10-KPeriod: FY2016

Prologis, Inc. Annual Report, Year Ended Dec 31, 2016

Filed February 15, 2017For Securities:PLDPLDGP

Summary

Prologis, Inc. (PLD) in its 2017 10-K filing reported strong operational performance for the year ended December 31, 2016, characterized by high occupancy rates and significant rent growth on lease rollovers. The company, a global leader in logistics real estate, benefited from a growing demand driven by e-commerce, supply chain modernization, and urbanization. Prologis strategically focuses on high-barrier, high-growth markets, owning and managing a substantial portfolio across four continents. The report highlights the company's dual-segment structure: Real Estate Operations, which drives the majority of revenue and Net Operating Income (NOI), and Strategic Capital, which leverages third-party capital to fuel growth and generate recurring fees. This diversified approach, combined with a strong balance sheet and disciplined capital allocation, positions Prologis for continued success in the logistics real estate sector.

Financial Highlights

39 data points
Beta

Revenue

$2.53B

Net Income

$1.20B

47.5% Net Margin

EPS (Diluted)

$2.27

Total Assets

$30.25B

Cash & Equivalents

$807.32M

Free Cash Flow

$1.42B

Financial Statements
Beta
Revenue$2.53B
Operating Expenses$1.86B
Operating Income$668.38M
Interest Expense$303.15M
Net Income$1.20B
EPS (Basic)$2.29
EPS (Diluted)$2.27
Shares Outstanding (Basic)526.10M
Shares Outstanding (Diluted)546.67M

Key Highlights

  • 1Consolidated occupancy ended the year at a strong 97.0%.
  • 2Real Estate Operations segment revenue and NOI increased over 12% year-over-year.
  • 3Development activities stabilized $2.5 billion of investment in owned and managed portfolio projects, creating an estimated $640 million in value.
  • 4Strategic Capital segment revenue grew over 40% year-over-year, with approximately 90% generated outside the U.S.
  • 5Prologis owns or manages a global portfolio of 676 million square feet across 20 countries.
  • 6The company benefited from rent growth on lease rollovers, with in-place leases estimated to be over 10% below market.
  • 7Prologis's land bank has the potential to support $8.4 billion of Total Expected Investment (TEI) in logistics space.

Frequently Asked Questions

Prologis is a global leader in logistics real estate. Its strategy involves owning, managing, and developing high-quality logistics facilities in key global markets. The company focuses on leveraging key economic growth drivers like e-commerce, supply chain modernization, and urbanization to provide efficient distribution solutions for its customers.

Prologis generates revenue primarily through two segments: Real Estate Operations, which includes rental income from its logistics facilities, and Strategic Capital, which involves earning recurring fees and promotes from managing co-investment ventures with third-party capital partners.

Prologis has a significant global presence, owning or managing properties in 20 countries across four continents. While its consolidated properties are primarily in the United States, its international properties are often held in co-investment ventures, which helps mitigate foreign currency exposure. Key markets include the U.S., Europe, and Asia.

Key financial highlights include a 12% increase in Real Estate Operations revenue and NOI, development stabilization of $2.5 billion in projects, and over 40% growth in Strategic Capital revenue. The company also reported a strong occupancy rate of 97.0% and substantial rent growth on lease renewals.