Prologis(US:PLD)2026-01-21 13:06Financial Performance - Prologis reported total revenues of $2.25 billion for Q4 2025, a slight increase from $2.20 billion in Q4 2024[5]. - Net earnings attributable to common stockholders for Q4 2025 were $1.40 billion, compared to $1.28 billion in Q4 2024, reflecting a year-over-year growth of 9.5%[11]. - Core FFO attributable to common stockholders for Q4 2025 was $1.38 billion, down from $1.44 billion in Q4 2024, indicating a decrease of 4.2%[5]. - The company reported a net earnings of $414,017,000 for the same period, with a core FFO of $730,309,000[33]. - Consolidated Property NOI for Q4 2025 was $1,588,885, an increase from $1,499,039 in Q4 2024, reflecting a growth of 5.9%[48]. - Rental revenues for Q4 2025 reached $2,092,107, up from $1,937,507 in Q4 2024, marking an increase of 8.0%[48]. Guidance and Projections - The company anticipates 2026 Core FFO guidance between $6.00 and $6.20 per share, with net earnings guidance of $3.70 to $4.00 per share[9]. - Prologis' development stabilizations for 2026 are projected to be between $2.25 billion and $2.75 billion, with development starts expected to range from $3.00 billion to $4.00 billion[9]. - Core FFO guidance for 2025 is projected between $6.00 and $6.20 per share, with net earnings attributable to common stockholders estimated at $3.70 to $4.00 per share[45]. Occupancy and Leasing - Prologis' average occupancy rate is projected to be between 94.75% and 95.75% for 2026[9]. - Average occupancy for the operating portfolio was 95.8% in Q4 2025, compared to 94.8% in Q4 2024[14]. - Total square feet of leases commenced in Q4 2025 was 43,764, a decrease from 65,603 in Q3 2025[15]. - The total square footage of the Operating Portfolio was 1,207,391,000 square feet, with an occupancy rate of 95.8%[20]. Assets and Liabilities - Total assets as of December 31, 2025, were $98.72 billion, with total liabilities of $40.97 billion[10]. - The company reported a gross AUM of $230 billion, with Prologis share AUM at $162 billion[4]. - The total value of assets under management reached $163,081,534,000, with G&A as a percentage of assets under management at 0.37%[45]. Development and Investment - The company owned or had investments in properties totaling approximately 1.3 billion square feet across 20 countries as of December 31, 2025[3]. - Total development stabilizations for the year reached 12,519,000 square feet, generating an annualized estimated NOI of $151,803,000[23]. - The company has signed leases totaling 67 million square feet expiring in 2026, representing 4.7% of total net effective rent[21]. - Total development starts reached 5,203 square feet with a total estimated investment (TEI) of $1,110,619, representing a 49.6% increase[24]. Debt and Financial Ratios - Debt as a percentage of gross market capitalization was 24.6%, down from 26.5% in the previous quarter, indicating improved leverage[35]. - The fixed charge coverage ratio was reported at 5.9x, reflecting the company's ability to cover fixed charges comfortably[35]. - The weighted average interest rate on debt was 3.3%, with a remaining maturity of 8.2 years, indicating a stable debt profile[35]. - The debt to Adjusted EBITDA ratio increased to 5.3x from 5.0x in the previous quarter[43]. Cash Flow and Expenses - Total current income tax expense for the twelve months ended December 31, 2025, was $204,017,000, compared to $166,943,000 in 2024, reflecting an increase of about 22.2%[46]. - Gross interest expense for the twelve months ended December 31, 2025, was $1,023,805,000, up from $892,612,000 in 2024, indicating a rise of approximately 14.7%[46]. - Capitalized G&A expenses for the twelve months ended December 31, 2025, totaled $175,068,000, compared to $188,800,000 in 2024, showing a decrease of about 7.3%[45]. Customer and Market Insights - The top customer, Amazon, occupies 169,160 square feet, contributing 11.3% to the net effective rent[21]. - The weighted average term of leases remaining based on net effective rent is 3.9 years for the top customers[21]. - The U.S. accounted for 84.6% of the total NOI, with $1,715,249,000, while total NOI outside the U.S. was $740,377,000[19].