UBS – 2006 Global Real Estate Conference

Delivering Value Across Europe

Robert WatsonCEO

2

ProLogis European Properties

Largest pan-European owner and operator of high-quality distribution facilities

• Highly experienced manager

• Efficient tax structure

• Strong and stable cash flow

• Diverse, high-quality customer set

• Excellent opportunity for growth

• Exposure to wider range of investors through listing on Euronext

• Trading symbol PEPR -- €4.7 total market cap at 16 Nov 06

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Strong Commitment and Continued Management by ProLogis

(€ Bn)

0.3

0.9

1.5

2.3 2.3

2.9

3.5

4.2

0.0

1.0

2.0

3.0

4.0

5.0

1999 2000 2001 2002 2003 2004 2005 Sep-06

Year Ending

• Strong local market presence established since 1997

Over 250 full-time employees in Europe located in 15 offices

ProLogis Operating System® ensures consistent, high-quality customer care

• Innovator in pan-European CMBS financing

• Alignment of interests with current 24% ownership -- L/T not less than 10%

Growth In Assets Held in ProLogis European Properties

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Budapest, Hungary

Munich, Germany

Rugby, UK

= PEPR Properties

High-quality portfolio of modern distribution space

• 5.3 million m²

• 275 buildings in 25 submarkets in 11 countries

• Average age 6.6 years

• Leverages on reconfiguration of European logistics

• Over 70% built by ProLogis

• 96.7% leased at 30 Sep 06

Pan-European Portfolio

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Efficient Tax Structure

• Structure as a Luxembourg FCP (fonds commun de placement) – an unincorporated contractual co-ownership scheme governed by management regulations

• Effectively acts as proxy for Euro-REIT

• Allows for a reduction in overall country-by-country tax rate in order to maximise after-tax distributable cash flow

• First Luxembourg FCP to be admitted for listing on Eurolist by Euronext but expect it will not be the last

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95.2%

97.4%

95.7% 95.4%

97.1% 97.3% 96.7%

85%

88%

90%

93%

95%

98%

100%

Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 'Sept - 06

PEPR’s Historical Occupancy Levels

2%

5% 6%8% 8% 7% 7% 8%

12% 12%

25%

0%

5%

10%

15%

20%

25%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016+

Lease expiry, as % of Annualised Rental Income

(1) Based on annualised rental income as at 30 September 2006

Stable Cash Flow

• Favourable leases • Average lease term of

• 5.1 years to first break

• 7.3 years to lease expiries

• Staggered maturities

• 72% expire >2010 (1)

• Non-amortising fixed rate debt

• Management regulations provide that PEPR distribute substantailly all distributable cash flow

• Distributions occur quarterly

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Diversified Customer Base

• Almost 400 customers

• Over 600 leases in place as at 30 Sep 2006

• Our top 3 customers represent 16.4% of annualised base rents

• 56% of customers are 3PLs (1) serving clients in a variety of industries

• Over 30% of top 50 customers have investment grade corporate or parent company credit rating

3PLs56%

Manufacturers13% (2)

Retail14%

(1) Third Party Logistics companies(2) Including consumer packaged goods, automotive and industrial durables

Others17%

Top 10 customers

Customer split by type

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Increase gearing from 45% to 60% over 3 years

Direct Investments €200 million of acquisitions of newly

completed facilities from ProLogis’ pipeline at 5% discount to market value

Direct purchase of third party assets – i.e. sale/leaseback agreements

Equity Investments in Europe

Right to invest up to 30% in future ProLogis Private Equity Funds

Right to participate in ProLogis Joint Ventures

Direct Portfolio

• Increase in NAV

• Rising rental rates

Growth OpportunitiesExternal GrowthInternal Growth

ProLogis’ European Development Pipeline Completed and repositioned assets 1.3 million m² Currently under development 0.8 million m² Land owned and optioned 1,261 hectares

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• Security of a real estate backed investment underpinned by state-of-the-art distribution facilities

• Strong, stable and regular cash flows

• Track record of positive NAV growth

• Improving economic drivers and rising construction costs should lead to rental rate increases

• Opportunity for external growth through future investments in other ProLogis funds

Key Investment Drivers