Core Insights - Prologis, Inc. is a leading player in global logistics real estate, focusing on high-barrier and high-growth markets with a market capitalization of approximately $118.2 billion [1] - The company controls around 1.3 billion square feet of logistics space across 20 countries, highlighting its significant global presence [2] Financial Performance - For Q3 of fiscal 2025, Prologis reported an EPS of $0.82 and core FFO of $1.49, reflecting a year-over-year increase of 4.2%, while revenue rose by 8.7% to $2.2 billion [4] - Analysts anticipate a diluted EPS of $1.44 for the upcoming quarter, a decrease of 4% from the previous year's $1.50, but Prologis has consistently exceeded EPS estimates in the past four quarters [3] - Prologis is projected to see a diluted EPS increase of 4.3% year-over-year to $5.80 in fiscal 2025, followed by a further 5% increase to $6.09 in fiscal 2026 [5] Market Performance - Over the past 52 weeks, Prologis stock has increased by 25.5%, with year-to-date gains of 20.4%, outperforming the S&P 500 Index, which rose 16.5% over the same period [6] - The performance of Prologis is notably stronger compared to the State Street Real Estate Select Sector SPDR ETF, which has shown only marginal gains over the past year [7]

Financial Data and Key Metrics Changes - Revenue increased by 12.9% to $11.8 million and NOI grew almost 6% to $9.4 million in Q1 2025 [5] - Average rent per square foot increased by 1.9% across the property portfolio compared to Q1 2024 [14] - Net debt to adjusted EBITDA improved, decreasing by 30 basis points over the same period [17] Business Line Data and Key Metrics Changes - Peru, representing 29% of the portfolio GLA, saw rental income grow by 38.4% [15] - Costa Rica, accounting for 47% of the portfolio, experienced a revenue increase of 6.1% [15] - Colombia, which makes up 24% of the portfolio, delivered a 2.6% revenue increase [15] Market Data and Key Metrics Changes - Peru's economy is characterized by low inflation, minimal government debt, and low unemployment, contributing to strong consumer spending [5] - Mexico is viewed as a new avenue for long-term growth, with a focus on logistics rather than light manufacturing due to tariff uncertainties [10][12] Company Strategy and Development Direction - The company aims to replicate its success in Mexico while being selective in investments, focusing on logistics space driven by domestic consumption [10][12] - Plans to increase footprint in Lima with a new 215,000 square foot building, already 73% pre-leased [7] - The company maintains a strong pipeline of near and long-term investment opportunities in foundational markets and Mexico [26] Management's Comments on Operating Environment and Future Outlook - Management remains constructive on Mexico's medium and long-term prospects despite tariff uncertainties [10] - The foundational markets are demonstrating resilience, with expectations for additional NOI growth this year [26] - The company emphasizes the importance of being selective about customers and investments to scale its regional platform [26] Other Important Information - The company achieved 100% occupancy across its operating portfolio of 5.6 million square feet [7] - G&A expenses increased by 112% due to higher professional services and D&O insurance expenses [16] - The company repurchased $800,000 worth of ordinary shares during the quarter, totaling 2.1 million buybacks [17] Q&A Session Summary Question: Is the company shying away from light manufacturing in Mexico? - Management prioritizes logistics assets in Mexico and is being selective regarding light manufacturing, particularly in the auto sector [20][22] Question: Are tenants still in a wait-and-see mode regarding tariffs? - Management indicates that foundational markets are mostly consumer-driven, and tariffs have not significantly impacted leasing activity [21][24]