[3.5; 4.14-4.17]

Stakeholder Engagement and Communication Framework

In embracing sustainability as a key corporate value, we recognize that our operations are multi-directional – they both impact and are impacted by others. Therefore, working effectively with our stakeholders is of vital importance to the company.

ProLogis defines its stakeholders as any person or group of persons who may affect or be affected by ProLogis' business operations. This includes customers, investors, employees, brokers, governments and non-governmental organizations, suppliers, associations, media and the communities in which we operate. ProLogis defines sustainability in the context of our economic, environmental and social performance; it is our understanding that each of these stakeholder groups has an interest in at least one of these aspects of our company and therefore is expected to have an interest in this report.

In determining report content, we took into consideration a variety of issues that are potentially important to our stakeholders, including energy use and greenhouse gas emissions, sourcing, compliance and investing. We then identified the issues over which ProLogis has some ability to make an impact. For each of those issues, we determined their materiality by assessing the level of importance to the stakeholder, public recognition of the issue, binding requirements, risk and relation to core competencies and organizational strategy. This exercise provided a systematic approach to identifying the material issues included in this report. Please see our Stakeholder Engagement Grid for an overview of our stakeholders and how we currently engage them.

We communicate openly and in good faith with our stakeholders and encourage honest feedback from them. This is obtained through active outreach, including customer satisfaction surveys, group and one-on-one investor meetings, investor perception surveys, industry forums, media interviews, quarterly earnings calls, employee “town hall” meetings and webcasts, public planning meetings and meetings with vendors and suppliers. Additionally, we provide departmental contact information on our corporate website, www.prologis.com.

We also respond to incoming inquiries. They can originate from local communities seeking volunteers, from third-party organizations looking for information about ProLogis' plans to address climate change, such as the Carbon Disclosure Project and KLD Analytics, and from individual or institutional investors trying to better understand our business operations.

[PR6] We place a high importance on maintaining consistent messaging when marketing our business. Every employee adheres to a detailed disclosure policy, and we follow all NYSE guidelines regarding press release announcements and other marketing collateral. The majority of our senior marketing staff belongs to one or more professional organizations, such as the Business Marketing Association and the American Marketing Association, and adheres to guidelines established by these groups. [PR7] We are in full compliance with our marketing communications regulations and do not have any violations to report for 2008.