Multi-Year Goals

In 2006, ProLogis adopted a series of multi-year, quantifiable waste and renewable energy goals to be achieved by the end of 2010 for all new development in its global portfolio. They are as follows:

• Utilization of 20% recycled content, based on cost, in all new warehouse developments.
• Diversion of 75% of construction debris from disposal in landfills and incinerators on all new projects.
• Reduction of potable water usage for landscape irrigation by 50% in accordance with methodology established under the U.S. Green Building Council's LEED (Leadership in Energy and Environmental Design) program.
• Installation of renewable energy sources that have a combined generation capacity of over 25 million kilowatt hours per year across the company's global property portfolio.

Over the years, ProLogis has made progress toward reaching its goals. However, we are not progressing as fast as originally expected due to the fall-out of the global credit markets and the resultant impact on our business operations and development pipeline. Given these changes, we are planning to re-evaluate our multi-year goals and adjust them to reflect current and near-term market conditions, and we will report on any modifications accordingly.