Common Share Dividend Policy

On February 1, 2010, ProLogis' Board set the projected annual common share dividend level for 2010 at $0.60 cents per share. The payment of dividends is dependent upon our financial condition and operating results and may be adjusted during the year at the discretion of our Board.

Our current policy is to pay quarterly dividends to shareholders based upon what we consider to be a reasonable percentage of cash flow and at the level that will allow us to continue to qualify as a REIT for tax purposes. Because depreciation is a non-cash expense, cash flow will typically be greater than net earnings. Therefore, annual dividends are expected to be consistently higher than annual earnings.