Over the second quarter, Prologis turned in a strong result both globally and in Europe, despite ongoing uncertainty due to the COVID-19 pandemic. The logistics sector remained resilient during the period with robust take-up levels and declining vacancy thanks to tight supply and sustained and growing demand.
The second quarter played out better than expected in terms of both results for the period and outlook for 2020 and beyond. Leasing activity in Prologis’ portfolio, market fundamentals, valuations and rent collections are all trending favourably and Prologis globally has adjusted its guidance, based on a more positive outlook for the second half of 2020.
The vacancy level in Europe declined further from 4% to 3.6% reflecting an uptick in demand from companies active in e-commerce, pharma and food & beverage. Rents eased by -0.6% in Q2 2020, a softening driven by supply and unrelated to Covid-19.
Results in Central Europe
Prologis in Central Europe (Poland, Czech Republic, Slovakia and Hungary), ended the second quarter of 2020 with a total portfolio of 4.27 million square meters. Occupancy stood at high 95.9%, compared to 95.5% in the first quarter of 2020.
414,500 square meters of leases were signed throughout the quarter, 4 buildings were completed with a total area of 135,500 square meters (84.5% leased) and 13 hectares of land was acquired for two new facilities with a potential NRA of 60,000 square meters at Prologis Park Budapest-Sziget II.
