2006 Sustainability Report
[Introduction]
[Executive Introduction]
[Mission]
[GRI Indicators]
[Company Overview]
[Environmental]
[Economic]
[Social]
[Global Markets]

Company Overview

ProLogis is the world's largest owner, manager and developer of distribution facilities, with operations in 20 countries spanning three continents.

The company has $26.7 billion of assets owned, managed and under development, comprising 422 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.

We are organized under Maryland law and have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. Our European headquarters are located in the Grand Duchy of Luxembourg with our European customer service headquarters located in Amsterdam, the Netherlands. Our regional offices in Asia are located in Tokyo, Japan, and Shanghai, China.

Our business is currently organized into three reportable business segments: (1) property operations, (2) fund management and (3) CDFS business.

PROPERTY OPERATIONS
Our property operations segment represents the direct long-term ownership of industrial distribution and retail properties.

FUND MANAGEMENT
Our fund management segment represents the long-term investment management of unconsolidated property funds, and the properties they own, with the objective of generating a high level of returns to us and our fund partners. Along with the income recognized under the equity method from our investments in the property funds, we include fees and incentives earned for services performed on behalf of the property funds (primarily property management and asset management services) and interest earned on advances to the property funds, if any, in this segment.

CDFS BUSINESS
Our CDFS business segment primarily encompasses our development of properties that generally are either contributed to a property fund or sold to third parties. Additionally, we acquire properties with the intent to rehabilitate and/or reposition the property in the CDFS business segment prior to being contributed to a property fund. We engage in commercial mixed-use development activities generally with the intention of selling the land or completed projects to third parties.

Additionally, we have land positions, including land owned by the CDFS joint ventures and land controlled through contracts or options, for future development of industrial distribution properties or other commercial development.

KEY STAKEHOLDER ENGAGEMENT
We define our key stakeholders as any person or group of people who may affect, or be affected by, ProLogis' operations. We communicate openly and engage in good faith with our stakeholders, and we encourage honest feedback from them. These stakeholders include customers, investors, planners, non-governmental organizations, suppliers, employees and the communities in which we operate. Our engagement takes various forms including opinion surveys, investor meetings, one-on-one meetings and industry forums.

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