Core Viewpoint - Prologis is preparing for an IPO in 2026 as a necessary step to address capital circulation issues, despite stable rental income from its warehouses [7][11][25]. Group 1: Company Background - Prologis, a major operator of logistics warehouses in China, manages 450 facilities across 70 markets, serving as a backbone for e-commerce and fast-moving consumer goods [7][8]. - The company was privatized in 2017 at a valuation of 16 billion Singapore dollars (approximately 79 billion RMB), marking one of the largest privatization deals in Asia [9]. Group 2: Capital Circulation Challenges - Prologis faces difficulties in capital circulation as the enthusiasm of dollar funds for investing in Chinese logistics assets has decreased, leading to tighter funding pools [12]. - The Chinese public REITs market is too small to absorb Prologis's substantial asset pool, with individual REITs only reaching tens of billions of RMB [13]. - Major shareholders, including Hillhouse and Vanke, have held their investments for eight years and are increasingly seeking liquidity through an IPO [13]. Group 3: IPO as a Necessity - The IPO has shifted from being a choice to a necessity due to the combined pressures of reduced fundraising options and shareholder exit strategies [14]. - Prologis must present a compelling narrative beyond just owning warehouses, positioning itself as a "new infrastructure platform" that includes logistics, data centers, and renewable energy initiatives [15]. Group 4: Market Timing and Competition - The Hong Kong IPO market has recently improved, providing a favorable window for Prologis to launch its IPO [16]. - Prologis faces competition from potential IPO candidates like Wanwei Logistics and other foreign investors looking to enter the Chinese market [19][21]. Group 5: Risks and Uncertainties - The company is exposed to risks such as slowing rental growth in first-tier cities, rising vacancy rates in second-tier markets, and potential skepticism from investors regarding its new narrative [22][24].

Core Viewpoint - Prologis China is preparing for an IPO in 2026, driven by the need for capital amid changing market conditions and pressures on fundraising [1][4][19] Group 1: Company Background - Prologis, originally from Singapore, became Asia's largest logistics real estate IPO in 2010, aiming to build a global supply chain infrastructure [3] - The company was privatized in 2017 at a valuation of 160 billion SGD (approximately 79 billion RMB), marking a significant moment in China's logistics real estate sector [3] - Prologis China has maintained stable rental income and healthy cash flow despite broader market challenges [5][8] Group 2: Challenges Faced - Fundraising difficulties have arisen due to reduced enthusiasm from US funds for Chinese warehousing investments, leading to tighter capital pools [5] - The scale of China's public REITs is insufficient to absorb Prologis's substantial asset pool, limiting exit options [5] - Shareholders, including major financial investors, are seeking liquidity after holding their investments for eight years, making an IPO a necessary exit strategy [5] Group 3: Market Positioning - Prologis is rebranding itself as a "new infrastructure platform" to appeal to investors, aligning with trends in consumption and supply chain upgrades [7] - The company is leveraging a favorable window in the Hong Kong IPO market, which has seen a resurgence in financing activity [8] - Prologis faces competition from potential Pre-IPO rivals, including logistics firms and data centers, which could impact its market positioning [9][10] Group 4: Future Prospects - A successful IPO could provide necessary funding and allow existing shareholders to exit gracefully, positioning Prologis as a representative of China's new infrastructure [19] - Conversely, failure to meet IPO expectations could lead to a negative perception in the market, despite stable rental income from warehouses [19]