ENVIRONMENTAL | page 11 of 19

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1 Operations include electricity and natural gas usage at ProLogis offices as well as emissions associated with business travel via plane, automobile, commuter rail, intercity rail and bus. Note: These figures are based upon actual utility bills and travel reports, where available, and based upon square footage and estimations where exact data was not available. Sources of emissions factors used in the calculation are the U.S. EPA, DOE and CCX. Our carbon footprint calculation follows the GHG Protocol established by the World Resources Institute and the World Business Council for Sustainable Development.

Through a combination of offset procurement and organic reductions, including reduced hours of HVAC operation and installation of energy-efficient lighting, we plan to offset the entire carbon output related to our global business operations for 2007 later this year.

HABITAT RENEWAL
As part of the land procurement and entitlement process, ProLogis completes an Environmental Impact Assessment (EIA) for every project and identifies threatened or impacted species and habitats during the assessment process. We are currently working to formalize reporting for our environmental impact mitigation and, working in partnership with agencies and organizations, will go above and beyond where feasible.

ProLogis has completed a number of habitat protection and restoration projects across the globe. In Florida, we worked with the Fish and Wildlife Commission to safely relocate 74 burrows and 21 gopher tortoises. At ProLogis Park Uzice in the Czech Republic, we helped revitalize a nearby forest by planting trees - increasing the area of the existing forest by more than 100%. And at Catellus' Mueller airport redevelopment in Texas, we are restoring parts of the site not just to its pre-airport condition but to its original state as Texas blackland prairie. This includes creating educational trails and displays to help park users learn about native plants and ecosystems.

Harnessing the Wind

ProLogis Parc Centrair Japan is a densely populated and highly land constrained country, with nearly 70% of its landmass mountainous and uninhabitable. Consequently, the large majority of Japan's population is concentrated in about 30% of the country's coastal flatlands. Strong, sustained winds along the coast create ideal conditions for wind-based power systems. So far, ProLogis has included wind turbines at three large distribution centers developed by the company in Osaka and Nagoya. The first is ProLogis Parc Amagasaki, a 1.5-million-square-foot industrial park completed in 2006. The park features two, 10 kW wind turbines with an expected annual capacity of 6,400 kWh. The second, ProLogis Parc Osaka II, includes two, 4 kW wind turbines, photo-catalytic pavement, energy-efficient lighting and high-insulation wall paneling. The park totals 1.4 million square feet and was completed in 2007. Also completed in 2007 is ProLogis Parc Centrair in Nagoya, an 860,000-square-foot park that features four, 10 kW wind turbines.

ENVIRONMENTAL | page 11 of 19

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