Financial Data and Key Metrics Changes - Core FFO, including net promote expense, was $1.49 per share, and excluding net promotes was $1.50 per share, both exceeding forecasts [7] - Occupancy increased to 95.3%, up 20 basis points from the previous quarter [7] - Rent change was 49% on a net effective basis and 29% on cash, indicating strong lease mark-to-market durability [8] - Same store growth for net effective and cash was 3.9% and 5.2% respectively [8] Business Line Data and Key Metrics Changes - Record leasing quarter with nearly 62 million square feet signed, indicating a positive trend in leasing velocity and customer sentiment [5] - Data center business saw an additional 1.5 gigawatts of capacity moved to advanced stages, totaling 5.2 gigawatts secured or in advanced stages [6] - Nine build-to-suit projects signed this quarter, totaling 21 for the year, with expected investment of $1.6 billion [9] Market Data and Key Metrics Changes - U.S. market absorption was estimated at 47 million square feet for the third quarter, maintaining market vacancy at 7.5% [13] - Construction pipeline is depleting, with starts below pre-COVID levels, leading to a slowdown in market rent declines [14] - Strongest markets in the U.S. include the Southeast and Texas, with notable absorption in Houston, Dallas, and Atlanta [14] Company Strategy and Development Direction - The company is focused on disciplined growth and operational excellence, with a strong emphasis on build-to-suit projects and data centers [20] - Exploration of additional capitalization strategies for the data center business to fully capture growth opportunities [6] - The company aims to integrate solar storage and off-grid energy solutions with real estate, enhancing value creation [10] Management's Comments on Operating Environment and Future Outlook - Management noted improved customer sentiment and decision-making, with larger occupiers pursuing reconfiguration strategies [12] - The company expects market conditions to improve, with occupancy and rents bottoming out, leading to a potential recovery [19] - Guidance for same store NOI growth has increased to a range of 4.25% to 4.75% on a net effective basis [19] Other Important Information - The company closed on $2.3 billion in financing activity, maintaining a strong balance sheet with an in-place cost of debt at 3.2% [11] - The CEO's last earnings call was acknowledged, highlighting his significant contributions to the company [22][23] Q&A Session Summary Question: Can you elaborate on the additional capitalization strategies for data centers? - Management is exploring various opportunities in the data center business, including building a dedicated team and leveraging operational synergies [28][30] Question: What is the outlook for net absorption and sustainable demand? - Net absorption of 47 million square feet indicates a clear turning point in demand, with expectations for a normal quarterly velocity of around 60 million square feet [35][38] Question: How do you view the supply-demand balance in the market? - The company believes demand is strengthening while supply remains low, indicating a potential equilibrium in the near future [41][42] Question: What are the expectations for market rent growth? - Management anticipates that market vacancy rates will stabilize and improve over time, leading to potential rent growth [72] Question: How is customer sentiment evolving in the current environment? - Customers are becoming more desensitized to short-term volatility and are making long-term decisions, indicating a positive shift in sentiment [80] Question: What is the company's approach to credit risk and portfolio health? - The company has improved the overall credit health of its portfolio, with bad debt expense remaining below historical crisis levels [84] Question: Can you discuss the transaction market and acquisition opportunities? - The transaction market has shown resilience, with a 25% year-over-year increase in activity, and cap rates remain stable [95] Question: What is the pace of spec development leasing? - Spec development leasing is improving, with lease-up times returning to historical norms [99]

Core Insights - Prologis, Inc. reported a third-quarter 2025 core funds from operations (FFO) per share of $1.49, surpassing the Zacks Consensus Estimate of $1.44 and showing an increase from $1.43 in the same quarter last year [1][11] - The company's shares rose over 4.5% in early trading, reflecting positive investor sentiment driven by increased rental revenues and strong leasing activity, despite high interest expenses [2] Financial Performance - Prologis generated rental revenues of $2.05 billion, which was below the Zacks Consensus Estimate of $2.10 billion but up from $1.90 billion year-over-year [3] - Total revenues reached $2.21 billion, an increase from $2.04 billion in the previous year [3] - The average occupancy level in Prologis' portfolio was 94.8%, slightly down from 94.9% in the previous quarter and 95.9% a year ago [5] Leasing and Market Activity - The company commenced 65.6 million square feet of leases in its owned and managed portfolio, with a retention level of 77.2% [4] - Prologis' share of net effective rent change was 49.4%, with a cash rent change of 29.4% [5] Capital and Liquidity - Prologis ended the quarter with cash and cash equivalents of $1.19 billion, up from $1.07 billion at the end of the previous quarter, and total liquidity of $7.5 billion [8] - The company issued $2.3 billion of debt at a weighted average interest rate of 4.2% during the quarter [9] Guidance and Outlook - Prologis raised its 2025 core FFO per share guidance to a range of $5.78-$5.81 from the previous $5.75-$5.80 [12] - The outlook for capital deployment on development starts was increased to $2.75-$3.25 billion, and spending on acquisitions was revised to $1.25-$1.50 billion [13]

Company Overview - Prologis owns or has investments in properties and development projects expected to total approximately 13 billion square feet[9] - The company leases logistics facilities to approximately 6,500 customers[9] - Build out of land is $423 billion[10] Financial Highlights - Q3 2025 rental and other revenues reached $2064 million[25] - Q3 2025 strategic capital revenues were $150 million[25] - Annual NOI is $66 billion[13] - Strategic capital fees and promotes total $454 million[15] - Gross AUM is $215 billion[18] - Prologis Share AUM is $149 billion[24] - Value creation from stabilizations is $771 million[24] Geographic Distribution - The U S accounts for 85% of NOI[10] - Europe represents 9% of NOI[10] - Asia contributes 1% of NOI[10] - Other Americas account for 5% of NOI[10] - The U S constitutes 74% of gross AUM, while regions outside the U S account for 26%[19]

Core Insights - Zacks offers various investment opportunities and tools aimed at long-term success in the stock market [1] - The Zacks Focus List is a curated portfolio of 50 stocks expected to outperform the market over the next 12 months [3][4] Performance Metrics - In 2020, the Focus List gained 13.85% annually, outperforming the S&P 500's return of 9.38% [5] - Cumulatively, from February 1, 1996, to March 31, 2021, the Focus List returned 2,519.23%, while the S&P 500 returned 854.95% [5] Methodology - Stocks for the Focus List are selected based on earnings estimate revisions, which reflect analysts' expectations of growth and profitability [6] - The Zacks Rank, a proprietary stock-rating model, utilizes changes in quarterly earnings expectations to aid in portfolio building [8] Zacks Rank Components - The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise, which are recalculated nightly [9] - Stocks in the Focus List are primarily from 1 (Strong Buy) or 2 (Buy) ranked companies, indicating a bullish earnings consensus among analysts [9] Case Study: Prologis (PLD) - Prologis, a leading industrial real estate investment trust, was added to the Focus List on June 3, 2020, at $95.46 per share and has since increased by 20.94% to $115.45 [11][12] - Recent upward revisions in earnings estimates for fiscal 2025 and an average earnings surprise of 4.9% highlight Prologis's strong performance [12]

分组1 - Prologis reported quarterly funds from operations (FFO) of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.44 per share, and up from $1.43 per share a year ago, representing an FFO surprise of +3.47% [1] - The company posted revenues of $2.05 billion for the quarter ended September 2025, which missed the Zacks Consensus Estimate by 1.98%, compared to year-ago revenues of $1.9 billion [2] - Prologis has surpassed consensus FFO estimates in all four of the last quarters, while it has topped consensus revenue estimates two times during the same period [2] 分组2 - The stock's immediate price movement will depend on management's commentary during the earnings call and future FFO expectations [3] - Prologis shares have increased by approximately 9.2% since the beginning of the year, while the S&P 500 has gained 13% [3] - The current consensus FFO estimate for the coming quarter is $1.45 on revenues of $2.12 billion, and for the current fiscal year, it is $5.77 on revenues of $8.38 billion [7] 分组3 - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this category [8] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6] - Prologis currently holds a Zacks Rank 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6]

Core Insights - Prologis exceeded third-quarter consensus expectations and slightly raised its full-year outlook [1][5] - Consolidated revenue reached $2.21 billion, a 9% year-over-year increase, surpassing analysts' expectations of $2.03 billion [2] - Core funds from operations (FFO) were $1.49, exceeding consensus by 5 cents [2] Performance Metrics - New leases commenced increased by 29% year-over-year to 65.6 million square feet [3] - Average occupancy decreased by 110 basis points year-over-year to 94.8%, but appears to have stabilized [3] - Prologis raised its full-year FFO guidance to a range of $5.78 to $5.81 per share, above the previous consensus estimate of $5.77 [4] Market Outlook - The company noted a solid pipeline, improving customer sentiment, and limited new supply, indicating a favorable logistics market for rent and occupancy growth [3] - Development starts are projected between $2.75 billion and $3.25 billion, reflecting a $500 million increase at both ends of the range [4] - Prologis is expanding its data center portfolio, currently having 5.2 gigawatts of utility-fed capacity installed or committed [5]

Core Insights - Prologis, Inc. reported a decline in net earnings for Q3, with net earnings attributable to common stockholders at $763 million or $0.82 per share, down from $1.0 billion or $1.08 per share year-over-year [1] - The company's Core FFO for the quarter was $1.49 per share, an increase from $1.43 per share in the same quarter last year [1] - Total revenues for the quarter increased to $2.21 billion from $2.04 billion year-over-year, surpassing analyst expectations of $2.03 billion [2] Future Guidance - For fiscal 2025, Prologis forecasts net earnings in the range of $3.40 to $3.50 per share and Core FFO between $5.78 to $5.81 per share [3] - The company previously expected net earnings in the range of $3.00 to $3.15 per share and Core FFO between $5.75 to $5.80 per share [4]

Highlights [Company Profile](index=3&type=section&id=Company%20Profile) Prologis is a global logistics real estate leader with 1.3 billion sq ft across 20 countries, 85% U.S. NOI, and $149 billion Prologis Share AUM - Prologis is the global leader in logistics real estate, focusing on high-barrier, high-growth markets[9](index=9&type=chunk) - At September 30, 2025, the company owned or had investments in properties and development projects expected to total approximately **1.3 billion square feet (120 million square meters)** in 20 countries[9](index=9&type=chunk) - Prologis leases modern logistics facilities to a diverse base of approximately **6,500 customers**, principally across business-to-business and retail/online fulfillment categories[9](index=9&type=chunk) Geographic Distribution (Prologis Share of NOI) | Geographic Distribution (Prologis Share of NOI) | | | :---------------------------------------------- | :---------------- | | U.S. | 85% | | Europe | 9% | | Other Americas | 5% | | Asia | 1% | - Annual NOI: **$6.6 billion**[12](index=12&type=chunk) - Strategic Capital Fees and Promotes: **$454 million**[14](index=14&type=chunk) - Prologis Share AUM: **$149 billion**[17](index=17&type=chunk) - Gross AUM: **$215 billion**[25](index=25&type=chunk) [Company Performance](index=5&type=section&id=Company%20Performance) Q3 2025 total revenues rose 8.7%, but net earnings fell 24.0% to $763 million; Core FFO grew 4.3% to $1.43 billion Financial Performance (Three Months Ended September 30, in millions) | Metric | 2025 | 2024 | YoY Change | | :------------------------------------------------ | :---- | :---- | :--------- | | Rental and other revenues | $2,064 | $1,901 | +8.6% | | Strategic capital revenues | $150 | $135 | +11.1% | | Total revenues | $2,214 | $2,036 | +8.7% | | Net earnings attributable to common stockholders | $763 | $1,004 | -24.0% | | Core FFO attributable to common stockholders/unitholders | $1,426 | $1,367 | +4.3% | | AFFO attributable to common stockholders/unitholders | $1,064 | $1,014 | +4.9% | | Adjusted EBITDA attributable to common stockholders/unitholders | $1,868 | $1,734 | +7.7% | | Estimated value creation from development stabilizations - Prologis Share | $169 | $129 | +31.0% | | Common stock dividends and common limited partnership unit distributions | $967 | $917 | +5.5% | | Net earnings per common share - diluted | $0.82 | $1.08 | -24.0% | | Core FFO per common share - diluted | $1.49 | $1.43 | +4.2% | Financial Performance (Nine Months Ended September 30, in millions) | Metric | 2025 | 2024 | YoY Change | | :------------------------------------------------ | :---- | :---- | :--------- | | Rental and other revenues | $6,098 | $5,583 | +9.2% | | Strategic capital revenues | $439 | $418 | +5.0% | | Total revenues | $6,537 | $6,001 | +8.9% | | Net earnings attributable to common stockholders | $1,924 | $2,448 | -21.4% | | Core FFO attributable to common stockholders/unitholders | $4,178 | $3,870 | +8.0% | | AFFO attributable to common stockholders/unitholders | $3,184 | $3,118 | +2.1% | | Adjusted EBITDA attributable to common stockholders/unitholders | $5,428 | $5,051 | +7.5% | | Estimated value creation from development stabilizations - Prologis Share | $473 | $475 | -0.4% | | Common stock dividends and common limited partnership unit distributions | $2,898 | $2,750 | +5.4% | | Net earnings per common share - diluted | $2.06 | $2.63 | -21.7% | | Core FFO per common share - diluted | $4.37 | $4.06 | +7.6% | [Prologis Leading Indicators and Proprietary Metrics](index=7&type=section&id=Prologis%20Leading%20Indicators%20and%20Proprietary%20Metrics) Key metrics show market health: 40% lease proposals, 80-point U.S. IBI, 52-day lease gestation, 87% U.S. space utilization - Lease Proposals as a % of available net rentable area: Average **40%**[42](index=42&type=chunk) - U.S. IBI Activity Index: **80 points** (Average 57.7), indicating growth in activity[44](index=44&type=chunk)[166](index=166&type=chunk) - New Lease Negotiation Gestation: **52 days**[46](index=46&type=chunk) - U.S. Space Utilization: **87%** (Average 85.4%)[47](index=47&type=chunk) [Guidance](index=8&type=section&id=Guidance) 2025 guidance projects Core FFO per share $5.78-$5.81, 94.75%-95.25% average occupancy, and 4.75%-5.25% cash same store NOI 2025 Guidance | Metric | Low | High | | :------------------------------------------------------------ | :------ | :------ | | Net earnings attributable to common stockholders (per share) | $3.40 | $3.50 | | Core FFO attributable to common stockholders/unitholders (per share) | $5.78 | $5.81 | | Core FFO attributable to common stockholders/unitholders, excluding Net Promote Income (Expense) (per share) | $5.83 | $5.86 | | Average occupancy - Prologis Share | 94.75% | 95.25% | | Same store NOI - cash - Prologis Share | 4.75% | 5.25% | | Same store NOI - net effective - Prologis Share | 4.25% | 4.75% | | Strategic capital revenue, excluding promote revenue (Millions $) | $580 | $590 | | Net Promote Income (Expense) (Millions $) | $(50) | $(50) | | General & administrative expenses (Millions $) | $460 | $470 | | Realized development gains (Millions $) | $150 | $250 | Capital Deployment Guidance (Prologis Share, Millions $) | Metric | Low | High | | :---------------------- | :---- | :---- | | Development stabilizations | 1,900 | 2,300 | | Development starts | 2,750 | 3,250 | | Acquisitions | 1,250 | 1,500 | | Dispositions | 750 | 1,000 | | Contributions | 750 | 1,250 | - Prologis has hedged the rates for the majority of its estimated 2025 Euro, Sterling, and Yen Core FFO, effectively insulating 2025 results from FX movements in these currencies[51](index=51&type=chunk) Financial Information [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) Total assets reached $98.34 billion, with $80.69 billion in real estate and $35.30 billion in debt as of Sep 30, 2025 Consolidated Balance Sheet (in thousands) | Item | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | | :---------------------------------------- | :----------- | :----------- | :----------- | | **Assets:** | | | | | Net investments in real estate properties | $80,692,443 | $80,505,049 | $78,488,017 | | Investments in and advances to unconsolidated entities | $10,543,057 | $10,618,184 | $10,079,448 | | Cash and cash equivalents | $1,186,022 | $1,066,081 | $1,318,591 | | Total assets | $98,341,141 | $97,717,050 | $95,328,909 | | **Liabilities:** | | | | | Debt | $35,302,901 | $34,666,551 | $30,879,263 | | Total liabilities | $41,129,032 | $40,410,236 | $36,712,139 | | **Equity:** | | | | | Total equity | $57,212,109 | $57,306,814 | $58,616,770 | [Consolidated Statements of Income](index=10&type=section&id=Consolidated%20Statements%20of%20Income) Q3 2025 revenues grew 8.7% to $2.21 billion, but net earnings dropped 24.0% to $762.9 million due to lower real estate gains Consolidated Statements of Income (Three Months Ended September 30, in thousands) | Item | 2025 | 2024 | YoY Change | | :---------------------------------------------- | :---------- | :---------- | :--------- | | Rental revenues | $2,054,200 | $1,897,164 | +8.3% | | Strategic capital revenues | $150,351 | $135,367 | +11.1% | | Total revenues | $2,213,881 | $2,036,389 | +8.7% | | Total expenses | $1,321,290 | $1,251,869 | +5.5% | | Operating income before gains on real estate transactions, net | $892,591 | $784,520 | +13.8% | | Gains on dispositions of development properties and land, net | $15,435 | $32,005 | -51.8% | | Gains on other dispositions of investments in real estate, net | $32,235 | $434,446 | -92.6% | | Operating income | $940,261 | $1,250,971 | -24.8% | | Net earnings attributable to common stockholders | $762,897 | $1,004,267 | -24.0% | | Net earnings per common share - Diluted | $0.82 | $1.08 | -24.0% | Consolidated Statements of Income (Nine Months Ended September 30, in thousands) | Item | 2025 | 2024 | YoY Change | | :---------------------------------------------- | :---------- | :---------- | :--------- | | Rental revenues | $6,066,797 | $5,577,198 | +8.8% | | Strategic capital revenues | $438,652 | $418,521 | +4.8% | | Total revenues | $6,537,415 | $6,000,964 | +8.9% | | Total expenses | $3,975,470 | $3,817,093 | +4.1% | | Operating income before gains on real estate transactions, net | $2,561,945 | $2,183,871 | +17.3% | | Gains on dispositions of development properties and land, net | $53,363 | $159,487 | -66.6% | | Gains on other dispositions of investments in real estate, net | $116,078 | $651,306 | -82.2% | | Operating income | $2,731,386 | $2,994,664 | -8.7% | | Net earnings attributable to common stockholders | $1,924,122 | $2,448,375 | -21.4% | | Net earnings per common share - Diluted | $2.06 | $2.63 | -21.7% | [Reconciliations of Net Earnings to FFO](index=11&type=section&id=Reconciliations%20of%20Net%20Earnings%20to%20FFO) Q3 2025 NAREIT FFO rose 13.5% to $1.48 billion; Core FFO and AFFO also showed positive growth FFO Reconciliation (Three Months Ended September 30, in thousands) | Item | 2025 | 2024 | YoY Change | | :---------------------------------------------- | :---------- | :---------- | :--------- | | Net earnings attributable to common stockholders | $762,897 | $1,004,267 | -24.0% | | NAREIT defined FFO attributable to common stockholders/unitholders | $1,481,850 | $1,306,121 | +13.5% | | FFO, as modified by Prologis attributable to common stockholders/unitholders | $1,437,588 | $1,397,491 | +2.9% | | Core FFO attributable to common stockholders/unitholders | $1,425,630 | $1,366,611 | +4.3% | | AFFO attributable to common stockholders/unitholders | $1,063,691 | $1,013,849 | +4.9% | FFO Reconciliation (Nine Months Ended September 30, in thousands) | Item | 2025 | 2024 | YoY Change | | :---------------------------------------------- | :---------- | :---------- | :--------- | | Net earnings attributable to common stockholders | $1,924,122 | $2,448,375 | -21.4% | | NAREIT defined FFO attributable to common stockholders/unitholders | $4,079,801 | $3,969,354 | +2.8% | | FFO, as modified by Prologis attributable to common stockholders/unitholders | $4,228,853 | $4,028,910 | +5.0% | | Core FFO attributable to common stockholders/unitholders | $4,177,643 | $3,870,277 | +8.0% | | AFFO attributable to common stockholders/unitholders | $3,183,523 | $3,118,311 | +2.1% | [Reconciliations of Net Earnings to Adjusted EBITDA](index=12&type=section&id=Reconciliations%20of%20Net%20Earnings%20to%20Adjusted%20EBITDA) Adjusted EBITDA increased 7.7% to $1.87 billion in Q3 2025, reflecting improved operating performance Adjusted EBITDA Reconciliation (Three Months Ended September 30, in thousands) | Item | 2025 | 2024 | YoY Change | | :---------------------------------------------- | :---------- | :---------- | :--------- | | Net earnings attributable to common stockholders | $762,897 | $1,004,267 | -24.0% | | Adjusted EBITDA attributable to common stockholders/unitholders | $1,867,706 | $1,733,598 | +7.7% | Adjusted EBITDA Reconciliation (Nine Months Ended September 30, in thousands) | Item | 2025 | 2024 | YoY Change | | :---------------------------------------------- | :---------- | :---------- | :--------- | | Net earnings attributable to common stockholders | $1,924,122 | $2,448,375 | -21.4% | | Adjusted EBITDA attributable to common stockholders/unitholders | $5,428,474 | $5,050,664 | +7.5% | Operations [Overview](index=13&type=section&id=Overview) Q3 2025 saw high occupancy (95.8%), 5.2% cash same store NOI growth, 49.4% net effective rent change, and 72.9% customer retention - Occupancy - Owned and Managed (Period End): **95.8%** (Q3 2025)[60](index=60&type=chunk) - Average Occupancy - Prologis Share: **94.7%** (Q3 2025)[60](index=60&type=chunk) - Same Store Change Over Prior Year - Prologis Share (Q3 2025): NOI - cash increased by **5.2%**, NOI - net effective increased by **3.9%**[62](index=62&type=chunk) - Rent Change - Prologis Share (Q3 2025): Net effective was **49.4%**, Cash was **29.4%**[65](index=65&type=chunk) - Customer Retention: **72.9%** (Q3 2025)[63](index=63&type=chunk) [Operating Metrics - Owned and Managed](index=14&type=section&id=Operating%20Metrics%20-%20Owned%20and%20Managed) Q3 2025 leases commenced totaled 65.6 million sq ft, with 59-month average terms and $375.9 million in capital expenditures Leasing Activity (Q3 2025, square feet in thousands) | Item | Q3 2025 | | :------------------------------------ | :------ | | Renewals | 42,720 | | New leases | 19,631 | | Total Operating Portfolio | 62,351 | | Properties under development | 3,252 | | Total Square Feet of Leases Commenced | 65,603 | | Weighted average term of leases started (in months) | 59 | - Trailing four quarters - square feet of leases commenced: **218,996 thousand sq ft** (Q3 2025)[69](index=69&type=chunk) - Rent change (net effective) - Owned and Managed: **42.5%** (Q3 2025)[69](index=69&type=chunk) - Rent change (cash) - Owned and Managed: **24.3%** (Q3 2025)[69](index=69&type=chunk) Capital Expenditures (Q3 2025, in thousands) | Item | Q3 2025 | | :---------------------------------------- | :--------- | | Property improvements | $162,406 | | Tenant improvements | $104,823 | | Leasing commissions | $108,666 | | Total turnover costs | $213,489 | | Total Capital Expenditures - Owned and Managed | $375,895 | | Trailing four quarters - % of NOI | 15.0% | - Same Store Average Occupancy: **95.2%** (Q3 2025), with an annual percentage change of **(1.3%)**[72](index=72&type=chunk) - Turnover costs on leases commenced (per square foot): **$3.81** (Q3 2025)[74](index=74&type=chunk) - Free rent as a % of lease value - trailing four quarters: **3.2%** (Q3 2025)[74](index=74&type=chunk) Composition of Portfolio (by unit size) and Period Ending Occupancy | Unit Size | % of Portfolio | Period Ending Occupancy | | :--------- | :------------- | :---------------------- | | <100KSF | 28% | 92.7% | | 100-250KSF | 28% | 95.2% | | 250-500KSF | 23% | 96.2% | | >500KSF | 21% | 97.6% | [Operating Portfolio](index=16&type=section&id=Operating%20Portfolio) This section details Prologis' operating portfolio, including square footage, occupancy, NOI, and gross book value [Square Feet, Occupied and Leased](index=16&type=section&id=Operating%20Portfolio%20-%20Square%20Feet,%20Occupied%20and%20Leased) Total operating portfolio is 1.21 billion sq ft (Owned/Managed) with 95.3% occupied, 95.7% leased; U.S. is 81.2% of Prologis Share - Total Operating Portfolio (Owned and Managed): **5,455 buildings**, **1,208,215 thousand square feet**[79](index=79&type=chunk) - Total Operating Portfolio (Prologis Share): **776,607 thousand square feet**[79](index=79&type=chunk) - Occupied % (Owned and Managed): **95.3%**[79](index=79&type=chunk) - Leased % (Owned and Managed): **95.7%**[79](index=79&type=chunk) - U.S. markets represent **81.2%** of Prologis Share of total square feet[79](index=79&type=chunk) - Top U.S. markets by Prologis Share of NOI (%): Southern California (**13.7%**), New Jersey/New York City (**5.6%**), Chicago (**7.1%**), Dallas/Ft. Worth (**6.7%**), Atlanta (**6.0%**)[79](index=79&type=chunk) [NOI and Gross Book Value](index=17&type=section&id=Operating%20Portfolio%20-%20NOI%20and%20Gross%20Book%20Value) Q3 NOI was $2.43 billion (Owned/Managed) and $1.65 billion (Prologis Share); GBV was $141.48 billion (Owned/Managed) and $94.25 billion (Prologis Share) - Total Operating Portfolio Third Quarter NOI (Owned and Managed): **$2,426,260 thousand**[81](index=81&type=chunk) - Total Operating Portfolio Third Quarter NOI (Prologis Share): **$1,653,334 thousand**[81](index=81&type=chunk) - Total Operating Portfolio Gross Book Value (Owned and Managed): **$141,476,328 thousand**[81](index=81&type=chunk) - Total Operating Portfolio Gross Book Value (Prologis Share): **$94,254,870 thousand**[81](index=81&type=chunk) - Southern California is the largest market by Prologis Share of NOI (**19.2%**) and Gross Book Value (**19.3%**)[81](index=81&type=chunk) [Summary by Division](index=18&type=section&id=Operating%20Portfolio%20-%20Summary%20by%20Division) The operating portfolio is split into consolidated (79.6% sq ft) and unconsolidated (20.4% sq ft) divisions, with the U.S. dominating metrics Operating Portfolio Summary (Owned and Managed, in thousands) | Division | of Buildings | Square Feet | Occupied % | Leased % | | :---------------------------------------- | :------------- | :---------- | :--------- | :--------- | | Total Operating Portfolio - Consolidated | 3,015 | 654,687 | 95.1% | 95.6% | | Total Operating Portfolio - Unconsolidated | 2,440 | 553,528 | 95.4% | 95.8% | | Total Operating Portfolio | 5,455 | 1,208,215 | 95.3% | 95.7% | Third Quarter NOI (Owned and Managed, in thousands) | Division | NOI | % of Total | | :---------------------------------------- | :---------- | :--------- | | Total Operating Portfolio - Consolidated | $1,441,307 | 82.4% | | Total Operating Portfolio - Unconsolidated | $984,953 | 17.6% | Gross Book Value (Owned and Managed, in thousands) | Division | GBV | % of Total | | :---------------------------------------- | :------------ | :--------- | | Total Operating Portfolio - Consolidated | $80,413,772 | 81.2% | | Total Operating Portfolio - Unconsolidated | $61,062,556 | 18.8% | [Customer Information](index=19&type=section&id=Customer%20Information) Amazon is the largest customer (4.9% net effective rent); top 10 customers are 14.7%; weighted average lease term is 4.1-4.3 years Top Customers (Owned and Managed, % of Net Effective Rent) | Rank | Customer | % of Net Effective Rent | Total Square Feet (thousands) | | :--- | :---------------- | :---------------------- | :---------------------------- | | 1 | Amazon | 4.9% | 46,400 | | 2 | Home Depot | 1.8% | 19,501 | | 3 | FedEx | 1.4% | 10,688 | | 4 | DHL | 1.2% | 13,506 | | 5 | DSV | 1.1% | 13,724 | | 6 | Geodis | 1.1% | 15,022 | | 7 | UPS | 0.9% | 10,566 | | 8 | GXO | 0.8% | 9,548 | | 9 | CEVA Logistics | 0.8% | 11,301 | | 10 | Walmart | 0.7% | 8,653 | | **Top 10 Customers** | **14.7%** | **158,909** | | **Top 25 Customers** | **21.2%** | **225,457** | Remaining Lease Expirations (Owned and Managed, in thousands) | Year | Occupied Sq Ft | Net Effective Rent | % of Total | $ Per Sq Ft | | :-------- | :------------- | :----------------- | :--------- | :---------- | | 2025 | 29,515 | 176,278 | 1.8% | $5.97 | | 2026 | 176,304 | 1,155,405 | 12.2% | $6.55 | | Thereafter | 433,959 | 4,048,326 | 42.7% | $9.33 | | Total | 1,150,996 | 9,487,392 | 100.0% | $8.24 | | Weighted average term of leases remaining (based on net effective rent) | 4.1 years | | | | Remaining Lease Expirations (Prologis Share, in thousands) | Year | Occupied Sq Ft | Net Effective Rent | % of Total | $ Per Sq Ft | | :-------- | :------------- | :----------------- | :--------- | :---------- | | 2025 | 16,346 | 103,904 | 1.6% | $6.36 | | 2026 | 102,345 | 737,737 | 11.3% | $7.21 | | Thereafter | 293,868 | 2,887,432 | 44.3% | $9.83 | | Total | 739,541 | 6,515,803 | 100.0% | $8.81 | | Weighted average term of leases remaining (based on net effective rent) | 4.3 years | | | | Capital Deployment [Overview – Prologis Share](index=20&type=section&id=Overview%20%E2%80%93%20Prologis%20Share) YTD 2025 capital deployment included $1.94 billion in development starts, $1.72 billion in stabilizations, and $1.19 billion in acquisitions - Development Starts (TEI) YTD 2025: **$1,937 million**[87](index=87&type=chunk) - Development Stabilizations (TEI) YTD 2025: **$1,721 million**[87](index=87&type=chunk) - Estimated Value Creation from Stabilizations YTD 2025: **$473 million**[87](index=87&type=chunk) - Estimated Weighted Average Stabilized Yield from Stabilizations YTD 2025: **6.8%**[87](index=87&type=chunk) - Acquisition Activity YTD 2025: **$1,193 million**[88](index=88&type=chunk) - Land Portfolio (Prologis Share) as of Sep 30, 2025: **$5,146 million**[90](index=90&type=chunk) - Estimated Build Out of Land Portfolio (TEI): **$38,700 million**[90](index=90&type=chunk) [Development Stabilizations](index=21&type=section&id=Development%20Stabilizations) Q3 2025 stabilizations totaled 4.05 million sq ft ($604.4 million TEI, Prologis Share), creating $168.9 million in value at 6.7% yield Development Stabilizations (Three Months Ended September 30, 2025, in thousands) | Item | Square Feet | Owned and Managed (TEI) | Prologis Share (TEI) | | :----------------------------- | :---------- | :---------------------- | :------------------- | | Total U.S. | 1,162 | $254,351 | $251,334 | | Total Outside the U.S. | 2,886 | $387,089 | $353,087 | | Total Development Stabilizations | 4,048 | $641,440 | $604,421 | | Percent build-to-suit | | | 23.4% | | Estimated weighted average stabilized yield | | | 6.7% | | Estimated value creation | | $168,925 | | Development Stabilizations (Nine Months Ended September 30, 2025, in thousands) | Item | Square Feet | Owned and Managed (TEI) | Prologis Share (TEI) | | :----------------------------- | :---------- | :---------------------- | :------------------- | | Total U.S. | 4,718 | $1,157,392 | $1,124,552 | | Total Outside the U.S. | 5,560 | $668,196 | $596,626 | | Total Development Stabilizations | 10,278 | $1,825,588 | $1,721,178 | | Percent build-to-suit | | | 43.4% | | Estimated weighted average stabilized yield | | | 6.8% | | Estimated value creation | | $473,101 | | [Development Starts](index=22&type=section&id=Development%20Starts) Q3 2025 development starts were 3.01 million sq ft ($445.5 million TEI, Prologis Share), generating $66.8 million in value at 6.3% yield Development Starts (Three Months Ended September 30, 2025, in thousands) | Item | Square Feet | Owned and Managed (TEI) | Prologis Share (TEI) | | :----------------------------- | :---------- | :---------------------- | :------------------- | | Total U.S. | 2,377 | $387,706 | $381,006 | | Total Outside the U.S. | 631 | $73,512 | $64,520 | | Total Development Starts | 3,008 | $461,218 | $445,526 | | Percent build-to-suit | | | 63.9% | | Estimated weighted average stabilized yield | | | 6.3% | | Estimated value creation | | $66,830 | | Development Starts (Nine Months Ended September 30, 2025, in thousands) | Item | Square Feet | Owned and Managed (TEI) | Prologis Share (TEI) | | :----------------------------- | :---------- | :---------------------- | :------------------- | | Total U.S. | 6,577 | $1,435,657 | $1,399,363 | | Total Outside the U.S. | 3,898 | $577,281 | $537,636 | | Total Development Starts | 10,475 | $2,012,938 | $1,936,999 | | Percent build-to-suit | | | 68.0% | | Estimated weighted average stabilized yield | | | 6.4% | | Estimated value creation | | $362,772 | | [Development Portfolio](index=23&type=section&id=Development%20Portfolio) The development portfolio (Prologis Share) is 22.64 million sq ft with $4.71 billion TEI, $953.3 million value creation, and 6.4% yield - Total Development Portfolio (Prologis Share): **22,638 thousand square feet**[97](index=97&type=chunk) - Total Development Portfolio TEI (Prologis Share): **$4,708,026 thousand**[97](index=97&type=chunk) - Estimated value creation for Total Development Portfolio: **$953,294 thousand**[97](index=97&type=chunk) - Estimated weighted average stabilized yield for Total Development Portfolio: **6.4%**[97](index=97&type=chunk) - Estimated weighted average margin for Total Development Portfolio: **20.2%**[97](index=97&type=chunk) - Cost to complete (Prologis Share): **$1,779,605 thousand**[97](index=97&type=chunk) - Data centers in the Development Portfolio have a TEI of **$1.0 billion** (Owned and Managed) and **$0.9 billion** (Prologis Share)[97](index=97&type=chunk) [Third-Party Acquisitions](index=24&type=section&id=Third-Party%20Acquisitions) Q3 2025 acquisitions were 600 thousand sq ft for $32.1 million (Prologis Share); YTD acquisitions totaled $1.19 billion at 4.5% cap rate Third-Party Building Acquisitions (Three Months Ended September 30, 2025, in thousands) | Item | Square Feet (Owned and Managed) | Acquisition Price (Owned and Managed) | Acquisition Price (Prologis Share) | | :------------------------------------ | :------------------------------ | :---------------------------------- | :--------------------------------- | | Total U.S. | 600 | $58,339 | $32,110 | | Total Outside the U.S. | 0 | $0 | $0 | | Total Third-Party Building Acquisitions | 600 | $58,339 | $32,110 | | Weighted average stabilized cap rate | | | 6.2% | Third-Party Building Acquisitions (Nine Months Ended September 30, 2025, in thousands) | Item | Square Feet (Owned and Managed) | Acquisition Price (Owned and Managed) | Acquisition Price (Prologis Share) | | :------------------------------------ | :------------------------------ | :---------------------------------- | :--------------------------------- | | Total U.S. | 3,267 | $730,119 | $633,396 | | Total Outside the U.S. | 4,244 | $603,889 | $265,854 | | Total Third-Party Building Acquisitions | 7,511 | $1,334,008 | $899,250 | | Weighted average stabilized cap rate | | | 4.5% | - Acquisitions of other real estate investments (Prologis Share) for nine months ended Sep 30, 2025: **$293,958 thousand**[99](index=99&type=chunk) - Total Third-Party Acquisitions (Prologis Share) for nine months ended Sep 30, 2025: **$1,193,208 thousand**[99](index=99&type=chunk) [Dispositions and Contributions](index=25&type=section&id=Dispositions%20and%20Contributions) Q3 2025 dispositions/contributions were 520 thousand sq ft for $47.9 million (Prologis Share); YTD totaled $284.7 million at 4.5% cap rate Total Building Dispositions and Contributions (Three Months Ended September 30, 2025, in thousands) | Item | Square Feet (Owned and Managed) | Sales Price (Owned and Managed) | Sales Price (Prologis Share) | | :---------------------------------------- | :------------------------------ | :------------------------------ | :--------------------------- | | Total Third-Party Building Dispositions | 520 | $78,223 | $47,881 | | Total Building Contributions to Co-Investment Ventures | 0 | $0 | $0 | | Total Building Dispositions and Contributions | 520 | $78,223 | $47,881 | | Weighted average stabilized cap rate | | | 5.4% | Total Building Dispositions and Contributions (Nine Months Ended September 30, 2025, in thousands) | Item | Square Feet (Owned and Managed) | Sales Price (Owned and Managed) | Sales Price (Prologis Share) | | :---------------------------------------- | :------------------------------ | :------------------------------ | :--------------------------- | | Total Third-Party Building Dispositions | 1,594 | $214,522 | $178,902 | | Total Building Contributions to Co-Investment Ventures | 402 | $48,307 | $35,593 | | Total Building Dispositions and Contributions | 1,996 | $262,829 | $214,495 | | Weighted average stabilized cap rate | | | 4.5% | - Land dispositions (Prologis Share) for nine months ended Sep 30, 2025: **$12,440 thousand**[101](index=101&type=chunk) - Dispositions of other real estate investments (Prologis Share) for nine months ended Sep 30, 2025: **$57,785 thousand**[101](index=101&type=chunk) - Grand Total Dispositions and Contributions (Prologis Share) for nine months ended Sep 30, 2025: **$284,720 thousand**[101](index=101&type=chunk) [Land Portfolio](index=26&type=section&id=Land%20Portfolio) This section covers Prologis' land portfolio, including owned and managed assets, current book value, estimated build-out, and roll-forward [Owned and Managed](index=26&type=section&id=Land%20Portfolio%20-%20Owned%20and%20Managed) Prologis' land portfolio is 9,339 acres ($5.32 billion book value), with Prologis Share at $5.15 billion and 159.04 million sq ft build-out - Total Land Portfolio (Owned and Managed): **9,339 acres**, Current Book Value **$5,321,730 thousand**[102](index=102&type=chunk) - Total Land Portfolio (Prologis Share): Current Book Value **$5,145,933 thousand**[102](index=102&type=chunk) - Prologis Estimated Build Out (sq ft): **159,037 thousand square feet**[102](index=102&type=chunk) - Southern California is the largest market by Prologis Share of Current Book Value (**14.7%**)[102](index=102&type=chunk) [Summary and Roll Forward](index=27&type=section&id=Land%20Portfolio%20-%20Summary%20and%20Roll%20Forward) Prologis Share land portfolio grew to $5.15 billion (Sep 30, 2025), with an estimated total build-out (TEI) of $38.7 billion - Total Land Portfolio (Prologis Share) at September 30, 2025: **$5,145,933 thousand**[103](index=103&type=chunk) - Total Land Portfolio (Prologis Share) at June 30, 2025: **$4,866,005 thousand**[103](index=103&type=chunk) - Land Roll Forward (Prologis Share, Q3 2025): Acquisitions **+$31,359 thousand**, Reclassifications **+$333,630 thousand**, Development starts **-$(141,783) thousand**, Infrastructure costs **+$68,519 thousand**[103](index=103&type=chunk) - Estimated build out of land portfolio (in TEI) - Prologis Share: **$24,800,000 thousand**[103](index=103&type=chunk) - Estimated build out of Covered Land Plays (in TEI) - Prologis Share: **$6,700,000 thousand**[103](index=103&type=chunk) - Estimated build out of other land (in TEI) - Prologis Share: **$7,200,000 thousand**[103](index=103&type=chunk) - Total Estimated Build Out (TEI) - Prologis Share: **$38,700,000 thousand**[103](index=103&type=chunk) [Solar and Energy Storage Portfolios - Owned and Managed](index=28&type=section&id=Solar%20and%20Energy%20Storage%20Portfolios%20-%20Owned%20and%20Managed) Solar portfolio has 275 MW operating, 290 MW under development; energy storage has 62 MW operating, 11.7% stabilized yield Total Solar Portfolio (Owned and Managed, in thousands) | Item | Capacity (MW) | Gross Book Value | Under Development Capacity (MW) | TEI (Under Development) | | :------------------ | :------------ | :--------------- | :------------------------------ | :---------------------- | | Operating Portfolio | 275 | $433,575 | | | | Under Development | | | 290 | $722,134 | Energy Storage Portfolio (Owned and Managed, in thousands) | Item | Capacity (MW) | Gross Book Value | Under Development Capacity (MW) | TEI (Under Development) | | :------------------ | :------------ | :--------------- | :------------------------------ | :---------------------- | | Operating Portfolio | 62 | $83,731 | | | | Under Development | | | 12 | $17,932 | - Total installed capacity for Solar and Energy Storage Portfolio: **825 MW**[106](index=106&type=chunk) - Estimated weighted average stabilized yield for Total Solar and Energy Storage Portfolio: **11.7%**[106](index=106&type=chunk) Strategic Capital [Overview](index=29&type=section&id=Strategic%20Capital%20-%20Overview) Third-party AUM reached $66 billion (94.9% open-end); YTD fee-related revenue was $301 million, with $(50) million net promote income - Third-Party AUM: **$66 billion** (Sep 30, 2025)[109](index=109&type=chunk) - % Open end/Public: **94.9%** (Sep 30, 2025)[109](index=109&type=chunk) - Third-Party Fee Related and Promote Revenue (YTD 2025): Fee related revenue was **$301 million**[111](index=111&type=chunk) - Net Promote Income (Expense) (YTD 2025): **$(50) million**, primarily due to expense from amortization of stock compensation related to promote income recognized in prior periods[50](index=50&type=chunk)[116](index=116&type=chunk) - Fee Related Earnings Annualized (Sep 30, 2025): **$244 million**[113](index=113&type=chunk) [Summary and Financial Highlights](index=30&type=section&id=Summary%20and%20Financial%20Highlights) Prologis manages co-investment ventures with 633.1 million sq ft, $72.28 billion GBV, and $18.58 billion total debt Co-Investment Ventures Overview | Venture | Region | Type | Accounting Method | Ownership | Structure | Next Promote Opportunity | | :-------------------------------- | :------------- | :------------ | :---------------- | :-------- | :-------------------- | :----------------------- | | Prologis U.S. Logistics Venture | U.S. | Core | Consolidated | 55.0% | Open end | Q4 2025* | | Prologis Targeted U.S. Logistics Fund | U.S. | Core | Unconsolidated | 30.5% | Open end | Q2 2026 | | FIBRA Prologis | Mexico | Core | Unconsolidated | 34.6% | Public, Mexican Exchange | Q2 2026 | | Prologis European Logistics Fund | Europe | Core | Unconsolidated | 26.1% | Open end | Q3 2028 | | Nippon Prologis REIT | Japan | Core | Unconsolidated | 15.3% | Public, Tokyo Exchange | N/A | - Total Co-Investment Ventures (at 100%): Square Feet: **633,118 thousand**[118](index=118&type=chunk) - Total Co-Investment Ventures (at 100%): GBV of Real Estate: **$72,282,060 thousand**[118](index=118&type=chunk) - Total Co-Investment Ventures (at 100%): Debt: **$18,576,905 thousand**[118](index=118&type=chunk) [Operating and Balance Sheet Information of the Unconsolidated Co-Investment Ventures](index=31&type=section&id=Operating%20and%20Balance%20Sheet%20Information%20of%20the%20Unconsolidated%20Co-Investment%20Ventures) Q3 2025 unconsolidated ventures generated $1.31 billion rental revenue, $278.4 million net earnings, with $56.78 billion total assets Operating Information (Unconsolidated Co-Investment Ventures, Three Months Ended September 30, 2025, at 100%, in thousands) | Item | Total | | :---------------- | :---------- | | Rental revenue | $1,307,701 | | Net earnings (loss) | $278,414 | | FFO, as modified by Prologis | $710,482 | | Core FFO | $710,492 | Balance Sheet Information (Unconsolidated Co-Investment Ventures, At September 30, 2025, at 100%, in thousands) | Item | Total | | :------------------------------------ | :----------- | | Operating properties, before depreciation | $61,310,000 | | Total assets | $56,776,484 | | Third-party debt | $18,576,905 | | Total liabilities | $22,514,888 | | Weighted average ownership | 29.1% | [Non-GAAP Pro-Rata Financial Information](index=32&type=section&id=Non-GAAP%20Pro-Rata%20Financial%20Information) Prologis' share of unconsolidated ventures' Q3 2025 Core FFO was $217.86 million, with $16.04 billion total assets and $4.80 billion debt Prologis Share of Unconsolidated Co-Investment Ventures (Operating Information, Three Months Ended September 30, 2025, in thousands) | Item | Prologis Share | | :------------- | :------------- | | Rental revenue | $384,670 | | Net earnings | $88,249 | | Core FFO | $217,860 | Prologis Share of Unconsolidated Co-Investment Ventures (Balance Sheet Information, At September 30, 2025, in thousands) | Item | Prologis Share | | :---------------------------------------------- | :------------- | | Operating properties, before depreciation | $17,825,100 |\ | Total assets | $16,035,981 | | Third-party debt | $4,801,023 | | Total liabilities | $5,886,360 | | Investment in and advances to unconsolidated entities | $10,543,057 | Capitalization [Overview](index=33&type=section&id=Capitalization%20-%20Overview) Prologis AUM reached $214.5 billion ($149.0 billion Prologis Share), with 26.5% debt/market cap, 6.4x fixed charge coverage, and A2/A credit ratings - Assets Under Management (AUM): **$214,517 million** (Sep 30, 2025)[122](index=122&type=chunk) - Prologis Share AUM: **$149,023 million** (Sep 30, 2025)[122](index=122&type=chunk) - AUM by Ownership: Prologis Share **83%**, Investors' share **17%**[122](index=122&type=chunk) - AUM by Geography (Prologis Share): U.S. **74.0%**, Europe **17.0%**, Asia **6.6%**, Other Americas **2.4%**[122](index=122&type=chunk) Prologis Share - Debt Metrics (September 30, 2025) | Metric | Value | | :------------------------------------------------ | :------ | | Debt as % of gross Market Capitalization | 26.5% | | Debt as % of gross real estate assets | 35.8% | | Secured debt as % of gross real estate assets | 0.5% | | Unencumbered gross real estate assets to unsecured debt | 270.6% | | Fixed charge coverage ratio | 6.4x | | Fixed charge coverage ratio, excluding development gains | 6.1x | | Debt/Adjusted EBITDA | 5.0x | | Debt/Adjusted EBITDA, excluding development gains | 5.3x | | Weighted average interest rate | 3.2% | | Weighted average remaining maturity in years | 8.3 | | Percentage of floating rate debt | 4.3% | - Credit Ratings (September 30, 2025): Moody's **A2** (Outlook Stable), Standard & Poor's **A** (Outlook Stable)[123](index=123&type=chunk) - Debt by Currency - Prologis Share: USD **43.3%**, EUR **33.6%**, GBP **8.8%**, JPY **6.7%**, Other **7.6%**[125](index=125&type=chunk) - Unencumbered Assets - Prologis Share: **$108.6 billion**[124](index=124&type=chunk) [Debt Components - Consolidated](index=34&type=section&id=Debt%20Components%20-%20Consolidated) Consolidated debt was $35.30 billion (Sep 30, 2025), with 3.2% weighted average interest, 8.6 years maturity, and $7.46 billion liquidity - Total consolidated debt, net of premiums (discounts): **$35,302,901 thousand** (Sep 30, 2025)[131](index=131&type=chunk) - Weighted average interest rate: **3.2%**[131](index=131&type=chunk) - Weighted average remaining maturity in years: **8.6**[131](index=131&type=chunk) Consolidated Debt by Maturity (in thousands) | Maturity | Senior Notes | Credit Facilities and Commercial Paper | Term Loans and Other | Secured Mortgage | Total | | :--------- | :----------- | :------------------------------------- | :------------------- | :--------------- | :----------- | | 2026 | $1,352,218 | - | $715,110 | $46,933 | $2,114,261 | | 2027 | $1,988,319 | - | $197,712 | $4,156 | $2,190,187 | | Thereafter | $7,623,017 | - | - | - | $7,623,017 | | Subtotal | $33,339,070 | $224,922 | $1,981,252 | $315,403 | $35,860,647 | Consolidated Debt by Local Currency (in thousands) | Currency | Total | % of Total | | :------- | :----------- | :--------- | | USD | $14,857,665 | 41% | | EUR | $12,291,550 | 35% | | GBP | $2,516,681 | 7% | | JPY | $3,110,101 | 9% | | CAD | $1,967,772 | 6% | | Other | $559,132 | 2% | - Total liquidity: **$7,457,956 thousand** (Sep 30, 2025)[131](index=131&type=chunk) [Debt Components - Noncontrolling Interests and Unconsolidated](index=35&type=section&id=Debt%20Components%20-%20Noncontrolling%20Interests%20and%20Unconsolidated) Prologis Share of unconsolidated debt was $4.80 billion (Sep 30, 2025), with 3.6% interest, 6.0 years maturity, and 52% USD-denominated - Noncontrolling interests debt, net: **$22,103 thousand** (Sep 30, 2025)[134](index=134&type=chunk) - Prologis Share of unconsolidated debt, net: **$4,801,023 thousand** (Sep 30, 2025)[134](index=134&type=chunk) - Weighted average interest rate (Prologis Share of unconsolidated debt): **3.6%**[134](index=134&type=chunk) - Weighted average remaining maturity in years (Prologis Share of unconsolidated debt): **6.0**[134](index=134&type=chunk) Prologis Share of Unconsolidated Debt by Local Currency (in thousands) | Currency | Total | % of Total | | :------- | :----------- | :--------- | | USD | $2,502,331 | 52% | | EUR | $1,161,575 | 24% | | GBP | $535,080 | 11% | | JPY | $421,545 | 9% | | CAD | $180,492 | 4% | Net Asset Value [Components - Prologis Share](index=36&type=section&id=Components%20-%20Prologis%20Share) Operating portfolio (Prologis Share) has $94.25 billion GBV, $6.60 billion annualized NOI; development portfolio is $3.78 billion with $4.71 billion TEI Total Operating Portfolio (Prologis Share, in thousands) | Item | Value | | :-------------------------- | :----------- | | Square Feet | 776,607 | | Gross Book Value | $94,254,870 | | Adjusted Cash NOI Annualized | $6,597,965 | | Percent Occupied | 95.2% | Total Development Portfolio (Prologis Share, in thousands) | Item | Value | | :---------------------------------------- | :----------- | | Square Feet | 22,638 | | TEI | $4,708,026 | | Annualized Estimated NOI | $301,863 | | Estimated weighted average stabilized yield | 6.4% | | Estimated value creation | $953,294 | | Total Development Portfolio, including est. value creation | $3,775,347 | [Components - Continued](index=37&type=section&id=Components%20-%20Continued) Other assets total $10.92 billion, liabilities $3.33 billion; land book value $5.10 billion; trailing twelve-month FRE $285.55 million - Total other assets: **$10,921,990 thousand**[138](index=138&type=chunk) - Total other liabilities: **$3,328,536 thousand**[138](index=138&type=chunk) - Prologis Share of book value of land in unconsolidated co-investment ventures: **$85,945 thousand**[138](index=138&type=chunk) - Current book value of land (consolidated): **$5,095,671 thousand**[138](index=138&type=chunk) - Fee Related Earnings (trailing twelve months): **$285,554 thousand**[138](index=138&type=chunk) - Net Promote Income (Expense) (trailing twelve months): **$46,076 thousand**[138](index=138&type=chunk) - Net Promote Income (Expense) (five year average): **$193,054 thousand**[138](index=138&type=chunk) - Development management revenue (trailing twelve months): **$41,719 thousand**[138](index=138&type=chunk) - Consolidated debt (at par): **$35,860,647 thousand**[138](index=138&type=chunk) - Prologis Share of unconsolidated co-investment ventures' debt: **$4,829,061 thousand**[138](index=138&type=chunk) - Outstanding shares of common stock and limited partnership units: **950,718 thousand**[138](index=138&type=chunk) Notes and Definitions [Notes and Definitions](index=39&type=section&id=Notes%20and%20Definitions) This section defines financial and operational terms, including non-GAAP measures like Adjusted Cash NOI, EBITDA, FFO, and Same Store metrics - Adjusted Cash NOI (Actual) is a non-GAAP measure used to assess operating performance and estimate the fair value of the Operating Portfolio. A reconciliation is provided from rental income and expenses[143](index=143&type=chunk) - Adjusted EBITDA is a non-GAAP measure providing insight into operating performance before financing decisions, income taxes, and certain non-cash or non-recurring charges. A reconciliation is provided from consolidated net earnings[144](index=144&type=chunk)[145](index=145&type=chunk) - Assets Under Management (AUM) represents the estimated fair value of the real estate owned or managed, calculated by adding Investment Capacity and the third-party investors' share to Enterprise Value[148](index=148&type=chunk) - FFO, as modified by Prologis, Core FFO, and AFFO are non-GAAP measures derived from NAREIT's FFO definition with specific adjustments to reflect Prologis' business and management strategy, used to evaluate performance against other REITs and for internal assessment[159](index=159&type=chunk)[160](index=160&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) - Same Store metrics are non-GAAP measures used to evaluate the performance of operating properties by analyzing a consistent population of properties over time, excluding properties held for sale, undeveloped properties, and those acquired/disposed during the period[179](index=179&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk) - Total Expected Investment (TEI) represents the total estimated cost of development or expansion, including land, development, and leasing costs[185](index=185&type=chunk) - Estimated Value Creation represents the value expected to be created through development and leasing activities, calculated as the amount by which the value exceeds TEI[156](index=156&type=chunk)

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Core Insights - Prologis (PLD) is set to report its Q3 2025 results on October 15, with analysts and investors keen to evaluate its performance in the current economic environment [1] Financial Performance - In the last reported quarter, Prologis achieved a core funds from operations (FFO) per share surprise of 3.55%, 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 4.88% [2] Strategic Positioning - Prologis benefits from its strategic portfolio located in key distribution markets, with a focus on targeted acquisitions and built-to-suit developments expected to bolster Q3 results despite broader market challenges [3] - The company's scale and cost advantages, along with a resilient balance sheet and efficient capital access, position it well for continued growth [4] Market Challenges - High interest expenses remain a concern, with expectations that they will stay elevated in Q3, compounded by excess supply leading to increased competition and pressure on occupancy rates [5] Revenue and Occupancy Projections - The Zacks Consensus Estimate for Q3 revenues is $2.09 billion, reflecting a 10% year-over-year increase [6] - Average occupancy is projected at 94.8%, indicating a 60 basis points decrease from the previous quarter, while same-store net operating income is expected to rise by 2.2% year over year [6] Earnings Forecast - The consensus estimate for Q3 FFO per share has been revised upward to $1.44, representing a 0.7% year-over-year increase [7] - The current model does not predict a surprise in FFO per share for Prologis, with a Zacks Rank of 2 (Buy) and an Earnings ESP of 0.00% [8] Additional Stock Considerations - Other REITs such as Extra Space Storage Inc. (EXR) and Vornado Realty Trust (VNO) are highlighted as potential stocks to watch, with both showing favorable conditions for reporting an FFO beat this quarter [11][12]