WARSAW (14 February 2017) – Prologis, Inc., the global leader in logistics real estate, today announced full-year 2016 activity for its business in Central and Eastern Europe (CEE).
Operating Performance
The company leased 1.8 million square metres in Central and Eastern Europe. New lease agreements accounted for 700,000 square metres and lease renewals for 900,000 square metres, with the balance short-term agreements. The CEE portfolio occupancy rate was a record 96.4 percent.
At year-end, Prologis’ CEE portfolio was 4.5 million square metres.
“We experienced a record-breaking year for Prologis - globally, across Europe and in Central and Eastern Europe,” said Martin Polak, senior vice president, regional head, Prologis CEE. “Occupancy and the volume of lease transactions reached an all-time high, and we saw a high customer retention rate—to illustrate, four in five of our customers renewed their leases with us.”
Investment Activities
In 2016, Prologis invested in all four of the CEE countries in which it operates. The company began construction of 18 buildings totalling 331,000 square metres—70 percent of that construction was build-to-suits and 30 percent was speculative development. New development starts increased over 2015 by some 65 percent. The company continued to pursue its strategy of selective development in key markets characterized by low vacancies.
Development starts:
- 56,000 square metre build-to-suit for Tesco at Prologis Park Galanta-Gan, Slovakia
- 42,200 square metre build-to-suit for Agata at Prologis Park Piotrków II, Poland
- 30,300 square metre pre-let facility for a retailer at Prologis Park Prague-Jirny, Czech Republic
- 21,700 square metre speculative facility at Prologis Park Bratislava, Slovakia
- 21,000 square metre build-to-suit for Waberer’s at Prologis Park Budapest-Sziget, Hungary
Completed developments:
- 34,200 square metre build-to-suit for Sportisimo at Prologis Park Prague-Rudna, Czech Republic
- 22,300 square metre build-to-suit for Arvato Polska at Prologis Park Stryków, Poland
- 21,500 square metre fully let speculative facility at Prologis Park Budapest-Sziget, Hungary
- 20,500 square metre build-to-suit for Mall.cz at Prologis Park Prague-Jirny, Czech Republic
- 11,740 square metre build-to-suit for Geis at Prologis Park Stryków, Poland
In 2016, Prologis delivered 14 buildings totalling 251,000 square metres; among those, eight buildings were started and completed in the same year.
“Last year was the most active in the CEE region for Prologis since 2008,” said Polak. “Low vacancy levels contributed significantly to increased development activity, and customers made faster decisions about space in order to stay ahead of shrinking stock.”
Acquisitions
Prologis acquired M0 Central Business Park in Hungary, and two fully leased buildings totalling 31,400 square metres became a part of Prologis Park Budapest-Sziget. In addition, the company acquired three hectares of land in Prologis Park Prague D1 East, and 22.6 hectares in Prologis Park Bratislava.
Awards
Prologis won two prestigious awards at the 2016 Eurobuild CEE Awards. The company was recognized in the following categories: “Warehouse Developer of the Year, CEE” and “Best Warehouse Manager of the Year, Poland.” The latter award was given to Marta Kostyk, a Prologis property manager based in Lower Silesia.
Prologis in Poland
In 2016 in Poland, the company launched five development starts totalling 96,500 square metres (with two buildings completed during the year). These developments include a completed and fully leased SBU (small business unit) building in Chorzów. Prologis also opened a new park in Stryków. The portfolio occupancy rate was 94.8 percent.
“Poland is one of the main logistics real estate markets in Europe currently on a growth trajectory, both in terms of build-to-suit and speculative developments, and in 2016, we invested in the pivotal markets of Central Poland, Wrocław, Szczecin and Chorzów,” said Paweł Sapek, senior vice president, and country manager, Prologis Poland. “We continue to monitor the industrial real estate market as it transforms each year, and are glad that the industry is increasingly appreciative of our transactional transparency, the high quality of our buildings and the high bar we have set with our property management services.”
With its active engagement in four CEE countries and an operating portfolio totalling 4.5 million square metres, Prologis is the leading provider of distribution facilities in Central and Eastern Europe (as of 31 December 2016).
ABOUT PROLOGIS
Prologis, Inc. is the global leader in industrial real estate. As of September 30, 2015, Prologis owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 670 million square feet (62 million square meters) in 21 countries. The company leases modern distribution facilities to more than 5,200 customers, including third-party logistics providers, transportation companies, retailers and manufacturers.
FORWARD-LOOKING STATEMENTS
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which Prologis operates, management’s beliefs and assumptions made by management. Such statements involve uncertainties that could significantly impact Prologis’ financial results. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, development activity and changes in sales or contribution volume of properties, disposition activity, general conditions in the geographic areas where we operate, our debt and financial position, our ability to form new co-investment ventures and the availability of capital in existing or new co-investment ventures — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisitions, dispositions and development of properties, (v) maintenance of real estate investment trust (“REIT”) status and tax structuring, (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings, (vii) risks related to our investments in our co-investment ventures and funds, including our ability to establish new co-investment ventures and funds, (viii) risks of doing business internationally, including currency risks, (ix) environmental uncertainties, including risks of natural disasters, and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by Prologis under the heading “Risk Factors.” Prologis undertakes no duty to update any forward-looking statements appearing in this document.
MEDIA CONTACTS
Marta Tęsiorowska
Vice President Marketing & Communications
Prologis Central & Eastern Europe
Direct: +48 22 218 36 56
Email: [email protected]&
Marta Zagożdżon
PR Director, ConTrust Communication
Direct: + 48 605 073 929
E-mail: [email protected]