Company Performance - Prologis (PLD) stock increased by 1.88% to $142.66, outperforming the S&P 500 which fell by 0.54% on the same day [1] - Year-to-date, Prologis shares have risen by 10.15%, significantly exceeding the Finance sector's gain of 0.2% and the S&P 500's gain of 0.58% [1] Earnings Estimates - Prologis is expected to report earnings per share (EPS) of $1.48, representing a 4.23% increase from the same quarter last year [2] - Revenue is projected to be $2.11 billion, indicating a growth of 6.41% compared to the same quarter of the previous year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates predict earnings of $6.12 per share and revenue of $8.64 billion, reflecting increases of 5.34% and 5.94% respectively from the previous year [3] - Recent analyst estimate revisions suggest a favorable outlook on Prologis's business health and profitability [3] Valuation Metrics - Prologis currently has a Forward P/E ratio of 22.88, which is a premium compared to its industry's Forward P/E of 12.21 [6] - The company has a PEG ratio of 3.46, while the average PEG ratio for the REIT and Equity Trust - Other industry is 2.67 [6] Industry Context - The REIT and Equity Trust - Other industry, part of the Finance sector, has a Zacks Industry Rank of 154, placing it in the bottom 38% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Prologis, Inc. is identified as the largest publicly traded industrial REIT and one of the largest publicly traded real estate companies in the market [1] Group 1 - Prologis, Inc. (PLD) is a significant player in the real estate sector, particularly in the industrial REIT space [1]

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SOLID OPERATING RESULTS MEXICO CITY, Feb. 23, 2026 /PRNewswire/ -- FIBRA Prologis (BMV:FIBRAPL 14), a leading owner and operator of Class-A industrial real estate in Mexico, today reported results for the fourth quarter and full year 2025. HIGHLIGHTS FROM THE YEAR: Net earnings per CBFI was Ps. 2.0887 (US$0.1123) for the quarter compared with Ps. 3.8692 (US$0.1816) for the same period in 2024. For the full year 2025, net earnings per CBFI was Ps. 6.9148 (US$0.3565) compared with Ps. 17.1978 (US$0.9136) for ...

Core Viewpoint - Prologis has shown a positive performance with shares increasing by approximately 9.8% since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Earnings Report Summary - Prologis reported a fourth-quarter 2025 core FFO per share of $1.44, meeting the Zacks Consensus Estimate but down from $1.50 in the same quarter last year [2] - Rental revenues reached $2.09 billion, falling short of the Zacks Consensus Estimate of $2.17 billion, but increased from $1.94 billion year-over-year [3] - Total revenues for the quarter were $2.25 billion, slightly up from $2.20 billion in the previous year [3] Operational Performance - In Q4, 43.8 million square feet of leases commenced, with a retention level of 77.7% [4] - Average occupancy in Prologis' portfolio was 95.3%, an increase from 94.8% in the previous quarter but a decrease from 95.6% year-over-year [4] - The company's share of net effective rent change was 43.8%, with a cash rent change of 27.3% [5] Financial Metrics - Interest expenses rose by 12.2% year-over-year to $260.5 million [7] - Prologis ended Q4 2025 with cash and cash equivalents of $1.15 billion, down from $1.19 billion in Q3 2025, and total liquidity of $7.6 billion [8] - The weighted average interest rate on total debt was 3.3%, with a weighted average term of 8.2 years [8] Future Guidance - For 2026, Prologis provided core FFO per share guidance of $6.00-$6.20, with expected average occupancy between 94.75% and 95.75% [10] - Projected cash same-store NOI is in the range of 5.75-6.75% [10] - Capital deployment guidance includes development starts of $3.00-$4.00 billion and acquisitions of $1.00-$1.50 billion [11] Market Sentiment - There has been an upward trend in estimates revisions for Prologis over the past month [12] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [14]

FIBRA Prologis Announces that Terrafina Obtained CNBV Authorization for the Cancellation of the Registration of its CBFIs in the National Securities Registry [Accessibility Statement] Skip NavigationMEXICO CITY, Feb. 19, 2026 /PRNewswire/ -- FIBRA Prologis (BMV: FIBRAPL 14), one of the leading owners and operators of Class A industrial real estate in Mexico, announces that on February 18, 2026, Terrafina ("TERRA") (BMV: TERRA13), a subsidiary trust of Fibra Prologis, received from the National Banking and S ...

Core Viewpoint - The Vanguard Real Estate ETF (VNQ) is attracting retirees seeking quarterly income, while growth investors are moving away due to its underperformance compared to broader equity markets, primarily driven by interest rate sensitivity [1]. Group 1: VNQ Performance and Characteristics - VNQ has returned 88.13% over the past decade, significantly lower than the SPDR S&P 500 ETF Trust (SPY), which returned 255.65% during the same period [1]. - The ETF yields 3.82% and has 54% of its assets concentrated in its top 10 holdings, which include Prologis, American Tower, and Equinix [1]. - VNQ provides diversified real estate exposure without the management burden of direct property ownership, tracking the MSCI US Investable Market Real Estate 25/50 Index with net assets of $65.7 billion [1]. Group 2: Market Conditions and Risks - VNQ's performance has been impacted by rising interest rates, with the 10-year Treasury yield decreasing from 4.55% to 4.04% over the past year, yet it still lags behind equities [1]. - Housing starts have declined by 16.4% year-over-year, indicating softer construction demand that affects certain REIT categories [1]. - The ETF sacrifices growth potential for income, making it more suitable as a portfolio diversifier rather than a growth engine [1].

The commercial real estate sector has delivered lackluster returns for the past few years. That's due to the impact higher interest rates have on commercial real estate. They increase interest expenses, cutting into a property's cash flow. Higher rates also make lower-risk fixed-income investments more attractive. These factors weigh on the value of commercial real estate. However, the Federal Reserve has started cutting interest rates, and more reductions could be forthcoming. That could drive a rebound ...

Portfolio 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]

Core Insights - Prologis, Inc. has announced a 5.9% increase in its quarterly cash dividend to $1.07 per share, payable on March 31, 2026, to shareholders on record as of March 17, 2026 [1][11] - The new annualized dividend rate is $4.28 per share, compared to the previous rate of $4.04, resulting in a dividend yield of 3.14% based on a share price of $136.38 [2] Dividend Growth and Sustainability - Prologis has a strong commitment to dividend payouts, having increased its dividend five times in the last five years, with a five-year annualized growth rate of 11.58% [3] - The company’s strategic positioning in industrial distribution warehouse space in key markets supports its ability to sustain dividend growth [4] Operational Performance - In Q4 2025, Prologis reported 43.8 million square feet of leases commenced, with a retention level of 77.7% and an average occupancy rate of 95.3%, up from 94.8% in the previous quarter [5][11] - The company expects average occupancy for 2026 to be between 94.75% and 95.75% [5] Financial Metrics - Prologis' net effective rent change was 43.8% in Q4 2025, with cash rent change at 27.3% and cash same-store net operating income (NOI) growing by 5.7% [6] - For 2026, the company anticipates cash same-store NOI growth in the range of 5.75% to 6.75% [6][11] Balance Sheet and Liquidity - As of December 31, 2025, Prologis maintained a total available liquidity of $7.6 billion, with a weighted average interest rate on total debt at 3.3% and a weighted average term of 8.2 years [8] - The company’s strong financial position allows it to capitalize on growth opportunities and manage challenges effectively [9] Market Performance - Prologis shares have gained 11% over the past three months, outperforming the industry growth of 5% [10]