Financial 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].

Core Insights - Prologis (PLD) is expected to report its fourth-quarter 2025 results on January 21, with analysts keen to evaluate its performance in the current economic environment [1] Company Performance - In the last reported quarter, Prologis achieved a core funds from operations (FFO) per share surprise of 3.47%, driven by increased rental revenues and strong leasing activity, although high interest expenses posed challenges [2] - Over the past four quarters, Prologis consistently exceeded the Zacks Consensus Estimate for FFO per share, with an average beat of 4.66% [2] Industry Overview - The U.S. industrial real estate market showed resilience in Q4 2025, with net absorption reaching 54.5 million square feet, a 29% increase year-over-year, and 53% of U.S. industrial markets reporting annual absorption gains [3] - The U.S. industrial vacancy rate remained stable at 7.1% for the third consecutive quarter, with 53% of markets experiencing flat or declining vacancy rates [4] - Asking rent growth in the U.S. industrial sector slowed to 1.5% year-over-year, with rents declining by 3.8% in the Northeast and 4.5% in the West [5] - The under-construction pipeline increased to 268.1 million square feet, marking a rise for the second consecutive quarter [6] Factors Influencing Prologis - Prologis benefits from its strategic portfolio locations in key distribution markets, with targeted acquisitions and developments expected to support its Q4 results [7] - The company maintains a strong financial position, characterized by a resilient balance sheet and efficient capital access, although high interest expenses remain a concern [8] Projections - For Q4 2025, FFO per share is projected at $1.44, reflecting a 4% year-over-year decrease, while revenues are estimated at $2.10 billion, indicating an 8.6% increase year-over-year [10][11] - For the full year 2025, Prologis anticipates core FFO per share between $5.78 and $5.81, with average occupancy expected to be between 94.75% and 95.25% [12]

Core Insights - Prologis (PLD) is expected to report quarterly earnings of $1.44 per share, reflecting a 4% decline year-over-year, while revenues are forecasted to reach $2.1 billion, indicating an 8.6% increase compared to the previous year [1] - Analysts have revised the consensus EPS estimate down by 0.3% over the last 30 days, indicating a reevaluation of initial earnings projections [1][2] Revenue Estimates - The consensus estimate for 'Revenues- Strategic capital' is projected at $142.86 million, showing a significant year-over-year decline of 43.6% [4] - 'Revenues- Development management and other' is expected to be $7.11 million, reflecting a decrease of 27.1% from the prior-year quarter [4] - The 'Revenues- Rental' segment is anticipated to reach $2.10 billion, marking an increase of 8.6% year-over-year [4] Operational Metrics - Analysts estimate an 'Average Occupancy' rate of 94.9%, down from 95.6% a year ago [5] - 'Depreciation and amortization' is projected to be $634.69 million [5] Market Performance - Over the past month, Prologis shares have returned +3.2%, outperforming the Zacks S&P 500 composite, which saw a +1.6% change [5] - Prologis currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near future [5]

Core Viewpoint - Prologis, Inc. (PLD) has shown strong performance among REITs, primarily due to the robust growth in logistics, and is now focusing on expanding into data centers [1] Group 1: Company Performance - Prologis has outperformed many REITs, attributed to the resilience of the logistics growth story [1] - The company is targeting a new frontier in data centers, indicating a strategic shift in its growth focus [1] Group 2: Analyst Insights - Julian Lin, a financial analyst, emphasizes the importance of identifying undervalued companies with long-term growth potential [1] - Lin's investment strategy includes focusing on companies with strong balance sheets and management teams, particularly in sectors with significant growth opportunities [1] - The investment group led by Lin, Best Of Breed Growth Stocks, aims to share high-conviction stock positions that have a high probability of outperforming the S&P 500 [1]

Group 1 - Prologis (PLD) has outperformed many REITs due to the resilience of the logistics growth story [1] - The company is now targeting a new frontier in data centers, indicating a strategic expansion [1] - Confidence in Prologis's growth trajectory remains strong, particularly in the warehouse sector [1] Group 2 - Julian Lin, a financial analyst, focuses on finding undervalued companies with secular growth potential [1] - The investment strategy emphasizes strong balance sheets and management teams in sectors with long growth runways [1] - The investment group led by Julian Lin provides exclusive access to high-conviction stock picks and comprehensive research reports [1]

Core Insights - The comparison between Realty Income (O) and Prologis (PLD) is not merely about income versus growth, as both are high-quality REITs tailored for different investor needs [1][2][3] Realty Income Overview - Realty Income's strength lies in its durable business model, owning over 15,500 properties leased to more than 1,600 tenants across 92 industries, with a portfolio occupancy rate close to 99% [4] - The company has invested approximately $1.4 billion in Q3 2025, raising its full-year investment guidance to around $6 billion, with a significant focus on Europe and strategic partnerships [5] - Realty Income declared its 133rd monthly dividend increase in 2025, showcasing its reliability as an income generator supported by long lease terms and high-quality tenants [6] - However, growth is measured, with same-store revenue gains being steady but limited, and the net lease structure capping upside potential in stronger economies [7] Prologis Overview - Prologis is positioned at the center of global logistics, with nearly 62 million square feet of leases signed in Q3 2025, leading to a portfolio occupancy of about 95.3% and strong rent growth [8] - The company increased its full-year development starts outlook to as much as $3.25 billion, with over half of development tied to build-to-suit projects for large global customers [9][10] - Prologis is expanding beyond traditional warehouses, securing 5.2 gigawatts of power for data centers, which aligns with growth in cloud computing and digital infrastructure [11] - The company maintains a strong balance sheet with an in-place cost of debt around 3.2% and an average debt maturity of over eight years, allowing for investment through cycles [12] Financial Estimates Comparison - The Zacks Consensus Estimate for Realty Income's 2025 and 2026 sales implies year-over-year growth of 8.49% and 7.48%, respectively, with FFO per share growth of only 1.67% and 3.69% [14] - For Prologis, the 2025 and 2026 sales estimates suggest year-over-year growth of 8.72% and 6.30%, with FFO per share growth of 4.32% and 4.72% [17] Stock Performance and Valuation - Over the past six months, Realty Income shares have risen 4.5%, while Prologis stock has increased by 19.9%, outperforming the S&P 500's 14.8% gain [20] - Realty Income is trading at a forward price-to-FFO of 13.38X, above its three-year median, while Prologis is at 21.37X, also above its three-year median of 20.86X [20] Conclusion - Realty Income is ideal for investors seeking steady income and low volatility, while Prologis offers financial strength and exposure to long-term growth drivers in logistics and digital infrastructure [22] - Prologis is viewed as the stronger investment option currently, with a Zacks Rank of 2 (Buy) compared to Realty Income's 3 (Hold) [23]

Core Viewpoint - FIBRA Prologis has successfully completed the offering of USD 500 million in Senior Notes with a 5.625% interest rate, maturing in 2038, to enhance its financial flexibility and support strategic initiatives [1][2]. Group 1: Financial Offering - The company has issued USD 500 million in Senior Notes, which will be used to repurchase outstanding Terrafina Notes and redeem any remaining notes after the tender offer [1][2]. - The tender offer for the Terrafina Notes expired on January 12, 2026, and is expected to settle on January 15, 2026 [2]. Group 2: Listing and Regulatory Compliance - FIBRA Prologis has applied to list the Senior Notes on the Singapore Exchange Securities Trading Limited (SGX-ST) [3]. - The Notes have not been registered under the U.S. Securities Act and were offered privately to qualified institutional buyers [4]. Group 3: Company Profile - FIBRA Prologis is a prominent owner and operator of Class A industrial real estate in Mexico, with a portfolio of 515 investment properties totaling 87 million square feet as of September 30, 2025 [6]. - The portfolio includes 348 logistics and manufacturing facilities across six core industrial markets in Mexico, comprising 65.7 million square feet of Gross Leasing Area [6].

Core Viewpoint - FIBRA Prologis announces a leadership transition with Héctor Ibarzábal retiring as CEO, effective June 30, 2026, after over 30 years with the company, and Jorge Girault appointed as the new CEO while Alexandra Violante becomes CFO [1][2][3] Leadership Transition - Jorge Girault, currently CFO, will take over as CEO on July 1, focusing on delivering long-term value in the Mexican market [2] - Alexandra Violante, who leads Investor Relations, will become CFO on the same date, bringing extensive experience in capital markets and financial communications [3] Company Background - FIBRA Prologis is a leading owner and operator of Class-A industrial real estate in Mexico, with 515 investment properties totaling 87.0 million square feet (8.1 million square meters) as of September 30, 2025 [6] - The company includes 348 logistics and manufacturing facilities across six industrial core markets in Mexico, amounting to 65.7 million square feet (6.1 million square meters) of gross leasable area [6] Legacy and Impact - Héctor Ibarzábal is recognized for his outstanding leadership and significant contributions to establishing FIBRA Prologis as a leading logistics real estate platform in Mexico [3][5] - Girault's experience in the real estate and financial sectors is highlighted as a key factor in positioning FIBRA Prologis as the leading publicly traded real estate vehicle in Mexico [4]

Core Insights - Prologis (PLD) shares have increased by 9.1% over the past three months, outperforming the industry which declined by 2.9%, indicating a recovery from earlier volatility this year [1][8] - Investor confidence has been bolstered by stabilizing industrial fundamentals, increased leasing activity, and positive commentary from the company's third-quarter results [1][10] Financial Performance - Prologis reported record leasing activity of nearly 62 million square feet in Q3, with portfolio occupancy rising to 95.3% and a net effective rent change of 49%, demonstrating strong demand and customer decision-making [3][8] - The lease mark-to-market stood at 19% at the end of September, suggesting potential for solid rent growth as contracts reset in the coming years [3] Market Conditions - Demand conditions are improving, with U.S. industrial net absorption reaching approximately 47 million square feet and vacancy stabilizing near 7.5%, indicating a potential cyclical turning point for rents and occupancy [4] - Management has noted more optimistic customer sentiment and early signs of a broad-based recovery across regions [4] Strategic Initiatives - Prologis is expanding its data center platform, with 5.2 gigawatts of power secured or in advanced stages, positioning the firm as a significant player in the data center segment [5][8] - The company is exploring new capitalization strategies to accelerate value creation [5] Financial Health - As of September 30, 2025, Prologis held $7.5 billion in liquidity, with debt costing just 3.2% and an average remaining maturity of over eight years, providing flexibility for investment [6][9] - The recent estimate revision trend shows analysts are bullish, with the Zacks Consensus Estimate for 2025 FFO per share rising to $5.80, indicating a positive outlook [11] Dividend and Investment Appeal - Prologis has increased its dividend five times in the last five years, with a five-year annualized dividend growth rate of 12.66%, making it attractive for REIT shareholders [12] - Despite the recent stock rally, there is potential for further appreciation, supported by strong operating fundamentals and a favorable long-term outlook [12]

Company Performance - Prologis (PLD) shares decreased by 1.05% to $127.66, underperforming the S&P 500's loss of 0.74% [1] - Over the past month, Prologis shares appreciated by 0.06%, lagging behind the Finance sector's gain of 2.1% and the S&P 500's gain of 0.79% [1] Earnings Projections - Prologis is expected to report earnings of $1.44 per share on January 21, 2026, indicating a year-over-year decline of 4% [2] - The consensus estimate for revenue is projected at $2.1 billion, reflecting an 8.56% increase from the same quarter last year [2] - For the full year, earnings are projected at $5.8 per share and revenue at $8.17 billion, representing increases of 4.32% and 8.72% respectively from the prior year [3] Analyst Estimates and Valuation - Recent changes in analyst estimates for Prologis are crucial as they reflect short-term business dynamics, with upward revisions indicating positive sentiment towards the company's operations [4] - The Zacks Rank system, which assesses these estimate changes, currently ranks Prologis at 2 (Buy), with a recent upward shift of 0.02% in the consensus EPS estimate [6] - Prologis has a Forward P/E ratio of 22.23, which is a premium compared to the industry average of 11.07 [6] - The company has a PEG ratio of 3.96, higher than the industry average PEG ratio of 2.56 [7] Industry Context - The REIT and Equity Trust - Other industry, which includes Prologis, is currently ranked 78 in the Zacks Industry Rank, placing it in the top 32% of over 250 industries [7][8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]