Prologis Announces Fourth Quarter and Full Year 2021 Earnings Results

Prologis shares its fourth quarter and full year 2021 activity for Prologis Europe. This summary includes operating performance highlights and insights into select milestones and achievements.

Ben Bannatyne, President, Prologis Europe: “Our Europe business had a record-breaking fourth quarter and year. Demand for logistics space is at an all-time high, with new starts - led by build-to-suits - on the rise. Rents continue to rise as supply tightens and customers look to increase the resiliency of their supply chain. Prologis provides the best properties in the most desirable markets, powered by our global scale and focus on innovation, technology and data centricity. Our success is driven by our focus on our customers’ needs and the value we deliver that goes well beyond our real estate.”

Sander Breugelmans, SVP, Regional Head Northern Europe: “With a very successful fourth quarter, 2021 has been a great year for Prologis Benelux. We continue to provide leading solutions in areas like energy efficiency, carbon neutrality and customer innovation, and installed over 100MW solar power on local Prologis roofs with our Prologis Benelux Solar Project. With our focus on customer-centric initiatives such as the Benelux Customer Experience Team, we look forward to continue to deliver on our customers’ expectations in the year to come.”

Operating Performance – Fourth Quarter and Full Year 2021:

  • Total portfolio: 19,9 million square meters*
  • Fourth quarter total leasing activity: 930,726 square meters**:
    • 303,964 square metres of new leases
    • 626,761 square metres of lease renewals
  • Full year occupancy: 97.9 percent
  • Full year 2021 leasing activity was 3,33 million square meters**, representing 10.2 percent rent change:
    • 1,1 million square metres of new leases
    • 2,23 million square metres of lease renewals

*includes operating, development, held for sale, other and VAA/VAC  
** based on lease start date

Leasing Highlights Full Year:

  • 42,218 square metres at Prologis Park Tilburg DC6.
  • 36,609 square metres at Prologis Park Venlo DC4.
  • 22,260 square metres at Prologis Park Hamburg Hausbruch DC7.
  • 18,016 square metres at Prologis Park Lille DC3.
  • 17,072 square metres at Prologis Park Coventry DC8.

Capital Deployment – Fourth Quarter and Full Year 2021:

Development Starts:

  • Total development activity in the fourth quarter was 355,257 square meters, of which 38 percent was build-to-suit.
  • Full year 2021 saw 35 development starts totalling 762,520 square meters, of which 38.5 percent was build-to-suit.

Acquisitions and Dispositions:

  • In the fourth quarter, Prologis Europe acquired nine buildings with a total net rentable area of 62,978 square meters and four land parcels with a total land area of 129,004 square meters. The company disposed of one building totalling 20,948 square meters and completed one land parcel sale comprising 10,117 square meters.
  • In alignment with our focus on core markets, Prologis acquired 23 buildings with a total net rentable area of 341,510 square meters and 22 land plots totaling 846,670 square meters in 2021. The company also disposed of three buildings with a combined total of 134,437 square meters and one land parcel totaling 10,117 square meters.

Funds:

  • In Q4, we completed the early windup of our highly successful UK venture. UKLV’s $1.7 billion of operating assets were contributed to our PELF and PELP ventures.

2021 was a record year across all of Prologis’ European markets. Prologis leveraged its global scale and expertise to deliver on its commitments to its customers and investors. In addition to helping meet their desire for quality logistics properties, Prologis’ wrap-around services, including its Essentials marketplace, helped its customers increase the efficiency and effectiveness of their operations. 

Market conditions have challenged Prologis to continue to explore and deliver high-quality, creative infill solutions to supply the space its customers need. Prologis’ acquisition of a 548,200 square meter portfolio in Berlin and the Rhine-Ruhr region underscores its strategy of establishing a strong presence in the world's most dynamic metropolitan areas.

As Prologis works to ongoing demand for more industrial space, Prologis is focused on the dual goals of unlocking core land for logistics use while taking into account the well-being of its communities. As a responsible business partner and a good neighbour, Prologis:

  • Talks to its customers about how they can optimize the benefits of the innovative and sustainable features Prologis integrates into its buildings.
  • Stays in close touch with public authorities, municipalities and local governments.
  • Continues to expand initiatives such as PARKlife™, which fosters a healthy balance between people, buildings, communities and shared environments.
  • Invests in efforts like the Prologis Community Workforce Initiative, a unique logistics sector talent development programme that supports our customers with a pipeline of skilled logistics professionals and helps unlock economic opportunity in our communities.

With Prologis’ drive toward innovation, focus on customers’ success and ability to shift from responsiveness to readiness, Prologis has met persistent disruption in the supply chain head-on. Prologis is excited about its future as Prologis continues to expand its footprint in the world’s most desirable markets while delivering value for our customers in the properties Prologis leases as well as the services and solutions Prologis delivers that go beyond the real estate.

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