At the end of Q1 2020, the occupancy rate of the Hungarian portfolio of logistics real estate investor Prologis stood at 99.4%, according to a quarterly report released by the company.
Prologis’ European portfolio totaled 756 buildings and 18.5 million sqm on March 31, 2020. The occupancy rate for the portfolio stood at 96%. Total development activity in the first quarter was 106,384 sqm, of this 84.1% was built-to-suit in key logistics markets close to consumption centers.
The companyʼs Central European portfolio totaled 4.2 million sqm (Poland, the Czech Republic, Slovakia and Hungary), including 613,800 sqm in Hungary. The portfolio occupancy rate in the region stood at 95%, below the Hungarian rate. Leasing agreements were signed for more than 380,000 sqm, an increase of 35% compared to the same period last year.
According to the report, none of the companyʼs investments were halted in Central Europe. Five buildings totaling 160,000 sqm are currently under construction, including Prologis Park Budapest-Harbor in Hungary.
The company’s leadership team said that it had entered the COVID-19 period in a position of strength, with significant liquidity and borrowing capacity.
Prologis argues that the impact of the pandemic will play out differently across the company’s regions, including in Europe, where occupancy levels are expected to fall by 130 basis points due to changes in supply and demand dynamics.
In Q1 2020, the company posted higher-than-expected rental increases; however, the forecast currently is for flat rental growth for the full year.