Prologis(PLD) - 2024 Q4 - Annual Results

Financial Performance - Prologis reported total revenues of $2.201 billion for Q4 2024, a 16.5% increase from$ 1.889 billion in Q4 2023[30]. - Net earnings attributable to common stockholders reached $1.277 billion in Q4 2024, compared to$ 629 million in Q4 2023, marking a 103.5% increase[30]. - Core FFO attributable to common stockholders was $1.435 billion for Q4 2024, up from$ 1.202 billion in Q4 2023, reflecting a 19.4% increase[30]. - The company achieved operating income of $1,421,256 in Q4 2024, compared to$ 834,851 in Q4 2023, representing a 70.0% increase[63]. - Adjusted EBITDA for Q4 2024 was $2,111,536,000, compared to$ 1,733,598,000 in Q3 2024, marking a 21.8% increase[179]. - Total rental revenue for Q4 2024 reached $1,178,286,000, with the U.S. contributing$ 381,817,000, Other Americas $175,358,000, Europe$ 458,365,000, and Asia $162,746,000[140]. - Core FFO per share - Diluted for Q4 2024 was$ 1.50, compared to $1.26 in Q4 2023, indicating a 19.0% increase[176]. Guidance and Projections - Prologis anticipates 2025 net earnings attributable to common stockholders to be between$ 3.45 and $3.70 per share[56]. - The guidance for Core FFO attributable to common stockholders/unitholders for 2025 is projected to be between$ 5.65 and $5.81 per share[56]. - The company plans to stabilize between$ 2.25 billion and $2.75 billion in development projects in 2025[56]. Development and Occupancy - Prologis' average occupancy rate is expected to range from 94.5% to 95.5% in 2025[56]. - Average occupancy for the owned and managed portfolio was 96.9% in Q4 2024, slightly down from 97.1% in Q4 2023[71]. - The total square feet of leases commenced in Q4 2024 was 46,491,000, a decrease from 43,650,000 in Q4 2023[82]. - The company has signed leases totaling 66 million square feet in the Owned and Managed portfolio, representing 4.2% of total net effective rent, with 38 million square feet on a Prologis Share basis, accounting for 3.7%[97]. Assets and Liabilities - Total assets as of December 31, 2024, were$ 95,328,909, a slight decrease from $95,905,196 as of September 30, 2024[60]. - The company’s total liabilities decreased to$ 36,712,139 from $38,241,104 in the previous quarter, reflecting a reduction of 4.0%[60]. - Cash and cash equivalents increased significantly to$ 1,318,591 from $780,871 in the previous quarter, marking a 68.8% rise[60]. - The company’s total equity rose to$ 58,616,770 from $57,664,092 in the previous quarter, an increase of 1.7%[60]. Market Presence - Prologis operates approximately 1.3 billion square feet of logistics facilities across 20 countries, serving around 6,500 customers[10]. - The U.S. market represents 81.7% of Prologis' total square footage, with 3,647 buildings and 753,489 thousand square feet, maintaining a leased percentage of 96.1%[91]. - Prologis' international operations outside the U.S. account for 14.0% of total NOI, with a gross book value of$ 43,792,007 thousand[94]. Debt and Liquidity - The company reported a total consolidated debt of $30.88 billion, with a significant portion in USD (approximately 45.9%)[155]. - Prologis has a strong liquidity position with total liquidity reported at$ 7.38 billion[155]. - The weighted average interest rate on debt was 3.2% as of December 31, 2024, slightly up from 3.1% in the previous quarter[146]. - Debt as a percentage of gross market capitalization increased to 25.6% as of December 31, 2024, compared to 23.1% on September 30, 2024[146]. Strategic Investments - Prologis is focused on expanding its market presence and enhancing its operational efficiency through strategic investments and developments in key regions[92]. - The total capital deployment for development starts in 2023 is $4,675 million, showing a consistent investment trend over the years[100]. - The estimated weighted average stabilized yield for development stabilizations is 6.1%[109]. Tax and Expenses - Total current income tax expense for Q4 2024 was$ 67,910,000, compared to $50,625,000 in Q4 2023, representing a 33.9% increase[195]. - Gross interest expense for Q4 2024 was$ 236,297,000, up from $193,163,000 in Q4 2023, indicating a 22.3% rise[197]. - Interest expense for the twelve months ended December 31, 2024, totaled$ 863,932,000, compared to $641,332,000 in 2023, marking a 34.7% increase[197].