ProLogis' Earnings Improve

After relocation and temperature-controlled impairment charges,funds from operations as defined by ProLogis (FFO) for the first quarter of2005 were 55 cents per share, compared with 49 cents in the same period of2004, which included preferred share redemption charge. Net earnings perdiluted share were 29 cents for the first quarter of 2005, up 26.1% from 23cents in the sameperiod in 2004.

"Global improvement in market activity continued in the first quarter,resulting in record leasing activity, further acceleration in ourdevelopment starts, and continued growth of our property fund business,"says Jeffrey H. Schwartz, chief executive officer. "Overall, propertyoperations strengthened, with improving or stable rental rates andpositive net absorption in virtually every global market."

In its same-store pool, the company achieved a 325 basis pointimprovement in average occupancy, which led to a 1.98% increase in samestore net operating income. "During the quarter, we hadrecord development starts of over $750 million," Schwartz says. "This solidmomentum early in the year has us well positioned to achieve our 2005guidance of $1.3 to $1.4 billion of new starts in 2005.

He says the company continues to experience strong demand fordistribution facilities in North America the company is seeing rent growthin key markets. Indeed, in almost every market rents have at leaststabilized or are increasing.

With pockets of economic softness in Europe, the companyis looking at new development opportunities in the Asian market. "In addition, we continue toexpand our leading presence in Japan and China, where our stabilizedportfolio is over 99% leased," Schwartz notes. "In both markets, customerrequirements for strategically located distribution space are accelerating,driving the need for additional development of state-of-the-art facilities."

Walt Rakowich, president and COO, notes that half of the company'sgrowth in the first half is in Asia, with the other 50% evenly split betweenEurope and North America. "As a result, our recordCorporate Distribution Facilities Services pipeline ofcompletions, repositioned acquisitions and properties under developmentof nearly $2.6 billion, is well diversified across three continents,"Rakowich says.