Company Overview - Prologis (NYSE:PLD) is a leading industrial real estate investment trust (REIT) focusing on logistics facilities globally, providing warehouses and distribution centers across various industries [1] - Prologis competes with other industrial REITs such as Industrial Logistics Properties Trust (ILPT) and First Industrial (FR), all experiencing a resurgence in demand [1] Financial Performance - BMO Capital set a price target of $123 for Prologis, with the stock currently trading at $127.24, reflecting a decrease of 2.97% from its previous price [2][6] - Prologis signed 57 million square feet of leases in Q4, boosting its occupancy rate to 95.8% and supporting strong core funds from operations (FFO) [3][6] Market Conditions - The U.S. industrial real estate market began 2026 with increased visibility, driven by a rebound in demand during the latter half of 2025 [4] - U.S. industrial vacancy rates remained steady at 7.1% for the third consecutive quarter, with full-year net absorption reaching 176.8 million square feet, marking a 16.3% increase year over year [4][6] Investor Sentiment - Investors are focusing on the sustainability of cash flows and balanced portfolios rather than peak rent growth, positioning Prologis favorably in this environment [5] - Prologis has a market capitalization of approximately $118.19 billion, with a trading volume of 3,434,012 shares on the NYSE, indicating active investor interest [5]

Group 1: Xero Ltd (XRO) - Xero has experienced a significant share price decline of 35.8% since the beginning of 2025 [1] - Founded in 2006, Xero has grown into a global leader in cloud-based accounting software, employing over 3,000 people and serving millions of subscribers worldwide [2] - The company's core product is designed for accountants and bookkeepers, providing real-time financial data accessible on any device, primarily used in New Zealand, Australia, the UK, and the US [3] - Xero has achieved a revenue growth rate of 26.4% per year since 2021, reaching $1,714 million in FY24, with net profit increasing from -$9 million to $175 million [7] - The return on equity (ROE) for Xero was reported at 14.3% [7] Group 2: Goodman Group (GMG) - Goodman Group, founded in 1989, is a leading global property group that owns, develops, and manages real estate assets across multiple continents [4] - The company focuses on large-scale logistics facilities, warehouses, and business parks, aiming to build long-term relationships with customers while delivering sustainable assets [5] - In FY24, Goodman Group reported a debt/equity ratio of 21.2%, indicating more equity than debt [8] - Since 2020, GMG has maintained an average dividend yield of 1.3% per year [9] - The ROE for Goodman Group in FY24 was reported at 0.1%, which is below the expected threshold of 10% for a mature business [9]

Core Insights - Prologis, Inc. (NYSE:PLD) is recognized as one of the best REIT dividend stocks to invest in currently [1] - The company is strategically positioned for long-term growth due to its high-quality property portfolio, global reach, and technological capabilities [2] - Prologis is entering data center development, which is expected to significantly contribute to growth and provide attractive risk-adjusted returns [3] - The company has a strong dividend history, having increased dividends for 11 consecutive years, with a current quarterly dividend of $1.01 and a dividend yield of 3.47% as of October 1 [4] Company Positioning - Prologis benefits from favorable market conditions, including strong demand, limited supply, and positive rental trends, with a potential 30% upside in existing leases [2] - Key growth drivers include the rise of e-commerce, supply chain modernization, increased inventory for safety, and trends towards nearshoring and onshoring [2] Growth Opportunities - The company's entry into data center development on its existing land is anticipated to enhance growth and cash flow [3] - Prologis has an experienced management team capable of executing on global secular trends in logistics and data centers [3]

Group 1: Goodman Group (GMG) - Goodman Group's share price has decreased by 8.3% since the start of 2025, and it is the largest ASX-listed property group operating in key markets including Australia, New Zealand, the UK, Japan, the US, and Brazil [1][5] - The company focuses on large-scale logistics facilities, warehouses, and business parks, aiming to foster long-term relationships with customers while delivering sustainable assets [2] - For FY24, Goodman Group reported a debt/equity ratio of 21.2%, an average dividend yield of 1.3% per year over the last 5 years, and a return on equity (ROE) of 0.1%, which is below the expected level for a mature business [6] Group 2: Sonic Healthcare (SHL) - Sonic Healthcare, listed in April 1987, is one of the world's largest pathology businesses with operations in Australia, New Zealand, Europe, and North America, offering various medical services [3][4] - Over the last 3 years, Sonic Healthcare has increased its revenue at a rate of 0.8% per year, reaching $8,967 million in FY24, while net profit has decreased from $1,315 million to $511 million, with a reported ROE of 6.8% [8] - The company aims to act in the best interests of its doctors and patients, providing medical excellence and being a desirable workplace [4]

Group 1: Company Overview - Xero Ltd, founded in 2006 in Wellington, New Zealand, has become a global leader in cloud-based accounting software, employing over 3,000 people and serving millions of subscribers worldwide [2] - Goodman Group, established in 1989, is a leading global property group that owns, develops, and manages real estate assets across multiple continents, operating in key markets including Australia, New Zealand, the UK, Japan, the US, and Brazil [4] Group 2: Product and Service Offerings - Xero's accounting software is designed for accountants and bookkeepers, providing real-time financial data accessible on any device, which empowers small business owners and their advisors with up-to-date insights [3] - Goodman Group focuses on large-scale logistics facilities, warehouses, and business and office parks, aiming to foster long-term relationships with customers while delivering high-quality, sustainable assets [5] Group 3: Financial Performance Metrics - Xero has achieved a revenue growth rate of 26.4% per year since 2021, reaching $1,714 million in FY24, with net profit increasing from -$9 million to $175 million during the same period, and a reported ROE of 14.3% [7] - Goodman Group reported a debt/equity ratio of 21.2% in FY24, indicating more equity than debt, and has paid an average dividend yield of 1.3% per year since 2020, with an ROE of 0.1% in FY24, which is below the expected level for a mature business [8][9]

Company Overview - Prologis (PLD) is a leading REIT in logistics real estate, focusing on the ownership, development, and management of high-quality logistics facilities, which are crucial for the economy [1] Analyst Background - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology, and has written extensively on value investing [1] Investment Focus - The analyst has a particular interest in metals and mining stocks but is also knowledgeable in other industries such as consumer discretionary/staples, REITs, and utilities [1]

Financial Data and Key Metrics Changes - Rental revenue increased by 6.4% to $11.7 million in Q2 2025, and grew 9.6% on a six-month basis [6] - Net operating income rose by 3.7% in the quarter and 4.8% during the first half [7] - Operating cash flow increased by 23.5% year over year to $8.9 million [17] - Financing costs decreased by over 15% due to lower interest rates in Colombia [17] - Average net effective rent per square foot was $8.07, an increase of 2.5% compared to Q2 2024 [15] Business Line Data and Key Metrics Changes - Colombia led revenue growth with a 19% increase, followed by Peru at 10.7%, while Costa Rica saw a decrease of 1% [13] - Operating Gross Leasable Area (GLA) increased by 6.6% year over year to 5.3 million square feet, with total GLA rising by 9.1% to 5.8 million square feet [15] Market Data and Key Metrics Changes - Demand for premium logistics and industrial real estate continues to outstrip supply in target markets, particularly in Colombia and Peru [12][22] - The life sciences sector in Costa Rica and the mining sector in Peru are driving economic growth and demand for logistics facilities [22] Company Strategy and Development Direction - The company is expanding its property portfolio to capture growth in target markets, with a focus on Mexico as a key market for future growth [6][9] - Ongoing construction of new facilities, including Building 300 in Lima, is expected to contribute significantly to near-term growth [8] - The company aims to maintain a disciplined approach to investments in Mexico, focusing on domestic consumption-driven sectors [12][24] Management's Comments on Operating Environment and Future Outlook - Management emphasized strong domestic consumption trends supporting demand for logistics facilities [21] - The company expects to benefit from operating leverage as new facilities come online, enhancing earnings power by late 2025 and into 2026 [24] - There is a clear flight to quality in the market, with the company capturing premium pricing due to market tightness [23] Other Important Information - The company is facing administrative delays in the purchase of two logistics facilities in Puebla, Mexico, but remains confident in the attractiveness of the transaction [10] - A strategic partnership with Allos in Mexico is expected to enhance local market penetration and operational excellence [11] Q&A Session Summary Question: Decrease of other income - The decrease in other income was attributed to one-time fees related to lockup releases from shareholders when the company went public [20]

Core Insights - Prologis plays a critical role in the global economy, with nearly $3.2 trillion worth of goods flowing through its warehouses in 2024, representing 2.9% of the world's GDP [1][2] - The company's operations supported 3.6 million jobs worldwide and contributed $348 billion to the global economy [1][3] - The report highlights Prologis' significant impact on local economies and supply chains, emphasizing its role as an engine of economic activity [4] Economic Impact - The 2024 Future Flow of Goods report, produced in collaboration with Oxford Economics, estimates the throughput of goods, direct employment in warehouses, and total economic impact across direct, indirect, and induced channels [3] - Economic activity in Prologis warehouses generated $77 billion in global tax revenues [7] - California led with $465 billion in throughput, supporting 162,000 direct jobs and generating a $54 billion total GDP impact [8] Regional Highlights - In the United States, goods moving through Prologis warehouses totaled $2 trillion across 22 states [2] - Texas ranked second with $273 billion in goods and over 223,000 total jobs across all impact channels [8] - Mexico and Canada experienced significant employment gains, with Prologis direct warehouse jobs up 8% globally since 2022 [7]

Company Overview - Prologis owned or had investments in properties and development projects expected to total approximately 13 billion square feet in 20 countries as of June 30, 2025[9] - The company leases modern logistics facilities to approximately 6,500 customers[9] - The build out of land (TEI) is $415 billion[10] Financial Performance - Rental and other revenues for the three months ended June 30, 2025, were $2037 million, compared to $1853 million for the same period in 2024[25] - Core FFO attributable to common stockholders/unitholders for the three months ended June 30, 2025, was $1396 million, compared to $1281 million for the same period in 2024[25] - AFFO attributable to common stockholders/unitholders for the three months ended June 30, 2025, was $1036 million, compared to $1072 million for the same period in 2024[25] - Strategic capital revenues for the three months ended June 30, 2025, were $147 million, compared to $155 million for the same period in 2024[25] Operations - The company's annual NOI is $64 billion[12] - 85% of the company's NOI comes from the U S[10] - The average occupancy for the Prologis Share was 95%[66] Strategic Capital - The company's gross AUM is $205 billion[17] - The company's Prologis Share AUM is $139 billion[23] - Fees and promotes are $452 million[14] Capital Deployment - Value creation from stabilizations is $731 million[23] - The estimated build out of the land portfolio is 216 million square feet, with a TEI of $379 billion[99]

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]