Prologis(US:PLD)2025-02-14 21:27Portfolio and Operations - Prologis operates a portfolio of approximately 1.3 billion square feet across 20 countries, focusing on high-barrier, high-growth logistics markets[27]. - The Real Estate Segment contributes 90% to 95% of consolidated revenues, with a weighted average lease term of 64 months for leases commenced in 2024[37]. - Prologis' development business aims to build modern logistics facilities, leveraging strategic locations and sustainable design features to enhance operational efficiencies[38]. - The Strategic Capital Segment generates 5% to 10% of consolidated revenues, primarily through asset management and property management services[40]. - Prologis anticipates sustained demand for logistics facilities due to e-commerce growth, supply chain modernization, and increased consumption[28]. - The company believes its quality portfolio, strategic capital business, and strong balance sheet will drive future growth in revenues, NOI, earnings, and cash flows[42]. - The consolidated land and other real estate investments have the potential to support the development of $36.9 billion of TEI of newly developed buildings[44]. - The gross book value of the operating portfolio held by nine unconsolidated co-investment ventures was $56.3 billion across 548 million square feet as of December 31, 2024[44]. - The company has a portfolio of properties that can support the development of $41.5 billion of TEI of new logistics space on an O&M basis[49]. - At December 31, 2024, the company had more than 4,000 customers occupying 646 million square feet of logistics operating properties[51]. - The top 10 customers represent 15.9% of NER for the consolidated real estate segment, with Amazon being the largest customer[54]. Financial Performance - The company expects earnings growth driven by rolling in-place leases to current market rents, maintaining high occupancy rates, and controlling expenses[37]. - The company has experienced positive rent growth every quarter since 2013, with an estimated lease mark-to-market of approximately 30% on an NER basis[45]. - The company has total available liquidity of $7.4 billion and a weighted average interest rate of 3.1% on consolidated debt as of December 31, 2024[48]. - The weighted average remaining maturity of consolidated debt was 9 years, with a weighted average interest rate of 3.1% as of December 31, 2024[48]. - The company has utilized proceeds from senior notes issuances to finance green projects under its green bond framework[67]. Sustainability and ESG Initiatives - The company has a strong focus on Environmental, Social, and Governance (ESG) principles, integrating them into its business strategy to create value[31]. - The company is focused on sustainability goals, including the utilization of renewable energy sources and sustainable development practices[64]. - 100% of eligible new developments and redevelopments will have LED lighting installed by 2025, with 79% of eligible logistics facilities already equipped as of December 31, 2024[66]. - 1 gigawatt of solar generation and storage capacity is targeted for installation by 2025 within the O&M portfolio, with 626 megawatts already installed by December 31, 2024[66][67]. - 69% of eligible developments and redevelopments received sustainable building certifications in 2024, with a total of 100% scheduled for certification[67]. - The company has exposed to various environmental risks, but no material adverse environmental liabilities have been identified as of December 31, 2024[74]. Community Engagement and Workforce Development - The Community Workforce Initiative aims to train 25,000 individuals by 2025, achieving this goal two years early in 2023[69]. - Approximately 74,300 hours have been contributed towards the goal of 75,000 hours of community support by 2025, as of December 31, 2024[70]. - The participation rate in the employee engagement survey was 92%, with 85% of employees indicating engagement[60]. - The company has onboarded seven new directors over the past ten years, enhancing board diversity[72]. - The company maintains a commitment to ensure 100% of employees complete ethics training annually, achieving this in 2024[73]. - In 2024, over 1,800 employees completed more than 15,400 hours of company-provided or sponsored learning and development training[59]. - The total number of employees as of December 31, 2024, is 2,703, with 1,595 located in the U.S.[62].