ECONOMIC | page 18 of 19

< back | next >

Services (ISS) assigned ProLogis an Industry Corporate Governance Quotient (CGQ) rating of 89.3 as of March 27, 2008. ISS' CGQ is the most widely recognized third-party measure of corporate governance. The organization ranks U.S. companies using 65 different variables across eight categories: board of directors, charter and bylaw provisions, executive and director compensation, audit, anti-takeover provisions, stock ownership, progressive practices and director education.

LOCAL RESOURCES
ProLogis appreciates the value that comes from hiring local nationals in each market where we conduct business. No one knows the local geography, trends or business practices better than someone who is native to that market. More than 99% of our 1,515 employees are local nationals; we have only 13 expatriates working in markets other than their home countries.

In addition to our workforce, we utilize local construction materials and suppliers for all of our property development. By buying from suppliers within 500 miles of the facility, we ensure that the materials are not being transported over long distances to get to the site.

PRODUCT / CUSTOMER RESPONSIBILITY
We seek to exceed customers' expectations with exceptional levels of service. We are proud to maintain high levels of customer retention and satisfaction, which in turn benefit ProLogis' shareholders economically through low turnover and other customer receivable costs. We regularly measure customer satisfaction by conducting surveys that ask our customers in North American to rate their ProLogis personal contacts in areas of leasing, property management and maintenance. Surveys are conducted every two years; the next will be performed in 2008.

The consistency and quality of our distribution facilities are imperative to our economic sustainability. All of our properties are regularly assessed for necessary improvements as a part of our property maintenance procedure. As part of this process, we retrofitted 3.4 million square feet of distribution space in 2007 with new lighting systems for improved efficiency and a healthier atmosphere.

Prior to committing any capital for new investment, we participate in a comprehensive due diligence process - part of which includes analyzing the land to identify the presence of any foreign chemicals. Where appropriate, we conduct a brownfield redevelopment process to completely remove unsafe and unhealthy particles, creating a clean, blank slate for new development. We also seek land designated as brownfield and remediate contaminated soil to support reuse. In 2007, we redeveloped 460 acres of brownfields - 185 in North America and 275 in Europe.

We place a high importance on maintaining consistent messaging when marketing our business. Every public-facing employee adheres to a detailed disclosure policy, and we follow all NYSE guidelines regarding press release announcements and other marketing collateral. The majority of our senior marketing staff belongs to one or more professional organizations, such as the Business Marketing Association and the American Marketing Association, and adheres to guidelines established by these groups. We are in full compliance with our marketing communications regulations and do not have any violations to report for 2007.

DIVIDEND GROWTH AND COMPOSITION OF REVENUE
ProLogis has distributed over $1.9 billion in common dividends to investors since January 1, 2000. We have increased our dividend every year, from $1.34 per share in 2000, to $1.84 per share in 2007, representing a compounded annual growth rate of over 4.6%. For the five years ending December 31, 2007, ProLogis common shares provided a total return (price appreciation plus reinvested dividends) of approximately 205% to investors, compared with 83% for the S&P 500 and 78% for the Dow Jones Industrial Average.

Through ProLogis' property operations, development and investment management segments, we have diversified our sources of income and enhanced our financial stability. In 2007, our net operating income totaled $1.7 billion, 45.8% of which came from development, 11.5% from investment management and 42.7% from property operations.

ECONOMIC | page 18 of 19

< back | next >