Renewable Energy Initiatives

[EN6] We continue to prove our position as an industry leader. Not only does ProLogis have a well-developed sustainability program, but we are now using that expertise to create additional income in a tough economic environment.

In 2008, realizing the potential to create additional income from its existing assets, ProLogis formalized its approach to renewable energy installations at its warehouse facilities in North America, Europe and Asia. We are soliciting utility/energy companies to sign long-term lease agreements for roof space on our existing facilities, to be used for solar installations, and third-party investors to potentially lease and/or fund our solar installations.

There are many reasons why partnerships between utilities, investors and commercial/industrial real estate owners make sense. Industrial warehouses, by design, are located near major populations. As such, facilities that reach these populations are connected to the local utility company’s electrical grid serving these same populations.

Additionally, by leasing our rooftop space and earning construction management fees for installing the solar panels, we are able to supplement our revenue stream without committing additional capital. Our fund investors benefit by getting additional revenue through roof leases on facilities with solar installations.

Currently, ProLogis has 11 solar installations with capacity totaling 6.1 megawatts (MW), which should generate 5,237,590 kilowatt hours (kWh) per year. However, solar power is not the only renewable energy we are targeting. ProLogis also is dedicated to installing wind turbines at parks where conditions are viable for this technology. So far, ProLogis has three installations with capacity totaling 68 kilowatts (kW) and an estimated annual production of 49,200 kWh. At full capacity, including the total power generated from both our solar and wind installations, we could provide electricity to power approximately 527 homes.

These efforts helped us make considerable progress toward our renewable energy goals during 2008. So far, ProLogis is approximately 27% of the way to reaching its 2010 goal of installed capacity of 25 million kWh per year across the company's global property portfolio.