ProLogis European Properties (PEPR.PK) is “One to Watch”

By @ibtimes on

ProLogis European Properties is one of the largest owners of modern distribution facilities in Europe. The company’s high-quality portfolio includes 232 properties which cover 4.9 million square metres in 11 European countries. Established in 1999 as a closed-end, real estate investment fund, externally managed by a subsidiary of ProLogis (NYSE: PLD), ProLogis European Properties trades on the OTCQB tier of the Pink Sheets market.

The company leverages its expansive and far-reaching pan-European industrial platform as a competitive edge within the pan-European logistics property market. ProLogis European Properties’ widespread presence, including five of the top ten European container ports, enables the company to offer a broad range of facilities to help customers streamline their operations and increase efficiency and profitability.

As of last report, the company had secured 375 leases with over 200 customers, including third party logistics providers and some of the largest and most established users of distribution space. ProLogis European Properties’ customers find that the state-of-the-art facilities, strategic geographic locations, first class level of service and exceptional value enable them to effectively manage their supply chains, reduce costs and ultimately improve their distribution operations.

ProLogis European Properties’ business strategy includes continuing to lead in the pan-European distribution facilities sector while generating capital appreciation and a high level of distributable current income for its unitholders through active management of direct investments in distribution facilities. The company actively manages its state-of-the-art portfolio by building critical mass in strategic locations, delivering excellent customer service and structuring its investments in a tax-efficient manner.

Although the recession effected world trade, the industry has rebounded more quickly than anticipated and many markets have now reached a transitional stage of the real estate cycle with leasing conditions no longer deteriorating. Furthermore, investment flows into Europe’s core logistics property markets have continued to increase sharply, up 12% year-over-year.

In December 2008, the company suspended future dividend payments as part of a strategic initiative to improve liquidity and as a condition for a debt covenant amendment on its unsecured credit facility. In October 2010, ProLogis European Properties received approval from the bank syndicate on its unsecured credit facility to partially remove the restrictions on dividend payments. The company said it intends to revert to paying ordinary dividends as soon as it is prudent to do so.

ProLogis European Properties will release its financial results for the fourth quarter and year end 2010 next week on Thursday, February 10, 2011. A Webcast Presentation and Conference Call with senior management to discuss the results and future outlook will be held on the following day at 12 noon CET. To participate in the conference call, dial 866-966-9439 and use the provided passcode 35738461#.

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