ProLogis' geographic diversification is a key differentiator. While we face local, fragmented competition in most markets, there are no competitors with as expansive a global reach. For customers, this reach allows us to support expansion and reconfiguration of their supply chains in the world's major logistics markets. In fact, existing customers have consistently accounted for more than half of the leasing in our newly developed space over the past several years. For zoning and entitlement authorities, it means we can bring high-quality, sustainable design standards to their communities and attract some of the world's leading companies, such as DHL, Kraft, Sainsbury's and Sanyo. And for investors, our diverse platform means we are able to mitigate the effects of any single country's or region's economy on our overall financial results. With a presence in 20 countries, we are able to allocate our capital to those markets with the greatest growth potential.

We further enhanced our diversification during 2007 by establishing a presence in five new cities in inland China and undertaking our first development project in Dubai. In addition, we are actively pursuing several land acquisition opportunities in key logistics markets in India. With the addition of these new and prospective markets, we will have a presence in countries that represent more than 78% of global GDP.

ProLogis' global development organization includes 340 engineers, architects and project managers who oversee all aspects of construction. This group was responsible for starting more than $4.1 billion of new projects in 2007 - a 61.4% increase over the prior year.

These new markets, as well as many in Central and Eastern Europe and Mexico, will be key drivers of global economic growth over the next few decades due to increasing domestic consumption and significant import/export activity. The pace of growth in global trade during the past decade has been more than double that of growth in global GDP, leading to significant increases in the volume of goods moving through the world's major seaports and inland ports. This increase in container traffic supports continued demand for ProLogis' distribution facilities that are located in close proximity to major seaports and intermodal centers where rail freight is offloaded for local distribution.

To capitalize on these growth drivers, ProLogis relies on an organizational structure and service delivery system that closely integrates our local property operations, development and global services associates. Our local teams build our business by focusing on the customer. We leverage those relationships through a single point of contact for major global customers and are currently serving 9 of our top 25 on three continents. Together, we believe our global reach and local depth will help us expand our position as the world's largest owner, manager and developer of distribution space.