PLD
Real EstatePrologis
Price Chart
Market Data
Financials
XBRL · SEC EDGAR2016–2025(10yr)| Metric | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.5B | $2.6B | $2.8B | $3.3B | $4.4B | $4.8B | $6.0B | $8.0B | $8.2B | $8.8B | +7.2% |
| Net Income | $1.2B | $1.7B | $1.6B | $1.6B | $1.5B | $2.9B | $3.4B | $3.1B | $3.7B | $3.3B | -10.8% |
| FFO | $2.1B | $2.5B | $2.6B | $2.7B | $3.0B | $4.5B | $5.2B | $5.5B | $6.3B | $6.0B | -5.7% |
| FFO Margin | 84.5% | 96.7% | 92.6% | 81.5% | 68.6% | 94.9% | 86.7% | 69.1% | 77.0% | 67.7% | -9.2pp |
| Operating Income | $668.4M | $771.1M | $847.0M | $1.8B | $2.1B | $3.2B | $3.5B | $3.7B | $4.4B | $4.4B | -1.3% |
| Operating Margin | 26.4% | 29.5% | 30.2% | 55.5% | 47.7% | 67.4% | 58.0% | 46.2% | 53.8% | 49.6% | -4.3pp |
| Net Margin | 47.8% | 63.1% | 58.8% | 47.2% | 33.4% | 61.8% | 56.3% | 38.1% | 45.5% | 37.9% | -7.6pp |
| EPS (Diluted) | $2.27 | $3.06 | $2.87 | $2.46 | $2.01 | $3.94 | $4.25 | $3.29 | $4.01 | $3.56 | -11.2% |
1. THE BIG PICTURE
Prologis is evolving from a traditional warehouse landlord into an essential infrastructure layer for global commerce. By integrating energy solutions like SolarSmart and operational services through its Essentials platform into a 1.3 billion square foot footprint, Prologis is attempting to capture value at the "convergence of physical, digital and energy infrastructure" (10-K Item 1). This strategy aims to make its high-barrier, "Last Touch" locations indispensable to a customer base that is currently modernizing supply chains.
2. WHERE THE RISKS HIT HARDEST
Prologis’s "high-barrier" market strategy is directly threatened by its geographic concentration; 30.6% of its consolidated operating properties by gross book value are located in California (RISKS). While these markets offer high demand, they also account for 31.9% of Net Operating Income, meaning any localized economic downturn or regulatory shift in that single state could disproportionately impair Prologis’s total cash flow. Additionally, the "Strategic Capital" business—designed to mitigate foreign currency risk and broaden capital access—is showing volatility. Revenue from this segment fell to $153.7 million in the most recent quarter from $253.4 million a year prior (8-K), suggesting that fee-based income is less reliable than core rental operations during periods of market transition.
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a business in the middle of a handoff between different growth drivers. While total revenue growth stands at +7.2% (XBRL), rental revenues specifically rose to $2.09 billion, offsetting the double-digit percentage drop in Strategic Capital fees (8-K). The most critical forward-looking metric is the 19% "lease mark-to-market" (10-Q), which indicates that Prologis is essentially sitting on a reservoir of "hidden" revenue that will be realized as old leases expire and reset to current market rates. This internal growth engine is likely why sentiment remains stable, with short interest at a low 1.6% of the float (Yahoo Finance).
4. IS IT WORTH IT AT THIS PRICE?
At 21.0x P/FFO, Prologis is trading "in line with peers" relative to the 20.3x peer median (Yahoo Finance). The market is currently pricing in approximately 7.5% long-term growth (CAPM analysis). This expectation is supported by Prologis's +7.2% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth and the aforementioned 19% rent-reset cushion. However, investors should note the sensitivity of this valuation: if long-term growth were to slow to a 5.0% "base" pace, the justified multiple would fall to 13.7x (CAPM analysis). Prologis maintains a superior 38.8% net margin—the highest among its reported peer group—which justifies its premium valuation over retail-focused REITs like Simon Property Group (9.2x P/FFO) but leaves it at a discount to specialized data center REITs like Equinix (27.7x P/FFO).
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if the "lease mark-to-market" gap narrows significantly below 19% (10-Q) without a corresponding recovery in Strategic Capital fee revenue, as this would signal the exhaustion of Prologis's primary internal growth engine.
- Constructive if the "Prologis Essentials" platform begins to contribute a larger, clearly disclosed percentage of total revenue, proving that Prologis can successfully monetize its "infrastructure" pivot beyond simple rent collection.
6. BOTTOM LINE
Structural Advantage: A 1.3 billion square foot global portfolio concentrated in high-density markets, protected by a 19% rent-reset cushion and an integrated "Essentials" service platform. Bottom Line: Prologis is a high-quality, fairly valued play on global logistics, though its heavy California concentration makes it a lopsided bet on a single geography.
1. Top 5 Material Risks
- Geographic Concentration: Prologis holds 30.6% of its consolidated operating properties (by gross book value of $24.7 billion) in California, which accounts for 31.9% of its consolidated operating property Net Operating Income (NOI).
- Logistics Sector Dependence: Prologis’s entire real estate portfolio is concentrated in the logistics sector, leaving it vulnerable to sector-specific economic downturns, supply chain disruptions, and shifts in demand for logistics space.
- REIT Qualification and Distribution Requirements: To maintain REIT status, Prologis must distribute at least 90% of its taxable income annually, which may force Prologis to borrow funds or issue equity even when market conditions are unfavorable.
- Foreign Currency Exposure: Approximately $13.7 billion (13.8% of total consolidated assets) is invested in non-U.S. dollar currencies, and 6.6% of consolidated segment NOI is denominated in foreign currencies, creating volatility risk from exchange rate fluctuations.
- Customer Concentration: The top 10 customers account for 16.3% of consolidated Net Effective Rent (NER) and 15.2% of Operating & Management (O&M) NER, meaning the financial failure or default of a small number of tenants could materially reduce cash flow.
2. Company-Specific Risks
- Co-investment Venture Complexity: Prologis manages $73.8 billion in gross book value through co-investment ventures; disputes with partners or the inability to attract third-party capital could reduce fee revenues and force Prologis to acquire assets to maintain its investment position.
- Development and Redevelopment Execution: Prologis’s strategy to monetize land through development involves risks such as permitting delays, inflationary cost increases, and the potential for data center projects to face power supply disruptions.
- Liquidity of Real Estate Assets: Because real estate is illiquid, Prologis may be unable to sell properties quickly to generate cash during downturns, potentially forcing Prologis to accept unfavorable pricing or lease terms.
- Insurance Coverage Gaps: Prologis self-insures certain risks, such as earthquake exposure in Japan, and does not carry full coverage for losses related to acts of war, terrorism, or pandemics, which could result in significant capital loss.
3. Regulatory/Legal Risks
- REIT Prohibited Transaction Tax: The IRS may classify property sales as "prohibited transactions" if it deems the properties were held as inventory, which would trigger a 100% penalty tax on the gain.
- Environmental Liability: Under various laws, Prologis may be held liable for the remediation of hazardous substances (including asbestos) on its properties, regardless of whether Prologis was responsible for the contamination.
- Global Compliance: Prologis must comply with the Foreign Corrupt Practices Act, the U.K. Bribery Act, and other international regulations; failure to do so could result in substantial fines and legal costs.
- Data Privacy and Cybersecurity: Cybersecurity attacks or system failures could lead to legal exposure, regulatory fines, and reputational damage, with remediation costs potentially falling outside of insurance coverage.
4. Financial Impact Map
Geographic Concentration → Consolidated Operating Property NOI → 31.9% of NOI is derived from California properties. Customer Concentration → Net Effective Rent (NER) → 16.3% of consolidated NER is tied to the top 10 customers. Foreign Currency Exposure → Consolidated Assets / Segment NOI → 13.8% of total assets and 6.6% of segment NOI are denominated in non-U.S. currencies. REIT Distribution Requirements → Cash Flow from Operations / External Capital → 90% of taxable income must be distributed, necessitating external financing if cash from operations is insufficient. Co-investment Ventures → Fee Revenues → A reduction in assets under management or termination of management relationships would directly decrease fee revenues.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Jan 2026 | — |
| 10-Q | Oct 2025 | Sep 2025 |
| 14A | Mar 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Prologis Q1 Revenue $2.3B +7.5% YoY, EPS $1.05 vs $0.63 Prior Year
- ▸Q1 revenue $2.3B, up from $2.14B in Q1 2025
- ▸Q1 EPS $1.05, up from $0.63 in Q1 2025
- ▸RBC Capital raised price target to $148 from $135
- ▸Formed $1.6B joint venture with GIC for U.S. logistics facilities
- ▸Partnered with La Caisse to launch pan-European logistics venture PLIVE
Prologis shares supported by Q3 beat-and-raise and robust multi-year growth outlook
- ▸In-place rents currently 20% below market and 40% below replacement levels
- ▸Growth driven by e-commerce, supply chain logistics, and inventory safety stock
- ▸Expanding pipeline of lucrative data center development opportunities
- ▸Leasing activity stabilized and accelerated throughout 2025
- ▸Market capitalization of $126.84 billion as of April 2026
Prologis Enters $1.6B Joint Venture With GIC For Custom Logistics Development
- ▸Joint venture with GIC valued at $1.6B for build-to-suit logistics facilities
- ▸Initial project scale covers 4.1 million square feet of industrial space
- ▸Partnership focuses on long-term leased, custom-tailored properties for major tenants
- ▸Structure utilizes Prologis Strategic Capital to generate fee-based asset management revenue
- ▸Strategy aims to scale development pipeline without relying solely on company balance sheet
Prologis Forms $1.6B Joint Venture for US Build-to-Suit Logistics Facilities
- ▸Formed $1.6B joint venture with GIC for U.S. logistics development
- ▸Focuses on build-to-suit distribution and warehousing projects
- ▸Build-to-suit projects represent 60% of 2025 development starts
- ▸Venture provides additional capital source for future development pipeline
- ▸Projects typically pre-leased to support supply chain resiliency
Prologis, GIC Form $1.6B Joint Venture for U.S. Build-to-Suit Logistics Facilities
- ▸Joint venture established with $1.6B in combined capital commitments
- ▸Initial portfolio comprises approximately 4.1 million square feet of logistics space
- ▸JV focuses on developing and owning build-to-suit logistics facilities in U.S. markets
- ▸Build-to-suit projects represent over 60% of Prologis' $3.1B 2025 development pipeline
- ▸Venture to operate under Prologis Strategic Capital asset management platform
Prologis and GIC form $1.6 billion U.S. logistics build-to-suit joint venture
- ▸$1.6 billion total capital commitment for U.S. logistics development
- ▸Initial portfolio comprises approximately 4.1 million square feet
- ▸Venture to operate within Prologis Strategic Capital asset management business
- ▸Build-to-suit projects accounted for over 60% of 2025 development starts
- ▸Partnership targets long-term industrial real estate demand in North America
Prologis and GIC form $1.6 billion U.S. logistics build-to-suit joint venture
- ▸$1.6 billion total capital commitment for U.S. logistics development
- ▸Initial portfolio includes 4.1 million square feet of logistics space
- ▸Venture to operate within Prologis Strategic Capital asset management business
- ▸Build-to-suit projects accounted for over 60% of 2025 development starts
- ▸Prologis manages $230 billion in assets across 1.3 billion square feet