ProLogis is a real estate investment trust (REIT) that operates a global network of industrial distribution properties. ProLogis is headquartered in Denver,Colorado.

ProLogis is the world’s largest owner, manager and developer of distribution facilities, with 446.9 million square feet of industrial space (41.5 million square meters) in 105 markets across North America, Asia and Europe. The company leases its industrial facilities to 4,700 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. ProLogis employ approximately 1,300 people worldwide

ProLogis was founded in 1991 on a single, core idea: that it could create exceptional value by focusing on service and forging close, long-term ties with the companies it serves. Traditionally, industrial developers had been transaction-focused rather than service-oriented. From its earliest days, ProLogis has embraced a different approach, seeking to become a valued business partner for its customers in an era of revolutionary change in manufacturing and distribution.

Since going public in 1994, ProLogis has experienced extraordinary growth. It has gone from $400 million in assets under management in just nine U.S. states to a global portfolio of properties valued at more than $29 billion. ProLogis continues to follow its customers into new markets and to extend its position as the global leader in industrial real estate.

[Extracted from its website pertaining to its 2006 Highlights]

2006 HIGHLIGHTS

• Grew ProLogis’ defined funds from operations per share, as adjusted, (FFO) to $3.70, up 36.5% from $2.71 in 2005, and net earnings per diluted share to $3.32, up 88.6% from $1.76 in 2005
• Achieved total shareholder return of 34.0%, including share price appreciation and dividends
• Increased dividend for the 13th consecutive year to a projected rate of $1.84 per share for 2007, a 15.0% increase
• Grew total assets owned and under management by 20.6%, to $26.71 billion, up from $22.14 billion at the end of 2005
• Recognized $131.2 million in incentive returns in our property fund business through the successful launch of ProLogis European Properties (Euronext: PEPR) and the formation of ProLogis North American Industrial Fund initiatives and development management fees

• Increased management fees by 216.6% within our property fund business, including incentive returns, and grew our share of property fund FFO by 32.9%
• Achieved record leasing of 102 million square feet of space in global markets, an increase of 7.7% over 2005
• Redeployed $1.53 billion of capital from the company’s CDFS pipeline, realizing $326.9 million of FFO, up 40.1% from 2005
• Began development of a record $2.54 billion of new facilities, up 18.1% over 2005
• Recognized $106.3 million of FFO from other CDFS activities, largely related to mixed-use

FINANCIAL HIGHLIGHTS

The year 2006 was one of significant accomplishment for ProLogis, resulting in a 36.5 percent increase in FFO per share, to $3.70. This strong growth supported our Board’s decision to raise our dividend by 15 percent, from an annual rate of $1.60 per share, to a projected rate of $1.84 per share in 2007.

All three segments of our business achieved excellent results. As anticipated, our property operations business performance improved significantly. Same-store net operating income was up 3.1 percent, driven by 2.6 percent increases in both average occupancies and rent growth on expiring leases. Additionally, for the year, 75.6 percent of our customers remained in place when their leases expired.

In our CDFS business, new development activity was well diversified across our global markets. We started $2.5 billion of new developments, up from $2.2 billion in 2005, and are projecting a 20 to 30 percent increase in new starts for 2007. Continued strong leasing in our development pipeline led to total CDFS dispositions in 2006 of $1.5 billion at healthy 24.3 percent post-tax, post-deferral margins. These proceeds were redeployed into new development, resulting in a total CDFS pipeline of $5.3 billion at year end.

Net increases in our property funds during 2006 of $1.7 billion generates recurring management fees, which combined with our share of the funds’ earnings, increases our return on equity. In addition, we realized substantial embedded gains in our property fund business. Through the liquidation of three North American property funds and the PEPR IPO, we recognized $131.2 million in incentive returns over the seven-year holding period, or the equivalent of approximately $0.07 of FFO per share annually. We also converted these funds into open-end structures that provide liquidity to our fund investors while allowing us to perpetuate management fees and recognize incentive returns on a more regular basis. Including gains related to the liquidation of North American funds, our share of fund FFO was up 32.9 percent. Fund fees increased 20.6 percent, excluding the incentive returns noted above.

During 2006, we leveraged our strong financial position to access both public and private debt and equity on favorable terms. We enhanced our financial flexibility by increasing our multi-currency global line of credit to $3.4 billion, from $2.6 billion, and placed $1.65 billion of global senior unsecured notes.

The successes in all three business segments helped drive a total return to our shareholders of 34 percent.

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