Prologis(PLD) - 2025 Q3 - Quarterly Results

Highlights Company Profile 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] - 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] - 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] 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] - Strategic Capital Fees and Promotes: $454 million[14] - Prologis Share AUM: $149 billion[17] - Gross AUM: $215 billion[25] Company Performance 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 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] - U.S. IBI Activity Index: 80 points (Average 57.7), indicating growth in activity[44][166] - New Lease Negotiation Gestation: 52 days[46] - U.S. Space Utilization: 87% (Average 85.4%)[47] 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] Financial Information Consolidated Balance Sheets 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 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 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 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 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] - Average Occupancy - Prologis Share: 94.7% (Q3 2025)[60] - Same Store Change Over Prior Year - Prologis Share (Q3 2025): NOI - cash increased by 5.2%, NOI - net effective increased by 3.9%[62] - Rent Change - Prologis Share (Q3 2025): Net effective was 49.4%, Cash was 29.4%[65] - Customer Retention: 72.9% (Q3 2025)[63] Operating Metrics - Owned and Managed 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] - Rent change (net effective) - Owned and Managed: 42.5% (Q3 2025)[69] - Rent change (cash) - Owned and Managed: 24.3% (Q3 2025)[69] 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] - Turnover costs on leases commenced (per square foot): $3.81 (Q3 2025)[74] - Free rent as a % of lease value - trailing four quarters: 3.2% (Q3 2025)[74] 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 This section details Prologis' operating portfolio, including square footage, occupancy, NOI, and gross book value Square Feet, Occupied and Leased 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] - Total Operating Portfolio (Prologis Share): 776,607 thousand square feet[79] - Occupied % (Owned and Managed): 95.3%[79] - Leased % (Owned and Managed): 95.7%[79] - U.S. markets represent 81.2% of Prologis Share of total square feet[79] - 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] NOI and Gross Book Value 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] - Total Operating Portfolio Third Quarter NOI (Prologis Share): $1,653,334 thousand[81] - Total Operating Portfolio Gross Book Value (Owned and Managed): $141,476,328 thousand[81] - Total Operating Portfolio Gross Book Value (Prologis Share): $94,254,870 thousand[81] - Southern California is the largest market by Prologis Share of NOI (19.2%) and Gross Book Value (19.3%)[81] Summary by Division 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 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 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] - Development Stabilizations (TEI) YTD 2025: $1,721 million[87] - Estimated Value Creation from Stabilizations YTD 2025: $473 million[87] - Estimated Weighted Average Stabilized Yield from Stabilizations YTD 2025: 6.8%[87] - Acquisition Activity YTD 2025: $1,193 million[88] - Land Portfolio (Prologis Share) as of Sep 30, 2025: $5,146 million[90] - Estimated Build Out of Land Portfolio (TEI): $38,700 million[90] Development Stabilizations 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 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 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] - Total Development Portfolio TEI (Prologis Share): $4,708,026 thousand[97] - Estimated value creation for Total Development Portfolio: $953,294 thousand[97] - Estimated weighted average stabilized yield for Total Development Portfolio: 6.4%[97] - Estimated weighted average margin for Total Development Portfolio: 20.2%[97] - Cost to complete (Prologis Share): $1,779,605 thousand[97] - Data centers in the Development Portfolio have a TEI of $1.0 billion (Owned and Managed) and $0.9 billion (Prologis Share)[97] Third-Party Acquisitions 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] - Total Third-Party Acquisitions (Prologis Share) for nine months ended Sep 30, 2025: $1,193,208 thousand[99] Dispositions and Contributions 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] - Dispositions of other real estate investments (Prologis Share) for nine months ended Sep 30, 2025: $57,785 thousand[101] - Grand Total Dispositions and Contributions (Prologis Share) for nine months ended Sep 30, 2025: $284,720 thousand[101] Land Portfolio This section covers Prologis' land portfolio, including owned and managed assets, current book value, estimated build-out, and roll-forward Owned and Managed 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] - Total Land Portfolio (Prologis Share): Current Book Value $5,145,933 thousand[102] - Prologis Estimated Build Out (sq ft): 159,037 thousand square feet[102] - Southern California is the largest market by Prologis Share of Current Book Value (14.7%)[102] Summary and Roll Forward 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] - Total Land Portfolio (Prologis Share) at June 30, 2025: $4,866,005 thousand[103] - 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] - Estimated build out of land portfolio (in TEI) - Prologis Share: $24,800,000 thousand[103] - Estimated build out of Covered Land Plays (in TEI) - Prologis Share: $6,700,000 thousand[103] - Estimated build out of other land (in TEI) - Prologis Share: $7,200,000 thousand[103] - Total Estimated Build Out (TEI) - Prologis Share: $38,700,000 thousand[103] Solar and Energy Storage Portfolios - Owned and Managed 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] - Estimated weighted average stabilized yield for Total Solar and Energy Storage Portfolio: 11.7%[106] Strategic Capital Overview 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] - % Open end/Public: 94.9% (Sep 30, 2025)[109] - Third-Party Fee Related and Promote Revenue (YTD 2025): Fee related revenue was $301 million[111] - 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][116] - Fee Related Earnings Annualized (Sep 30, 2025): $244 million[113] Summary and Financial Highlights 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] - Total Co-Investment Ventures (at 100%): GBV of Real Estate: $72,282,060 thousand[118] - Total Co-Investment Ventures (at 100%): Debt: $18,576,905 thousand[118] Operating and Balance Sheet Information of the Unconsolidated Co-Investment Ventures 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 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 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] - Prologis Share AUM: $149,023 million (Sep 30, 2025)[122] - AUM by Ownership: Prologis Share 83%, Investors' share 17%[122] - AUM by Geography (Prologis Share): U.S. 74.0%, Europe 17.0%, Asia 6.6%, Other Americas 2.4%[122] 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] - Debt by Currency - Prologis Share: USD 43.3%, EUR 33.6%, GBP 8.8%, JPY 6.7%, Other 7.6%[125] - Unencumbered Assets - Prologis Share: $108.6 billion[124] Debt Components - Consolidated 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] - Weighted average interest rate: 3.2%[131] - Weighted average remaining maturity in years: 8.6[131] 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] Debt Components - Noncontrolling Interests and Unconsolidated 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] - Prologis Share of unconsolidated debt, net: $4,801,023 thousand (Sep 30, 2025)[134] - Weighted average interest rate (Prologis Share of unconsolidated debt): 3.6%[134] - Weighted average remaining maturity in years (Prologis Share of unconsolidated debt): 6.0[134] 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 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 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] - Total other liabilities: $3,328,536 thousand[138] - Prologis Share of book value of land in unconsolidated co-investment ventures: $85,945 thousand[138] - Current book value of land (consolidated): $5,095,671 thousand[138] - Fee Related Earnings (trailing twelve months): $285,554 thousand[138] - Net Promote Income (Expense) (trailing twelve months): $46,076 thousand[138] - Net Promote Income (Expense) (five year average): $193,054 thousand[138] - Development management revenue (trailing twelve months): $41,719 thousand[138] - Consolidated debt (at par): $35,860,647 thousand[138] - Prologis Share of unconsolidated co-investment ventures' debt: $4,829,061 thousand[138] - Outstanding shares of common stock and limited partnership units: 950,718 thousand[138] Notes and Definitions Notes and Definitions 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] - 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][145] - 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] - 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][160][162][163] - 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][180][181] - Total Expected Investment (TEI) represents the total estimated cost of development or expansion, including land, development, and leasing costs[185] - 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]