Germany and Poland Hotspots in Q3 for Prologis

15th October 2019

Logistics BusinessGermany and Poland Hotspots in Q3 for Prologis

Logistics real estate giant Prologis has released its third quarter financial numbers. European highlights picked out by the company are listed below.

• Demand remains healthy and customer sentiment holds. Supply chain reconfiguration remains a top priority.
o Demand hot spots were Germany and Poland
• Supply is driving divergence of markets, as land constraints drive capital to the markets with ample land, causing a surge in (spec) supply there.
o Rent growth strong in land-constrained markets
o Spec is slightly up, more than 50 per cent of volume.
o Supply hot spots were in order; Poland, the United Kingdom and the Netherlands
• Capital interest rises further, while cap rates continue to compress (-4bps q/q, -19bps y/y)
o Values (PLD) grew 2.1% q/q

Operating Performance as of September 30, 2019:

– Total portfolio: 17,5 million square metres*
– Period-end occupancy: 96.7%
– Total leasing activity: 671,715 square metres:
o 264,333 square metres of new leases
o 407,382 square metres of lease renewals

*includes: operating, development, held for sale, other and VAA/VAC

Capital Deployment – third quarter activities

– Total development activity in the third quarter ran at 219,703 square metres:
o Eight build-to-suit starts with a combined total of 142,695 square metres in Germany, Italy, the Netherlands, Poland, Slovakia and the United Kingdom
o Three speculative starts at a combined total of 77,008 square metres in France, Italy and the Netherlands

Acquisitions & Dispositions
– 15 buildings were acquired with a total net rentable area of 370,642 square metres in Hungary, Spain and the United Kingdom
– 4 land parcels were acquired with a total land area of 111,787 square metres in France, Germany and the Netherlands

– Two building dispositions took place, totalling 27,225 square metres in Italy and one land parcel of 41,966 square metres was sold in the United Kingdom

– Carbon-neutral facility at Muggensturm, Germany, wins LogixAward at Muggensturm
– Colonial acquisition: largest European logistics portfolio transaction to date of 2019
– European Prologis colleague raise funds for vital cancer research through Stelvio for Life