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1. Company Snapshot

1.a. Company Description

Prologis, Inc.is the global leader in logistics real estate with a focus on high-barrier, high-growth markets.As of December 31, 2020, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 984 million square feet (91 million square meters) in 19 countries.


Prologis leases modern logistics facilities to a diverse base of approximately 5,500 customers principally across two major categories: business-to-business and retail/online fulfillment.

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1.b. Last Insights on PLD

Prologis' recent performance was driven by a strong quarterly earnings report, with revenue of $2.05 billion, 1% higher than forecast. The company's strategic data center push and steady dividend growth make it a compelling REIT pick. Its prime logistics hubs and data center conversions drive growth. A beat-and-raise quarterly earnings report led to increased investor confidence. The company's Q3 earnings call highlighted its strong fundamentals. Leasing delays and rising interest expenses could temper momentum.

1.c. Company Highlights

2. Prologis' Strong Q3 2025 Earnings: A Turning Point in the Market

Prologis reported a robust third quarter in 2025, with core FFO, including net promote expense, coming in at $1.49 per share, beating estimates of $1.44 per share. The company's occupancy grew to 95.3%, a 20 basis point increase, with rent change at 4.9% on a net effective basis and 2.9% on cash. The strong financial performance was driven by record leasing signings of nearly 62 million square feet, indicating a significant improvement in customer sentiment and leasing velocity.

Publication Date: Oct -16

📋 Highlights
  • Record Leasing Activity:: 62M sq ft signed Q3 2025, driving 95.3% occupancy (up 20 bps) and 4.9% net effective rent growth.
  • Strong Core FFO Performance:: $1.49/share (with net promotes) and $1.50/share (excluding) exceeded forecasts, up from prior expectations.
  • Data Center Momentum:: 5.2 GW secured/advanced power capacity ($15B investment), with 1.5 GW added in Q3 alone.
  • Guidance Upside:: Same-store NOI growth raised to 4.25%-4.75% (net effective), development starts to $2.75B-$3.25B, and core FFO of $5.78-$5.81/share.
  • Market Inflection Point:: Construction pipeline at 190M sq ft (peak vacancy), with deliveries declining into 2026, creating favorable absorption dynamics.

Financial Performance Highlights

The company's financial performance was characterized by a strong increase in occupancy and rent change, resulting in a significant improvement in core FFO. As Tim Arndt noted, the rent change came down over the past year due to cycling through tougher lease expiration comps, including COVID leases, but remains in the low fifties, with positive rent change expected in the forties for next year.

Market Trends and Outlook

Prologis is seeing a significant improvement in market trends, with vacancy rates expected to top out around current levels, based on the construction pipeline, which stands at 190 million square feet. Deliveries are expected to decline into 2026, creating a lower hurdle for net absorption to drive market tightening. The company expects market rent growth over the next 12 months, driven by greater breadth and depth of customer discussions and their willingness to make decisions.

Data Center Business Momentum

The company's data center business continues to gain momentum, with 1.5 gigawatts of additional capacity moved to advanced stages, totaling 5.2 gigawatts of secured or advanced-stage power, translating to $15 billion of investment. The company is exploring additional capitalization strategies for its data center business, with significant potential for value creation.

Valuation and Growth Prospects

With a P/E Ratio of 33.05 and an expected revenue growth rate of 5.7% next year, Prologis appears to be reasonably valued. The company's Dividend Yield stands at 3.25%, indicating a relatively attractive return for investors. Analysts expect the company's strong pipeline, robust build-to-suit activity, and significant potential for value creation in the data center business to drive future growth.

3. NewsRoom

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Prologis to Announce Fourth Quarter 2025 Results January 21st, 2026

Dec -04

Source: prnewswire.com

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Groupe la Francaise Lowers Holdings in Prologis, Inc. $PLD

Dec -04

Source: defenseworld.net

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Prologis Declares Quarterly Dividend

Dec -04

Source: prnewswire.com

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Picking A Winner In Industrial REITs

Nov -28

Source: seekingalpha.com

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3 Top REIT Dividend Stocks to Buy Right Now With $1,000 for Passive Income

Nov -28

Source: fool.com

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Is it Wise to Retain Prologis Stock in Your Portfolio Now?

Nov -27

Source: zacks.com

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B&I Capital AG Has $29.46 Million Stock Holdings in Prologis, Inc. $PLD

Nov -27

Source: defenseworld.net

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FIBRA Prologis announces the issuance and sale of USD$500 million of 10-Year Senior Unsecured Notes in the International Markets

Nov -26

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.70%)

6. Segments

Real Estate Operations - U.S.

Expected Growth: 5.0%

The U.S. is a significant market for Prologis with a strong and stable economy. E-commerce growth drives demand for logistics facilities, potentially leading to higher growth than the global average. The slight premium over the global growth hypothesis reflects this.

Real Estate Operations - Other Americas

Expected Growth: 5.2%

Emerging markets within this segment, such as Mexico, may offer higher growth opportunities due to increasing demand for logistics infrastructure driven by trade agreements like USMCA. This justifies a slightly higher growth rate than the global hypothesis.

Real Estate Operations - Europe

Expected Growth: 4.5%

While Europe is a mature market, the growth might be slightly constrained due to regulatory complexities and varying economic conditions across the continent. Thus, a slightly lower growth rate than the global hypothesis is reasonable.

Real Estate Operations - Asia

Expected Growth: 6.0%

The Asian market, particularly China, is expected to drive growth due to the rapid expansion of e-commerce and the continued importance of manufacturing in the region. This justifies a higher growth rate than the global hypothesis.

Unallocated Earnings from Unconsolidated Entities, Net

Expected Growth: 4.7%

The growth in this segment is assumed to align with the global growth hypothesis as it is diversified across various geographies and entities, thus mirroring the overall company growth expectation.

Strategic Capital - U.S.

Expected Growth: 5.0%

Similar to Real Estate Operations - U.S., this segment benefits from the strong U.S. economy and e-commerce driven demand, justifying a growth rate slightly above the global hypothesis.

Strategic Capital - Europe

Expected Growth: 4.5%

The rationale is similar to Real Estate Operations - Europe, with a slightly lower growth rate due to the mature nature of the market and potential regulatory challenges.

Strategic Capital - Other Americas

Expected Growth: 5.2%

The growth prospects are similar to Real Estate Operations - Other Americas, driven by emerging markets and trade agreements, justifying a higher growth rate.

Strategic Capital - Asia

Expected Growth: 6.0%

Similar to Real Estate Operations - Asia, the growth is driven by the rapid expansion of e-commerce and manufacturing in the region, justifying a higher growth rate than the global hypothesis.

7. Detailed Products

Logistics Real Estate

Prologis offers a range of logistics real estate solutions, including warehouses, distribution centers, and manufacturing facilities, to help businesses optimize their supply chain operations.

Supply Chain Solutions

Prologis provides customized supply chain solutions, including transportation management, inventory management, and order fulfillment, to help businesses streamline their logistics operations.

Last Touch

Prologis' Last Touch solution provides a network of urban logistics facilities and services, enabling businesses to offer fast and flexible delivery options to customers in urban areas.

Prologis Essentials

Prologis Essentials offers a range of value-added services, including facility management, maintenance, and repair, to help businesses optimize their logistics operations.

Development and Investment

Prologis provides development and investment services, including land acquisition, development, and property management, to help businesses optimize their logistics real estate portfolios.

8. Prologis, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Prologis, Inc. faces moderate threat from substitutes due to the availability of alternative logistics and supply chain management services.

Bargaining Power Of Customers

Prologis, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Prologis, Inc. relies on a network of suppliers for construction materials, labor, and other services, giving them some bargaining power, but the company's scale and diversification mitigate this risk.

Threat Of New Entrants

The logistics and supply chain management industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with Prologis, Inc.

Intensity Of Rivalry

The logistics and supply chain management industry is highly competitive, with several established players competing for market share, making it essential for Prologis, Inc. to differentiate itself through innovative services and strategic partnerships.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.29%
Debt Cost 3.95%
Equity Weight 64.71%
Equity Cost 9.22%
WACC 7.36%
Leverage 54.53%

11. Quality Control: Prologis, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Momentum: 5.0

Volatility: 10.0

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Quality: 7.3

Yield: 8.0

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A-Score: 5.7/10

Value: 1.9

Growth: 6.7

Quality: 6.7

Yield: 6.0

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Growth: 6.0

Quality: 6.3

Yield: 8.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

127.98$

Current Price

127.98$

Potential

-0.00%

Expected Cash-Flows