ProLogis European Properties has posted a 1.8% increase in net asset value to €6.26 a share for the three months to 31 March.
In its quarterly results released today, the industrial property investor said first-quarter pretax profit fell to €28.3m, down from €32.5m the previous year.
The fall was primarily driven by a €3.6m decline in total revenue, €1.4m of property writedowns and €2.8m of higher taxes.
Total revenue for Q1 fell by €3.6m to €64.5m (Q1 2009: €68.1m), mostly due to the loss of €4.2m of rental income from portfolio sales and a €2.4m decline in rental income as a result of leases rolling back to market.
Peter Cassells, chief executive of PEPR, said: “PEPR continues to achieve robust operational performance and financial results in spite of the sustained challenging market conditions.
“Portfolio occupancy remains high, at 94.8%, and continues to be a primary focus for us.
“During the quarter, we received a further €392.6m of new secured financings, in what remains a tight and conservative credit market.
“These financings enabled us to repay all outstanding debt in 2010 and to begin to reduce our 2012 maturity.”
Cassells added that occupier demand continued to be driven by customer consolidation and business rationalisation.
But, he said certain market segments such as food and discount retailers have continued to expand their supply chains with demand in 2010 likely to remain around similar sectors.
