Credit rating outlook improved to positive for ProLogis European Properties
Luxembourg - 7 June 2011- ProLogis European Properties (Euronext: PEPR), one of Europe's largest owners of modern distribution facilities, announced today that Moody's Investors Service ("Moody's") has improved PEPR's corporate credit rating outlook to positive from stable. PEPR's credit rating remains at Ba1.

Moody's state "The change to positive outlook was triggered by ProLogis's recent significant increase in its ownership of PEPR and newfound ability to control the management of the fund, making it possible for PEPR to take the steps necessary that would allow it to issue ordinary equity should it need to do so in future, even if the issuer price were below IFRS NAV per unit, thereby improving its funding flexibility. The positive outlook is further supported by (i) the gradual improvement in PEPR's leverage (total debt/gross assets, as adjusted by Moody's) over the past two years to 53% post Q1 2011 from over 55% at FYE2009; (ii) its public commitment to continue reducing leverage to below 50% from retained earnings; (iii) its proven ability to retain good tenant occupancy rates throughout the economic downturn, thereby underpinning rental income and cash flow; (iv) fixed charge cover above 2.0 times; and (v) the preservation of an adequate liquidity profile."

Peter Cassells, chief executive officer of PEPR, commented "We are pleased that Moody's have recognised the ongoing progress we have made in deleveraging the business and improving our balance sheet strength. We still believe that PEPR warrants an investment grade rating and will continue to work with Moody's to reduce the gap between their implied score of Baa2 and our actual assigned rating of Ba1."

There is no immediate impact from this improved outlook on PEPR's debt. The borrowing margin of the €280 million senior unsecured credit facility remains at +270 basis points over Euribor/LIBOR and the margin on the €50 million unsecured revolving credit facility remains at +240 basis points. The interest rate on PEPR's €500 million Eurobond is unchanged at 7.625%.