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Exhibit 99.1

PROLOGIS REPORTS 36.5 PERCENT YEAR-OVER-YEAR GROWTH IN FFO FOR 2006

— Record CDFS Development Profits, Improving Operating Fundamentals and Higher FFO
from Funds and Joint Ventures Drive Growth —

Denver, Colo. — February 6, 2007 — ProLogis (NYSE: PLD), the world’s largest owner, manager and developer of distribution facilities, today reported adjusted funds from operations as defined by ProLogis (FFO) for the year ended December 31, 2006, of $3.70 per diluted share, up 36.5 percent from $2.71 in 2005. After $0.01 of merger integration expenses, FFO per diluted share was $3.69 for the year ended December 31, 2006, compared with $2.51 in 2005, which included $0.20 related to merger integration and relocation expenses and cumulative translation losses and impairment charges related to the sale of ProLogis’ temperature-controlled business. For the year, net earnings per diluted share were $3.32, compared with $1.76 in 2005. The increase was primarily due to improvement in each of the company’s business segments, as well as gains on the sale of assets that are recognized under GAAP but are not included in ProLogis’ definition of FFO.

For the fourth quarter ended December 31, 2006, FFO was $1.11 per diluted share. This compares with $0.58 in the fourth quarter of 2005, which was before $0.01 of merger integration charges. Net earnings per diluted share were $1.28 for the fourth quarter of 2006, compared with $0.43 for the same period in 2005.

“This past year was one of significant achievement for ProLogis around the world,” said Jeffrey H. Schwartz, chief executive officer. “We delivered strong financial performance by leveraging our global platform, crystallizing value in our property fund business, and maintaining a diversified development pipeline with exceptional margins. In addition, we successfully completed a number of acquisitions and other investments that enhanced our ability to meet the future needs of global customers.”

Schwartz noted that growth in world trade continues to drive customer demand across Asia, Europe and North America, resulting in positive net absorption of new development deliveries and improved operating property performance. Rental rates on ProLogis lease turnovers increased by 5.6 percent in the fourth quarter. In the company’s same-store pool, net operating income increased 3.1 percent and both average occupancy and rent growth were up 2.6 percent for the full year.

“Overall market dynamics in our industry remain sound,” said Walter C. Rakowich, president and chief operating officer of ProLogis. “We are beginning to see the rent growth we have long been anticipating, and we believe we are well positioned to capture a leading share of the opportunity created through continued strong growth in global trade.”

Fund Transactions Boost Growth

During the year, ProLogis completed two fund-related transactions that resulted in total FFO of approximately $172 million. In the first quarter, ProLogis purchased its partner’s 80% interest in North American Property Funds II, III and IV and subsequently contributed those assets to its open-end North American Industrial Fund, generating FFO of approximately $62.8 million. In the fourth quarter, ProLogis recognized an incentive return of $109.2 million related to the IPO of ProLogis European Properties (Euronext: PEPR).

“These transactions exemplify the strength of ProLogis’ property fund strategy, which leverages strong institutional demand for industrial facilities and serves as a powerful growth engine for our company,” Rakowich added.

Global Development Pipeline Grows, Supported by Solid Market Fundamentals

During the year, ProLogis began construction of more than $2.5 billion of new development and completed more than $2.2 billion, including development activity within its industrial joint ventures. Projects completed in 2006 were 69 percent leased at year end. The company’s Corporate Distribution Facilities Services (CDFS) pipeline stood at $5.3 billion at the end of the year, a 63 percent increase over the prior-year level.

“Given our expanded platform and strong customer relationships, we plan to increase 2007 development starts by 20 to 30 percent,” said Ted Antenucci, president — global development. “Leasing of newly developed assets is even stronger than a year ago. This customer demand, coupled with good visibility on development margins and a geographically diverse development pipeline, gives us a high level of confidence in our ability to grow CDFS income in 2007 and beyond.”

Antenucci noted that the top 30 logistics markets in North America absorbed nearly 149 million square feet of space during 2006, compared with development deliveries of just over 135 million square feet. In Europe and Asia, demand and supply also remain well balanced, supporting additional development activity.

“Our ability to address global customers’ distribution space needs in the world’s top logistics markets is unique in the industry,” Antenucci said. “During 2006, approximately half of our 27.3 million square feet of new CDFS leases were with repeat customers, including: Schenker in Le Havre, France; Whirlpool in Monterrey, Mexico; Nippon Express in Tokyo and Amazon.com in Washington, DC.”

Selected Financial and Operating Information

•

Achieved adjusted FFO per share growth of 36.5 percent year over year.

•

Improved average year-to-date, same-store net operating income by 3.1 percent (a 3.5 percent increase when straight-lined rents and lease amortization are excluded) while same-store occupancies increased by 2.6 percent for the year. Same-store rent growth for the year was 2.6 percent.

•

Redeployed a total of $2.31 billion of capital through contributions and dispositions during the year. Of that, $1.58 billion was CDFS, with an additional $726.6 million in non-CDFS contributions and dispositions. This included $388.3 million of proceeds from dispositions of non-core assets remaining from the Catellus merger.

•

Realized FFO from CDFS transactions of $326.9 million for the year, including recognition of previously deferred proceeds from the first quarter contribution of properties from North American Property Funds II, III and IV to ProLogis North American Industrial Fund, up from $233.3 million in 2005. FFO amounts do not include unrecognized deferred gains of $65.5 million related to CDFS development contributions for 2006 and $52.8 million for 2005. Post-deferral, post-tax CDFS margins were 24.3% for dispositions completed during the year.

•

Recognized income (non-FFO) from non-CDFS dispositions and contributions of $185.2 million for the year.

•

Started new developments with total expected investment of $792.4 million during the quarter and $2.54 billion for the year, including industrial joint venture development. For the year, starts include $96.6 million of retail development.

•

Increased ProLogis’ share of FFO from property funds to $127.9 million for the year, including earnings from the North American property fund transaction noted above, up 32.8 percent from $96.3 million in the prior year.

•

Grew fee income from property funds for the year to $211.9 million, including the incentive fees from the PEPR and North American fund transactions noted above, up from $66.9 million in 2005.

•

Achieved combined development management fees, FFO from CDFS joint ventures and other unconsolidated investees and interest income on long-term notes receivable of $112.0 million for the year.

•

Increased total assets owned and under management to $26.7 billion, up from $22.1 billion at December 31, 2005, a 20.8 percent increase.

Copies of ProLogis’ fourth quarter 2006 supplemental information will be available from the company’s website at http://ir.prologis.com or by request at 800-820-0181. The supplemental information also is available on the SEC’s website at http://www.sec.gov. The related conference call will be available via a live webcast on the company’s website at http://ir.prologis.com at 10:00 am Eastern Time on Tuesday, February 6, 2007. A replay of the webcast will be available on the company’s website until February 20, 2007. Additionally, a podcast of the company’s conference call will be available on the company’s website as well as on the REITCafe website located at http://www.REITcafe.com.

About ProLogis
ProLogis is the world’s largest owner, manager and developer of distribution facilities, with operations in 80 markets across North America, Europe and Asia. The company has $26.7 billion of assets owned, managed and under development, comprising 422.0 million square feet (39.2 million square meters) in 2,466 properties as of December 31, 2006. ProLogis’ customers include manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises with large-scale distribution needs. Headquartered in Denver, Colorado, ProLogis employs more than 1,250 people worldwide.

The statements above that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which ProLogis operates, management’s beliefs and assumptions made by management, they involve uncertainties that could significantly impact ProLogis’ financial results. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, development activity and changes in sales or contribution volume of developed properties, general conditions in the geographic areas where we operate and the availability of capital in existing or new property funds — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statement. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, international, regional and local economic climates, (ii) changes in financial markets, interest rates and foreign currency exchange rates, (iii) increased or unanticipated competition for our properties, (iv) risks associated with acquisition, (v) maintenance of real estate investment trust (“REIT”) status, (vi) availability of financing and capital, (vii) changes in demand for developed properties, and (viii) those additional factors discussed under “Item 1A —Risk Factors” in ProLogis’ Annual Report on Form 10-K for the year ended December 31, 2005.


Investor Relations	Media	Financial Media
Melissa Marsden	Arthur Hodges	Suzanne Dawson
303-567-5622	303-567-5667	Linden Alschuler & Kaplan, Inc
mmarsden@prologis.com	media@prologis.com	212-329-1420
		sdawson@lakpr.com

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Selected Financial Information
(in thousands, except per share amounts and percentages)


	Three Months Ended							Twelve Months Ended
	December 31,							December 31,
	2006		2005 (1)		% Change			2006 (2)		2005 (1)		% Change

Net earnings attributable to common shares (see pages 2 and 2a):
Net earnings attributable to common shares	$	331,090	$	109,102		203.5	%	$	848,951	$	370,747		129.0	%
Net earnings per diluted share attributable to common shares	$	1.28	$	0.43		197.7	%	$	3.32	$	1.76		88.6	%

FFO and FFO, as adjusted (see pages 3 and 4 and see definition of FFO on pages 3a and 3b):
FFO attributable to common shares	$	288,885	$	142,868		102.2	%	$	945,148	$	530,472		78.2	%
Add back:
Merger integration expenses (3)		—		3,864					2,630		12,152
Relocation expenses (4)		—		402					93		4,451
Cumulative translation losses and impairment charges related to temperature-controlled distribution assets (5)		—		—					—		26,864

FFO attributable to common shares, as adjusted	$	288,885	$	147,134		96.3	%	$	947,871	$	573,939		65.2	%

FFO per diluted share attributable to common shares	$	1.11	$	0.57		94.7	%	$	3.69	$	2.51		47.0	%
Add back:
Merger integration expenses (3)		—		0.01					0.01		0.05
Relocation expenses (4)		—		—					—		0.02
Cumulative translation losses and impairment charges related to temperature-controlled distribution assets (5)		—		—					—		0.13

FFO per diluted share attributable to common shares, as adjusted	$	1.11	$	0.58		91.4	%	$	3.70	$	2.71		36.5	%


EBITDA (see page 5):
EBITDA	$	407,786	$	245,595		66.0	%	$	1,424,836	$	889,239		60.2	%

Distributions:
Actual distributions per common share (6)	$	0.40	$	0.37		8.1	%	$	1.60	$	1.48		8.1	%


	December 31,		December 31,
	2006		2005 (1)		% Change

Total Assets, net of accumulated depreciation (see page 6)	$	15,903,525	$	13,126,180		21.2	%


Total Book Assets:
Direct investment	$	14,818,242	$	12,293,351
Our share of total book assets of unconsolidated investees:
Property funds (see page 11)		2,838,418		2,204,910
CDFS joint ventures (7)		339,165		212,304
Other unconsolidated investees (7)		158,008		156,581

		3,335,591		2,573,795


Totals	$	18,153,833	$	14,867,146		22.1	%

Assets Owned and Under Management:
Real estate assets owned directly, before depreciation (see page 6)	$	13,953,999	$	11,875,130
Assets owned by our unconsolidated investees:
Real estate assets owned by property funds, before depreciation (wtd. ownership interest of 23.0%) (see page 11)		12,274,270		9,915,115
Real estate assets owned by industrial CDFS joint ventures, before depreciation (wtd. ownership interest of 50%) (7)		224,980		148,725
Investment in non-industrial CDFS joint ventures and other unconsolidated investees (7)		199,383		204,755
Discontinued operations — net assets held for sale (see page 6)		56,146		—


Totals	$	26,708,778	$	22,143,725		20.6	%

The definition of FFO is on pages 3a and 3b and the definition of EBITDA is on page 5.

Footnote references are to pages 7 through 7d.

Supplemental Information Page 1

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Consolidated Statements of Earnings
(in thousands)


	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2006			2005 (1)			2006 (2)			2005 (1)


Revenues:
Rental income (8)(9)(10)	$	245,278		$	200,143		$	927,719		$	600,869
CDFS disposition proceeds (11)(12)(13)(15)		236,137			184,347			1,286,841			1,140,457
Property management and other fees and incentives (14)(15)(see page 10 and 10a)		132,611			16,608			211,929			66,934
Development management and other income (11)		10,895			13,725			37,420			25,464

Total revenues		624,921			414,823			2,463,909			1,833,724


Expenses:
Rental expenses (8)(10)		64,197			53,729			239,545			161,680
Cost of CDFS dispositions (11)		172,872			154,827			993,926			917,782
General and administrative		46,527			34,433			156,889			107,164
Depreciation and amortization (10)		81,122			65,186			293,027			191,945
Merger integration expenses (3)		—			3,864			2,630			12,152
Relocation expenses (4)		—			402			93			4,451
Other expenses		4,089			2,321			13,013			8,633

Total expenses		368,807			314,762			1,699,123			1,403,807


Operating income		256,114			100,061			764,786			429,917

Other income (expense):
Earnings from unconsolidated property funds (15) (see page 10 and 10a)		14,426			11,086			93,055			46,078
Earnings from CDFS joint ventures and other unconsolidated investees (7)(11)		3,692			5,753			50,703			6,421
Interest expense (10)(16)		(77,470	)		(63,759	)		(294,403	)		(177,562	)
Interest income on long-term notes receivable (11)		3,494			5,940			16,730			6,781
Interest and other income, net		7,652			3,226			18,248			10,724

Total other income (expense)		(48,206	)		(37,754	)		(115,667	)		(107,558	)


Earnings before minority interest		207,908			62,307			649,119			322,359
Minority interest		(916	)		(1,314	)		(3,457	)		(5,243	)


Earnings before certain net gains		206,992			60,993			645,662			317,116
Gains recognized on dispositions of certain non-CDFS business assets (17)		67,761			—			81,470			—
Foreign currency exchange gains, net (18)		4,637			7,656			21,086			15,979

Earnings before income taxes		279,390			68,649			748,218			333,095

Income taxes (7)(14)(19):
Current income tax expense		8,337			7,662			84,250			14,847
Deferred income tax (benefit) expense		(36,942	)		3,855			(53,722	)		12,045

Total income taxes		(28,605	)		11,517			30,528			26,892

Earnings from continuing operations		307,995			57,132			717,690			306,203
Discontinued operations (10):
Income attributable to disposed properties and assets held for sale		2,421			6,487			19,434			18,050
Losses related to temperature controlled distribution assets (5)		—			—			—			(25,150	)
Gains recognized on dispositions:
Non-CDFS business assets		23,692			47,604			103,729			86,444
CDFS business assets		3,336			4,233			33,514			10,616

Total discontinued operations		29,449			58,324			156,677			89,960

Net earnings		337,444			115,456			874,367			396,163
Less preferred share dividends		6,354			6,354			25,416			25,416

Net earnings attributable to common shares	$	331,090		$	109,102		$	848,951		$	370,747

Footnote references are to pages 7 through 7d.

Supplemental Information Page 2

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Consolidated Statements of Earnings
(Continued)
(in thousands, except per share amounts)


	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2006		2005 (1)		2006 (2)		2005 (1)


Weighted average common shares outstanding — Basic		249,021		243,601		245,952		203,337
Weighted average common shares outstanding — Diluted		260,218		254,010		256,852		213,713

Net earnings per share attributable to common shares — Basic:
Continuing operations	$	1.21	$	0.21	$	2.81	$	1.38
Discontinued operations		0.12		0.24		0.64		0.44

Net earnings per share attributable to common shares — Basic	$	1.33	$	0.45	$	3.45	$	1.82


Net earnings per share attributable to common shares — Diluted:
Continuing operations	$	1.17	$	0.20	$	2.71	$	1.34
Discontinued operations		0.11		0.23		0.61		0.42

Net earnings per share attributable to common shares — Diluted	$	1.28	$	0.43	$	3.32	$	1.76

Calculation of Net Earnings per Share Attributable to Common Shares — Diluted

(in thousands, except per share amounts)


	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2006		2005 (1)		2006 (2)		2005 (1)
Net earnings attributable to common shares — Basic	$	331,090	$	109,102	$	848,951	$	370,747
Minority interest (a)		916		1,314		3,457		5,243

Adjusted net earnings attributable to common shares — Diluted	$	332,006	$	110,416	$	852,408	$	375,990


Weighted average common shares outstanding — Basic		249,021		243,601		245,952		203,337
Incremental weighted average effect of conversion of limited partnership units		5,139		5,539		5,198		5,540
Incremental weighted average effect of potentially dilutive instruments (a)		6,058		4,870		5,702		4,836

Weighted average common shares outstanding — Diluted		260,218		254,010		256,852		213,713


Net earnings per share attributable to common shares — Diluted	$	1.28	$	0.43	$	3.32	$	1.76



(a)		Total weighted average potentially dilutive instruments outstanding were 10,679 and 10,442 for the three months ended December 31, 2006 and 2005, respectively, and 10,909 and 10,783 for the twelve months ended December 31, 2006 and 2005, respectively.

Footnote references are to pages 7 through 7d.

Supplemental Information Page 2a

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Consolidated Statements of Funds From Operations (FFO)
(in thousands, except per share amounts)


	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2006			2005 (1)			2006 (2)			2005 (1)


Revenues:
Rental income (8)	$	249,706		$	222,231		$	973,062		$	649,530
CDFS disposition proceeds (10)(11)(12)(13)(15)		259,024			241,650			1,532,807			1,240,950
Property management and other fees and incentives (14)(15)(see page 10 and 10a)		132,611			16,608			211,929			66,934
Development management and other income (11)		10,895			13,725			37,420			25,464

Total revenues		652,236			494,214			2,755,218			1,982,878


Expenses:
Rental expenses (8)		66,008			64,133			259,265			179,815
Cost of CDFS dispositions (10)(11)		192,423			207,897			1,205,912			1,007,659
General and administrative		46,527			34,433			156,889			107,164
Depreciation of corporate assets		2,310			2,047			9,326			7,153
Merger integration expenses (3)		—			3,864			2,630			12,152
Relocation expenses (4)		—			402			93			4,451
Other expenses		4,089			2,321			13,013			8,633

Total expenses		311,357			315,097			1,647,128			1,327,027


		340,879			179,117			1,108,090			655,851

Other income (expense):
FFO from unconsolidated property funds (15) (see page 10 and 10a)		29,438			26,710			127,905			96,261
FFO from CDFS joint ventures and other unconsolidated investees (7)(11)		6,302			6,432			57,853			8,449
Interest expense		(77,470	)		(64,567	)		(295,277	)		(178,639	)
Interest income on long-term notes receivable (11)		3,494			5,940			16,730			6,781
Interest and other income, net		7,652			3,226			18,248			10,724
Foreign currency exchange (expenses/losses) gains, net (18)		(5,803	)		1,340			1,531			1,914
Current income tax expense (7)(19)		(8,337	)		(7,662	)		(61,059	)		(14,847	)
Losses related to temperature controlled distribution assets (5)		—			—			—			(25,363	)

Total other income (expense)		(44,724	)		(28,581	)		(134,069	)		(94,720	)


FFO		296,155			150,536			974,021			561,131

Less preferred share dividends		6,354			6,354			25,416			25,416
Less minority interest		916			1,314			3,457			5,243

FFO attributable to common shares	$	288,885		$	142,868		$	945,148		$	530,472


Weighted average common shares outstanding — Basic		249,021			243,601			245,952			203,337
Weighted average common shares outstanding — Diluted		260,218			254,010			256,852			213,713

FFO per share attributable to common shares:
Basic	$	1.16		$	0.59		$	3.84		$	2.61

Diluted	$	1.11		$	0.57		$	3.69		$	2.51

See Consolidated Statements of Earnings on Pages 2 and 2a, the definition of FFO on pages 3a and 3b and the Reconciliations of Net Earnings to FFO on Page 4.

Footnote references are to pages 7 through 7d.

Supplemental Information Page 3

ProLogis

Fourth Quarter 2006

Unaudited Financial Results

Consolidated Statements of FFO (Continued)

Calculation of FFO per Share Attributable to Common Shares — Diluted
(in thousands, except per share amounts)


	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2006		2005 (1)		2006 (2)		2005 (1)


FFO attributable to common shares — Basic	$	288,885	$	142,868	$	945,148	$	530,472
Minority interest		916		1,314		3,457		5,243

FFO attributable to common shares — Diluted	$	289,801	$	144,182	$	948,605	$	535,715

Merger integration expenses (3)		—		3,864		2,630		12,152
Relocation expenses (4)		—		402		93		4,451
Cumulative translation losses and impairment charges related to temperature-controlled distribution assets (5)		—		—		—		26,864

FFO attributable to common shares, as adjusted — Diluted	$	289,801	$	148,448	$	951,328	$	579,182


Weighted average common shares outstanding — Basic		249,021		243,601		245,952		203,337
Incremental weighted average effect of conversion of limited partnership units		5,139		5,539		5,198		5,540
Incremental weighted average effect of potentially dilutive instruments		6,058		4,870		5,702		4,836

Weighted average common shares outstanding — Diluted		260,218		254,010		256,852		213,713


FFO per share attributable to common shares — Diluted	$	1.11	$	0.57	$	3.69	$	2.51


FFO per share attributable to common shares, as adjusted — Diluted	$	1.11	$	0.58	$	3.70	$	2.71

See Consolidated Statements of Earnings on Page 2 and 2a and the Reconciliations of Net Earnings to FFO on Page 4.

Footnote references are to pages 7 through 7d.

Definition of FFO

FFO is a non-Generally Accepted Accounting Principles (GAAP) measure that is commonly used in the real estate industry. The most directly comparable GAAP measure to FFO is net earnings. Although the National Association of Real Estate Investment Trusts (NAREIT) has published a definition of FFO, modifications to the NAREIT calculation of FFO are common among REITs, as companies seek to provide financial measures that meaningfully reflect their business. FFO, as we define it, is presented as a supplemental financial measure. FFO is not used by us as, nor should it be considered to be, an alternative to net earnings computed under GAAP as an indicator of our operating performance or as an alternative to cash from operating activities computed under GAAP as an indicator of our ability to fund our cash needs.

FFO is not meant to represent a comprehensive system of financial reporting and does not present, nor do we intend it to present, a complete picture of our financial condition and operating performance. We believe that GAAP net earnings remains the primary measure of performance and that FFO is only meaningful when it is used in conjunction with GAAP net earnings. Further, we believe that our consolidated financial statements, prepared in accordance with GAAP, provide the most meaningful picture of our financial condition and our operating performance.

NAREIT’s FFO measure adjusts GAAP net earnings to exclude historical cost depreciation and gains and losses from the sales of previously depreciated properties. We agree that these two NAREIT adjustments are useful to investors for the following reasons:

(a)

historical cost accounting for real estate assets in accordance with GAAP assumes, through depreciation charges, that the value of real estate assets diminishes predictably over time. NAREIT stated in its White Paper on FFO “since real estate asset values have historically risen or fallen with market conditions, many industry investors have considered presentations of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.” Consequently, NAREIT’s definition of FFO reflects the fact that real estate, as an asset class, generally appreciates over time and depreciation charges required by GAAP do not reflect the underlying economic realities.

(b)

REITs were created as a legal form of organization in order to encourage public ownership of real estate as an asset class through investment in firms that were in the business of long-term ownership and management of real estate. The exclusion, in NAREIT’s definition of FFO, of gains and losses from the sales of previously depreciated operating real estate assets allows investors and analysts to readily identify the operating results of the long-term assets that form the core of a REIT’s activities and assists in comparing those operating results between periods. We include the gains and losses from dispositions of properties acquired or developed in our CDFS business segment and our proportionate share of the gains and losses from dispositions recognized by the property funds in our definition of FFO.

Supplemental Information Page 3a

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Definition of FFO (continued)

At the same time that NAREIT created and defined its FFO concept for the REIT industry, it also recognized that “management of each of its member companies has the responsibility and authority to publish financial information that it regards as useful to the financial community.” We believe that financial analysts, potential investors and shareholders who review our operating results are best served by a defined FFO measure that includes other adjustments to GAAP net earnings in addition to those included in the NAREIT defined measure of FFO.

Our defined FFO measure excludes the following items from GAAP net earnings that are not excluded in the NAREIT defined FFO measure:

(i)		deferred income tax benefits and deferred income tax expenses recognized by our subsidiaries;

(ii)		current income tax expense related to acquired tax liabilities that were recorded as deferred tax liabilities in an acquisition, to the extent the expense is offset with a deferred income tax benefit in GAAP earnings that is excluded from our defined FFO measure;

(iii)		certain foreign currency exchange gains and losses resulting from certain debt transactions between us and our foreign consolidated subsidiaries and our foreign unconsolidated investees;

(iv)		foreign currency exchange gains and losses from the remeasurement (based on current foreign currency exchange rates) of certain third party debt of our foreign consolidated subsidiaries and our foreign unconsolidated investees; and

(v)		mark-to-market adjustments associated with derivative financial instruments utilized to manage our foreign currency risks.

FFO of our unconsolidated investees is calculated on the same basis.

The items that we exclude from GAAP net earnings, while not infrequent or unusual, are subject to significant fluctuations from period to period that cause both positive and negative effects on our results of operations, in inconsistent and unpredictable directions. Most importantly, the economics underlying the items that we exclude from GAAP net earnings are not the primary drivers in management’s decision-making process and capital investment decisions. Period to period fluctuations in these items can be driven by accounting for short-term factors that are not relevant to long-term investment decisions, long-term capital structures or to long-term tax planning and tax structuring decisions. Accordingly, we believe that investors are best served if the information that is made available to them allows them to align their analysis and evaluation of our operating results along the same lines that our management uses in planning and executing our business strategy.

Real estate is a capital-intensive business. Investors’ analyses of the performance of real estate companies tend to be centered on understanding the asset value created by real estate investment decisions and understanding current operating returns that are being generated by those same investment decisions. The adjustments to GAAP net earnings that are included in arriving at our FFO measure are helpful to management in making real estate investment decisions and evaluating our current operating performance. We believe that these adjustments are also helpful to industry analysts, potential investors and shareholders in their understanding and evaluation of our performance on the key measures of net asset value and current operating returns generated on real estate investments.

While we believe that our defined FFO measure is an important supplemental measure, neither NAREIT’s nor our measure of FFO should be used alone because they exclude significant economic components of GAAP net earnings and are, therefore, limited as an analytical tool. Some of the limitations are:

— The current income tax expenses that are excluded from our defined FFO measure represent taxes that are payable.

— Depreciation and amortization of real estate assets are economic costs that are excluded from FFO. FFO is limited as it does not reflect the cash requirements that may be necessary for future replacements of the real estate assets. Further, the amortization of capital expenditures and leasing costs necessary to maintain the operating performance of distribution properties are not reflected in FFO.

— Gains or losses from property dispositions represent changes in the value of the disposed properties. FFO, by excluding these gains and losses, does not capture realized changes in the value of disposed properties arising from changes in market conditions.

— The deferred income tax benefits and expenses that are excluded from our defined FFO measure result from the creation of a deferred income tax asset or liability that may have to be settled at some future point. Our defined FFO measure does not currently reflect any income or expense that may result from such settlement.

— The foreign currency exchange gains and losses that are excluded from our defined FFO measure are generally recognized based on movements in foreign currency exchange rates through a specific point in time. The ultimate settlement of our foreign currency-denominated net assets is indefinite as to timing and amount. Our defined FFO measure is limited in that it does not reflect the current period changes in these net assets that result from periodic foreign currency exchange rate movements.

We compensate for these limitations by using our FFO measure only in conjunction with GAAP net earnings. To further compensate, we always reconcile our defined FFO measure to GAAP net earnings in our financial reports. Additionally, we provide investors with our complete financial statements prepared under GAAP, our definition of FFO, which includes a discussion of the limitations of using our non-GAAP measure, and a reconciliation of our GAAP measure (net earnings) to our non-GAAP measure (FFO, as we define it) so that investors can appropriately incorporate this measure and its limitations into their analyses.

Supplemental Information Page 3b

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Reconciliations of Net Earnings to FFO

(in thousands)


	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2006			2005 (1)			2006 (2)			2005 (1)


Reconciliation of net earnings to FFO:
Net earnings attributable to common shares	$	331,090		$	109,102		$	848,951		$	370,747
Add (deduct) NAREIT defined adjustments:
Real estate related depreciation and amortization		78,812			63,139			283,701			184,792
Additional CDFS proceeds recognized (15)		—			—			466			—
Gains recognized on dispositions of certain non-CDFS business assets (17)		(67,761	)		—			(81,470	)		—
Reconciling items attributable to discontinued operations (10):
Gains recognized on dispositions of non-CDFS business assets		(23,692	)		(47,604	)		(103,729	)		(86,444	)
Real estate related depreciation and amortization		196			4,389			5,315			11,399

Totals discontinued operations		(23,496	)		(43,215	)		(98,414	)		(75,045	)
Our share of reconciling items from unconsolidated investees (20):
Real estate related depreciation and amortization		20,317			17,819			68,151			57,766
Gains on dispositions of non-CDFS business assets		(371	)		(309	)		(7,124	)		(1,114	)
Other amortization items (15)(21)		(1,801	)		(1,073	)		(16,000	)		(5,134	)

Totals unconsolidated investees		18,145			16,437			45,027			51,518


Totals NAREIT defined adjustments		5,700			36,361			149,310			161,265


Subtotals-NAREIT defined FFO		336,790			145,463			998,261			532,012

Add (deduct) our defined adjustments:
Foreign currency exchange gains, net (18)		(10,440	)		(6,316	)		(19,555	)		(14,065	)
Current income tax expense (19)		—			—			23,191			—
Deferred income tax (benefit) expense (19)		(36,942	)		3,855			(53,722	)		12,045
Reconciling items attributable to discontinued operations:
Assets disposed of — deferred income tax benefit (5)		—			—			—			(213	)
Our share of reconciling items from unconsolidated investees (20):
Foreign currency exchange expenses/losses (gains), net (18)		(175	)		561			(45	)		298
Deferred income tax (benefit) expense		(348	)		(695	)		(2,982	)		395

Totals unconsolidated investees		(523	)		(134	)		(3,027	)		693


Totals our defined adjustments		(47,905	)		(2,595	)		(53,113	)		(1,540	)


FFO attributable to common shares	$	288,885		$	142,868		$	945,148		$	530,472

See Consolidated Statements of Earnings on page 2, Consolidated Statements of FFO on page 3 and the definition of FFO on pages 3a and 3b.

Footnote references are to pages 7 through 7d.

Supplemental Information Page 4

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Reconciliations of Net Earnings to EBITDA
(in thousands)


	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2006			2005 (1)			2006 (2)			2005 (1)


Reconciliation of net earnings to EBITDA:
Net earnings attributable to common shares	$	331,090		$	109,102		$	848,951		$	370,747
Add (deduct):
NAREIT defined adjustments to compute FFO		5,700			36,361			149,310			161,265
Our defined adjustments to compute FFO		(47,905	)		(2,595	)		(53,113	)		(1,540	)
Add:
Interest expense		77,470			63,759			294,403			177,562
Depreciation of corporate assets, including amounts reported in relocation expense		2,310			2,239			9,326			8,187
Current income tax expense included in FFO (19)		8,337			7,662			61,059			14,847
Adjustments to CDFS gains on dispositions for interest capitalized		3,164			4,250			28,591			32,735
Preferred share dividends		6,354			6,354			25,416			25,416
Reconciling items attributable to discontinued operations		—			808			874			28,113
Impairment charges		1,947			—			6,121			180
Share of reconciling items from unconsolidated investees (20)		19,319			17,655			53,898			71,727

EBITDA	$	407,786		$	245,595		$	1,424,836		$	889,239

See Consolidated Statements of Earnings on page 2 and the Reconciliations of Net Earnings to FFO on page 4.

Footnote references are to pages 7 through 7d.

Definition of EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization):

We believe that EBITDA is a useful supplemental measure, although it does not represent net earnings or cash from operating activities that are computed in accordance with GAAP and is not indicative of cash available to fund cash needs, which we present in our Consolidated Statements of Cash Flows and include in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q that are filed with the Securities and Exchange Commission. Accordingly, the EBITDA measure presented should not be considered as an alternative to net earnings as an indicator of our operating performance, or as an alternative to cash flows from operating, investing, or financing activities as a measure of liquidity. The EBITDA measure presented may not be comparable to similarly titled measures of other REITs.

EBITDA generally represents net earnings computed in accordance with GAAP adjusted to exclude:

	(i)		interest expense;

	(ii)		income tax expenses and benefits; and

	(iii)		depreciation and amortization expenses.

In our computation of EBITDA the following items are also excluded:

	(i)		preferred dividends and charges related to the redemption of preferred shares;

	(ii)		the foreign currency exchange gains and losses that are also excluded in our definition of FFO (presented on pages 3a and 3b);

	(iii)		impairment charges; and

	(iv)		gains and losses from the dispositions of non-CDFS business assets.

In addition, we adjust the gains and losses from the contributions and sales of developed properties recognized as CDFS income to reflect these gains and losses as if no interest cost had been capitalized during the development of the properties (i.e. the gains are larger since capitalized interest is not included in the basis of the assets contributed and sold). EBITDA of our unconsolidated investees is calculated on the same basis.

Supplemental Information Page 5

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Consolidated Balance Sheets
(in thousands)


	December 31,			December 31,
	2006			2005 (1)

Assets:
Investments in real estate assets:
Industrial operating properties	$	10,423,249		$	8,730,906
Retail operating properties		305,188			288,253
Land subject to ground leases and other		472,412			792,668
Properties under development (including cost of land)		964,842			884,345
Land held for development (see page 8)		1,397,081			1,045,042
Other investments		391,227			133,916

		13,953,999			11,875,130
Less accumulated depreciation		1,280,206			1,118,547

Net investments in real estate assets		12,673,793			10,756,583

Investments in and advances to unconsolidated investees (see page 8):
Property funds (14)(15)(22)		981,840			755,320
CDFS joint ventures and other unconsolidated investees (7)		317,857			294,423

Total investments in and advances to unconsolidated investees		1,299,697			1,049,743

Cash and cash equivalents		475,791			203,800
Accounts and notes receivable		439,791			327,214
Other assets		957,295			788,840
Discontinued operations-assets held for sale (10)		57,158			—

Total assets	$	15,903,525		$	13,126,180


Liabilities and Shareholders’ Equity:
Liabilities:
Lines of credit and short-term borrowings (see page 20)	$	2,462,796		$	2,240,054
Senior notes (see page 19)		4,445,092			2,759,675
Secured debt and assessment bonds (see page 19)		1,478,998			1,678,151
Accounts payable and accrued expenses		518,651			344,423
Other liabilities		546,129			557,210
Discontinued operations-assets held for sale (10)		1,012			—

Total liabilities		9,452,678			7,579,513


Minority interest		52,268			58,644

Shareholders’ equity:
Series C preferred shares at stated liquidation preference of $50.00 per share		100,000			100,000
Series F preferred shares at stated liquidation preference of $25.00 per share		125,000			125,000
Series G preferred shares at stated liquidation preference of $25.00 per share		125,000			125,000
Common shares at $.01 par value per share		2,509			2,438
Additional paid-in capital		6,000,119			5,606,017
Accumulated other comprehensive income		216,922			149,586
Distributions in excess of net earnings		(170,971	)		(620,018	)

Total shareholders’ equity		6,398,579			5,488,023

Total liabilities and shareholders’ equity	$	15,903,525		$	13,126,180

Footnote references are to pages 7 through 7d.

Supplemental Information Page 6

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Notes to Consolidated Financial Statements


(1)		Certain 2005 amounts included in this Supplemental Information package have been reclassified to conform to the 2006 presentation.

(2)		On September 15, 2005, we completed a merger with Catellus Development Corporation (“Catellus Merger”). This transaction was accounted for using the purchase method of accounting and, accordingly, the purchase price of $5.3 billion has been allocated to the net assets acquired based on their estimated fair values at the date of acquisition.

(3)		Represents costs incurred related to the Catellus Merger. These costs included merger integration and employee transition costs as well as severance costs for certain of our employees whose responsibilities became redundant after the Catellus Merger.

(4)		We completed the relocation of our information technology and corporate accounting functions from El Paso, Texas to Denver, Colorado in the first quarter of 2005. We moved our corporate headquarters, which is located in Denver, to a recently constructed building in February 2006. Relocation costs included (i) employee termination costs; (ii) costs associated with the hiring and training of new personnel and other costs including travel, moving and temporary facility costs; and (iii) accelerated depreciation associated with non-real estate assets whose useful life was shortened due to the relocations.

(5)		In July 2005, we sold our temperature-controlled distribution operations in France and accordingly, the results of operations for 2005 are included in discontinued operations. Due to the sale and liquidation of the business, we recognized impairment charges and cumulative translation losses of $26.9 million in 2005.

(6)		The annual distribution rate for 2006 was $1.60 per common share. In December 2006, the Board of Trustees approved an increase in the annual distribution to $1.84 per common share. The amount of the common share distribution is declared quarterly and may be adjusted at the discretion of the Board of Trustees.

(7)		We have varying ownership interests in unconsolidated investees. The investees primarily engage in activities similar to our corporate distribution facilities services business (“CDFS business”) segment activities (as discussed in note 11) and own operating properties in China, Europe and North America. We refer to the joint ventures engaged in industrial property development and operation as industrial CDFS joint ventures. In addition, certain of the CDFS joint ventures engage in land, retail and commercial development and we refer to these joint ventures as non-industrial CDFS joint ventures. We have ownership interests in all of the CDFS joint ventures ranging from 30% to 50%. We also have varying ownership interests in other unconsolidated investees that primarily own and operate industrial, office and hotel properties.

		During the second and third quarters of 2006, we recognized an aggregate of $35.0 million, representing our proportionate share of the net earnings of a CDFS joint venture, “LAAFB JV”. The LAAFB JV was formed to redevelop a U.S. Air Force base in Los Angeles, California in exchange for land parcels and certain rights to receive tax increment financing (“TIF”) proceeds over a period of time. As our investment in LAAFB JV is held in a taxable subsidiary that was acquired in the Catellus Merger, we also recognized the associated current income tax expense of $27.0 million and a deferred tax benefit of $12.4 million during these same periods. See note 19 for further explanation of our taxes. The operations of the LAAFB JV are now substantially complete.

(8)		Represents rental income earned and rental expenses incurred while we own a property directly. Under the terms of the respective lease agreements, some or all of our rental expenses are recovered from our customers. Amounts recovered are included as a component of rental income. Rental expenses also include direct expenses associated with our management of the property funds’ operations. For properties that have been contributed to property funds, we recognize our share of the total operations of the property funds under the equity method and present these amounts below operating income in our Consolidated Statements of Earnings and FFO.

(9)		Rental income includes the following (in thousands):


	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2006		2005 (1)		2006 (2)		2005 (1)

Rental income	$	184,735	$	155,799	$	707,808	$	473,671
Rental expense recoveries		49,808		38,229		183,493		115,787
Straight-lined rents		10,735		6,115		36,418		11,411

	$	245,278	$	200,143	$	927,719	$	600,869

Supplemental Information Page 7

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Notes to Consolidated Financial Statements (Continued)


(10)		Properties disposed of to third parties are considered to be discontinued operations unless such properties were developed under a pre-sale agreement. During 2006, we disposed of 89 such properties to third parties, 15 of which were CDFS business assets.

		The operations of the properties disposed of to third parties during 2006 and the aggregate net gains recognized upon their dispositions are presented as discontinued operations in our Consolidated Statements of Earnings for all periods presented. In addition, the operations of the 72 properties disposed of during 2005 (eight of which were CDFS business assets) are presented as discontinued operations. As of December 31, 2006, we had eight properties that were classified as held for sale and accordingly, the operations of these properties are included in discontinued operations and the respective assets and liabilities are presented separately in our Consolidated Balance Sheet. Interest expense included in discontinued operations represents interest directly attributable to these properties.

		The components that are presented as discontinued operations (excluding the net gains or losses recognized upon disposition) are as follows (in thousands):


	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2006			2005 (1)			2006 (2)			2005 (1)

Rental income	$	4,428		$	22,088		$	45,343		$	48,661
Rental expenses		(1,811	)		(10,404	)		(19,720	)		(18,135	)
Depreciation and amortization		(196	)		(4,389	)		(5,315	)		(11,399	)
Interest expense		—			(808	)		(874	)		(1,077	)

	$	2,421		$	6,487		$	19,434		$	18,050

		For purposes of our Consolidated Statements of FFO, we do not segregate discontinued operations. In addition, in the calculation of FFO we include the CDFS disposition proceeds and the cost of CDFS dispositions for all CDFS properties disposed of during the period, including those classified as discontinued operations.

(11)		The CDFS business segment primarily represents the development of properties, the acquisition of properties with the intent to rehabilitate and/or reposition the property and other land and commercial development activities. It is generally our intent to contribute our CDFS properties to a property fund in which we have an ownership interest and act as manager or sell the properties to a third party. Additionally, we (i) earn fees for development activities provided on behalf of customers or third parties; (ii) recognize interest income on notes receivable related to previous asset dispositions; (iii) recognize gains or losses on the disposition of land parcels when our development plans no longer include these parcels; and (iv) recognize our proportionate share of the earnings or losses of CDFS joint ventures. We include the income generated in the CDFS business segment in our computation of FFO and EBITDA.

(12)		When we contribute properties to an entity in which we have an ownership interest, we do not recognize a portion of the proceeds in our computation of the gain resulting from the contribution. The amount of the proceeds that we defer is based on our continuing ownership interest in the contributed property that arises due to our ownership interest in the entity acquiring the property. We defer this portion of the proceeds by recognizing a reduction to our investment in the applicable unconsolidated investee. We adjust our proportionate share of the earnings or losses that we recognize under the equity method in later periods to reflect the entity’s depreciation expense as if the depreciation expense was computed on our lower basis in the contributed real estate assets rather than on the entity’s basis in the contributed real estate assets. If a loss is recognized when a property is contributed, the entire loss is recognized. See note 13 for the amount of cumulative gross proceeds that have not been recognized as of December 31, 2006 and see page 17 for amounts deferred related to contributions made in 2006 and 2005.

		When a property that we originally contributed to an unconsolidated investee is disposed of to a third party, we recognize a gain during the period that the disposition occurs related to the proceeds we had previously deferred, in addition to our proportionate share of the gain or loss recognized by the entity. Further, during periods when our ownership interest in a property fund decreases, we recognize gains to the extent that proceeds were previously deferred to coincide with our new ownership interest in the property fund.

Supplemental Information Page 7a

ProLogis

Fourth Quarter 2006

Unaudited Financial Results

Notes to Consolidated Financial Statements (Continued)


(13)		As of December 31, 2006, the cumulative gross proceeds that have not been recognized in computing the gains from our contributions of properties to unconsolidated investees (before subsequent amortization) are presented below (in thousands). See note 12.


	Gross Proceeds Not Recognized
	CDFS		Non-CDFS
	Transactions		Transactions		Totals

ProLogis European Properties	$	123,609	$	9,338	$	132,947
ProLogis California LLC		5,394		26,129		31,523
ProLogis North American Properties Fund I		8,271		862		9,133
ProLogis North American Properties Fund V		25,359		2,939		28,298
ProLogis North American Properties Funds VI-X		2,766		—		2,766
ProLogis North American Industrial Fund		32,506		16,870		49,376
ProLogis Japan Properties Fund I		44,878		—		44,878
ProLogis Japan Properties Fund II		22,939		—		22,939
CDFS joint ventures		4,590		—		4,590

Totals	$	270,312	$	56,138	$	326,450

(14)		In September 2006, ProLogis European Properties (“PEPR”) completed an initial public offering (“IPO”) on an Amsterdam stock exchange in which the selling unitholders offered 49.8 million ordinary units. As the manager of the property fund, we received an initial incentive allocation of €53.5 million paid in additional ordinary units from the pre-IPO unitholders based on the internal rate of return that such unitholders earned during their pre-IPO holding period. The incentive return was adjusted through a cash settlement in October based on the average closing price of the ordinary units during the 30-day, post-IPO period. In the fourth quarter of 2006, we recognized the incentive return of $109.2 million, as income, which is included in Property Management and Other Fees and Incentives in our Statements of Earnings and FFO. In addition, we recognized a deferred tax benefit of $36.8 million due to the reversal of a tax indemnification liability as we no longer have an obligation to the pre-IPO unitholders under this indemnification agreement. Subsequent to the IPO, our ownership in PEPR is 24%.

(15)		On January 4, 2006, we purchased the 80% ownership interests in each of ProLogis North American Properties Funds II, III and IV (collectively “the Funds”) held by our fund partner, an affiliate of Arcapita Bank B.S.C.(c) (“Arcapita”). On March 1, 2006, we contributed substantially all of the assets and associated liabilities to the ProLogis North American Industrial Fund, which was finalized in February 2006. See note 22. In connection with these transactions, we recognized the following amounts in the respective line items, during the first quarter of 2006 (in thousands):


	Statements of		Statements of
	Earnings		FFO
CDFS disposition proceeds (a)	$	12,492	$	12,958
Property management and other fees and incentives (b)	$	21,958	$	21,958
Earnings from unconsolidated property funds (c)	$	37,113	$	27,916



(a)		Represents the recognition of the proceeds that we had previously deferred as part of CDFS income upon the initial contributions of the properties to the Funds. See note 12.

(b)		Represents an incentive return we earned due to certain return levels achieved by Arcapita upon the liquidation of the Funds.

(c)		Represents our proportionate share of the gain on termination recognized by the Funds on a depreciated basis (earnings) and on an undepreciated basis (FFO).

All of the above amounts are net of an aggregate deferred amount of $17.9 million, due to our 20% continuing ownership interest in the property fund that purchased the assets.

Supplemental Information Page 7b

ProLogis

Fourth Quarter 2006

Unaudited Financial Results

Notes to Consolidated Financial Statements (Continued)


(16)		The following table presents the components of interest expense (in thousands). The increase in interest expense before capitalization is primarily the result of increased debt levels due to the Catellus Merger and other property acquisitions, as well as our increased development activities, which also accounts for the increase in capitalized interest.


	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2006			2005 (1)			2006 (2)			2005 (1)

Gross interest expense	$	106,061		$	87,846		$	398,066		$	239,832
Net premium recognized		(3,040	)		(3,116	)		(12,564	)		(3,980	)
Amortization of deferred loan costs		1,945			1,379			6,198			5,595

Interest expense before capitalization		104,966			86,109			391,700			241,447
Less: capitalized amounts		(27,496	)		(22,350	)		(97,297	)		(63,885	)

Net interest expense	$	77,470		$	63,759		$	294,403		$	177,562


(17)		In addition to contributions of CDFS properties, from time to time, we contribute properties from our property operations segment to the unconsolidated property funds. During the three and twelve months ended December 31, 2006, we contributed 27 and 39 properties, respectively, to unconsolidated property funds in which we have continuing interests through our equity ownership. The gains related to the dispositions of properties from our property operations segment are included in earnings, but are not included in our calculation of FFO. See 3a and 3b for our definition of FFO.

(18)		Foreign currency exchange gains and losses that are recognized as a component of net earnings generally result from: (i) remeasurement and/or settlement of certain debt transactions between us and our foreign consolidated subsidiaries and foreign unconsolidated investees (depending on the type of loan, the currency in which the loan is denominated and the form of our investment); (ii) remeasurement and/or settlement of certain third party debt of our foreign consolidated subsidiaries (depending on the currency in which the loan is denominated); and (iii) mark-to-market adjustments related to derivative financial instruments utilized to manage foreign currency risks. We generally exclude these types of foreign currency exchange gains and losses from our defined FFO measure and also from our computation of EBITDA. Foreign currency exchange gains and losses that result from transactions (including certain intercompany debt and equity investments) that are settled in a currency other than the reporting entity’s functional currency and from the settlement of derivative financial instruments utilized to manage foreign currency risks are included in our defined FFO measure and in our computation of EBITDA. Our definition of FFO is presented on pages 3a and 3b and our definition of EBITDA is presented on page 5.

(19)		Current income tax is generally a function of the level of income recognized by our taxable subsidiaries operating primarily in the CDFS business segment, state income taxes, taxes incurred in foreign jurisdictions and interest associated with our income tax liabilities. Deferred income tax is generally a function of the period’s temporary differences (items that are treated differently for tax purposes than for financial reporting purposes), the utilization of tax net operating losses generated in prior years that had been previously recognized as deferred tax assets and deferred tax liabilities related to indemnification agreements related to certain contributions to property funds. See note 14. In connection with the Catellus Merger and in accordance with purchase accounting, we recorded all of the acquired assets and liabilities at the estimated fair values at the date of acquisition. For our taxable subsidiaries, we recognized the deferred tax liabilities that represent the tax effect of the difference between the tax basis carried over and the fair values of these assets at the date of acquisition. As taxable income is generated in these subsidiaries, we recognize a deferred tax benefit in earnings as a result of the reversal of the deferred tax liability previously recorded at the acquisition date and we record current income tax expense representing the entire current income tax liability. In our calculation of FFO, we only include the current income tax expense to the extent the associated income is recognized for financial reporting purposes.

Supplemental Information Page 7c

ProLogis

Fourth Quarter 2006

Unaudited Financial Results

Notes to Consolidated Financial Statements (Continued)


(20)		We report our investments in the property funds, CDFS joint ventures and other unconsolidated investees under the equity method. For purposes of calculating FFO and EBITDA, the net earnings of each of our unconsolidated investees is adjusted to be consistent with our calculation of these measures. Our definition of FFO is presented on pages 3a and 3b and our definition of EBITDA is presented on page 5.

(21)		Consists primarily of adjustments to the amounts we recognize under the equity method that are necessary to recognize the amount of gains not recognized at the contribution date due to the deferral of certain proceeds based on our ownership interest in the unconsolidated investee acquiring the property. See note 12. In addition, this amount represents the adjustment to the amounts we recognize under the equity method on dispositions made by the unconsolidated investees to reflect the gain on sale on an undepreciated basis for FFO.

(22)		In February, 2006, we formed a new property fund with several institutional investors, the North American Industrial Fund, which currently owns industrial distribution properties in the United States and may own properties in Canada. The North American Industrial Fund, in which we have a 20% ownership interest, is an open-end fund. See note 15 for further discussion about the initial contribution of assets to the North American Industrial Fund in the first quarter of 2006. In addition, in January 2006, we made the first contribution of assets to ProLogis Japan Properties Fund II, which was formed in late 2005.

Supplemental Information Page 7d

ProLogis

Fourth Quarter 2006

Unaudited Financial Results

Investments in and Advances to Unconsolidated Investees

(in thousands)


	December 31,		December 31,
	2006		2005


Property funds (see page 11):
ProLogis European Properties (see note 14)	$	430,761	$	283,435
ProLogis California LLC		112,915		115,743
ProLogis North American Properties Fund I		30,902		33,241
ProLogis North American Properties Funds II, III and IV (see note 15)		—		12,410
ProLogis North American Properties Fund V		53,331		53,104
ProLogis North American Properties Funds VI-X		115,837		120,614
ProLogis North American Properties Fund XI		31,871		33,094
ProLogis North American Industrial Fund (see note 22)		72,053		—
ProLogis Japan Properties Fund I		87,705		103,679
ProLogis Japan Properties Fund II (see note 22)		46,465		—

Total investments in and advances to property funds		981,840		755,320

CDFS joint ventures (see note 7)		203,310		182,411

Other unconsolidated investees (see note 7)		114,547		112,012


Total investments in and advances to unconsolidated investees	$	1,299,697	$	1,049,743

Land Owned and Controlled
(dollars in thousands)


	As of December 31, 2006
	Acres		Investment
Direct investment:
Land owned:
North America		4,648	$	627,989
Europe		1,397		531,766
Asia		159		237,326

Total land owned (see page 6)		6,204	$	1,397,081


Land controlled (LOI/option) (A):
North America		1,758
Europe		1,896
Asia		438

Total land controlled		4,092


Total Direct Investment		10,296

Unconsolidated investees (owned and controlled):
Property funds:
North America (owned)		32

CDFS joint ventures (B):
North America (owned and controlled)		563
Europe (owned and controlled)		12
Asia (owned)		50

Total CDFS joint ventures		625


Total unconsolidated investees		657

Total land owned and controlled		10,953


COMMENTS

(A)		Costs incurred are included in other real estate investments.

(B)		Includes land for industrial development only.

Supplemental Information Page 8

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Components of Net Asset Value (A)
(in thousands, except for percentages)

Income Items


	Fourth			ProLogis’
	Quarter 2006			Weighted Average				Pro Rata
	Pro Forma			Ownership				Annualized
	NOI(B)			Interest				Pro Forma NOI

Direct owned properties (B)	$	201,479	x		100.0	%	x 4	$	805,916

Property funds — North America (B)	$	105,609	x		23.8	%	x 4	$	100,540

Property funds — Asia (B)	$	30,894	x		20.0	%	x 4	$	24,715


	Actual
	Fourth Quarter
	2006
Fee income (includes all property funds) (see page 10)	$	23,432
Incentive return (see note 14)	$	109,179
Gains on dispositions of CDFS business assets, net	$	66,601
Disposition proceeds not recognized in FFO, net of amounts recognized that had been previously deferred (see page 17)	$	12,820
Development management fees, interest and other CDFS income (C)	$	16,819


Balance Sheet Items	-as of December 31, 2006


Investment in PEPR (based on the trading price of the units) (D)	$	909,139


Discontinued operations — assets held for sale, net of liabilities	$	56,146


Investments in unconsolidated investees other than property funds (see page 8):
CDFS joint ventures (industrial only)	$	118,472
Other unconsolidated investees		114,547

Total investments in unconsolidated investees other than property funds	$	233,019


Investments in land and development projects:
Development projects in process (see pages 6 and 18)	$	964,842
Land held for development (see pages 6 and 8)		1,397,081

Total investments in land and development projects	$	2,361,923


Other assets:
Cash and cash equivalents	$	475,791
Deposits, prepaid assets and other tangible assets (E)		829,961
Accounts and other receivables (F)		269,837
Our share of other tangible assets of property funds (G)		39,767

Total other assets	$	1,615,356


Liabilities and preferred equity:
Total liabilities, excluding discontinued operations	$	(9,451,666	)
Our share of third party debt of property funds (see page 11) (G)		(880,758	)
Our share of other third party liabilities of property funds (G)		(29,720	)

Total liabilities		(10,362,144	)
Preferred shares		(350,000	)

Total liabilities and preferred equity	$	(10,712,144	)

Consolidated Balance Sheets are on Page 6.

Net Asset Value Discussion

We consider Net Asset Value to be a useful tool to estimate the fair value of common shareholder equity. The assessment of the fair value of a particular segment of our business is subjective in that it involves estimates and can be performed using various methods. Therefore, we have presented the financial results and investments related to our business segments that we believe are important in calculating our Net Asset Value but have not presented any specific methodology nor provided any guidance on the assumptions or estimates that should be used in the calculation.

Comments are on page 9a.

Supplemental Information Page 9

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Comments to Components of Net Asset Value
(in thousands)

Comments relate to page 9.

COMMENTS

(A)		The components of Net Asset Value provided on page 9 do not consider the potential growth in rental and fee income streams or the franchise value associated with our global operating platform and the ProLogis Operating System^®.

(B)		A reconciliation of rental income and rental expenses computed under GAAP to pro forma net operating income (NOI) for purposes of the Net Asset Value calculation for us and the property funds, excluding ProLogis European Properties (PEPR), for the three months ended December 31, 2006 is as follows (amounts in thousands). PEPR has publicly traded units and therefore, a separate calculation using pro forma NOI is not necessary (see comment D).


							ProLogis			ProLogis			ProLogis			ProLogis			ProLogis			ProLogis			ProLogis
				ProLogis			N.A.			N.A.			N.A.			N.A.			N.A.			Japan			Japan
				California			Properties			Properties			Properties			Properties			Industrial			Properties			Properties
	ProLogis			LLC			Fund I			Fund V			Funds VI - X			Fund XI			Fund			Fund I			Fund II

Calculation of pro forma NOI (a):
Rental income (see pages 2 and 10)	$	245,278		$	21,730		$	10,731		$	42,306		$	29,483		$	5,049		$	24,551		$	22,641		$	11,318
Straight-lined rents and amortization of lease intangibles (b)		(9,394	)		(402	)		(51	)		(80	)		(1,409	)		(129	)		(1,026	)		(72	)		7
Net termination fees (c)		(826	)		(229	)		—			(172	)		—			—			(116	)		—			—

Adjusted rental income		235,058			21,099			10,680			42,054			28,074			4,920			23,409			22,569			11,325

Rental expenses (see pages 2 and 10)		(64,197	)		(4,261	)		(2,191	)		(9,196	)		(6,904	)		(930	)		(5,898	)		(3,185	)		(365	)
Certain fees paid to ProLogis (d)		—			161			108			378			285			57			239			—			—

Adjusted rental expenses		(64,197	)		(4,100	)		(2,083	)		(8,818	)		(6,619	)		(873	)		(5,659	)		(3,185	)		(365	)

Adjusted NOI		170,861			16,999			8,597			33,236			21,455			4,047			17,750			19,384			10,960
Other adjustments (e) (f)		30,618			—			—			—			—			—			3,525			—			550

Pro forma NOI	$	201,479		$	16,999		$	8,597		$	33,236		$	21,455		$	4,047		$	21,275		$	19,384		$	11,510


(a)		Pro forma NOI represents: (i) rental income computed under GAAP for each applicable property, including rental expense recoveries, with certain adjustments (see (b) and (c) below); (ii) less rental expenses computed under GAAP for each applicable property adjusted to exclude certain fees paid to us that have been recognized as rental expenses by the property funds (see (d) below); (iii) as adjusted to reflect CDFS business assets (completed developments and repositioned acquisitions) at a stabilized yield for the entire period (see (e) below); and (iv) as adjusted to present a full period of operations for those properties that were not stabilized for the entire period (see (f) below).

(b)		Straight-lined rents and amortization of above and below market leases are removed from rental income computed under GAAP to allow for the calculation of a cash yield.

(c)		Net termination fees generally represent the gross fee negotiated at the time a customer is allowed to terminate its lease agreement offset by that customer’s rent leveling asset or liability, if any, that has been previously recognized under GAAP. Removing the net termination fees from rental income allows for the calculation of pro forma NOI to include only rental income that is indicative of the property’s recurring operating performance.

(d)		These miscellaneous fees are removed because they represent costs that are specific to the ownership structures of the individual property fund and are not necessarily indicative of expenses that would be incurred under other structures.

(e)		For ProLogis, the NOI generated by CDFS business assets (completed developments and repositioned acquisitions) is removed and replaced with NOI that is computed by applying each property’s projected yield at the time the property was developed or acquired to the gross book basis of the property at December 31, 2006.

(f)		For ProLogis and the property funds, NOI is adjusted to reflect a full period of operations for properties that were acquired during the three-month period and to remove the NOI for properties disposed of during the three-month period, if any. See page 16.


(C)		Amount includes: (i) development management and other income, (ii) interest income on long-term notes receivable and (iii) FFO from non-industrial CDFS joint ventures.

(D)		On September 22, 2006, PEPR completed an initial public offering to trade on the Euronext Amsterdam stock exchange (see note 14).At December 31, 2006, the Net Asset Value of our investment in PEPR was estimated as follows (in thousands, except per unit amounts):


Number of equity units held by us on December 31, 2006		45,310
Price per unit at December 31, 2006, in euros (g)		15.00

Total in euros		679,650
Euro to U.S. dollar exchange rate at December 31, 2006		1.3170

Total in U.S. dollars	$	895,099
Net amounts owed to us		14,040

Total Net Asset Value at December 31, 2006	$	909,139


(g)		Based on closing price of PEPR units on the Euronext Amsterdam stock exchange.


(E)		These items are reflected in our Consolidated Balance Sheets as components of other assets and investments in real estate — other investments.

(F)		Excludes notes receivable associated with our CDFS business segment.

(G)		Excludes PEPR. See comment D.

Supplemental Information Page 9a

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Property Funds — EBITDA, FFO and Net Earnings
(in thousands of dollars, except percentages)


							ProLogis			ProLogis			ProLogis			ProLogis			ProLogis			ProLogis			ProLogis			Liquidated
	ProLogis			ProLogis			N.A.			N.A.			N.A.			N.A.			N.A.			Japan			Japan			Property
	European			California			Properties			Properties			Properties			Properties			Industrial			Properties			Properties			Funds
	Properties			LLC			Fund I			Fund V			Funds VI - X			Fund XI			Fund (A)			Fund I			Fund II (B)			(A)(C)		Total

	For the Three Months Ended December 31, 2006
EBITDA, FFO and net earnings of each property fund:
Rental income		109,498			21,730			10,731			42,306			29,483			5,049			24,551			22,641			11,318			—		277,307
Rental expenses:
Property management fees paid to us (D)		(870	)		(700	)		(317	)		(1,289	)		(1,003	)		(211	)		(898	)		—			—			—		(5,288	)
Other		(18,162	)		(3,561	)		(1,874	)		(7,907	)		(5,901	)		(719	)		(5,000	)		(3,185	)		(365	)		—		(46,674	)

Total rental expenses		(19,032	)		(4,261	)		(2,191	)		(9,196	)		(6,904	)		(930	)		(5,898	)		(3,185	)		(365	)		—		(51,962	)

Net operating income from properties		90,466			17,469			8,540			33,110			22,579			4,119			18,653			19,456			10,953			—		225,345

Other income (expense)		1,951			71			41			462			363			370			235			71			(124	)		—		3,440
Asset management and other fees paid to us (D)		(9,497	)		(9	)		(182	)		(243	)		(889	)		(707	)		(5	)		(1,274	)		(558	)		—		(13,364	)

EBITDA of the property fund		82,920			17,531			8,399			33,329			22,053			3,782			18,883			18,253			10,271			—		215,421

Current income tax and other expense		(3,034	)		(3	)		(3	)		(281	)		(12	)		—			(6	)		—			—			—		(3,339	)
Loss on disposition of CDFS business assets		—			—			—			(435	)		—			—			—			—			—			—		(435	)
Third party interest expense		(34,536	)		(5,573	)		(4,619	)		(13,611	)		(12,597	)		(866	)		(9,878	)		(3,561	)		(2,540	)		—		(87,781	)

FFO of the property fund		45,350			11,955			3,777			19,002			9,444			2,916			8,999			14,692			7,731			—		123,866
Real estate related depreciation and amortization		(31,486	)		(5,217	)		(2,739	)		(10,323	)		(9,308	)		(1,787	)		(8,385	)		(5,007	)		(3,395	)		—		(77,647	)
Gains on other dispositions, net		457			—			—			—			—			—			—			—			—			—		457
Foreign currency exchange gains, net		989			—			—			—			—			—			—			—			—			—		989
Deferred income tax benefit		1,771			—			—			—			—			—			—			—			—			—		1,771

Net earnings of the property fund		17,081			6,738			1,038			8,679			136			1,129			614			9,685			4,336			—		49,436


Our share of EBITDA, FFO and net earnings of each property fund recognized under the equity method:
Our average ownership interest for the period (E)		24.0	%		50.0	%		41.3	%		11.3	%		20.0	%		20.0	%		20.0	%		20.0	%		20.0	%				23.5	%

Our share of the property fund’s EBITDA		19,615			8,766			3,469			3,733			4,411			756			3,777			3,650			2,054			—		50,231
Fees paid to us (F)		119,546			1,096			756			3,246			2,479			936			2,733			1,271			548			—		132,611
Other (G)		—			(103	)		(38	)		(37	)		(12	)		8			(8	)		262			117			—		189

EBITDA recognized by us		139,161			9,759			4,187			6,942			6,878			1,700			6,502			5,183			2,719			—		183,031

Our share of the property fund’s FFO		10,629			5,977			1,560			2,129			1,889			583			1,800			2,938			1,546			—		29,051
Fees paid to us (F)		119,546			1,096			756			3,246			2,479			936			2,733			1,271			548			—		132,611
Other (G)		—			(53	)		(38	)		162			(51	)		8			(20	)		262			117			—		387

FFO recognized by us		130,175			7,020			2,278			5,537			4,317			1,527			4,513			4,471			2,211			—		162,049

Our share of the property fund’s net earnings		4,294			3,369			429			972			28			225			122			1,937			867			—		12,243
Fees paid to us (F)		119,546			1,096			756			3,246			2,479			936			2,733			1,271			548			—		132,611
Other (G)		689			214			49			377			(22	)		—			238			446			192			—		2,183

Net earnings recognized by us		124,529			4,679			1,234			4,595			2,485			1,161			3,093			3,654			1,607			—		147,037


	For the Three Months Ended December 31, 2005

EBITDA recognized by us		23,910			8,782			4,122			5,745			6,581			891			—			5,362			—			3,936		59,329

FFO recognized by us		17,615			6,002			2,207			5,639			4,017			722			—			4,640			—			2,476		43,318

Net earnings recognized by us		9,475			3,733			1,202			4,681			2,409			350			—			3,998			—			1,846		27,694

See our Consolidated Statements of Earnings on page 2, Consolidated Statements of FFO on page 3, the Reconciliations of Net Earnings to FFO on page 4 and the Reconciliations of Net Earnings to EBITDA on page 5. Our definition of FFO is presented on pages 3a and 3b and our definition of EBITDA is presented on page 5.

COMMENTS


(A)		On January 4, 2006, we purchased the 80% ownership interests in ProLogis North American Properties Funds II, III and IV from our fund partner. On March 1, 2006, we contributed substantially all of these properties into the ProLogis North American Industrial Fund, which was formed in February 2006.

(B)		The ProLogis Japan Properties Fund II was formed in 2005 and made its first acquisition in January 2006.

(C)		On September 30, 2005, we purchased the remaining 80% interest in ProLogis North American Properties Fund XII and the operating properties of the property fund are now reported as direct owned properties.

(D)		These fees are paid to us on a current basis.

(E)		The total average ownership is weighted based on each entity’s contribution to the total FFO for the period presented.

(F)		Fees paid to us include an incentive return of $109.2 million related to PEPR’s IPO (see note 14). In addition to the property and asset management fees earned by us and expensed by the property funds, we earn other fees for leasing, development and other activities performed on behalf of the property funds. Certain of these fees are capitalized by the property funds (primarily leasing and development fees). We defer an amount of the leasing and development fees we earn in an amount proportionate to our ownership interest in the property fund. The deferred fees are recognized in income in future periods by reducing the amount of the capitalized fees that the property fund includes in amortization or depreciation expense when we recognize our share of the earnings and/or loss of the property fund under the equity method. For FFO and EBITDA, the deferred fees are not recognized unless the underlying asset is sold to a third party by the property fund.

(G)		Consists primarily of adjustments to the amounts that we recognize under the equity method that are necessary to recognize the amount of the gains that were not recognized at the contribution date due to the deferral of certain proceeds based on our ownership interest in the property fund acquiring the property. See comment F and note 12.

Supplemental Information Page 10

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Property Funds — EBITDA, FFO and Net Earnings

(in thousands of dollars, except percentages)


							ProLogis			ProLogis			ProLogis			ProLogis			ProLogis			ProLogis			ProLogis			Liquidated
	ProLogis			ProLogis			N.A.			N.A.			N.A.			N.A.			N.A.			Japan			Japan			Property
	European			California			Properties			Properties			Properties			Properties			Industrial			Properties			Properties			Funds
	Properties			LLC			Fund I			Fund V			Funds VI - X			Fund XI			Fund (A)			Fund I			Fund II (B)			(A)(C)			Total

	For the Twelve Months Ended December 31, 2006

EBITDA, FFO and net earnings of each property fund:
Rental income		414,395			83,140			42,793			163,779			117,653			21,006			65,568			91,551			29,312			690			1,029,887
Rental expenses:
Property management fees paid to us (D)		(3,319	)		(2,753	)		(1,344	)		(5,013	)		(4,005	)		(827	)		(2,527	)		—			—			—			(19,788	)
Other		(64,249	)		(13,230	)		(7,367	)		(28,602	)		(26,215	)		(3,298	)		(13,039	)		(12,393	)		(620	)		(47	)		(169,060	)

Total rental expenses		(67,568	)		(15,983	)		(8,711	)		(33,615	)		(30,220	)		(4,125	)		(15,566	)		(12,393	)		(620	)		(47	)		(188,848	)

Net operating income from properties		346,827			67,157			34,082			130,164			87,433			16,881			50,002			79,158			28,692			643			841,039

Other income (expense) (E)		(31,926	)		179			(55	)		1,043			628			(83	)		481			(281	)		(490	)		(34	)		(30,538	)
Gains on liquidation of funds		—			—			—			—			—			—			—			—			—			139,571			139,571
Asset management and other fees paid to us (D)		(33,124	)		(27	)		(672	)		(687	)		(3,383	)		(1,107	)		(15	)		(5,160	)		(1,476	)		—			(45,651	)

EBITDA of the property fund		281,777			67,309			33,355			130,520			84,678			15,691			50,468			73,717			26,726			140,180			904,421

Current income tax and other expense		(16,387	)		(13	)		(80	)		(750	)		(62	)		—			(20	)		—			—			—			(17,312	)
Gain on disposition of CDFS business assets		—			—			—			5,842			—			—			—			—			—			—			5,842
Third party interest expense		(122,874	)		(22,408	)		(18,477	)		(49,740	)		(50,423	)		(3,319	)		(26,385	)		(14,142	)		(5,815	)		(314	)		(313,897	)

FFO of the property fund		142,516			44,888			14,798			85,872			34,193			12,372			24,063			59,575			20,911			139,866			579,054
Real estate related depreciation and amortization		(100,322	)		(20,707	)		(10,881	)		(39,125	)		(37,595	)		(7,255	)		(23,566	)		(23,226	)		(9,519	)		(170	)		(272,366	)
Depreciation adjustments on liquidation of funds		—			—			—			—			—			—			—			—			—			45,987			45,987
Gains on other dispositions, net		32,826			40			—			—			—			—			—			—			—			—			32,866
Foreign currency exchange gains, net		553			—			—			—			—			—			—			—			—			—			553
Deferred income tax benefit		12,577			—			—			3,444			—			—			—			—			—			—			16,021

Net earnings of the property fund		88,150			24,221			3,917			50,191			(3,402	)		5,117			497			36,349			11,392			185,683			402,115


Our share of EBITDA, FFO and net earnings of each property fund recognized under the equity method:
Our average ownership interest for the period (F)		21.6	%		50.0	%		41.3	%		11.2	%		20.0	%		20.0	%		20.0	%		20.0	%		20.0	%		20.0	%		22.0	%

Our share of the property fund’s EBITDA		60,977			33,655			13,776			14,618			16,936			3,138			10,094			14,743			5,345			28,036			201,318
Fees paid to us (G)		145,622			4,172			2,758			11,990			8,756			2,000			6,014			5,924			2,583			22,110			211,929
Other (H)		—			(644	)		(226	)		(230	)		(113	)		—			(36	)		1,040			244			(12	)		23

EBITDA recognized by us		206,599			37,183			16,308			26,378			25,579			5,138			16,072			21,707			8,172			50,134			413,270

Our share of the property fund’s FFO		30,840			22,444			6,112			9,618			6,839			2,474			4,813			11,915			4,182			27,973			127,210
Fees paid to us (G)		145,622			4,172			2,758			11,990			8,756			2,000			6,014			5,924			2,583			22,110			211,929
Other (H)		—			(384	)		(226	)		405			(268	)		—			(70	)		1,040			244			(46	)		695

FFO recognized by us		176,462			26,232			8,644			22,013			15,327			4,474			10,757			18,879			7,009			50,037			339,834


Our share of the property fund’s net earnings		19,076			12,111			1,618			5,621			(680	)		1,023			99			7,270			2,278			37,137			85,553
Fees paid to us (G)		145,622			4,172			2,758			11,990			8,756			2,000			6,014			5,924			2,583			22,110			211,929
Other (H)		2,529			912			197			1,229			(79	)		—			508			1,775			395			36			7,502

Net earnings recognized by us		167,227			17,195			4,573			18,840			7,997			3,023			6,621			14,969			5,256			59,283			304,984


	For the Twelve Months Ended December 31, 2005
EBITDA recognized by us		91,752			35,933			16,027			23,243			25,822			4,165			—			16,883			—			18,755			232,580

FFO recognized by us		64,215			24,363			8,384			20,114			15,542			3,514			—			14,675			—			12,388			163,195

Net earnings recognized by us		44,002			15,417			4,437			17,045			8,689			2,058			—			12,662			—			8,702			113,012

COMMENTS


(A)		On January 4, 2006, we purchased the 80% ownership interests in ProLogis North American Properties Funds II, III and IV from our fund partner. On March 1, 2006, we contributed substantially all of these properties into the ProLogis North American Industrial Fund, which was formed in February 2006. The amounts presented in “liquidated property funds” include amounts for ProLogis N.A. Properties Funds II-IV net of the deferral due to our continuing ownership interest in the properties. See note 14 for more detail and a description of the amounts recognized.

(B)		The ProLogis Japan Properties Fund II was formed in 2005 and made its first acquisition in January 2006.

(C)		On September 30, 2005, we purchased the remaining 80% interest in ProLogis North American Properties Fund XII and the operating properties of the property fund are now reported as direct owned properties.

(D)		These fees are paid to us on a current basis.

(E)		For PEPR, this amount includes expenses related to its IPO (see note 14).

(F)		The total average ownership is weighted based on each entity’s contribution to the total FFO for the period presented.

(G)		Fees paid to us include incentive returns of $131.2 million (see notes 14 and 15). In addition to the property and asset management fees earned by us and expensed by the property funds, we earn other fees for leasing, development and other activities performed on behalf of the property funds. Certain of these fees are capitalized by the property funds (primarily leasing and development fees). We defer an amount of the leasing and development fees we earn in an amount proportionate to our ownership interest in the property fund. The deferred fees are recognized in income in future periods by reducing the amount of the capitalized fees that the property fund includes in amortization or depreciation expense when we recognize our share of the earnings and/or loss of the property fund under the equity method. For FFO and EBITDA, the deferred fees are not recognized unless the underlying asset is sold to a third party by the property fund.

(H)		Consists primarily of adjustments to the amounts that we recognize under the equity method that are necessary to recognize the amount of the gains that were not recognized at the contribution date due to the deferral of certain proceeds based on our ownership interest in the property fund acquiring the property. See comment G and note 12.

Supplemental Information Page 10a

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Property Funds — Balance Sheets as of December 31, 2006
(in thousands, except percentages)


	ProLogis			ProLogis			ProLogis N.A.			ProLogis N.A.			ProLogis N.A.			ProLogis N.A.			ProLogis N.A.			ProLogis Japan			ProLogis Japan
	European			California			Properties			Properties			Properties			Properties			Industrial			Properties			Properties
	Properties			LLC			Fund I			Fund V			Funds VI -X			Fund XI			Fund			Fund I			Fund II			Total

Selected Balance Sheet Items of the Property Funds:

Operating properties, before depreciation	$	4,826,246		$	695,447		$	381,206		$	1,531,045		$	1,507,202		$	230,402		$	1,200,655		$	1,183,701		$	718,366		$	12,274,270


Other assets, net of other liabilities	$	108,544		$	16,969		$	5,746		$	(96,112	)	$	35,148		$	10,899		$	36,403		$	(29,307	)	$	(13,963	)	$	74,327


Total assets, before depreciation, net of other liabilities	$	4,934,790		$	712,416		$	386,952		$	1,434,933		$	1,542,350		$	241,301		$	1,237,058		$	1,154,394		$	704,403		$	12,348,597


Third party debt	$	2,615,606		$	325,033		$	242,304		$	827,208		$	905,048		$	66,137		$	748,056		$	528,701		$	375,529		$	6,633,622


Our ownership interest (A)		24.0	%		50.0	%		41.3	%		11.3	%		20.0	%		20.0	%		20.0	%		20.0	%		20.0	%		23.0	%


Our Share of the Property Funds’ Balances:

Our balance sheet investment (see page 8)	$	430,761		$	112,915		$	30,902		$	53,331		$	115,837		$	31,871		$	72,053		$	87,705		$	46,465		$	981,840
Add (deduct):
Our share of third party debt		627,745			162,517			100,072			93,475			181,010			13,227			149,611			105,740			75,106			1,508,503
Our share of depreciation and amortization		94,575			51,872			23,595			9,481			14,643			3,126			3,393			6,751			1,685			209,121
Gross proceeds not recognized on a cumulative basis (before amortization) (see note 13)		132,947			31,523			9,133			28,298			2,766			—			49,376			44,878			22,939			321,860
Other (B)		(101,678	)		(2,619	)		(3,891	)		(22,438	)		(5,786	)		36			(27,021	)		(14,195	)		(5,314	)		(182,906	)

Our share of total assets, before depreciation, net of other liabilities	$	1,184,350		$	356,208		$	159,811		$	162,147		$	308,470		$	48,260		$	247,412		$	230,879		$	140,881		$	2,838,418

COMMENTS


(A)		The total ownership interest is a weighted average based on each entity’s contribution to total assets, before depreciation, net of other liabilities.

(B)		Generally consists of: (i) advances to the property fund; (ii) additional basis in the investments that have been recorded directly by us; (iii) adjustments necessary to reflect our share of the equity of the property fund based on our ownership at the time the earnings were recognized for those property funds (applicable when our ownership has varied over time); and (iv) our proportionate share of the accumulated other comprehensive income of PEPR (cumulative foreign currency translation adjustments and hedge accounting adjustments) and ProLogis Japan Properties Funds I and II (cumulative foreign currency translation adjustments). The total ownership interest is a weighted average based on each entity’s contribution to total assets, before depreciation, net of other liabilities.

Supplemental Information Page 11

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Portfolio Analysis

By Ownership

(in thousands, except for percentages)


					Leased Percentage
	Square		Current		December 31,			December 31,
	Feet		Investment		2006			2005 (A)
Stabilized Portfolio (B):
Industrial Portfolio:
Direct Investment:
North America		170,584	$	8,159,196		94.14	%		93.76	%
Europe		9,490		654,592		86.23	%		73.23	%
Asia		4,572		305,081		100.00	%		99.79	%

Total Direct Investment — Stabilized		184,646		9,118,869		93.88	%		93.00	%

CDFS Joint Ventures (C):
North America		812		19,445		100.00	%		—
Asia		3,373		106,196		96.11	%		89.32	%

Total CDFS joint ventures		4,185		125,641		96.86	%		89.32	%

Property Funds (C):
ProLogis California LLC		14,211		695,447		99.01	%		97.10	%
ProLogis North American Properties Fund I		9,406		381,206		95.52	%		93.89	%
ProLogis North American Properties Fund V		36,106		1,531,045		97.59	%		98.61	%
ProLogis North American Properties Fund VI-X		25,397		1,507,202		90.35	%		90.82	%
ProLogis North American Properties Fund XI		4,315		230,402		98.78	%		97.96	%
ProLogis North American Industrial Fund (D)		21,218		1,200,655		98.48	%		—
ProLogis European Properties		58,114		4,826,246		96.90	%		96.34	%
ProLogis Japan Properties Fund I		7,424		1,183,701		99.45	%		100.00	%
ProLogis Japan Properties Fund II (D)		5,082		718,366		99.86	%		—


Total Property Funds		181,273		12,274,270		96.63	%		96.11	%

Total Industrial Stabilized Portfolio		370,104	$	21,518,780		95.26	%		94.49	%
Total Retail Stabilized Portfolio		991		276,825		98.90	%		99.52	%

Total Stabilized Portfolio		371,095	$	21,795,605		95.27	%		94.52	%


Total Operating Portfolio (E):
Industrial Portfolio:
Direct Investment:
North America		178,478	$	8,520,335		91.58	%		89.71	%
Europe		18,232		1,297,781		59.81	%		55.76	%
Asia		6,859		605,133		94.77	%		84.83	%

Total Direct Investment — Total Portfolio		203,569		10,423,249		88.85	%		87.72	%

CDFS Joint Ventures (C):
North America		1,313		34,131		61.84	%		100.00	%
Asia		4,161		127,037		95.42	%		79.78	%

Total CDFS joint ventures		5,474		161,168		87.37	%		84.78	%

Property Funds (C):
ProLogis California LLC		14,211		695,447		99.01	%		97.10	%
ProLogis North American Properties Fund I		9,406		381,206		95.52	%		93.89	%
ProLogis North American Properties Fund V		36,106		1,531,045		97.59	%		98.61	%
ProLogis North American Properties Fund VI-X		25,397		1,507,202		90.35	%		90.82	%
ProLogis North American Properties Fund XI		4,315		230,402		98.78	%		97.96	%
ProLogis North American Industrial Fund (D)		21,218		1,200,655		98.48	%		—
ProLogis European Properties		58,114		4,826,246		96.90	%		96.34	%
ProLogis Japan Properties Fund I		7,424		1,183,701		99.45	%		100.00	%
ProLogis Japan Properties Fund II (D)		5,082		718,366		99.86	%		—

Total Property Funds		181,273		12,274,270		96.63	%		96.11	%


Total Industrial Portfolio		390,316	$	22,858,687		92.44	%		91.54	%
Total Retail Portfolio		1,105		305,188		97.62	%		92.17	%

Total Operating Portfolio		391,421	$	23,163,875		92.46	%		91.50	%


COMMENTS

(A)		At December 31, 2005, the stabilized portfolio consisted of 328,415 square feet and the total operating portfolio consisted of 349,715 square feet.

(B)		We define our stabilized properties as those properties where the capital improvements, repositioning efforts, new management and new marketing programs for acquisitions or developments, and marketing programs in the case of newly developed properties, have been in effect for a sufficient period of time, generally 12 months. A property enters the stabilized pool at the earlier of 12 months or when it becomes substantially occupied, generally defined as 93%.

(C)		The investment amount represents the CDFS industrial joint venture’s/property fund’s basis in the real estate.

(D)		We made the initial contribution to these property funds during the first quarter of 2006. See note 22.

(E)		The total operating portfolio consists of both stabilized properties and prestabilized properties.

Supplemental Information Page 12

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Portfolio Analysis (Continued)

By Ownership

(in thousands, except for percentages)


					Leased Percentage
	Square		Current		December 31,			December 31,
	Feet		Investment		2006			2005 (A)
Stabilized Portfolio (B):
North America:
Direct Investment
Operating properties		153,789	$	7,603,011		94.24	%		94.02	%
CDFS properties — repositioned acquisitions		8,973		425,438		91.84	%		90.35	%
CDFS properties — completed developments		8,813		407,572		95.19	%		90.99	%

Total Direct Investment — North America		171,575		8,436,021		94.16	%		93.82	%

CDFS joint ventures (C)		812		19,445		100.00	%		—
Property Funds (C)		110,653		5,545,957		96.15	%		95.69	%

Total North America Stabilized Portfolio		283,040		14,001,423		94.96	%		94.53	%


Europe:
Direct Investment
Operating properties		660		24,467		92.44	%		100.00	%
CDFS properties — repositioned acquisitions		611		32,090		89.86	%		69.30	%
CDFS properties — completed developments		8,219		598,035		85.47	%		69.27	%

Total Direct Investment — Europe		9,490		654,592		86.23	%		73.23	%

Property Fund (C)		58,114		4,826,246		96.90	%		96.34	%

Total Europe Stabilized Portfolio		67,604		5,480,838		95.40	%		93.85	%


Asia:
Direct Investment
Operating properties		86		8,152		100.00	%		—
CDFS properties — repositioned acquisitions		1,155		57,303		100.00	%		100.00	%
CDFS properties — completed developments		3,331		239,626		100.00	%		99.76	%

Total Direct Investment — Asia		4,572		305,081		100.00	%		99.79	%

CDFS joint ventures (C)		3,373		106,196		96.11	%		89.32	%
Property Funds (C)		12,506		1,902,067		99.62	%		100.00	%

Total Asia Stabilized Portfolio		20,451		2,313,344		99.13	%		98.00	%


Total Stabilized Portfolio		371,095	$	21,795,605		95.27	%		94.52	%


Operating Portfolio (E):
North America:
Total North America Stabilized Properties		283,040	$	14,001,423		94.96	%		94.53	%
Prestabilized Properties
Operating properties		348		31,806		68.47	%		75.91	%
CDFS properties — repositioned acquisitions		1,686		100,799		25.05	%		10.02	%
CDFS properties — completed developments		5,974		256,897		38.73	%		25.07	%
CDFS joint ventures (C)		501		14,686		0.00	%		100.00	%

Total Prestabilized Properties — North America		8,509		404,188		34.95	%		51.08	%


Total North America Operating Portfolio		291,549		14,405,611		93.21	%		91.85	%


Europe:
Total Europe Stabilized Properties		67,604		5,480,838		95.40	%		93.85	%
Prestabilized Properties
CDFS properties — repositioned acquisitions		1,405		71,754		10.13	%		50.00	%
CDFS properties — completed developments		7,337		571,435		35.15	%		26.71	%

Total Prestabilized Properties — Europe		8,742		643,189		31.13	%		28.08	%


Total Europe Operating Portfolio		76,346		6,124,027		88.04	%		89.68	%


Asia:
Total Asia Stabilized Properties		20,451		2,313,344		99.13	%		98.00	%
Prestabilized Properties
CDFS properties — repositioned acquisitions		268		18,688		61.99	%		—
CDFS properties — completed developments		2,019		281,364		87.27	%		55.44	%
CDFS joint ventures (C)		788		20,841		92.49	%		47.84	%

Total Prestabilized Properties — Asia		3,075		320,893		86.41	%		51.65	%


Total Asia Operating Portfolio		23,526		2,634,237		97.46	%		93.35	%


Total Operating Portfolio		391,421	$	23,163,875		92.46	%		91.50	%

Comments are on page 12.

Supplemental Information Page 12a

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Lease Expirations

Total Operating Portfolio — Lease Expirations (A)
(in thousands, except for percentages)


Direct Investment
					Percentage of
	Square		Annual Base		Total Annual
	Footage		Rents (B)		Base Rents

2006 (C)		5,919	$	19,916		2.54	%
2007		24,814		105,740		13.48	%
2008		27,210		113,658		14.49	%
2009		28,442		117,429		14.97	%
2010		21,605		93,269		11.89	%
2011		27,310		122,069		15.56	%
2012		12,076		54,543		6.95	%
2013		5,468		27,668		3.53	%
2014		7,506		33,932		4.33	%
2015		2,577		13,799		1.76	%
2016		10,598		69,947		8.92	%
Thereafter		2,127		12,387		1.58	%

Totals		175,652	$	784,357		100.00	%


Property Funds and Industrial CDFS Joint Ventures
					Percentage of
	Square		Annual Base		Total Annual
	Footage		Rents (B)		Base Rents

2006 (C)		3,368	$	10,809		1.07	%
2007		19,457		97,585		9.70	%
2008		21,187		100,090		9.95	%
2009		23,045		116,033		11.53	%
2010		16,678		91,483		9.09	%
2011		21,463		106,445		10.58	%
2012		12,641		70,384		6.99	%
2013		10,280		62,124		6.17	%
2014		10,294		67,279		6.69	%
2015		13,319		90,292		8.97	%
2016		12,467		74,854		7.44	%
Thereafter		13,630		118,996		11.82	%

Totals		177,829	$	1,006,374		100.00	%

COMMENTS (square feet in thousands)


(A)		Assumes customers do not exercise renewal options.

(B)		Represents annualized base rents at lease expiration. As of December 31, 2006, the weighted average base rent per square foot was $4.30 (direct investment) and $5.50 (property funds and industrial CDFS joint ventures).

(C)		Amounts for direct investment include 2,508 square feet expiring on December 31, 2006 and 3,411 square feet leased on a month-to-month basis. Amounts for property funds include 1,857 square feet expiring on December 31, 2006 and 1,511 square feet leased on a month-to-month basis.

Supplemental Information Page 13

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Top 25 Customers
Total Operating Portfolio — By Annualized Base Rent (A)(B)


		Percentage of
		Annualized	Number
Rank	Customer Name	Base Rent (C)	of Leases

1	Deutsche Post AG (DHL)	2.85%	63
2	Ceva Logistics (D)	1.52%	17
3	Home Depot, Inc.	1.31%	15
4	NYK Line (Nippon Yusen Kaisha)	1.27%	16
5	Nippon Express Group	1.19%	18
6	Unilever	1.15%	7
7	NOL Group (Neptune Orient Lines)	1.03%	19
8	Hitachi, Ltd.	0.90%	7
9	Kuehne & Nagel	0.84%	16
10	Wincanton Logistics	0.81%	14
11	Wal-Mart Stores, Inc.	0.78%	8
12	Altria Group, Inc. (Kraft)	0.77%	9
13	Sears, Roebuck & Co.	0.76%	13
14	Sanyo Electric, Ltd.	0.75%	5
15	Geodis	0.72%	12
16	Procter & Gamble	0.67%	9
17	ASKUL Corp.	0.67%	2
18	ID Logistics France	0.63%	7
19	Shinkai TS Corp.	0.56%	4
20	Whirlpool Corporation	0.54%	8
21	PepsiCo	0.53%	9
22	Amazon.com, Inc.	0.52%	4
23	Matsushita Electric Indust. Co. Ltd	0.50%	3
24	Goodyear Tire & Rubber Co.	0.48%	6
25	FedEx Corporation	0.48%	18

	Total	22.23%(E)	309

COMMENTS (square feet in thousands)


(A)		Includes customers leasing space in properties owned directly and in properties owned by property funds and industrial CDFS joint ventures.

(B)		As of December 31, 2006, including property funds and industrial CDFS joint ventures, we had 325 Focus 500 Customers (targeted users of distribution space). These customers lease 190,685 square feet of distribution space representing 48.9% of the total industrial operating portfolio as of December 31, 2006.

(C)		Percentage is based on the annualized collected base rents as of December 31, 2006.

(D)		Formally known as TPG N.V. (TNT Automotive)

(E)		When considering only our direct investment properties, the top 25 customers represented 18.43% of our total annualized collected base rents as of December 31, 2006.

Supplemental Information Page 13a

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Leasing Activity (A)


														Weighted
	Total Leasing Activity (B)				Turnover Costs (C)				Rent Growth (D)					Average
	No. of		Square		Square				Square					Tenant
	Leases		Feet		Feet		Cost		Feet		Growth			Retention
			(in thousands)		(in thousands)				(in thousands)
First Quarter		507		31,017		24,459	$	1.04		21,254		-0.4	%		73.4	%
Second Quarter		472		22,622		14,909	$	1.27		16,838		0.1	%		74.1	%
Third Quarter		470		23,597		17,824	$	1.19		16,970		2.1	%		76.9	%
Fourth Quarter		453		24,969		18,707	$	1.45		15,895		5.6	%		78.5	%


Year to Date		1,902		102,205		75,899	$	1.22		70,957		1.7	%		75.6	%

Actual Capital Expenditures

For the Twelve Months Ended December 31, 2006
(in thousands, except for percentages)


	Recurring								Our Ownership			Our Share of
	Capital		Tenant		Leasing		Total Capital		Percentage			Actual Capital
	Maintenance		Improvements		Commissions		Expenditures		for the Period			Expenditures

ProLogis	$	29,437	$	45,410	$	21,377	$	96,224		100.0	%		$ 96,224
ProLogis European Properties		7,994		6,966		900		15,860		21.6	%		3,426
ProLogis California LLC		2,060		1,658		2,634		6,352		50.0	%		3,176
ProLogis North American Properties Fund I		792		998		1,572		3,362		41.3	%		1,389
ProLogis North American Properties Fund V		2,915		2,198		3,066		8,179		11.2	%		916
ProLogis North American Properties Fund VI-X		5,336		3,641		3,672		12,649		20.0	%		2,530
ProLogis North American Properties Fund XI		641		403		165		1,209		20.0	%		242
ProLogis North American Industrial Fund		950		856		1,307		3,113		20.0	%		623

	$	50,125	$	62,130	$	34,693	$	146,948					$ 108,526

COMMENTS


(A)		Represents leasing activity for industrial and retail space in properties that are directly owned and properties that are owned by the property funds and industrial CDFS joint ventures.

(B)		Represents all leases signed during the period, including leases for space in properties that are under development.

(C)		Represents the square feet and associated costs expected to be incurred i) to prepare a space for a new tenant, except for space that is being leased for the first time (i.e., in a new development property); ii) for a lease renewal with the same tenant; and iii) for space in properties acquired, if the space was vacant at the date of acquisition. The amount provided represents the total turnover costs expected to be incurred on the leases signed during the period and does not represent actual turnover expenditures for the period.

(D)		Represents the leasing activity and associated rent growth for space that has been previously leased. Excludes leasing activity and rent growth for space in properties acquired, until we have leased the space.

Supplemental Information Page 14

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Same Store Analysis (A)


			Percentage Change in
	Square Footage								Net			Adjusted Net
	of Same Store		Rental			Rental			Operating			Operating			Average			Rent Growth
	Population		Income (B)			Expenses (C)			Income (D)			Income (E)			Occupancy			(F)
	(in thousands)
First Quarter		274,361		+4.06	%		+5.41	%		+3.69	%		+4.04	%		+3.97	%		-1.10	%
Second Quarter		273,692		+2.24	%		-0.65	%		+3.03	%		+3.24	%		+2.96	%		+2.50	%
Third Quarter		270,864		+1.96	%		+6.44	%		+0.73	%		+1.78	%		+2.50	%		+2.30	%
Fourth Quarter		270,618		+3.87	%		+8.37	%		+2.67	%		+2.80	%		+1.25	%		+5.80	%


Year to Date		270,618		+3.31	%		+4.20	%		+3.07	%		+3.52	%		+2.55	%		+2.60	%

COMMENTS (in thousands)


(A)		A key component of our evaluation of the operating performance of our properties, our management personnel and our individual markets is a “same store” analysis. We define our same store portfolio of properties each quarter as those properties that have been in operation throughout the full quarter in both the current year and the prior year and that were also in operation at January 1st of the prior year. Accordingly, when a property is disposed of to a third party it will be removed from the population for the current quarter and the corresponding quarter of the prior year but previously presented quarterly information will not be changed. Same store statistics allow us to evaluate the actual operating performance of our operating portfolio as a consistent population from period to period and eliminates the effects of changes in the composition of the portfolio on performance measures.

		The percentage change presented is the weighted average of the measure computed separately for us and each of the property funds and joint ventures with the weighting based on each entity’s proportionate share of the combined component on which the change is computed. In order to derive an appropriate measure of period-to-period operating performance, the percentage change computation removes the effects of foreign currency exchange rate movements by computing each property’s components in that property’s functional currency.

(B)		Rental income includes the amount of rental expenses that are recovered from customers under the terms of their respective lease agreements. In computing the percentage change in rental income for the same store analysis, rental income is adjusted to remove the net termination fees recognized for each period. Net termination fees generally represent the gross fee negotiated at the time a customer is allowed to terminate its lease agreement offset by that customer’s rent leveling asset that has been previously recognized, if any. Removing the net termination fees for the same store calculation allows us to evaluate the growth or decline in each property’s rental income without regard to items that are not indicative of the property’s recurring operating performance. Customer terminations are negotiated under specific circumstances and are not subject to specific provisions or rights allowed under the lease agreements.

		Net termination fees removed from rental income were $2,186 and $1,376 for the three months ended December 31, 2006 and 2005, respectively and $4,403 and $9,875 for the twelve months ended December 31, 2006 and 2005, respectively.

(C)		Rental expenses represent gross property operating expenses. In computing the percentage change in rental expenses for the same store analysis, rental expenses include property management expenses for our direct owned properties based on the property management fee that has been computed as provided in the individual agreements under which our wholly owned management company provides property management services to each property (generally the fee is based on a percentage of revenues).

(D)		In computing the percentage change in net operating income, we compute net operating income as the weighted difference between rental income computed as described in comment B and rental expenses computed as described in comment C.

(E)		To derive adjusted net operating income, we adjust the net operating income computed as described in comment D to exclude the amount of straight-lined rents and adjustments for lease amortization recognized in each period. Lease amortization is associated with intangible assets resulting from acquisitions of operating properties that have leases in place with rental rates above or below market rates at the date of the acquisition. These above/below market leases are amortized over the remaining lease term as an adjustment to rental revenue. The straight-lined rents and amortization removed from rental income were $3,416 and $3,678 for the three months ended December 31, 2006 and 2005, respectively and $11,232 and $15,652 for the twelve months ended December 31, 2006 and 2005, respectively.

(F)		Represents the weighted average rent growth associated with leasing activity for space that has been previously leased by us and/or the property funds. Excludes leasing activity and rent growth for space in properties acquired until we have leased the space.

Supplemental Information Page 15

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Acquisitions and Dispositions (A)

(in thousands, except for percentages)


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			Year
	2006			2006			2006			2006			to Date
Acquisitions from third parties:
Operating properties acquired by us:
Square feet		2,024			3,872			6,109			1,524			13,529
Total expected investment of assets acquired ($)		113,353			222,797			321,462			111,736			769,348
Percentage leased at period end		84.37	%		63.19	%		84.80	%		86.65	%		78.76	%

Operating properties acquired by property funds:
Square feet		467			132			560			992			2,151
Total expected investment of assets acquired ($)		30,620			18,900			74,451			239,655			363,626
Percentage leased at period end		100.00	%		100.00	%		100.00	%		100.00	%		100.00	%

Dispositions:
Direct dispositions:
CDFS completed developments:
Contributions to property funds:
Square feet		3,579			1,523			5,055			3,430			13,587
Net sales proceeds ($)		226,204			306,718			412,764			262,920			1,208,606

Dispositions to third parties:
Square feet		179			1,101			385			205			1,870
Net sales proceeds ($)		22,888			117,161			57,686			47,765			245,500

CDFS repositioned acquisitions:
Contributions to property funds:
Square feet		115			—			—			—			115
Net sales proceeds ($)		6,171			—			—			—			6,171

Dispositions to third parties:
Square feet		—			—			—			—			—
Net sales proceeds ($)		—			—			—			—			—

Land dispositions:
Net sales proceeds ($)		16,581			23,224			29,830			52,866			122,501

Total CDFS assets (see page 17):
Square feet		3,873			2,624			5,440			3,635			15,572
Net sales proceeds ($)		271,844			447,103			500,280			363,551			1,582,778

Percentage of CDFS proceeds generated by contributions to property funds		85.5	%		68.6	%		82.5	%		72.3	%		76.7	%

Non-CDFS assets:
Contributions to property funds:
Square feet		3,587			—			—			1,403			4,990
Net sales proceeds ($)		144,935			—			—			49,656			194,591

Dispositions to third parties:
Square feet		905			888			624			1,986			4,403
Net sales proceeds ($)		108,220			80,016			205,986			137,747			531,969

Total all dispositions:
Square feet		8,365			3,512			6,064			7,024			24,965
Net sales proceeds ($)		524,999			527,119			706,266			550,954			2,309,338

Direct dispositions by property funds:
Square feet		—			1,311			—			42			1,353
Net sales proceeds ($)		—			98,814			—			10,180			108,994

COMMENT


(A)		Amounts do not include the acquisition of the 80% ownership interest of ProLogis North American Properties Funds II, III, and IV and the contribution of assets to ProLogis North American Industrial Fund that occurred in the first quarter of 2006. See note 15.

Supplemental Information Page 16

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

CDFS Business Summary

(in thousands, except for percentages)

CDFS Leasing Activity


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			Year
	2006			2006			2006			2006			to Date

Square feet of leases signed on CDFS properties (A)		8,643			5,630			7,000			6,010			27,283
Square feet of leases signed on CDFS properties to repeat customers		4,525			2,316			3,599			3,041			13,481
Percentage to repeat customers		52.4	%		41.1	%		51.4	%		50.6	%		49.4	%

2006 Proceeds from CDFS Dispositions/Contributions by Region


	Three Months Ended															Percentage
	December 31,			September 30,			June 30,			March 31,			Year			of Total
Region	2006			2006			2006			2006			to Date			Proceeds

North America:
Central	$	71,676		$	12,122		$	30,098		$	10,390		$	124,286			7.85	%
Midwest		30,513			54,234			70,638			21,479			176,864			11.17	%
Northeast		7,258			—			9,486			—			16,744			1.06	%
Pacific		83,836			1,493			18,706			38,703			142,738			9.02	%
Southeast		27,676			8,916			24,294			3,112			63,998			4.04	%
Mexico		—			—			—			10,611			10,611			0.67	%
Canada		—			4,616			—			4,296			8,912			0.56	%

		220,959			81,381			153,222			88,591			544,153			34.38	%

Europe:
Southern Europe		—			—			57,678			64,539			122,217			7.72	%
Northern Europe		15,629			—			51,745			—			67,374			4.26	%
Central Europe		—			—			11,348			64,465			75,813			4.79	%
United Kingdom		—			59,004			226,287			82,419			367,710			23.23	%

		15,629			59,004			347,058			211,423			633,114			40.00	%

Asia:
Japan		35,256			306,718			—			63,537			405,511			25.62	%

		35,256			306,718			—			63,537			405,511			25.62	%

Net sales proceeds on transactions before deferrals and recapture		271,844			447,103			500,280			363,551			1,582,778			100.00	%

Less: amounts not recognized (B)		(13,516	)		(18,101	)		(10,317	)		(23,608	)		(65,542	)
Add: deferred proceeds recapture		696			—			1,577			13,298			15,571

Total CDFS proceeds	$	259,024		$	429,002		$	491,540		$	353,241		$	1,532,807

2005 Total CDFS Proceeds


	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			Year
	2005			2005			2005			2005			to Date
Net sales proceeds on transactions before deferrals and recapture		249,401			405,348			339,223			296,786		$	1,290,758
Less: amounts not recognized (B)		(10,713	)		(16,403	)		(14,396	)		(11,258	)		(52,770	)
Add: deferred proceeds recapture		2,962			—			—			—			2,962

Total CDFS proceeds	$	241,650		$	388,945		$	324,827		$	285,528		$	1,240,950

COMMENTS


(A)		Represents the initial leasing activity in completed industrial and retail developments or repositioned acquisitions signed during the period, including industrial CDFS joint ventures.

(B)		When we contribute properties to an entity in which we have an ownership interest, we do not recognize a portion of the proceeds in our computation of the gain resulting from the contribution. The amount of the proceeds that cannot be recognized relates to our continuing ownership interest in the contributed property through our ownership in the property fund. See notes 12 and 13.

Supplemental Information Page 17

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

CDFS Business Summary (Continued)
(in thousands, except for percentages)

CDFS Asset Pipeline and Leasing Status by Product Classification


	December 31, 2006
	Square
	Feet		Investment (A)		Leased
Completed Developments and Acquired Properties (B):
North America:
CDFS properties — repositioned acquisitions		10,659	$	526,237		81.27	%
CDFS properties — completed developments		14,787		664,469		72.38	%

Total CDFS Operating Properties — North America		25,446		1,190,706		76.10	%

Europe:
CDFS properties — repositioned acquisitions		2,016		103,844		34.29	%
CDFS properties — completed developments		15,556		1,169,470		61.74	%

Total CDFS Operating Properties — Europe		17,572		1,273,314		58.59	%

Asia:
CDFS properties — repositioned acquisitions		1,423		75,991		92.85	%
CDFS properties — completed developments		5,350		520,990		95.19	%

Total CDFS Operating Properties — Asia		6,773		596,981		94.70	%


Total Acquired and Developed Properties (see page 12a)		49,791		3,061,001		72.45	%

Properties Under Development — Direct Owned (B):
North America		11,657		597,888		5.03	%
Europe		10,330		843,959		21.38	%
Asia		8,051		748,542		16.27	%

Total Properties Under Development (see page 18)		30,038		2,190,389		13.67	%


Total CDFS Asset Pipeline — Direct Owned		79,829	$	5,251,390		50.33	%


Completed Properties — CDFS Joint Ventures (C):
North America		1,313	$	17,066		61.84	%
Asia		4,161		63,518		95.42	%

Total Completed Properties — CDFS Joint Ventures		5,474		80,584		87.36	%


Properties Under Development — CDFS Joint Ventures (C):
Europe		150		3,637		0.00	%
Asia		352		7,663		15.51	%

Total Properties Under Development — CDFS Joint Ventures (see page 18a)		502		11,300		10.88	%


Total CDFS Asset Pipeline — CDFS Joint Ventures		5,976	$	91,884		80.93	%


Total CDFS Asset Pipeline (D)		85,805	$	5,343,274		52.46	%

CDFS Assets By Geographic Area (B)


	December 31, 2006
	Square
	Feet		Investment (A)		Leased

North America		38,416	$	1,805,660		54.05	%
Europe		28,052		2,120,910		44.57	%
Asia		19,337		1,416,704		60.76	%

Total CDFS Asset Pipeline (D)		85,805	$	5,343,274		52.46	%

COMMENTS


(A)		For operating properties represents current investment; for properties under development represents total expected investment.

(B)		Includes industrial and retail properties.

(C)		Represents 100% of the square footage and our proportionate share of the investment in industrial properties under development in CDFS joint ventures in which we have a weighted average 50% ownership interest.

(D)		Includes 100% of the properties owned directly. Also includes 100% of the square footage and our proportionate share of the investment in industrial properties under development in the CDFS joint ventures.

Supplemental Information Page 17a

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Development Summary (A)

(in thousands, except for costs per square foot and percentages)


	Annual			December 31,			September 30,			June 30,			March 31,
	2006			2006			2006			2006			2006


Development Starts:
North America:
Square feet		12,941			4,922			1,349			4,952			1,718
Total expected investment ($)		710,693			265,613			79,777			243,008			122,295
Cost per square foot ($)		54.92			53.96			59.14			49.07			71.18
Europe:
Square feet		15,180			5,542			2,047			2,259			5,332
Total expected investment ($)		1,053,991			390,945			197,132			138,047			327,867
Cost per square foot ($)		69.43			70.54			96.30			61.11			61.49
Asia:
Square feet		7,429			1,304			460			1,363			4,302
Total expected investment ($)		729,046			123,264			66,273			102,249			437,260
Cost per square foot ($)		98.13			94.53			144.07			75.02			101.63
Total:
Square feet		35,550			11,768			3,856			8,574			11,352
Total expected investment ($)		2,493,730			779,822			343,182			483,304			887,422
Cost per square foot ($)		70.15			66.27			89.00			56.37			78.17

Development Completions:
North America:
Square feet		10,171			1,825			1,166			4,244			2,936
Total expected investment ($)		497,388			144,257			81,447			154,507			117,177
Cost per square foot ($)		48.90			79.04			69.85			36.41			39.91
Leased percentage at completion (B)		44.80	%		26.65	%		66.27	%		44.27	%		48.32	%
Leased percentage as of 12/31/06		63.48	%		26.65	%		75.18	%		54.86	%		94.18	%
Europe:
Square feet		11,683			3,702			3,437			2,613			1,931
Total expected investment ($)		916,146			260,500			276,992			244,594			134,060
Cost per square foot ($)		78.42			70.37			80.59			93.61			69.43
Leased percentage at completion (B)		47.44	%		38.47	%		59.31	%		59.52	%		27.19	%
Leased percentage as of 12/31/06		59.28	%		38.47	%		62.65	%		79.87	%		65.05	%
Asia:
Square feet		6,069			1,772			1,600			1,071			1,626
Total expected investment ($)		764,604			204,016			163,214			186,979			210,395
Cost per square foot ($)		125.99			115.13			102.01			174.58			129.39
Leased percentage at completion (B)		93.73	%		85.53	%		94.49	%		96.63	%		100.00	%
Leased percentage as of 12/31/06		95.39	%		85.53	%		98.60	%		100.00	%		100.00	%
Total:
Square feet		27,923			7,299			6,203			7,928			6,493
Total expected investment ($)		2,178,138			608,773			521,653			586,080			461,632
Cost per square foot ($)		78.01			83.40			84.10			73.93			71.10
Leased percentage at completion (B)		56.43	%		47.13	%		68.95	%		56.37	%		54.98	%
Leased percentage as of 12/31/06		68.66	%		47.13	%		73.25	%		69.82	%		87.04	%

Under Development as of End of Period:
North America:
Square feet					11,657			8,560			8,377			7,670
Total expected investment ($)					597,888			475,054			467,300			373,252
Cost per square foot ($)					51.29			55.50			55.78			48.66
Leased percentage as of 12/31/06					5.03	%
Europe:
Square feet					10,330			8,570			10,095			10,451
Total expected investment ($)					843,959			677,795			743,692			814,925
Cost per square foot ($)					81.70			79.09			73.67			77.98
Leased percentage as of 12/31/06					21.38	%
Asia:
Square feet					8,051			7,537			9,931			9,591
Total expected investment ($)					748,542			826,593			924,973			1,005,550
Cost per square foot ($)					92.98			109.67			93.14			104.84
Leased percentage as of 12/31/06					16.27	%
Total:
Square feet					30,038			24,667			28,403			27,712
Total expected investment ($)					2,190,389			1,979,442			2,135,965			2,193,727
Cost per square foot ($)					72.93			80.26			75.21			79.17
Leased percentage as of 12/31/06					13.67	%

Construction in Progress (C):
North America ($)					256,310			224,904			180,544			202,675
Europe ($)					389,452			366,786			413,287			416,054
Asia ($)					319,080			320,157			356,813			422,736

Total Construction in Progress ($)					964,842			911,847			950,644			1,041,465

COMMENTS (square feet in thousands)


(A)		Includes a retail development that was started during the second quarter, which aggregates 224 square feet and has a total expected investment of $38.1 million and a retail development that was started in the first quarter of 2006, which aggregates 204 square feet and has a total expected investment of $58.5 million and was completed in the fourth quarter of 2006.

(B)		Represents the leased percentage as of the end of the quarter in which the development was completed.

(C)		Includes construction in progress for land, retail and industrial distribution properties development.

Supplemental Information Page 18

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Development Summary — Industrial CDFS Joint Ventures (A)
(in thousands, except for costs per square foot and percentages)


	Annual			December 31,			September 30,			June 30,		March 31,
	2006			2006			2006			2006		2006


Development Starts:
North America (B):
Square feet		—			—			—			—		—
Total expected investment ($)		—			—			—			—		—
Cost per square foot ($)		—			—			—			—		—
Europe (B):
Square feet		150			—			—			150		—
Total expected investment ($)		7,273			—			—			7,273		—
Cost per square foot ($)		48.49			—			—			48.49		—
Asia (B):
Square feet		363			273			—			90		—
Total expected investment ($) (C)		36,036			12,617			—			23,419		—
Cost per square foot ($)		99.27			46.22			—			260.21		—
Total:
Square feet		513			273			—			240		—
Total expected investment ($)		43,309			12,617			—			30,692		—
Cost per square foot ($)		84.42			46.22			—			127.88		—

Development Completions:
North America (B):
Square feet		501			—			—			—		501
Total expected investment ($)		16,612			—			—			—		16,612
Cost per square foot ($)		33.15			—			—			—		33.15
Leased percentage at completion (D)		0.00	%		—			—			—		0.00	%
Leased percentage as of 12/31/06		0.00	%		—			—			—		0.00	%
Asia (B):
Square feet		1,776			802			443			—		531
Total expected investment ($)		77,896			27,078			33,586			—		17,232
Cost per square foot ($)		43.87			33.76			75.81			—		32.47
Leased percentage at completion (D)		71.76	%		100.00	%		46.71	%		—		50.00	%
Leased percentage as of 12/31/06		97.38	%		100.00	%		89.50	%		—		100.00	%
Total:
Square feet		2,277			802			443			—		1,032
Total expected investment ($)		94,508			27,078			33,586			—		33,844
Cost per square foot ($)		41.51			33.76			75.81			—		32.80
Leased percentage at completion (D)		54.46	%		100.00	%		46.71	%		—		25.72	%
Leased percentage as of 12/31/06		75.95	%		100.00	%		89.50	%		—		51.43	%

Under Development as of End of Period:
North America (B):
Square feet					—			—			—		—
Total expected investment ($)					—			—			—		—
Cost per square foot ($)					—			—			—		—
Leased percentage as of 12/31/06					—
Europe (B):
Square feet					150			150			150		—
Total expected investment ($)					7,273			7,273			7,273		—
Cost per square foot ($)					48.49			48.49			48.49		—
Leased percentage as of 12/31/06					0.00	%
Asia (B):
Square feet					352			1,064			1,484		1,394
Total expected investment ($)					15,326			44,866			73,346		43,198
Cost per square foot ($)					43.54			42.17			49.42		30.99
Leased percentage as of 12/31/06					15.51	%
Total:
Square feet					502			1,214			1,634		1,394
Total expected investment ($)					22,599			52,139			80,619		43,198
Cost per square foot ($)					45.02			42.95			49.34		30.99
Leased percentage as of 12/31/06					10.88	%

COMMENTS


(A)		Includes only industrial properties owned by CDFS joint ventures.

(B)		Represents 100% of the development activity of our industrial CDFS joint ventures operating in North America, Europe and Asia, in which we have a weighted average ownership interest of 50%.

(C)		The total expected investment for the development start in the second quarter in Asia includes the costs to develop a container yard, which includes a small building. The cost for the entire project is reflected in the building cost per square foot.

(D)		Represents the leased percentage as of the end of the quarter in which the development was completed.

Supplemental Information Page 18a

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Capital Structure
(in thousands, except per share amounts)

Debt Outstanding as of December 31, 2006


				Principal Maturities
				of Direct Debt
Principal Outstanding				(senior notes and fixed rate secured debt)


Direct Debt:
Senior notes:
7.25% Notes due 2007		135,000		2007		540,171
Floating Rate Yen Notes due 2007 (A)		301,951		2008		714,007
7.10% Notes due 2008		250,000		2009		374,836
7.95% Notes due 2008		50,000		2010		561,754
Floating Rate Notes due 2009		250,000		2011		513,181
7.30% Notes due 2009		25,000		2012		751,584
7.875% Notes due 2009		28,125		2013		375,608
8.72% Notes due 2009		56,250		2014		49,131
5.25% Notes due 2010		500,000		2015		555,361
4.375% Euro Notes due 2011		461,230		2016		1,133,294
5.50% Notes due 2012		450,000		Thereafter		268,592
5.50% Notes due 2013		300,000		Add: premium, net		52,594

5.625% Notes due 2015		400,000			$	5,890,113

7.81% Notes due 2015		100,000
9.34% Notes due 2015		50,000
5.625% Notes due 2016 (A)		550,000
5.75% Notes due 2016		400,000
8.65% Notes due 2016		50,000
7.625% Notes due 2017		100,000

Less: discount		(12,464	)

Total senior notes		4,445,092


Fixed rate secured debt		1,445,021
Assessment bonds		33,977

		1,478,998


Subtotal		5,924,090

Lines of credit (see page 20)		2,462,796


Total direct debt		8,386,886

Our share of third party debt of unconsolidated investees:
Property funds (see page 11)		1,508,503
CDFS joint ventures		132,485
Other unconsolidated investees		43,461

		1,684,449


Total	$	10,071,335

Market Capitalization as of December 31, 2006


			Market
	Shares		Price at
	or Equivalents		December 31,		Market Value
	Outstanding		2006		Equivalents

8.54% Series C Cumulative Redeemable Preferred Shares		2,000	$	59.00	$	118,000
6.75% Series F Cumulative Redeemable Preferred Shares		5,000	$	25.40		127,000
6.75% Series G Cumulative Redeemable Preferred Shares		5,000	$	25.40		127,000

		12,000				372,000


Common Shares		250,912	$	60.77		15,247,922
Convertible limited partnership units (5,139 units)		5,140	$	60.77		312,358

		256,052				15,560,280

Total equity						15,932,280
Total debt (including our share of third party debt of unconsolidated investees)						10,071,335

Total market capitalization (including our share of third party debt of unconsolidated investees)					$	26,003,615

COMMENTS

(A)

Notes were issued in the fourth quarter of 2006. Proceeds were used to repay borrowings under our Global Line and for other general corporate purposes.

Supplemental Information Page 19

ProLogis

Fourth Quarter 2006
Unaudited Financial Results

Debt Analysis

Revolving Lines of Credit
(in thousands, except for percentages)


			Outstanding at					Weighted
	Total		December 31,		Remaining			Average
	Commitment		2006		Capacity			Interest Rate (A)


Global Line (B)	$	3,460,582	$	2,462,796	$	997,786	(D)		3.56	%
Other (C)		68,676		—		68,676	(E)		—

	$	3,529,258	$	2,462,796	$	1,066,462			3.56	%

Weighted Average Interest Rates and Term to Maturity


				Weighted			Weighted Average
				Average			Term to
	% of Debt			Interest Rate (A)			Maturity (F)


Revolving lines of credit		29.49	%		3.56	%		n/a
Senior notes		53.21	%		5.51	%		6.0	years
Secured debt		17.30	%		6.66	%		6.6	years

Totals (G)		100.00	%		5.13	%		6.1	years

Financial Ratios


	Year Ended			Year Ended
	December 31, 2006			December 31, 2005

Interest coverage ratio (H)		4.4			4.4
Fixed charge coverage ratio (I)		4.0			3.9
Total debt to total book assets (including our share of unconsolidated investees) (see pages 1 and 19)		55.5	%		53.1	%
Total debt to total market capitalization (including our share of unconsolidated investees) (see page 19)		38.7	%		39.7	%

COMMENTS


(A)		Represents the weighted average base interest rates using local currency rates on borrowings that were outstanding at December 31, 2006.

(B)		Represents a $3.4 billion global senior credit facility (“Global Line”) through a syndicate of banks. The total commitment fluctuates in U.S. dollars based on the underlying currencies. Funds may be drawn in U.S. dollar, euro, Japanese yen, British pound sterling, Chinese renminbi, South Korean won and Canadian dollar. Based on our public debt ratings, interest on the borrowings under the Global Line accrues at a variable rate based upon the interbank offered rate in each respective jurisdiction in which the borrowings are outstanding. The Global Line matures in October 2009, excluding a 12-month extension at our option for all currencies except the renminbi, which matures in May 2009.

(C)		This facility represents a total commitment of 35 million British pound sterling.

(D)		Excludes letters of credit outstanding with the lending banks aggregating $87.0 million at December 31, 2006.

(E)		Excludes letters of credit outstanding with the lending bank aggregating $42.1 million at December 31, 2006.

(F)		Calculated through final maturity for debt outstanding at December 31, 2006.

(G)		Total direct debt excluding assessment bonds.

(H)		Calculated as FFO as defined on pages 3a and 3b before impairment charges, preferred dividends, interest expense and minority interest, divided by interest expense (interest expense excludes capitalized interest and amortization of loan costs).

(I)		Calculated as FFO as defined on pages 3a and 3b before impairment charges, preferred dividends, interest expense and minority interest, divided by combined interest expense (interest expense excludes capitalized interest and amortization of loan costs) and preferred dividends.

Supplemental Information Page 20


1-12846		74-2604728

(Commission File Number)		(I.R.S. Employer Identification No.)


4545 Airport Way, Denver, Colorado		80239

(Address of Principal Executive Offices)		(Zip Code)

	o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

	o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

	o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

	o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Exhibit No.		Description

99.1		Press Release, dated February 6, 2007, and supplemental information.


	PROLOGIS
February 6, 2007	By:	/s/ Dessa M. Bokides
		Name:	Dessa M. Bokides
		Title:	Chief Financial Officer


Date of Report (Date of Earliest Event Reported)		February 6, 2007


		Page
OVERVIEW:
Selected Financial Information		1

FINANCIAL STATEMENTS:
Consolidated Statements of Earnings		2 - 2a

Consolidated Statements of Funds From Operations (FFO)		3 - 3b

Reconciliations of Net Earnings to FFO		4

Reconciliations of Net Earnings to EBITDA		5

Consolidated Balance Sheets		6

Notes to Consolidated Financial Statements		7 - 7d

SELECTED FINANCIAL INFORMATION:
Investments in and Advances to Unconsolidated Investees/Land Owned and Controlled		8

Components of Net Asset Value and Related Comments		9 - 9a

Property Funds — EBITDA, FFO and Net Earnings		10-10a

Property Funds — Balance Sheets		11

SELECTED STATISTICAL INFORMATION:
Portfolio Analysis		12 - 12a

Lease Expirations		13

Top 25 Customers		13a

Leasing Activity/Actual Capital Expenditures		14

Same Store Analysis		15

SELECTED INVESTMENT INFORMATION:
Acquisitions and Dispositions		16

CDFS Business Summary		17 - 17a

Development Summary		18 - 18a

SELECTED OTHER INFORMATION:
Capital Structure		19

Debt Analysis		20

Geographic Distribution Based on Square Footage		21


North America	%			%		Europe	%

United States			Mexico

Atlanta		4.61	Guadalajara		0.11	Belgium		0.27
Austin		0.56	Juarez		0.35	Czech Republic		0.51
Central Valley (California)		1.42	Mexico City		0.79	France		6.51
Charlotte		1.70	Monterrey		0.45	Germany		1.25
Chicago		5.39	Reynosa		0.76	Hungary		0.55
Cincinnati		1.98	Tijuana		0.37	Italy		1.85

Columbus		3.00				Netherlands		1.46
Dallas/Fort Worth		5.30	Total Mexico		2.83	Poland		2.13

Denver		1.72				Spain		0.85
El Paso		0.96				Sweden		0.39
Greenville		0.69	Canada			United Kingdom		3.73


Houston		2.58	Toronto		0.25
I-81 Corridor (E. Pennsylvania)		3.81				Total Europe		19.50%

Indianapolis		2.65
Las Vegas		0.71	Total North America		74.50%

Louisville		1.21
Memphis		2.67				Asia		%
Nashville		1.37
New Jersey		4.80				China		1.68
Orlando		0.75				Japan		4.25
Other non-target		0.39				Korea		0.03
Phoenix		0.89				Singapore		0.04

Portland		0.84
Reno		0.99				Total Asia		6.00%

Salt Lake City		0.57
San Antonio		1.85
San Diego		0.05
San Francisco-East Bay		1.43
San Francisco-South Bay		1.50
Seattle		0.29
South Florida		1.30
Southern California		9.96
St. Louis		0.74
Tampa		0.98
Washington D.C./Baltimore		1.76


Total United States		71.42