Prologis had a strong start to 2016, avoiding the usual first-quarter dip according to the company’s European president, Ben Bannatyne.
Tenant demand has remained around 95% he said, with rolled over agreements levelling out the usual peak of the pre-Christmas season.
The UK in particular had been a strong source of growth in the company driven by very strong demand caused by restricted supply. Speculative development, while still infrequent, was picking up, he warned.
Following the UK’s lead was northern Europe, in particular Hamburg and Munich. Barcelona in particular and Spain in general also showed strong recovery in the latter stages of 2015 and into the first quarter of 2016.
The strong European performance helped drive the overall group performance with core funds from operations, the US equivalent of NAV, up 24% to $0.61 per share.
Globally in the quarter the company started $193m of new development, starting a trend Bannatyne said will drive the growth strategy of the company in the year to come.
Of those 41.5% were being built to suit the customer. Bannatyne said the company would continue to develop on a demand led model, with a strong land bank to help deliver on stable demand.
To send feedback, e-mail mike.cobb@estatesgazette.com or tweet @MikeCobbEG or @estatesgazette
