Prologis Rewards Its Investors With a Dividend Increase of 5%

Core Viewpoint - Prologis, Inc. has announced a 5% increase in its quarterly cash dividend, raising it to $1.01 per share, reflecting the company's commitment to enhancing shareholder wealth and its strong financial position [1][2]. Dividend Policy - Prologis has consistently increased its dividends, with a 10.3% hike in February 2024 and five increases over the last five years, resulting in a five-year annualized dividend growth rate of 13.66% [2]. - The latest dividend hike results in an annualized amount of$ 4.04 per share, translating to a dividend yield of 3.3% based on a share price of $120.90 [1]. Financial Performance - In Q4 2024, Prologis commenced 46.5 million square feet of leases with a retention level of 78.4%, maintaining an average occupancy level of 95.6% [4]. - For 2025, management anticipates average occupancy to be between 94.5% and 95.5%, with an estimated occupancy of 94.9% [4]. Rental Income Growth - The company expects a decline in vacancy rates in 2025, leading to rent growth, with projected year-over-year increases in rental revenues of 6.9% for 2025, 6.9% for 2026, and 8.3% for 2027 [5]. Balance Sheet Strength - As of December 31, 2024, Prologis had total available liquidity of$ 7.38 billion, a weighted average interest rate on total debt of 3.2%, and a debt-to-adjusted EBITDA ratio of 4.6x [6]. - The company's credit ratings were A3 (Outlook Positive) from Moody's and A (Outlook Stable) from Standard & Poor's, indicating strong borrowing capacity [7]. Growth Opportunities - Prologis is well-positioned to capitalize on long-term growth opportunities due to its solid operating platform, financial flexibility, and strategic focus on data center and energy business trends [3][8]. Market Performance - Prologis shares have gained 4.4% over the past three months, contrasting with a 4.5% decline in the industry [9].