PROLOGIS® IBES 可用 三角 日期 1 TT 1 - l l - Prologis Ports Elizabeth Triport, Elizabeth, New Jersey SECOND QUARTER 2025 Prologis Supplemental Information Unaudited Contents Q2 2025 Supplemental GIS Highlights Financial Information Operations Capital Deployment Strategic Capital Capitalization Net Asset Value Components 36 Notes and Definitions 38 Notes and Definitions Company Profile 3 5 Company Performance I Prologis Leading Indicators and Proprietary Metrics 8 Guidance 9 Consolidated Balance Sheets 10 Consolid ...

Core Insights - Prologis demonstrated resilient performance in a volatile environment, with strong operational execution and a high leasing pipeline [1][2] - The company reported a decrease in net earnings per diluted share by 33.7% to $0.61, attributed to lower gains and unrealized foreign exchange impacts, while Core FFO per diluted share increased by 9.0% to $1.46 [5][11] - Prologis has revised its 2025 guidance for net earnings and Core FFO, reflecting confidence in business strength despite the decrease in net earnings [4][33] Operating Performance - Average occupancy for Prologis was 94.9% with a period-end occupancy of 95.1% [2] - The company commenced leases totaling 51.2 million square feet, with a retention rate of 74.9% [2] - Cash Same Store NOI increased by 4.9%, while net effective rent change was reported at 53.4% [2] Deployment Activity - Prologis made acquisitions totaling $335 million and development starts of $846 million, with estimated weighted average yields of 6.3% and 6.9% respectively [2] - Estimated value creation from development stabilizations was $64 million, while total dispositions and contributions amounted to $96 million [2] Balance Sheet Strength & Liquidity - The company issued $5.8 billion in debt at a weighted average interest rate of 4.5% and a term of 5.4 years [3] - Total available liquidity was approximately $7.1 billion, with a debt-to-EBITDA ratio of 5.1x [6] Financial Guidance - Revised guidance for net earnings per diluted share is set between $3.00 and $3.15, while Core FFO is expected to be between $5.75 and $5.80 [4][33] - Average occupancy guidance was adjusted to 94.75% to 95.25%, with Cash Same Store NOI guidance revised to 4.25% to 4.75% [4] Revenue and Earnings - Total revenues for the quarter reached $2.184 billion, up from $2.008 billion in the previous year [11] - Net earnings attributable to common stockholders decreased to $570 million from $860 million year-over-year [11][14]

Core Insights - Prologis (PLD) is set to report its Q2 2025 results on July 16, with analysts and investors keen to evaluate its performance amid current economic conditions [1] Group 1: Prologis Performance - In the last reported quarter, Prologis achieved a surprise of 2.90% in core funds from operations (FFO) per share, driven by increased rental revenues and strong leasing activity, although high interest expenses posed challenges [2] - Over the past four quarters, Prologis consistently exceeded the Zacks Consensus Estimate for FFO per share, with an average beat of 4.18% [2] - Prologis is expected to report Q2 FFO per share of $1.41, reflecting a 5.2% year-over-year increase, while same-store net operating income is projected to grow by 3.3% despite a decrease in occupancy [10][11] Group 2: U.S. Industrial Real Estate Market - The U.S. industrial real estate sector showed resilience in Q2 2025, with net absorption of 29.6 million square feet, consistent with the previous quarter but below historical averages [3] - Vacancy rates increased by 20 basis points to 7.1%, marking the first rise above 7% since Q2 2014, yet remaining only 10 basis points above the 15-year pre-pandemic average [4] - Industrial asking rent growth slowed to 2.6% in Q2, the weakest since early 2020, due to softening demand and rising vacancies [4] Group 3: Leasing and Construction Activity - Leasing activity remained robust, totaling nearly 309 million square feet in the first half of the year, supported by large-scale deals and steady demand from third-party logistics (3PL) [5] - New construction activity saw a significant decline, with completions at 71.5 million square feet, the lowest since Q1 2019, and the under-construction pipeline fell to 268.6 million square feet, the lowest since 2017 [6] Group 4: Strategic Positioning of Prologis - Prologis is expected to leverage its premium asset base in high-demand locations, with targeted acquisitions and developments likely supporting its Q2 results [7] - The company maintains a strong financial position, with a resilient balance sheet and efficient capital access, although high interest rates remain a concern [8] - Interest expenses are anticipated to rise by 11.4% year-over-year in Q2, reflecting ongoing challenges in the economic environment [10][11]

Investment Rating - The report maintains a "Weaker than Market" investment rating for the U.S. stock market [1] Core Insights - The U.S. stock market experienced narrow fluctuations with most sectors declining, as the S&P 500 fell by 0.3% and the Nasdaq by 0.1% [3] - There were 8 sectors that increased while 16 sectors decreased, with notable gains in Energy (+2.6%), Semiconductor Products and Equipment (+2.4%), and Transportation (+1.2%) [3] - Conversely, sectors that saw significant declines included Telecommunications (-4.8%), Insurance (-2.6%), and Banks (-2.5%) [3] Summary by Sections Market Overview - The S&P 500's estimated fund flow was -$5.7 billion this week, a decrease from the previous week's +$23.4 billion, with a total of +$216.4 billion over the last 13 weeks [4] - Fund inflows were observed in 11 sectors, with Semiconductor Products and Equipment leading at +$17.2 billion, followed by Transportation (+$6.0 billion) and Energy (+$4.1 billion) [4] - Sectors experiencing fund outflows included Software and Services (-$15.9 billion) and Automotive and Parts (-$8.2 billion) [4] Earnings Forecast - The dynamic F12M EPS forecast for S&P 500 constituents was adjusted upward by 0.3%, following a 0.2% increase the previous week [5] - Earnings expectations were raised for 21 sectors, with the highest adjustments in Integrated Finance (+0.8%), Automotive and Parts (+0.8%), and Semiconductor Products and Equipment (+0.8%) [5] - Three sectors saw downward revisions, notably Healthcare Equipment and Services (-1.0%) and Telecommunications (-0.2%) [5] Price Performance - The Energy sector recorded a price return of +2.6% this week, while the Telecommunications sector saw a decline of -4.8% [15] - Over the past 52 weeks, the Energy sector has increased by 5.1%, while the Telecommunications sector has decreased by 4.0% [15] - The Semiconductor Products and Equipment sector has shown a remarkable increase of +48.0% over the past 13 weeks [15] Fund Flow Analysis - The Industrial sector led with a net fund inflow of $781 million this week, followed by Energy with $409 million [19] - The Semiconductor Products and Equipment sector also saw significant inflows of $1.716 billion, indicating strong investor interest [19] - In contrast, the Software and Services sector experienced the largest outflow of -$1.594 billion [19]

Core Insights - Analysts project Prologis (PLD) will report quarterly earnings of $1.41 per share, reflecting a 5.2% year-over-year increase [1] - Revenue is expected to reach $2 billion, marking a 7.9% increase from the same quarter last year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1] Revenue Estimates - Estimated 'Revenues- Strategic capital' is projected at $138.21 million, indicating a year-over-year decline of 10.7% [4] - 'Revenues- Rental' is expected to be $2.00 billion, showing a year-over-year increase of 7.9% [4] Occupancy and Other Metrics - Analysts anticipate 'Average Occupancy' to be 94.6%, down from 96.1% reported in the same quarter last year [4] - 'Depreciation and amortization' is forecasted to reach $653.08 million [5] Market Performance - Over the past month, Prologis shares have remained unchanged, while the Zacks S&P 500 composite has increased by 4.1% [5] - Prologis holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the near term [5]

Group 1: UnitedHealth Group - UnitedHealth Group's shares are down approximately 44% in 2025, yet it maintains a dividend payout with a yield of 2.9% [4] - The company suspended its earnings outlook due to insufficient premium increases to cover rising healthcare costs, making future earnings predictions challenging [5] - Despite recent challenges, UnitedHealth has increased its dividend payout by 77% over the past five years, indicating strong long-term growth potential [4][5] - The national health expenditure reached $4.9 trillion in 2023, with a projected annual growth rate of 5.8%, which could benefit UnitedHealth in the long run [6] - As the largest employer of medical professionals in the U.S., UnitedHealth has significant leverage to control costs and maintain market share in employer-sponsored health insurance [7] - The company is expected to raise premiums in the future, which could lead to a return to profit growth [8] Group 2: Prologis - Prologis, a real estate investment trust (REIT), has seen its stock decline by about 38% from its 2022 peak, despite raising its dividend payout by 74% over the past five years [9] - The REIT owns approximately 1.3 billion square feet of warehouses, primarily serving e-commerce, and has a strong occupancy rate of 95.5% [9][10] - Prologis relies heavily on the U.S. market for 86% of its net operating income, which provides a stable revenue base [11] - The company benefits from an "A" credit rating from S&P Global and an "A2" rating from Moody's, allowing it to maintain a low average interest rate of 3.2% on outstanding debt [12] - Access to inexpensive capital enables Prologis to offer competitive lease rates, attracting top tenants and supporting continued dividend growth [13]

Core Viewpoint - Prologis is positioned as a stronger investment opportunity compared to Union Pacific due to its significant growth potential in the e-commerce sector and its ability to generate income through its extensive warehouse operations [1][15]. Prologis Overview - Prologis is a major real estate investment trust (REIT) with a warehouse footprint of 1.3 billion square feet, equivalent to two Manhattans, and facilitates the flow of $2.7 trillion in goods annually, ranking it as the eighth-largest economy globally [3]. - The company has strategically located warehouses near major metro areas and transportation hubs, making it ideal for rapid delivery services, with notable clients including Amazon, Home Depot, and FedEx [4]. Recent Performance - In Q1 2025, Prologis signed 58 million square feet of new leases, an increase from 48 million in Q1 2024, and initiated $650 million in new developments, up from $273 million the previous year [5]. - The company achieved a 10.9% increase in funds from operations (FFO) in Q1, driven by strong tenant retention and rising rents, while net operating income rose by 6.2% [6]. Market Demand and Future Growth - E-commerce currently accounts for approximately 24% of U.S. retail sales and is projected to exceed 30% by 2030, necessitating an additional 60 to 70 million square feet of warehouse space for each percentage point increase [8]. - Prologis possesses enough undeveloped land to support $41.2 billion in future warehouse constructions, positioning it well to meet increasing demand [9]. Union Pacific Overview - Union Pacific operates a vast network of 32,693 miles of track, generating revenue primarily from freight transportation, including coal, grain, and automobiles [10]. - Unlike Prologis, Union Pacific faces limitations in expanding its operations due to the nature of its railroad business, which requires significant capital for maintenance rather than new construction [11]. Recent Performance - Under CEO Jim Vena, Union Pacific has improved operational efficiency, resulting in a 7% increase in carload revenue and generating $2.2 billion in cash in its latest quarter [12]. Investment Considerations - While Union Pacific has solid fundamentals, its growth is constrained by market cycles and a near-capacity network, limiting long-term upside potential [13]. - Prologis offers a more attractive investment profile with a 3.8% dividend yield compared to Union Pacific's 2.4%, making it a better choice for investors seeking both income and growth [15].

Group 1 - The iREIT® Tracker provides comprehensive data on over 250 tickers, including quality scores, buy targets, and trim targets, focusing on various investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, Builders, and Asset Managers [1] - There is a prevalent misconception in the REIT sector that issuing stock is dilutive to investors, which is frequently discussed on platforms like Seeking Alpha and social media [1] Group 2 - The investing group iREIT®+HOYA Capital, led by Brad and HOYA Capital, specializes in REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives, backed by a team of analysts with over 100 years of combined experience [2] - Brad Thomas has over 30 years of experience in real estate investing, having been involved in over $1 billion in commercial real estate transactions, and has been featured in major media outlets [3]

Core Viewpoint - Real estate investment trusts (REITs) are highlighted as attractive options for dividend investors, with three specific REITs—Prologis, Realty Income, and Simon Property Group—recommended for their high yields and growth potential [1]. Group 1: Prologis - Prologis has a dividend yield of 3.8%, which is above the S&P 500's 1.3% yield and slightly below the average REIT yield of around 4% [2]. - The company is the largest industrial REIT, with a global portfolio of warehouses in key distribution hubs, and has seen a 10% year-over-year growth in adjusted funds from operations in Q1 2025 [4]. - Prologis has a history of over 10% annualized dividend increases over the past decade, making it an attractive option despite current tariff-related concerns [5]. Group 2: Realty Income - Realty Income offers a 5.6% yield, significantly higher than both the market and average REIT yields, indicating a favorable buying opportunity [6]. - The REIT primarily owns single-tenant properties in the U.S. and Europe, with tenants covering most property-level costs, and has diversified into debt investments and institutional services [7][8]. - Realty Income has increased its dividend annually for three decades, providing a reliable income stream with slow and steady growth [9]. Group 3: Simon Property Group - Simon Property Group has a dividend yield of 5.2% and focuses on high-performing retail properties, including enclosed malls and factory outlet centers [10]. - The company has a history of dividend cuts during economic downturns but has consistently returned to a growth trajectory post-recession, reflecting consumer behavior [11]. - The focus on high-quality properties positions Simon favorably as lower-quality malls decline, making it a potentially rewarding investment for those willing to accept some cyclicality [12]. Group 4: Summary of Investment Opportunities - Each of the three REITs presents unique investment merits: Prologis for its strong dividend growth, Realty Income for its reliable income, and Simon for its high-quality retail assets [13].

Core Insights - Prologis Inc. (PLD) shares have increased by 10.3% over the past three months, outperforming the industry growth of 6.3% [1][8] - The company is strategically positioned in high-demand industrial real estate markets, benefiting from its portfolio located near major distribution hubs [3][4] Company Performance - Prologis has shown strong operating performance due to solid demand for its strategically located facilities [3] - The company reported $811 million in acquisitions and $925 million in development stabilization in Q1 2025, with a significant portion being build-to-suit projects [4][8] - The Zacks Consensus Estimate for Prologis' 2025 FFO per share has increased to $5.70, indicating positive analyst sentiment [2] Financial Position - Prologis maintains a robust balance sheet with $6.52 billion in liquidity and a weighted average interest rate of 3.2% on its debt [8][9] - The company has an A-rated credit rating, allowing it to borrow at favorable rates [9] - Prologis has demonstrated a commitment to dividend payouts, with a five-year annualized growth rate of 13.71% [10]