ECONOMIC | page 17 of 19

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Prior to the election of any member of the board, the board governance and nomination committee screens all potential candidates with a brief biographical sketch, conducts interviews and retains executive search firms as necessary. The committee may look at a variety of factors to identify potential candidates including each individual's focus on environmental, economic and social responsibility.

The board receives an update on sustainability initiatives during quarterly board meetings and attends to each item as appropriate. To address economic sustainability, the board's audit committee is charged with monitoring the quality and integrity of the accounting and reporting practices of the company. Due to the newness of our sustainability initiatives, it is currently not feasible to accurately track the board's performance related to the entirety of our sustainability measures. Moving forward, we plan to establish a formalized evaluation process to assess our board's commitment to our sustainability goals.

We take precautionary measures to address risk management in both operational planning and with new investments. We have operational controls in place for emergency management, carry comprehensive insurance coverage and conduct a thorough underwriting process. Before any capital is committed to a new investment, our investment committee looks at the economic, social and environmental impact of each investment, reviews investment memos and conducts an economic analysis to ensure prudent investments.

Our compensation philosophy is to reward superior company and executive performance and to attract and retain highly competent executives upon whose judgment, initiative and leadership our success depends. Our board's compensation committee focuses on completing regular performance reviews for our senior executives and is responsible for setting compensation levels in accordance with company goals and objectives; the committee also oversees programs in hiring, motivating and retaining key employees and in creating short- and long-term shareholder value.

You may communicate with any of the trustees, individually or as a group, by writing to them c/o Edward S. Nekritz, Secretary, ProLogis, 4545 Airport Way, Denver, Colorado 80239. All communications should prominently indicate on the outside of the envelope that they are intended for the full board, for outside trustees only or for any particular group or member of the board.

MEMBERSHIPS AND INDICES
We are members of: the National Association of Industrial and Office Properties, the National Association of Real Estate Investment Trusts, the Chicago Climate Exchange, the Real Estate Roundtable, the U.S. Green Building Council, the U.S. Environmental Protection Agency's ENERGY STAR program, the U.K. Green Building Council, the Urban Land Institute and the National Brownfield Association.

We are listed in the Domini 400 Social Index, the FTSE4Good Index and will apply for the Dow Jones Sustainability Index in 2008. Institutional Shareholder

ECONOMIC | page 17 of 19

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