Bilanol/iStock via Getty Images There are several reasons why we tend to avoid investing in externally managed REITs, including potential conflicts of interest, less operating leverage, and because we want to participate in the value creation when the company develops a new asset. Unlike some YieldCos that have a sponsor "drop" assets into it and investors simply receive the rent or income generated by that asset, participating in the value creation adds significant extra performance. This is one of the ...

SAN FRANCISCO, Dec. 21, 2023 /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) today announced that Vice Chairman Gene Reilly will be retiring at year end, after which he will serve as a senior advisor through April 2024. Reilly has played a critical leadership role in almost every respect of the company's growth and evolution for more than two decades. He is considered as one of the most knowledgeable global experts on logistics real estate and, during his career, has contributed his time and leadership skills to ...

Company Overview - Prologis owns or has investments in approximately 1.2 billion square feet of properties and development projects as of September 30, 2023[162]. - The acquisition of Duke Realty Corporation was completed in October 2022 for a total price of $23.2 billion, including transaction costs, funded through equity issuance and debt assumption[162]. Revenue and Operations - Rental operations contribute 85% to 90% of Prologis's consolidated revenues, earnings, and funds from operations (FFO)[167]. - The estimated lease mark-to-market is approximately 62% based on net effective rent (NER), indicating significant potential for future organic net operating income (NOI) growth[173]. - The operating portfolio occupancy was 97.5% as of September 30, 2023, with a net effective rent change of 77.2% on leases commenced during the nine months ended September 30, 2023[180]. - The company expects continued rent growth due to healthy demand and low vacancy rates in its markets[173]. Financial Performance - The Real Estate Segment NOI for the nine months ended September 30, 2023, was $3.815 billion, up from $2.478 billion in the same period of 2022, reflecting a $1.3 billion increase[188]. - Strategic capital revenues for the nine months ended September 30, 2023, totaled $1,071 million, a significant increase from $885 million in 2022, representing a 21% growth[201]. - The Strategic Capital Segment's NOI for the same period was $764 million, up from $645 million in 2022, reflecting a 18.4% increase[201]. - Net earnings from unconsolidated entities for the nine months ended September 30, 2023, were $218 million, down from $241 million in 2022[223]. - For the nine months ended September 30, 2023, net earnings attributable to common stockholders were $2,424 million[280]. Investments and Development - Prologis's consolidated land has the potential to support the development of $37.2 billion of total expected investment (TEI) in new logistics space[174]. - The company stabilized 43 development buildings during the period, totaling 15 million square feet, with a total estimated investment of $1.863 billion[195]. - The consolidated development portfolio had a total expected investment of $6.9 billion, with 41.0% leased as of September 30, 2023[196]. - The company expects to complete the development of 110 properties, which are currently 41% leased, with a total investment of $4.4 billion[239]. Debt and Liquidity - The weighted average remaining maturity of Prologis's consolidated debt is 10 years, with a weighted average interest rate of 2.9%[176]. - Prologis had total available liquidity of $6.9 billion as of September 30, 2023, maintaining low leverage relative to real estate investments and market capitalization[176]. - Total consolidated debt amounted to $27.578 billion as of September 30, 2023, with a weighted average interest rate of 2.9%[243]. - The company had $741 million in unrestricted cash and $6.2 billion available under credit facilities as of September 30, 2023[240]. Expenses and Gains - G&A expenses rose to $292 million in 2023 from $246 million in 2022, primarily due to inflation and higher compensation costs[204]. - Depreciation and amortization expenses increased to $1.8 billion in 2023, up from $1.2 billion in 2022, marking a $646 million rise[207]. - Gains on real estate transactions were $274 million for the nine months ended September 30, 2023, compared to $391 million in 2022, indicating a decline of 30%[208]. Cash Flow - Net cash provided by operating activities increased to $4,299 million in 2023 from $2,849 million in 2022, representing a 51% increase[251]. - Net cash used in investing activities rose to $(5,212) million in 2023 compared to $(3,211) million in 2022, indicating a 62% increase in investment outflows[251]. - Operating distributions from unconsolidated entities increased to $536 million in 2023 from $316 million in 2022, a 69% increase[254]. Foreign Currency and Risk Management - 6.7% of total consolidated revenue, amounting to $411 million, was denominated in foreign currencies[285]. - The company has forward contracts with an aggregate notional amount of $1.7 billion to mitigate foreign currency translation risk[285]. - The company monitors market risk exposures using sensitivity analysis, estimating a hypothetical 10% adverse change in foreign currency exchange rates[282].

Prologis, Inc. (NYSE:PLD) Q3 2023 Earnings Conference Call October 17, 2023 12:00 PM ET Company Participants Jill Sawyer - Senior Vice President, Investor Relations Tim Arndt - Chief Financial Officer Hamid Moghadam - Chief Executive Officer Dan Letter - President Chris Caton - Managing Director, Global Strategy and Analytics Conference Call Participants Michael Goldsmith - UBS Craig Mailman - Citi Steve Sakwa - Evercore ISI Todd Thomas - KeyBanc Capital Markets Caitlin Burrows - Goldman Sachs John Kim - BM ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-13545 (Prologis, Inc.) 001-14245 (Prologis, L.P.) Prologis, Inc. Prologis, L.P. (Exact name of registrant as spe ...

Prologis, Inc. (NYSE:PLD) Q2 2023 Earnings Conference Call July 18, 2023 12:00 PM ET Company Participants Jill Sawyer - Vice President, Investor Relations Tim Arndt - Chief Financial Officer Dan Letter - President Hamid Moghadam - Chief Executive Officer Chris Caton - Managing Director, Global Strategy and Analytics Conference Call Participants Tom Catherwood - BTIG Blaine Heck - Wells Fargo Craig Mailman - Citi Caitlin Burrows - Goldman Sachs Steve Sakwa - Evercore Ki Bin Kim - Truist Michael Goldsmith - U ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-13545 (Prologis, Inc.) 001-14245 (Prologis, L.P.) Prologis, Inc. Prologis, L.P. (Exact name of registrant as sp ...

Financial Data and Key Metrics Changes - Core FFO excluding promotes was $1.23 per share, and including promotes was $1.22 per share, benefiting from higher NOI but offset by increased insurance expenses due to an active storm season [7][8] - Average occupancy remained flat at 98%, with record rent changes of 69% on a net effective basis and 42% on a cash basis [7][8] - Same-store growth reached 9.9% on a net effective basis and 11.4% on a cash basis, driven by strong market rent growth [8][12] Business Line Data and Key Metrics Changes - E-commerce leasing increased to 19% of all new leasing, indicating a recovery towards the five-year average [11] - Lease mark-to-market expanded to 68%, representing over $2.85 per share of incremental earnings as leases roll to market rates [8][12] Market Data and Key Metrics Changes - The current vacancy rate in US markets is 3.5%, expected to rise to the low 4s by year-end before declining back to mid-3s by late 2024 due to limited incoming supply [11][12] - Appraised values in US funds declined by 1% and by 2% in Europe during the quarter, with a significant drop from peak values [13][14] Company Strategy and Development Direction - The company is maintaining a disciplined approach to development, with a guidance of $2.5 billion to $3 billion for the year, focusing on high-quality opportunities [16][17] - The company plans to redeem units in open-ended funds as appraisals near fair value, indicating a strategy to invest more capital into its vehicles [14][18] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook on demand due to macroeconomic concerns but noted strong fundamentals in logistics real estate [6][9] - The company anticipates a normalization of demand and supply dynamics, with expectations of continued rent growth despite potential delays in customer decisions [10][11] Other Important Information - The company ranks as the 68th largest in the S&P 500 and has paid over $15 billion in dividends since its IPO, with a 15% CAGR [18] - An upcoming Investor Day is scheduled for December at the New York Stock Exchange to showcase the company's strengths [19] Q&A Session Summary Question: Development starts and metrics driving growth - Management indicated a disciplined approach to development starts, with a potential ramp-up later in the year based on market conditions [21][22] Question: Risks to occupancy and rent growth - Management acknowledged risks in the current environment but noted that demand is normalizing rather than declining significantly [25][26] Question: Acquisitions and distressed opportunities - Management stated there is little distress in the marketplace and emphasized looking for opportunities reflecting the increased cost of capital [29][30] Question: Demand related to near-shoring - Management highlighted Northern Mexico as a key area benefiting from near-shoring trends, with limited vacancy [33][34] Question: Market conditions and rental growth - Management confirmed that while overall market conditions are good, there is a wide dispersion in rental growth across different markets [41][42] Question: Construction loan availability - Management noted a significant pullback in the availability of construction loans, impacting development starts [57][59] Question: Tenant demand and financial decision-making - Management observed that high utilization rates indicate limited slack in the system, with no significant space being returned by tenants [65][66] Question: Full-year development start yield expectations - Management indicated that yields are expected to be lower than the high 7% seen in the first quarter, with most starts in the 6% range [87][89] Question: Concerns about customer stability - Management reported a historically low bad debt ratio, indicating strong tenant health despite economic uncertainties [92][93]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-13545 (Prologis, Inc.) 001-14245 (Prologis, L.P.) Prologis, Inc. Prologis, L.P. (Exact name of registr ...