Financial Data and Key Metrics Changes - Fourth quarter core FFO was $1.44 per share, finishing at the top end of guidance ranges [10] - Average occupancy was 95.3% for the quarter and 95% for the full year, with period-end finishing at 95.8% [10] - Net effective rent change was 44% for the quarter, contributing approximately $60 million of annualized NOI, with a full-year net effective rent change exceeding 50% [10] - Same-store NOI growth was 4.7% on a net effective basis and 5.7% on a cash basis, each ahead of guidance midpoint [11] Business Line Data and Key Metrics Changes - The company signed 57 million sq ft of leases in the quarter, driving occupancy toward 96% [9] - Development platform, particularly in build-to-suits, continues to outperform, with $1.1 billion in new buildings started in the quarter [12] - In strategic capital, two new investment vehicles were formed in the U.S. and China [9] Market Data and Key Metrics Changes - Fourth quarter net absorption was 59 million sq ft in the U.S., with a decline in U.S. vacancy to 7.4% [13][14] - Many markets are beginning to see expansion as market rent growth starts to outpace portfolio churn [11] - International markets, particularly in Latin America and Europe, are outperforming, with strong occupancy and ongoing rent growth [16] Company Strategy and Development Direction - The company focuses on three priorities: extending leadership as a best-in-class operator, capturing value creation opportunities in logistics and data centers, and enhancing shareholder returns through growth in assets under management [6][8] - The company aims to develop critical infrastructure with a growing power pipeline and deep customer relationships [7] - Strategic capital partners are increasingly seeking fewer managers who can deliver consistent performance across geographies and strategies [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational and financial results despite challenges in 2025, highlighting the strength and resilience of the platform [20] - The company anticipates positive rent growth to emerge more clearly over the course of 2026, with market vacancies expected to improve [30][31] - Management noted that e-commerce remains a significant driver of demand, representing approximately 20% of new leasing activity over the last year [15] Other Important Information - The company achieved significant milestones in strategic capital, including the IPO of the China AMC Prologis Logistics REIT [17] - The installed capacity in the energy business reached 1.1 gigawatts, surpassing the previous goal [12] Q&A Session Summary Question: Changes in strategic initiatives with new leadership - Management emphasized a focus on compounding the core logistics business while broadening the platform, with plans to grow the strategic capital area significantly [22][24] Question: Market rent growth expectations for 2026 - Management expects net absorption to approach 200 million sq ft in 2026, with vacancies declining to 7.1%-7.2% by year-end [30][31] Question: Data center project details and guidance - Approximately 40% of the development starts guidance for 2026 is expected to be in data centers, with a small number of imminent projects [35] Question: Clarification on occupancy growth and FFO growth limits - Management expressed confidence in occupancy growth despite potential downticks, with a forecast of a 25 basis points increase in average occupancy [43] Question: Capital deployment pipeline and ramp-up - Management highlighted a significant number of opportunities and the ability to make decisions based on market conditions [51][52] Question: Same-store growth guidance breakdown - The guidance reflects a mix of occupancy gains and mark-to-market improvements, with occupancy drag expected to lessen over time [64]

Financial Data and Key Metrics Changes - Fourth quarter core FFO was $1.44 per share, including net promote expense, and $1.46 per share, excluding net promote expense, finishing at the top end of guidance ranges [9] - Average occupancy was 95.3% for the quarter and 95% for the full year, with period-end finishing at 95.8% [9] - Net effective rent change was 44% for the quarter, contributing approximately $60 million of annualized NOI, driving net effective rent change for the year to more than 50% [9] - Same-store NOI growth was 4.7% on a net effective basis and 5.7% on a cash basis, each ahead of guidance midpoint [10] Business Line Data and Key Metrics Changes - The company signed 57 million sq ft of leases in the quarter, driving occupancy toward 96% [8] - The development platform, particularly in build-to-suits, continues to outperform, with 48% of new buildings started being build-to-suit [11] - In strategic capital, two new investment vehicles were formed in the U.S. and China [8] Market Data and Key Metrics Changes - Fourth quarter net absorption was 59 million sq ft in the U.S., leading to a decline in U.S. vacancy to 7.4% [12] - Many markets are beginning to see expansion as market rent growth starts to outpace portfolio churn [10] - International markets, particularly in Latin America and Europe, are showing robust consumption trends and high occupancy [14][15] Company Strategy and Development Direction - The company focuses on three priorities: extending leadership as a best-in-class operator, capturing value creation opportunities in logistics and data centers, and enhancing shareholder returns through growth in assets under management [5][6] - The company aims to develop critical infrastructure with a growing power pipeline and deep customer relationships [5] - The strategic capital area is expected to grow significantly through existing and new vehicles [22] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational and financial results despite challenges in 2025, highlighting the strength and resilience of the platform [19] - The company anticipates positive rent growth to emerge more clearly over the course of 2026, with net absorption expected to approach 200 million sq ft [26] - Management noted that uncertainty remains, but it is treated more as a planning assumption rather than an impediment [13] Other Important Information - The company achieved significant milestones in strategic capital, including the IPO of the China AMC Prologis Logistics REIT [15] - The installed capacity in the energy business reached 1.1 gigawatts, surpassing the previous goal [11] Q&A Session Summary Question: Changes in strategic initiatives with new leadership - The focus remains on compounding the core logistics business while broadening the platform, with an emphasis on development where supply is constrained [22] Question: Market rent growth expectations for 2026 - Market vacancies are expected to improve, with net absorption anticipated to approach 200 million sq ft in 2026 [26] Question: Data center project details and guidance - Approximately 40% of the development starts guidance is expected to be in data centers, with a mix of Powered Shell and Turnkey projects [28] Question: Clarification on occupancy growth in U.S. vs. international markets - Occupancy gains are expected to be dispersed across geographies, with more weight coming from the U.S. [50] Question: Contribution expectations for new vehicles in 2026 - The contribution guidance includes the Agility Fund, which will undertake development activities and take contributions of land from Prologis [45]