ProLogis Bests Estimates

Full-year FFO per diluted share for 2003 was $2.17, compared with $2.16 in 2002. Prior to preferred redemption charges in 2003 and impairment charges in both periods, FFO per diluted share for 2003 was $2.41, compared with $2.39 in 2002. Net earnings per diluted share for 2003, however, dropped to $1.16, from $1.20 in 2002.

"We are pleased to have achieved strong results for the fourth quarter, exceeding our earlier expectation of 71 cents to 76 cents per share," says K. Dane Brooksher, chairman and CEO. "Our performance was driven by several factors—appreciation in foreign currencies, continued growth in FFO and fees from ProLogis property funds, income from our corporate distribution facilities services (CDFS) business and gains from the partial redemption of our investment in ProLogis European Properties Fund."Brooksher continues, "Global economic indicators are steadily improving, and we noted clear signs of improved activity levels in North America and Western Europe toward the end of the year. Importantly, that momentum appears to be continuing into 2004, with approximately 1.9 million sf of new build-to-suit and new CDFS lease agreements signed since year end."

Operating property performance in North America is beginning to show signs of modest improvement, with same store average occupancy up 0.91% for the year. "While this activity is encouraging, rental rate growth remains elusive, and we do not expect this to change in the near term," Brooksher says. "As a result, we remain cautious in our expectations for earnings growth in 2004."