Prologis Reports Second Quarter 2022 Earnings Results

This summary of Prologis Europe’s second quarter 2022 activity includes operating performance highlights and a recap of select milestones and achievements. Read the full statement here

Ben Bannatyne, President, Prologis Europe:
“We continue to see high demand for premium, sustainable and versatile logistics space in our highly constrained markets. We pride ourselves on staying ahead of our customers’ needs and delivering value beyond our real estate through our scale and procurement capabilities, such as our Essentials platform. In Q2, we were proud to announce an ambitious new goal to reach net zero across our value chain by 2040 and will continue to report on our real and measurable progress.”

Operating Performance – Second Quarter 2022

  • Total portfolio: 20,7 million square meters*
  • Leasing activity: 981,269 square meters: 
    • 196,692 square meters of new leases.
    • 784,577 square meters of lease renewals.
  • Rent change: + 18.6%**

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

** rent change is based on lease sign dates

Leasing highlights:

  • 27,944 square meters for Transeco at Prologis Park Orléans DC2, France.
  • 20,494 square meters for Stark Future S.L. at Prologis Park Sant Boi DC1, Spain.
  • 14,445 square meters for CEVA Logistics Netherlands B.V. at Prologis Park Born DC1, the Netherlands.
  • 11,695 square meters for National Pen Czech s. r. o. at Prologis Park Pilsen-Stenovice DC2, Czech Republic.

Capital Deployment – Second Quarter 2022

New development starts:

Our reliable procurement network of global suppliers fostered 10 new development starts in the second quarter:

  • Two build-to-suit developments totalling 61,050 square meters in Italy and Belgium.
  • Eight speculative developments totalling 225,368 square meters in Belgium, Hungary, Italy, the Netherlands, Poland and the United Kingdom.

Acquisitions and dispositions:

Prologis Europe acquired 20 buildings with a net rentable area of 445,273 square meters in urban markets in France, Germany, Italy and the Netherlands.

The company acquired five land plots totalling 240,067 square meters along strategic logistics corridors in France, Germany, the United Kingdom and Sweden.

The company disposed of two buildings and one land parcel, comprising 67,066 square meters and 345,896 square meters, respectively.

Additional comments from Prologis Europe president Ben Bannatyne:

  • Strong fundamentals and rising costs pushed rents up by 4.7 percent in the second quarter of 2022 -- the strongest quarterly growth on record. With demand at record highs, we continue to push deeper into the urban core, leveraging our proprietary data to bolster our built-for-the-future approach while securing space for our customers in prime locations such as Bleiswijk, Roosendaal and Amsterdam in the Netherlands and Berlin, Hannover and Duisberg in Germany.
  • We continue to gain a stronger foothold in the rapidly expanding life sciences sector. Work has begun on the development of a new multi-let laboratory and office space at Cambridge Biomedical Campus, which is targeting a range of growing biotech and life sciences businesses.
  • We continue to uplevel our ESG strategy through more robust energy efficiency, carbon neutrality and customer-centric programmes. You can learn more about our net zero by 2040 goal and other sustainability metrics in our recently released ESG report.

Additional Resources:

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