PROLOGIS EURO PROP 
By News release
Results for the quarter ended 31 March 2012
PEPR reduces LTV below 45% through non-core asset sales and maintains strong leasing activity
Luxembourg - 01 May 2012 - ProLogis European Properties (Euronext: PEPR), one of Europe's largest owners of modern distribution facilities, reports results for the quarter ended 31 March 2012.
Highlights
- €255.1 million proceeds from previously announced disposals of 18 assets in the UK, Germany and Poland, in line with latest valuations.
- 41 lease transactions covering 540,900m2, including 25,900m2 of new or expanded leases
- 80% customer retention rate
- 93.6% portfolio occupancy (Q4 2011: 94.4%)
- 1.1% decline in portfolio value from 31 December 2011, excluding disposals and currency impacts
- Loan-to-value ratio improved to 44.1% from 46.7% at the end of 2011
- EPRA([1]:
#_ftn1) earnings of €0.11 per ordinary unit (Q1 2011: €0.10 per ordinary unit) - Generated €21.5 million, or €0.10 per ordinary unit, of distributable cash flow (Q1 2011: €18.3 million or €0.10 per ordinary unit)
- IFRS loss of €0.11 per ordinary unit (Q1 2011: €0.06 earnings per ordinary unit)
- EPRA net asset value of €6.46 per ordinary unit (Q4 2011: €6.50 per ordinary unit)
- IFRS net asset value of €5.77 per ordinary unit (Q4 2011: €5.77 per ordinary unit)
Commenting on the results, Peter Cassells, chief executive officer of PEPR, said: "We are pleased to report steady operating and financial results in what remains an unsettled macro-economic environment.
"Portfolio occupancy and leasing activity remains high and our 80% retention rate for the quarter demonstrates the strength of our customer relationships. In addition, we have seen positive rental growth in prime markets where there is limited supply.
"A key achievement for the first quarter was the successful completion of three portfolio sales in the UK, Germany and Poland. The disposals, in line with market values, confirm our belief that we continue to value the portfolio appropriately to market. As a result of these disposals, we have made considerable progress in reducing our loan-to-value ratio, which now stands at 44.1%.
"During this period of ongoing economic uncertainty, we will remain focused on reducing our loan-to-value ratio further by retaining earnings, while continuing to actively managing our assets to drive cash flow."
Update to Management Regulations
PEPR held an Extraordinary General Meeting ('EGM') on 14 March 2012, to vote on the proposal made by Prologis, Inc. under Article 18.1 of the Management Regulations to amend PEPR's Management Regulations. The proposed amendments were approved by the Commission de Surveillance du Secteur Financier, the Management Company and the PEPR Board prior to the EGM. At the EGM, the resolution to amend the Management Regulations was passed with 96.7% of the ordinary units represented or present at the meeting voting in favour.
The amended Management Regulations allow for unitholders owning more than one per cent of the ordinary units to be offered the option to elect for distributions "in specie" (e.g. by transfer of ownership in a property or of the shares in companies holding properties) or in cash in the event of a wind-up of PEPR.
In light of the amendments made to the Management Regulations, the Management Company deemed it appropriate and in the best interests of unitholders to have the portfolio independently valued as at 31 March 2011.
Change to PEPR Board
In accordance with Article 4 of the Management Regulations, Mr. Edward Nekritz, Prologis' Legal Officer and General Counsel has been appointed as a member of the PEPR Board on 30 April 2012, as a replacement for Mr. Philip Dunne.
Market outlook
Despite the uncertain economic environment, occupier activity has resulted in an annual estimated take-up volume of approximately 14.8 million square metres according to Jones Lang LaSalle. This is a new record volume and 80% above the 10-year annual average of 8.2 million square metres.
Larger and mid-sized logistics service providers increased their market share, both in freight management and contract logistics. This allows for expansion and new market entry in the emerging markets and Central Eastern Europe.
Prime headline rents stabilised in the majority of markets. During the first quarter, rental growth was achieved in a number of core markets where good quality, modern space is increasingly scarce due to a limited level of new supply. Prime rents in Europe's regional markets remained generally stable while rents in non-core locations continue to be under pressure.
Portfolio revaluation
The entire portfolio was independently revalued at 31 March 2012, with market value decreasing by 1.1%, excluding foreign exchange adjustments and asset disposals (completed and held for sale), from the valuation carried out at 31 December 2011. The overall portfolio value, taking into account disposals and the impact of foreign exchange, declined by 4.6% to €2,483.1 million compared to €2,602.6 million at 31 December 2011.
The value of the Continental European portfolio decreased by 5.2% over the quarter to €2,144.2 million, primarily due to the German and Polish asset disposals (completed and held for sale). Excluding these disposals, continental European values fell by 1.2%. The Southern European portfolio value declined by 1.6% primarily driven by France where an outward yield shift in short dated income had a notable impact. Values for both the Northern European and Central European portfolios recorded a more modest decline of 0.7%.
The UK portfolio value remained broadly stable, down 0.6% from 31 December 2011 to 31 March 2012. The strengthening of the sterling exchange rate over the quarter reduced this valuation decline to 0.2% in euro terms, to €338.9 million from €339.6 million at 31 December 2011.
The net initial yield([2]:
#_ftn2)of the portfolio at 31 March 2012 increased to 7.6% compared to 7.5% at 31 December 2011.
Portfolio performance
The increase in leasing activity concluded during the fourth quarter of last year continued into the first quarter 2012, with the completion of 41 lease transactions covering 540,900 square metres. Within this number, the proportion of new and expanded leases fell, with two new leases, totalling 3,200 square metres, and seven lease expansions (adding 22,700 square metres to existing customers' operations) completed. The retention rate for the quarter was 80% with thirty-two lease renewals, covering 515,000 square metres, signed with customers including Fiege in Germany and Hungary, Burberry and Ceva in Italy and ND Logistics in France.
Despite this activity, portfolio occupancy decreased as expected by the end of the quarter to 93.6% from 94.4%, primarily due to four large known customer move-outs in France, Spain and Poland, totalling 60,100 square metres or 1.1% of the portfolio.
First quarter leasing transactions were concluded with an average of 3.4 years to lease break or 4.9 years to lease expiry and resulted in a weighted average rental decline of 5.2% over the previous rental levels. The majority of the decline relates to the regearing of seven leases, totalling 206,000 square metres, in Italy. Excluding these leases, the remaining transactions generated weighted average rental growth of 2.8% largely due to rents achieved on lease renewals in Sant Boi, a prime logistics park near Barcelona in Spain and at Venlo, an established logistics hub in The Netherlands.
During the quarter, PEPR sold 18 assets in three portfolio transactions for a total of €255.1 million. All transactions were completed in line with 31 December 2011 external valuations. 10 assets in the UK were sold to Blackstone, a global private equity fund manager, for €183.3 million (£153.0 million). Post closing adjustments have increased sales proceeds from the £150.9 million announced on 8 February 2012. The portfolio comprised 231,650 square metres in 10 fully-leased buildings in the Midlands and North-East of the UK.
Three fully-leased assets in Germany were sold to Tristan Capital Partners, a pan-European real estate investment manager, for €20.6 million at the end of the quarter. The portfolio comprised 36,300 square metres in Saarwellingen in Western Germany and Malsfeld in Northern Germany.
Also at the end of the first quarter, five assets in Poland were sold to Hines Global REIT, a privately owned real estate firm, for €51.2 million. The portfolio comprised 73,000 square metres in five buildings, which are 93% occupied in Warsaw and Bedzin. Two additional assets in Poland are expected to be sold to Hines before the end of the year in a second phase of the transaction. These assets are shown as "assets held for sale".
Excluding the assets held for sale, the portfolio comprises 210 distribution facilities, covering 4.5 million square metres across 11 European countries with a market value of €2.5 billion at 31 March 2012. The portfolio risk profile remains attractive, with occupancy at 93.6% and a diversified customer base. On average, the portfolio has 3.0 years to lease break or 5.1 years to lease expiry. An overview of the portfolio is shown on page 11.
Guidance
PEPR maintains its guidance for 2012, with EPRA earnings expected to be between €0.37 and €0.42 per ordinary unit and distributable cash flow expected to be between €0.33 and €0.38 per ordinary unit.
PEPR has retained distributable cash flow since December 2008 as part of the business' strategic initiatives to improve liquidity and intends to continue to do so for the foreseeable future in order to further deleverage the balance sheet.
Financial results
Earnings
PEPR recorded an IFRS loss of €21.3 million in Q1 2012 (Q1 2011: €12.4 million earnings), primarily due to a €28.5 million higher decline in portfolio value and a €17.4 million loss on property disposals, offset by a €6.9 million deferred income tax benefit in Q1 2012 compared to a €4.2 million deferred income tax charge in the comparable period.
Adjusted EPRA earnings for ordinary unitholders, which provide a better guide to underlying business performance, increased to €21.9 million in Q1 2012 (Q1 2011: €19.4 million).
A reconciliation between IFRS and EPRA earnings is shown on page 9.
Total revenue
Q1 2012 rental and other property income decreased to €56.5 million (Q1 2011: €60.5 million), primarily due to the loss of €2.8 million of rental income from property disposals and a €1.2 million drop in rental income given lower market rents on new lease agreements. These declines were partially offset by the relatively higher average occupancy during the quarter and a €0.2 million increase in UK and Swedish sourced income when measured in euro.
Operating expenses
The cost of rental activities decreased to €5.5 million in Q1 2012 (Q1 2011: €6.6 million), driven by a €0.4 million reduction in bad debt provisions and higher recovery of property-related costs given the relatively higher average occupancy during Q1 2012. Property management fees remained broadly flat given their direct correlation to gross portfolio value.
Fund expenses comprise the non-property related costs associated within our business, including fund management, custodian and professional fees. These expenses declined slightly to €2.3 million (Q1 2010: €2.6 million). Fund management fees are directly correlated to gross portfolio value.
Loss on disposal of investment property
The €17.4 million net loss on disposal of investment property in Q1 2012 relates to the sale of 18 assets in three portfolio transactions for a total of €255.1 million. All transactions were completed in line with 31 December 2011 external valuations, however the loss on disposal includes a €20.6 million allocation from equity of unrealised historical currency translation adjustments associated with the UK portion of the disposals.
Further details on these transactions are provided in the Portfolio performance section on page 3.
Debt structure and finance cost
Total outstanding debt as at 31 March 2012 is €1,159.4 million, a €201.3 million decrease since 31 December 2011 (€1,360.7 million), driven by the full repayment of the €160.0 million outstanding under both the senior unsecured credit facility and the Crédit Agricole bank loan, the €40.9 million reduction in the Deutsche Pfandbriefbank bank loan and contractual amortisation of other facilities. These reductions were partially offset by the strengthening of sterling over the quarter. PEPR has no outstanding debt maturities in 2012.
The weighted average interest rate for Q1 2012 decreased to 5.3% (Q1 2011: 5.6%) given the 1.75% reduction in the rate payable on the €500 million Eurobond to 5.875% on 23 October 2011 and the improvement in the senior unsecured credit facility interest rates following PEPR's return to an investment grade credit rating. At 31 March 2012, 100% of debt was at fixed rates of interest with only the undrawn €50 million revolving credit facility at floating rates of interest, currently at 225 basis points over Euribor or Libor.
Net finance expense for Q1 2012 decreased to €21.6 million (Q1 2011: €24.7 million), primarily due to a €2.1 million saving in interest expense given the lower Eurobond interest mentioned above and €2.9 million of savings relating to the €392.9 million reduction in debt between both periods as well as the improvement in the weighted average interest rate for the quarter. These declines were offset by €2.8 million of accelerated amortisation and debt breakage costs related to the early repayment of the senior unsecured credit facility and the Crédit Agricole bank loan.
At 31 March 2012, PEPR was in compliance with all financial debt covenants within its credit facilities.
Tax
PEPR recorded a €2.8 million tax benefit for Q1 2012 (Q1 2011: €8.9 million tax charge), primarily due to a positive movement in the deferred income tax position. The portfolio valuation exercise completed at 31 March 2012 resulted in a deferred income tax benefit of €6.9 million for Q1 2012 (Q1 2011: €4.2 million charge).
The Q1 2012 current income tax expense was €4.1 million (Q1 2011: €4.7 million), reflecting lower taxable profits and further utilisation of available tax losses. The Q1 2012 current income tax expense represents an effective tax rate of 14.9%, using EPRA earnings before taxation as a proxy for taxable income, down from 17.8% for Q1 2011.
PEPR will continue to manage and implement tax strategies to maintain its future tax expense at a reasonable level.
Distributable cash flow and distributions
PEPR generated €21.5 million, or €0.10 per unit of distributable cash flow for ordinary unitholders in Q1 2012 (Q1 2011: €18.3 million or €0.10 per unit). PEPR will continue to retain distributable cash flow for the foreseeable future in order to further deleverage the balance sheet.
PEPR will pay a preferred dividend distribution to holders of its Class A(1) convertible preferred units on 9 May 2012. The €0.157392 per unit distribution relates to the period from 1 January 2012 to 31 March 2012. The ex-dividend date is 3 May 2012 and the record date is 7 May 2012.
Net asset value
IFRS NAV per ordinary unit was €5.77 at 31 March 2012, equal to the value per unit at 31 December 2011. The €0.16 per ordinary unit impact of the portfolio devaluation, losses on disposals of €0.08 per unit and the preferred dividend of €0.01 per ordinary unit were offset by €0.14 per unit of earnings (including a deferred income tax benefit of €0.03 per unit), an €0.11 per unit movement in the cumulative foreign currency translation adjustment and a €0.01 positive movement in the fair value of interest rate hedges.
EPRA NAV per ordinary unit, which makes adjustments for deferred income tax and the fair value of financial instruments, decreased to €6.46 at 31 March 2012, compared to €6.50 at 31 December 2011.
A reconciliation between IFRS and EPRA NAV is shown on page 9.
Financial statements and portfolio information
The financial statements have been produced in accordance with International Financial Reporting Standards.
| Page | |
| Consolidated income statement | 7 |
| Consolidated statement of financial position | 8 |
| Statement of performance measures - EPRA earnings and EPRA net asset value | 9 |
| Reconciliation of profit to distributable cash flow | 10 |
| Portfolio overview | 11 |
For further information, please contact:
| Investor relations ProLogis European Properties Jennifer Crooke +44 207 518 8708 jcrooke@prologis.com | Media M:Communications Charlotte McMullen +44 20 7920 2349 mcmullen@mcomgroup.com |
Notes:
Forward-looking statements
This document may contain certain 'forward-looking statements'. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes of results expressed or implied by such forward-looking statements.
Any forward-looking statements made by or on behalf of PEPR speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their accuracy or completeness or the basis on which they were prepared. PEPR does not undertake to update forward-looking statements to reflect any changes in PEPR's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.
Information contained in this document relating to PEPR should not be relied upon as an indicator of future performance.
| CONSOLIDATED INCOME STATEMENT | ||||||
| (Unless otherwise stated, amounts are expressed in thousands of euros) | ||||||
| Year ended | Three months ended | |||||
| 31 December 2011 | 31 March 2012 | 31 March 2011 | ||||
| Audited | Unaudited | Unaudited | ||||
| 236,092 | Rental income | 56,440 | 60,389 | |||
| 797 | Other property income | 75 | 90 | |||
| 236,889 | Total revenue | 56,515 | 60,479 | |||
| (2,168) | Ground rents paid | (564) | (557) | |||
| (13,220) | Property management fees | (3,223) | (3,336) | |||
| (10,451) | Other property rental expenses | (1,668) | (2,693) | |||
| (25,839) | Cost of rental activities | (5,455) | (6,586) | |||
| 211,050 | Gross profit | 51,060 | 53,893 | |||
| (4,403) | Fund management fees | (1,072) | (1,111) | |||
| (135) | Fund custodian fees | (35) | (29) | |||
| (8,660) | Other fund expenses | (1,185) | (1,421) | |||
| (13,198) | Fund expenses | (2,292) | (2,561) | |||
| 33,674 | Investment property disposal proceeds | 255,076 | - | |||
| (29,743) | Carrying value of investment property and currency translation effect on disposal | (272,475) | - | |||
| 3,931 | (Loss)/gain on disposal of investment property | (17,399) | - | |||
| 22,223 | Gross valuation gains on property | 8,970 | - | |||
| (63,388) | Gross valuation losses on property | (44,735) | (5,346) | |||
| 1,139 | Purchasers costs | 1,918 | - | |||
| (40,026) | Property fair value movements | (33,847) | (5,346) | |||
| 161,757 | (Loss)/earnings before net financial cost and tax | (2,478) | 45,986 | |||
| 82 | Finance income | 52 | 39 | |||
| (94,722) | Finance expense | (21,667) | (24,695) | |||
| (94,640) | Net financial cost | (21,615) | (24,656) | |||
| 67,117 | Net (loss)/earnings before tax | (24,093) | 21,330 | |||
| (19,500) | Charge for current income tax | (4,089) | (4,719) | |||
| (21,337) | Deferred income tax benefit/(charge) | 6,883 | (4,205) | |||
| (40,837) | Benefit/(charge) for taxation | 2,794 | (8,924) | |||
| 26,280 | Net (loss)/earnings for the period | (21,299) | 12,406 | |||
| Attributable to: | ||||||
| 25,398 | Unitholders | (20,888) | 12,307 | |||
| 882 | Non-controlling interest | (411) | 99 | |||
| 26,280 | Net (loss)/earnings for the period | (21,299) | 12,406 | |||
| 195,476,893 | Weighted average number of ordinary units in issue | 206,247,440 | 190,522,441 | |||
| €0.10 | IFRS (loss)/earnings per ordinary unit | (€0.11) | €0.06 | |||
| €0.38 | EPRA earnings per ordinary unit | €0.11 | €0.10 | |||
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||||
| (Unless otherwise stated, amounts are expressed in thousands of euros) | ||||||
| 31 December 2011 | 31 March 2012 | 31 March 2011 | ||||
| Audited | Unaudited | Unaudited | ||||
| Assets | ||||||
| Non Current Assets | ||||||
| 2,602,553 | Investment in property | 2,483,115 | 2,810,548 | |||
| - | Hedging instruments | - | 746 | |||
| 1,918 | Deferred tax asset | 1,741 | 3,619 | |||
| 2,604,471 | 2,484,856 | 2,814,913 | ||||
| Current Assets | ||||||
| 184,677 | Assets held for sale | 21,950 | - | |||
| 37,267 | Accounts receivable, net | 44,036 | 41,545 | |||
| 34,210 | Other current assets | 20,020 | 24,284 | |||
| 7,479 | Cash and cash equivalents | 101,867 | 39,807 | |||
| 263,633 | 187,873 | 105,636 | ||||
| 2,868,104 | Total assets | 2,672,729 | 2,920,549 | |||
| Equity | ||||||
| 2,009,305 | Ordinary capital | 2,009,305 | 1,911,810 | |||
| 61,070 | Preferred capital | 61,070 | 61,070 | |||
| 2,070,375 | Capital contributions | 2,070,375 | 1,972,880 | |||
| (44,705) | Costs of raising capital | (44,705) | (44,705) | |||
| 2,025,670 | Net capital contributed | 2,025,670 | 1,928,175 | |||
| (641,133) | Net retained losses | (663,644) | (649,326) | |||
| (114,824) | Cumulative foreign currency translation adjustment | (92,870) | (121,934) | |||
| (18,870) | Cash flow hedge valuation reserve | (17,470) | (5,759) | |||
| 1,250,843 | Equity attributable to unitholders | 1,251,686 | 1,151,156 | |||
| 2,504 | Non-controlling interests in subsidiaries | 2,727 | 1,874 | |||
| 1,253,347 | Total equity | 1,254,413 | 1,153,030 | |||
| Non-current liabilities | ||||||
| 1,215,749 | Interest bearing notes and bank loans, net of current portion | 1,140,687 | 1,522,407 | |||
| 18,876 | Hedging instruments | 17,476 | 6,505 | |||
| 129,661 | Deferred tax liability | 122,998 | 114,283 | |||
| 1,364,286 | 1,281,161 | 1,643,195 | ||||
| Current liabilities | ||||||
| 125,942 | Interest bearing notes and bank loans, current portion | 3,580 | 4,584 | |||
| 392 | Accounts payable | 4,686 | 7,753 | |||
| 7,338 | Due to related parties | 11,751 | 2,134 | |||
| 13,567 | Income and other taxes payable | 13,667 | 11,130 | |||
| 40,434 | Accrued expenses and other current liabilities | 62,475 | 57,640 | |||
| 57,488 | Deferred income | 40,996 | 41,083 | |||
| 5,310 | Liabilities held for sale | - | - | |||
| 250,471 | 137,155 | 124,324 | ||||
| 1,614,757 | Total liabilities | 1,418,316 | 1,767,519 | |||
| 2,868,104 | Total equity and liabilities | 2,672,729 | 2,920,549 | |||
| 206,247,440 | Number of ordinary units in issue | 206,247,440 | 190,522,441 | |||
| €5.77 | IFRS NAV per ordinary unit | €5.77 | €5.72 | |||
| €6.50 | EPRA NAV per ordinary unit | €6.46 | €6.37 | |||
| STATEMENT OF PERFORMANCE MEASURES - EPRA EARNINGS | ||||||
| (Unless otherwise stated, amounts are expressed in thousands of euros) | ||||||
| Year ended | Three months ended | |||||
| 31 December 2011 | 31 March 2012 | 31 March 2011 | ||||
| Unaudited | Unaudited | Unaudited | ||||
| 25,398 | Net (loss)/earnings attributable to unitholders | (20,888) | 12,307 | |||
| Adjustments for: | ||||||
| 40,026 | Revaluation movements on investment properties | 33,847 | 5,346 | |||
| (2,949) | Loss/(gain) on disposal of investment properties, net of tax | 17,399 | - | |||
| 16,366 | Deferred tax in respect of EPRA adjustments | (6,759) | 3,408 | |||
| (110) | Non-controlling interests in respect of the above | (59) | (15) | |||
| 78,731 | EPRA earnings for the period | 23,540 | 21,046 | |||
| (6,501) | Preferred distributions | (1,621) | (1,603) | |||
| 72,230 | EPRA earnings for ordinary unitholders | 21,919 | 19,443 | |||
| - | Income received not in the ordinary course of business | - | - | |||
| 2,768 | Expenses incurred not in the ordinary course of business | - | - | |||
| 74,998 | Adjusted EPRA earnings | 21,919 | 19,443 | |||
| 195,476,893 | Weighted average number of ordinary units in issue | 206,247,440 | 190,522,441 | |||
| €0.38 | Adjusted EPRA earnings per ordinary unit | €0.11 | €0.10 | |||
| STATEMENT OF PERFORMANCE MEASURES - EPRA NET ASSET VALUE | ||||||
| (Unless otherwise stated, amounts are expressed in thousands of euros) | ||||||
| 31 December 2011 | 31 March 2012 | 31 March 2011 | ||||
| Unaudited | Unaudited | Unaudited | ||||
| 1,250,843 | Net asset value attributable to unitholders per IFRS financial statements | 1,251,686 | 1,151,156 | |||
| Adjustments for: | ||||||
| 18,876 | Fair value of financial instruments | 17,476 | 5,759 | |||
| 131,273 | Deferred tax | 124,514 | 118,315 | |||
| 1,400,992 | EPRA net asset value | 1,393,676 | 1,275,230 | |||
| Attributable to: | ||||||
| 1,339,922 | Ordinary unitholders | 1,332,606 | 1,214,160 | |||
| 61,070 | Preferred unitholders | 61,070 | 61,070 | |||
| 1,400,992 | EPRA net asset value | 1,393,676 | 1,275,230 | |||
| 206,247,440 | Number of ordinary units in issue | 206,247,440 | 190,522,441 | |||
| €6.50 | EPRA net asset value per ordinary unit | €6.46 | €6.37 | |||
| RECONCILIATION OF PROFIT TO DISTRIBUTABLE CASH FLOW | ||||||
| (Unless otherwise stated, amounts are expressed in thousands of euros) | ||||||
| Year ended | Three months ended | |||||
| 31 December 2011 | 31 March 2012 | 31 March 2011 | ||||
| Unaudited | Unaudited | Unaudited | ||||
| 25,398 | Net (loss)/earnings attributable to unitholders for the period | (20,888) | 12,307 | |||
| Adjustments for items per the Management Regulations: | ||||||
| 41,165 | Net valuation losses on property | 35,765 | 5,346 | |||
| (1,139) | Purchasers costs | (1,918) | - | |||
| (9,444) | Reversal of rent levelling adjustment | (2,116) | (2,572) | |||
| 805 | Unrealised currency (gains)/losses | (606) | 605 | |||
| 9,614 | Amortisation of debt transaction costs | 5,064 | 2,008 | |||
| 21,337 | Movements on deferred tax balances | (6,883) | 4,205 | |||
| (2,949) | Loss/(profit) on asset disposals, net of tax | 17,399 | - | |||
| (9,808) | Allowance for capital and re-letting expenses | (2,725) | (2,040) | |||
| (6,501) | Preferred distributions | (1,621) | (1,603) | |||
| 43,080 | Total adjustments | 42,359 | 5,949 | |||
| 68,478 | Distributable cash flow | 21,471 | 18,256 | |||
| 195,476,893 | Weighted average number of ordinary units in issue | 206,247,440 | 190,522,441 | |||
| €0.35 | Distributable cash flow per ordinary unit for the period([3]: #_ftn3) | €0.10 | €0.10 | |||
| Number of facilities | Market value([4]: #_ftn4) | % of total market value | Leasable area | % of total leasable area | Annualised rental income([5]: #_ftn5) | ERV([6]: #_ftn6) | |
| € m | 000m2 | € m | € m | ||||
| France | 61 | 785.3 | 32% | 1,590.4 | 35% | 65.2 | 63.0 |
| Italy | 18 | 244.6 | 10% | 523.1 | 12% | 20.5 | 18.4 |
| Spain | 13 | 232.3 | 9% | 309.4 | 7% | 17.1 | 17.6 |
| Southern | 92 | 1,262.2 | 51% | 2,422.9 | 54% | 102.8 | 99.0 |
| Belgium | 5 | 54.3 | 2% | 98.3 | 2% | 4.4 | 4.1 |
| Germany | 16 | 174.7 | 7% | 271.0 | 6% | 14.8 | 13.8 |
| Nether-lands | 20 | 209.9 | 8% | 380.2 | 9% | 19.3 | 16.3 |
| Sweden | 4 | 98.7 | 4% | 130.4 | 3% | 8.6 | 7.1 |
| Northern | 45 | 537.6 | 21% | 879.9 | 20% | 47.1 | 41.3 |
| Czech Republic | 12 | 98.5 | 4% | 180.1 | 4% | 9.1 | 9.1 |
| Hungary | 14 | 89.2 | 4% | 181.8 | 4% | 7.2 | 7.5 |
| Poland([7]: #_ftn7) | 19 | 156.7 | 6% | 374.9 | 8% | 12.6 | 12.4 |
| Central | 45 | 344.4 | 14% | 736.8 | 16% | 28.9 | 29.0 |
| UK | 28 | 338.9 | 14% | 464.9 | 10% | 27.8 | 29.6 |
| TOTAL | 210 | 2,483.1 | 100% | 4,504.5 | 100% | 206.6 | 198.9 |
| Vacant space (at ERV per m2) | 12.6 | ||||||
| ERV of entire portfolio, assuming 100% leased | 211.5 | ||||||
| Net initial yield ([8]: #_ftn8) | Occupancy level | Average age of facilities | Numb of leases | Average number of years to next lease break | Average number of years to lease expiry | |||
| years | ||||||||
| France | 7.8% | 94.5% | 10.8 | 82 | 1.8 | 5.2 | ||
| Italy | 6.7% | 90.8% | 11.8 | 22 | 6.4 | 6.6 | ||
| Spain | 7.1% | 91.1% | 9.3 | 27 | 3.9 | 6.1 | ||
| Southern | 7.5% | 93.2% | 10.6 | 131 | 3.0 | 5.6 | ||
| Belgium | 7.8% | 100.0% | 7.8 | 5 | 3.2 | 7.0 | ||
| Germany | 7.3% | 95.5% | 7.7 | 25 | 2.1 | 2.3 | ||
| Nether-lands | 7.1% | 91.2% | 11.7 | 30 | 2.4 | 3.8 | ||
| Sweden | 7.9% | 100.0% | 17.1 | 4 | 5.5 | 6.9 | ||
| Northern | 7.4% | 94.8% | 11.0 | 64 | 3.0 | 4.2 | ||
| Czech Republic | 9.0% | 100.0% | 9.0 | 28 | 2.0 | 2.1 | ||
| Hungary | 8.0% | 88.7% | 8.9 | 37 | 2.8 | 3.1 | ||
| Poland([9]: #_ftn9) | 7.6% | 91.4% | 8.7 | 35 | 3.2 | 3.5 | ||
| Central | 8.1% | 92.8% | 8.9 | 100 | 2.7 | 3.0 | ||
| UK | 7.9% | 94.6% | 10.2 | 26 | 3.4 | 6.8 | ||
| TOTAL | 7.6% | 93.6% | 10.4 | 321 | 3.0 | 5.1 | ||
([1]) European Public Real Estate Association Best Practices Recommendations, issued October 2010
[2] Annualised rent less non-recoverable property expenses expressed as a percentage of gross market value i.e. before the deduction of notional purchasers' costs.
([3]) In December 2008, PEPR suspended ordinary dividend payments. Q4 2008 and all subsequent quarters' distributable cash flow for ordinary unitholders has therefore been retained in the business.
([4]) An independent revaluation of the portfolio was conducted as at 31 March 2012. In accordance with IFRS fair value accounting, valuations are reported net i.e. after deduction of purchasers' costs
([5]) Annualised rental income means the estimate of annual income based on the gross rental income for leases in place as at the latest valuation date based on rates effective at that date and on the assumption that rental income from such leases will continue to be received for the whole of the financial year. It does not take into account lease terminations, renewals, replacement of customers or other changes in rent levels in existing leases
([6]) ERV refers to the Estimated Rental Value calculated by the independent third-party appraisers as at the latest valuation date
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: ProLogis European Properties via Thomson Reuters ONE
