Luxembourg - 24 July 2008 - ProLogis European Properties (Euronext: PEPR), Europe's largest owner of modern distribution facilities, today reports results for the quarter and half year ended 30 June 2008.
Quarter to 30 June 2008 - Half year to 30 June 2008
€0.18 distribution per unit
€0.38 distribution per unit, implying an annualised dividend yield of 8.4% 
EPRA net asset value per unit of €12.03, a €0.54 decrease compared to the first quarter (€12.57); IFRS net asset value per unit was €11.18 (Q1 2008: €11.59)
EPRA net asset value per unit decreased €0.70 to €12.03 over the half year (2007: €12.73); IFRS net asset value per unit decreased to €11.18 (2007: €11.73)
2.6% valuation decrease on the portfolio since 31 December 2007 (4.8% including foreign exchange adjustments)
EPRA earnings  decreased slightly to €0.18 per unit (Q2 2007: €0.19 per unit)
EPRA earnings per unit decreased €0.04 to €0.36 (HY 2007: €0.40); IFRS loss of €0.17 per unit (HY 2007 earnings: €0.64 per unit)
€70.2m additional investment in ProLogis European Properties Fund II
€161.9m additional investment into ProLogis European Properties Fund II
22 lease transactions covering 138,900m2
42 lease transactions covering 245,800m2, compared to 37 transactions covering 296,100m2 in half year 2007 
Commenting on the results, Gordon Keiser, chief executive office of PEPR, said:
"We are pleased to report that PEPR has continued to show good operational performance in the first half of 2008, maintaining its industry-leading high occupancy levels and completing a total of 42 lease transactions, reflecting the continued occupier demand across our European markets. However, the significant weakening of sterling versus the euro has affected our ongoing sterling earnings as compared to our earlier forecast and as a result we are marginally revising our dividend target for the year to reflect this.
"PEPR's additional investment in ProLogis European Properties Fund II demonstrates our commitment to continue to execute our growth strategy across Europe. We are confident that the strength of our business model, sustained growth in world trade and our customer relationships will enable us to benefit from the continued solid performance of the European logistics market."
As part of its usual semi-annual business review process, management has re-examined the guidance provided for the year. Given the exceptional fluctuations in the currency markets, with sterling weakening against the euro by 10% in the first six months of the year alone, combined with challenging conditions in the property and financial markets, management has decided to revise its 2008 distribution guidance to between €0.76 and €0.80 cents per unit from the earlier guidance of €0.80 to €0.86 cents per unit. PEPR continues to target a 6.0% to 6.5% cash return on its investment in PEPF II for the year.
Directly owned portfolio revaluation
The entire directly owned portfolio was revalued as at 30 June 2008, with overall net market value decreasing by 2.6% from the December 2007 valuation (4.8% including foreign exchange adjustments) to €3,945.3 million (2007: €4,143.1 million).
The largest movement was in the value of the UK properties, which fell 8.5% to £631.7 million (2007: £690.7 million). The reporting of the UK portfolio in euro was also significantly impacted by the weakening of sterling in the first six months of the year. The total value of the UK portfolio, including this currency impact, decreased 16.9% to €803.4 million (2007: €966.3 million). The gross yield  on the UK assets increased 40 basis points to 7.3% from 6.9% at the year end.
Valuation movements on the continent were more muted with the continental portfolio showing a slight decline of 1.1% overall to €3,141.9 million (2007: €3,176.9million). PEPR experienced modest valuation increases in Poland (€7.3 million), The Netherlands (€4.1 million) and Spain (€2.6 million), more than offset by devaluations in France (€28.2 million), Italy (€6.1 million), the Czech Republic (€5.2 million), Hungary (€2.4 million) and Germany (€2.2 million).
The gross yield of the direct portfolio at 30 June 2008 increased to 7.3% (6.9% net yield  ) from 7.1% (6.7% net yield) at the year-end.
Earnings webcast and conference call details:
We invite you to access the live presentation webcast and conference call, held today, 24 July 2008, at 4pm BST / 5pm CET, by clicking on the link entitled "Second Quarter and Half Year 2008 Financial Results Webcast" located on the homepage of our website, www.prologis-ep.com