Prologis(US:PLD)2026-02-13 21:21Portfolio and Operations - Prologis operates a portfolio of approximately 1.3 billion square feet across 20 countries, focusing on high-barrier, high-growth markets[27] - The Real Estate Segment contributes 90% to 95% of consolidated revenues, earnings, and funds from operations (FFO), with rental operations being the largest component[40] - The company owns or has investments in properties and development projects totaling approximately 1.3 billion square feet, with a gross book value of $62.4 billion across 562 million square feet in co-investment ventures[34][47] - The company has over 4,000 customers occupying 649 million square feet of logistics operating properties, with a total of 6,500 customers in its O&M portfolio occupying 1.3 billion square feet[52] - The company has 159 investors in its private equity ventures as of December 31, 2025, indicating strong investor relationships[58] Development and Growth - The company estimates that its consolidated land and real estate investments can support the development of $37.3 billion of total estimated investment (TEI) in newly developed buildings[46] - The company is currently developing $686 million of TEI on an O&M basis for new data centers[51] - The development business focuses on modern logistics facilities and selectively includes data centers, leveraging strategic locations and customer relationships to enhance value[41] - The company plans to grow its Strategic Capital business by increasing assets under management in existing and new ventures[47] Financial Performance - The company has a total available liquidity of $7.6 billion and a weighted average interest rate of 3.2% on its consolidated debt as of December 31, 2025[50] - The company maintains a strong balance sheet with low leverage and significant liquidity, positioning it to capitalize on opportunistic investments[50] - The company maintains a strong balance sheet with a weighted average remaining term of consolidated debt at 9 years and a weighted average interest rate of 3.2%[50] - The company experienced a 50% increase in net effective rents for lease rollovers during 2025, with an estimated 18% remaining lease mark-to-market potential[48] Sustainability Initiatives - Prologis has over 1 gigawatt of solar generation and storage capacity in its portfolio, supporting sustainability goals[32] - The company aims to achieve 1 gigawatt of solar generation and storage capacity by 2025, with 1.1 gigawatts already installed by December 31, 2025[70] - 100% of eligible new developments and redevelopments are targeted for sustainable building certifications, with 62% already certified by December 31, 2025[72] - The company has implemented LED lighting in 100% of eligible new developments and 83% of eligible operating properties by December 31, 2025[72] - The company is committed to achieving sustainable building certifications for 100% of eligible new developments and redevelopments[72] Community Engagement and Workforce Development - The Community Workforce Initiative has successfully trained 25,000 individuals by 2023, two years ahead of schedule[74] - The company surpassed its goal of 75,000 hours of community support by reaching 96,000 hours by December 31, 2025[75] - The company has invested over 14,400 hours in employee training and development in 2025, with a 92% participation rate in its employee engagement survey[63][64] - The workforce demographics show a commitment to diversity, with ongoing efforts to recruit and retain talented employees[59] Risk Management - The company is subject to various regulatory requirements and geopolitical matters that may adversely impact its financial condition and operating results[80] - The increasing adoption of artificial intelligence (AI) may also negatively affect the company's business and financial performance[80] - The company maintains insurance coverage for properties, including property damage and rental loss insurance, which is primarily funded through customer reimbursements[81] - A catastrophe bond issuance was sponsored in 2024 to provide additional insurance coverage for earthquake risks in the U.S. through 2027[81] - The company believes its insurance coverage is adequate and contains customary policy specifications and limits for similar properties and markets[81]