven European countries following acquisition of Crossbay’s initial assets
• Prologis Groundbreakers, 2022

About Prologis

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of December 31, 2022, 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 1.2 billion square feet (113 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,600 customers principally 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," and "estimates," including 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, contribution and 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 and political climates; (ii) changes in global 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 changes in income tax laws and 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; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; (x) risks related to the current coronavirus pandemic; and (xi) 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 except as may be required by law.