Core Insights - Prologis Inc. (PLD) has seen a stock price increase of 17.4% year-to-date, outperforming the industry growth of 7.3% [1] - The company reported a fourth-quarter 2024 core funds from operations (FFO) per share of $1.50, exceeding the Zacks Consensus Estimate of $1.38 and up from $1.26 in the same quarter last year [2] - The demand for logistics infrastructure is driven by the rising e-commerce market, positioning Prologis favorably to capitalize on this trend [3] Financial Performance - In the fourth quarter of 2024, Prologis commenced 46.5 million square feet of leases in its owned and managed portfolio, indicating strong operating performance [4] - The company made acquisitions totaling $1.92 billion in 2024, with development stabilization at $4.17 billion and development starts at $1.34 billion [5] - For 2025, Prologis anticipates acquisitions between $750 million and $1.25 billion, with development stabilization and starts expected in the range of $2.25-$2.75 billion [5] Market Position and Strategy - Prologis is focusing on warehouse conversions and ground-up developments to leverage growth in the data center industry, driven by digital economy demands [6] - The company maintains a strong balance sheet with $7.38 billion in available liquidity as of December 31, 2024, and favorable credit ratings from Moody's and Standard & Poor's [7] Dividend Policy - Prologis announced a quarterly cash dividend of $1.01 per share for the first quarter of 2025, reflecting a 5% increase from the previous payout [8] - The company has increased its dividend six times in the last five years, with a five-year annualized dividend growth rate of 13.66% [8][10]

Investor Presentation March 2025 Forward-looking statements The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements invo ...

Group 1: PepsiCo - PepsiCo has a current dividend yield of 3.5%, significantly higher than the S&P 500's 1.3%, providing $3.50 of annual dividend income for every $100 invested compared to $1.20 from the S&P 500 index fund [3] - The company has a strong history of dividend payments, recently announcing a 5% increase in its payout, marking the 53rd consecutive year of annual dividend increases, placing it among the elite Dividend Kings [4] - PepsiCo aims for organic revenue growth of 4% to 6% annually, which is expected to drive high-single-digit earnings-per-share growth, supported by a strong balance sheet that facilitates acquisitions [5] Group 2: Johnson & Johnson - Johnson & Johnson offers a dividend yield of 3%, with a record of increasing its dividend for 62 consecutive years [6] - The company has a robust financial profile, with a market cap of nearly $400 billion, $12 billion in net debt, and $20 billion in free cash flow, easily covering its $11.8 billion dividend payout [7][8] - Significant investments in research and development ($17.2 billion last year) and inorganic growth opportunities ($32 billion committed) are expected to enhance revenue and cash flow, allowing for continued dividend increases [8] Group 3: Prologis - Prologis has a dividend yield of 3.3% and recently raised its payment by 5%, aligning with S&P 500 averages despite a slowdown in warehouse space demand [9][10] - The company anticipates a rebound in leasing activity as interest rates decline, which is expected to drive rental income growth [10] - Prologis is well-positioned for long-term growth in logistics space demand, supported by a vast land bank and a strong financial profile for funding development projects and acquisitions [11] Group 4: Investment Strategy - PepsiCo, Johnson & Johnson, and Prologis are identified as high-quality, high-yielding dividend stocks, providing growing streams of passive income through steadily increasing payouts [12]

Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to investment opportunities [1] Group 2 - A very small fraction of companies are expected to be a buy at any given time, highlighting a selective investment strategy [1] - Hold articles are intended to provide valuable information for future investors and introduce skepticism in a generally bullish market [1]

Core Viewpoint - Prologis (PLD) has shown strong stock performance, gaining 16.1% year to date, outperforming both the Zacks REIT and Equity Trust - Other industry and the S&P 500 composite [1] Company Overview - Prologis owns or invests in properties and development projects totaling approximately 1.3 billion square feet across 20 countries, focusing on industrial distribution warehouse space in key global markets [2] - The company’s properties are strategically located in supply-constrained markets near transportation hubs, which supports rapid product distribution [2] Financial Performance - Prologis reported better-than-expected fourth-quarter 2024 core funds from operations (FFO) per share, driven by increased rental revenues and strong leasing activity, although high interest expenses were a concern [3] - The company’s share of net effective rent change was 66.3% in the October-December quarter, with cash rent change at 40.1% and cash same-store net operating income growing by 6.7% [7] Growth Strategy - Prologis is enhancing its presence in high-barrier, high-growth markets through strategic acquisitions and development, with anticipated acquisitions between $750 million and $1.25 billion for 2025 and development starts expected in the range of $2.25-$2.75 billion [8] - The company is also focusing on warehouse conversions and ground-up developments to capitalize on the growing data center industry driven by digital economy demands [9][10] Financial Strength - Prologis has a strong balance sheet with $7.4 billion in liquidity and a weighted average interest rate of 3.2% on its total debt, along with favorable credit ratings from Moody's and Standard & Poor's [11] Dividend Policy - Prologis announced a 5% increase in its quarterly cash dividend to $1.01 per share, raising the annualized dividend to $4.04 per share, reflecting a commitment to returning value to shareholders [12] - The company has increased its dividend six times in the last five years, with a five-year annualized dividend growth rate of 13.66% [13] Challenges - Prologis faces challenges such as potential oversupply in certain regions and declining occupancy levels, with a reported portfolio occupancy of 95.8% in the fourth quarter, down 30 basis points sequentially and 150 basis points year-over-year [14][15] - The company’s 2025 guidance indicates an average occupancy forecast of 95% at the midpoint, which could impact rental growth and profitability [15] Valuation - Prologis stock is currently trading at a forward 12-month price-to-FFO of 21.16X, which is above the REIT-Other industry average of 15.44X and higher than its one-year median of 20.31X, indicating it may be considered expensive [17] Analyst Recommendations - Prologis has an average brokerage recommendation of 1.77 on a scale of 1 to 5, with 15 out of 24 brokers rating it a "Strong Buy" [23]

Company Performance - Prologis (PLD) closed at $122.77, reflecting a +0.5% change from the previous session, outperforming the S&P 500 which lost 1.59% [1] - Over the past month, Prologis shares gained 2.51%, surpassing the Finance sector's loss of 0.09% and the S&P 500's loss of 2.23% [1] Upcoming Earnings - Analysts expect Prologis to report earnings of $1.38 per share, indicating a year-over-year growth of 7.81% [2] - The revenue forecast for the upcoming earnings report is $1.95 billion, representing a 6.9% increase compared to the same quarter last year [2] Annual Estimates - For the annual period, earnings are anticipated to be $5.73 per share and revenue at $8.01 billion, reflecting increases of +3.06% and +6.56% respectively from the previous year [3] - Recent changes in analyst estimates suggest optimism regarding Prologis's business and profitability [3] Valuation Metrics - Prologis has a Forward P/E ratio of 21.33, which is a premium compared to its industry's Forward P/E of 11.22 [5] - The PEG ratio for Prologis is currently 2.92, while the average PEG ratio for the REIT and Equity Trust - Other industry is 2.14 [6] Industry Ranking - The REIT and Equity Trust - Other industry, part of the Finance sector, holds a Zacks Industry Rank of 135, placing it in the bottom 47% of over 250 industries [6] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Overview - Prologis, Inc. will participate in the Citi 2025 Global Property CEO Conference, with key executives including Hamid Moghadam, Dan Letter, and Tim Arndt presenting [1][2] - The company will provide an overview of market conditions and future outlook, followed by a Q&A session on March 3, 2025 [2] Events and Presentations - Tim Arndt will also present at the Raymond James & Associates' 46th Annual Institutional Investors Conference on March 4, 2025 [2] - Both presentations will be available via live audio webcast [3] Company Mission and Vision - Prologis emphasizes its role in defining the logistics industry, focusing on creating intelligent infrastructure that connects digital and physical worlds [4] - The company aims to enhance supply chains and promote clean energy solutions, positioning itself as a leader in logistics innovation [4]

Core Insights - FIBRA Prologis reported strong financial results for Q4 and full year 2024, with net earnings per CBFI increasing to Ps. 3.8692 (US$0.1816) for the quarter and Ps. 17.1978 (US$0.9136) for the full year, compared to Ps. 3.1136 (US$0.1770) and Ps. 13.6338 (US$0.7761) in 2023 respectively [3][4] - The company nearly doubled its size through the acquisition of FIBRA Terrafina, enhancing its operational metrics and financial performance [5] - FIBRA Prologis maintained high occupancy rates, with period-end occupancy at 98.3% and average occupancy at 98.1% for 2024 [6] Financial Performance - Funds from operations (FFO) per CBFI for Q4 2024 was Ps. 0.9740 (US$0.0488), up from Ps. 0.8249 (US$0.0469) in Q4 2023, while full year FFO per CBFI was Ps. 3.4507 (US$0.1943) compared to Ps. 3.3502 (US$0.1881) in 2023 [4] - The company reported a liquidity position of approximately Ps. 9.4 billion (US$457 million) as of December 31, 2024, with a leverage ratio of 18.1% [7] Operational Metrics - Customer retention decreased to 71.6% in 2024 from 84.3% in 2023, while net effective rent change increased significantly to 55.4% [6][9] - Same store cash NOI growth was reported at 8.4% for the year, down from 9.4% in 2023 [6] Future Guidance - For 2025, FIBRA Prologis has established guidance for FFO per CBFI between US$0.2000 and US$0.2200, and a distribution per CBFI of US$0.1500, reflecting a 6% increase compared to 2024 [8][10] - The company anticipates year-end occupancy to range between 96.5% and 98.5% for 2025 [10] Portfolio Overview - As of December 31, 2024, FIBRA Prologis' portfolio included 509 investment properties totaling 87.1 million square feet, with 345 logistics and manufacturing facilities across six core markets in Mexico [12] - The company acquired nearly 90% of FIBRA Terrafina's outstanding shares and added US$284 million of Class-A properties to its portfolio [9]

Core Viewpoint - Prologis is set to report earnings that indicate growth, with analysts optimistic about the company's performance despite recent stock price fluctuations [2][3][4]. Group 1: Stock Performance - Prologis closed at $120.97, showing a slight increase of +0.06% while outperforming the S&P 500, which fell by 1.71% [1] - Over the past month, Prologis shares have appreciated by 1.99%, underperforming the Finance sector's gain of 2.23% and the S&P 500's gain of 2.2% [1]. Group 2: Earnings Estimates - Prologis is projected to report earnings of $1.38 per share, reflecting a year-over-year growth of 7.81% [2]. - The consensus estimate for revenue is $1.95 billion, indicating a 6.9% growth compared to the same quarter last year [2]. - For the full year, analysts expect earnings of $5.73 per share and revenue of $8.01 billion, marking changes of +3.06% and +6.56% respectively from the previous year [3]. Group 3: Analyst Estimates and Rankings - Recent adjustments to analyst estimates for Prologis are crucial as they reflect short-term business trends, with positive revisions indicating optimism about the company's profitability [4]. - The Zacks Rank system, which includes estimate changes, currently ranks Prologis at 3 (Hold) [6]. Group 4: Valuation Metrics - Prologis has a Forward P/E ratio of 21.11, which is significantly higher than the industry average of 11.49, indicating it is trading at a premium [7]. - The company has a PEG ratio of 2.7, compared to the industry average PEG ratio of 2.13 [8]. Group 5: Industry Context - The REIT and Equity Trust - Other industry, which includes Prologis, has a Zacks Industry Rank of 163, placing it in the bottom 36% of over 250 industries [9].

Core Viewpoint - Prologis, Inc. has announced a 5% increase in its quarterly cash dividend, raising it to $1.01 per share, reflecting the company's commitment to enhancing shareholder wealth and its strong financial position [1][2]. Dividend Policy - Prologis has consistently increased its dividends, with a 10.3% hike in February 2024 and five increases over the last five years, resulting in a five-year annualized dividend growth rate of 13.66% [2]. - The latest dividend hike results in an annualized amount of $4.04 per share, translating to a dividend yield of 3.3% based on a share price of $120.90 [1]. Financial Performance - In Q4 2024, Prologis commenced 46.5 million square feet of leases with a retention level of 78.4%, maintaining an average occupancy level of 95.6% [4]. - For 2025, management anticipates average occupancy to be between 94.5% and 95.5%, with an estimated occupancy of 94.9% [4]. Rental Income Growth - The company expects a decline in vacancy rates in 2025, leading to rent growth, with projected year-over-year increases in rental revenues of 6.9% for 2025, 6.9% for 2026, and 8.3% for 2027 [5]. Balance Sheet Strength - As of December 31, 2024, Prologis had total available liquidity of $7.38 billion, a weighted average interest rate on total debt of 3.2%, and a debt-to-adjusted EBITDA ratio of 4.6x [6]. - The company's credit ratings were A3 (Outlook Positive) from Moody's and A (Outlook Stable) from Standard & Poor's, indicating strong borrowing capacity [7]. Growth Opportunities - Prologis is well-positioned to capitalize on long-term growth opportunities due to its solid operating platform, financial flexibility, and strategic focus on data center and energy business trends [3][8]. Market Performance - Prologis shares have gained 4.4% over the past three months, contrasting with a 4.5% decline in the industry [9].