UBS – 2006 Global Real Estate Conference Delivering Value Across Europe Robert Watson CEO

2 ProLogis European Properties Largest pan-European owner and operator of high-quality distribution facilities Highly experienced manager Efficient tax structure Strong and stable cash flow Diverse, high-quality customer set Excellent opportunity for growth Exposure to wider range of investors through listing on Euronext Trading symbol PEPR total market cap at 16 Nov 06

3 Strong Commitment and Continued Management by ProLogis ( Bn) Year Ending Strong local market presence established since 1997 Over 250 full-time employees in Europe located in 15 offices ProLogis Operating System ® ensures consistent, high-quality customer care Innovator in pan-European CMBS financing Alignment of interests with current 24% ownership -- L/T not less than 10% Growth In Assets Held in ProLogis European Properties

4 Budapest, Hungary Munich, Germany Rugby, UK = PEPR Properties High-quality portfolio of modern distribution space 5.3 million m² 275 buildings in 25 submarkets in 11 countries Average age 6.6 years Leverages on reconfiguration of European logistics Over 70% built by ProLogis 96.7% leased at 30 Sep 06 Pan-European Portfolio

5 Efficient Tax Structure Structure as a Luxembourg FCP (fonds commun de placement) – an unincorporated contractual co-ownership scheme governed by management regulations Effectively acts as proxy for Euro-REIT Allows for a reduction in overall country-by-country tax rate in order to maximise after-tax distributable cash flow First Luxembourg FCP to be admitted for listing on Eurolist by Euronext but expect it will not be the last

6 PEPRs Historical Occupancy Levels Lease expiry, as % of Annualised Rental Income (1)Based on annualised rental income as at 30 September 2006 Stable Cash Flow Favourable leases Average lease term of 5.1 years to first break 7.3 years to lease expiries Staggered maturities 72% expire >2010 (1) Non-amortising fixed rate debt Management regulations provide that PEPR distribute substantailly all distributable cash flow Distributions occur quarterly

7 Diversified Customer Base Almost 400 customers Over 600 leases in place as at 30 Sep 2006 Our top 3 customers represent 16.4% of annualised base rents 56% of customers are 3PLs (1) serving clients in a variety of industries Over 30% of top 50 customers have investment grade corporate or parent company credit rating 3PLs 56% Manufacturers 13% (2) Retail 14% (1)Third Party Logistics companies (2)Including consumer packaged goods, automotive and industrial durables Others 17% Top 10 customers Customer split by type

8 Increase gearing from 45% to 60% over 3 years Direct Investments 200 million of acquisitions of newly completed facilities from ProLogis pipeline at 5% discount to market value Direct purchase of third party assets – i.e. sale/leaseback agreements Equity Investments in Europe Right to invest up to 30% in future ProLogis Private Equity Funds Right to participate in ProLogis Joint Ventures Direct Portfolio Increase in NAV Rising rental rates Growth Opportunities External Growth Internal Growth ProLogis European Development Pipeline Completed and repositioned assets 1.3 million m² Currently under development 0.8 million m² Land owned and optioned 1,261 hectares

9 Security of a real estate backed investment underpinned by state-of-the-art distribution facilities Strong, stable and regular cash flows Track record of positive NAV growth Improving economic drivers and rising construction costs should lead to rental rate increases Opportunity for external growth through future investments in other ProLogis funds Key Investment Drivers