ENVIRONMENTAL | page 10 of 19

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Where standards for green construction exist, we are building projects that qualify for certification based on those criteria. Where green rating systems do not exist, we plan to utilize a global standards checklist we created in 2007 based on the requirements for environmental certification from the leading regional rating systems in the United States (LEED), in Japan (CASBEE) and in the United Kingdom (BREEAM).

As of December 31, 2007, we had 29 distribution centers worldwide that had received, or were in the process of receiving, LEED, CASBEE or BREEAM ratings. We are currently tracking development projects using our global checklist and will report on progress as appropriate.

ENERGY STAR
In early 2008, ProLogis was accepted as a partner in ENERGY STAR, a joint program of the U.S. Environmental Protection Agency (U.S. EPA) and the U.S. Department of Energy (DOE) that aims to protect the environment through energy-efficient practices and products. As a partner, we pledge to assess our current energy consumption and operating and maintenance practices, as well as identify strategies that will continually improve energy performance enterprise wide. We are currently developing a formalized operations and maintenance plan for our headquarters that will be customized for our field offices and will meet monthly to discuss progress.

CHICAGO CLIMATE EXCHANGE
In February 2007, ProLogis announced its membership in the Chicago Climate Exchange (CCX), the world's first voluntary, legally binding greenhouse gas emissions reduction, registry and trading program. Membership in the Exchange requires us to completely offset the "carbon footprint" associated with our business operations in the United States.

We were the first real estate developer to join CCX; at the time, CCX did not have energy-efficiency standards that could be applied to real estate. We are collaborating with the Exchange on a protocol to provide a way for CCX participants to earn carbon offsets for the energy performance of their buildings. Our goal is for the protocol to be utilized by any member company wanting to earn carbon credits for their energy-efficiency measures.

A Visionary Mixed-Use Development

Strictly Pediatrics Subspecialty Center at Mueller in Austin, Texas In 2002, Catellus was selected as master developer for the former Robert Mueller Municipal Airport redevelopment in Austin, Texas. The original master plan, which envisioned Mueller as a mixed-use, dense, transit-oriented urban node, was the result of close collaboration between the city government and surrounding neighborhoods - and more than 100 public planning meetings. Catellus' role at the project has been to execute that vision and to strike a balance between the ambitions of the community and the realities of the marketplace. Although there have been challenges, the end result is a highly successful master plan that incorporates a number of green principles, including material and land reuse, open space, parks, multi-modal transit, affordable housing and utilization of renewable energy. Uniquely, the Mueller plan requires all commercial buildings to meet or exceed a two-star energy efficiency rating from Austin Energy's Green Building Program or be LEED certified; all single family homes must meet or exceed a three-star energy efficiency rating. Distinctively, Mueller's retailers exceeded both local and national standards for green building, making the retail district one of the most sustainable in a mixed-use community in the nation. For Best Buy, Mueller is home to their first "green" retail store.

ENVIRONMENTAL | page 10 of 19

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