10-KPeriod: FY2024

Prologis, Inc. Annual Report, Year Ended Dec 31, 2024

Filed February 14, 2025For Securities:PLDPLDGP

Summary

Prologis, Inc. (PLD) reported a strong financial year in 2024, demonstrating resilience amidst a softening global logistics market. The company's robust portfolio, characterized by long-term leases with significant rent upside, continued to drive consistent rental income. Prologis' strategic focus on high-barrier, high-growth markets and its ability to leverage its scale and customer relationships remain key differentiators. The company successfully executed its development pipeline, contributing to portfolio growth, and further strengthened its balance sheet with a weighted average debt maturity of nine years and a strong liquidity position. Key operational highlights include robust rent growth on lease rollovers, contributing to same-store NOI. The company also made progress on its ESG initiatives, including commitments to renewable energy and sustainable building standards. While facing global economic uncertainties and geopolitical factors, Prologis entered 2025 with renewed customer leasing activity and a strategic capital business that supports its growth objectives. The company's diversified revenue streams, strong customer base, and commitment to innovation position it well for continued long-term value creation.

Financial Highlights

39 data points
Beta

Revenue

$8.20B

Net Income

$3.73B

45.4% Net Margin

EPS (Diluted)

$4.01

Total Assets

$95.33B

Cash & Equivalents

$1.32B

Free Cash Flow

$4.91B

Financial Statements
Beta
Revenue$8.20B
Operating Expenses-$2.10B
Operating Income$4.42B
Interest Expense$863.93M
Net Income$3.73B
EPS (Basic)$4.02
EPS (Diluted)$4.01
Shares Outstanding (Basic)926.17M
Shares Outstanding (Diluted)953.59M

Key Highlights

  • 1Prologis reported strong operating results in 2024, with its operating portfolio occupancy at 95.8% and a rent change on leases commenced during the year of 68.7% on a net effective basis.
  • 2The company generated net proceeds of $4.8 billion and realized net gains of $1.3 billion from property contributions to co-investment ventures and third-party sales.
  • 3Prologis completed a significant acquisition in Mexico through its publicly traded vehicle, FIBRA Prologis, expanding its footprint.
  • 4Total available liquidity stood at $7.4 billion at year-end 2024, providing significant financial flexibility.
  • 5The company's balance sheet remains strong with total debt of $30.9 billion and a weighted average remaining maturity of 9 years at a weighted average interest rate of 3.1%.
  • 6Prologis is committed to ESG principles, with specific goals for LED lighting and solar generation capacity installation by 2025.
  • 7The company met its goal to train 25,000 individuals by 2025 through its Community Workforce Initiative (CWI) program ahead of schedule.

Frequently Asked Questions

Prologis reported strong operating results in 2024, driven by its well-occupied logistics portfolio. Key metrics like occupancy remained high at 95.8%, and the company achieved significant rent growth of 68.7% on new and renewed leases, indicating the value creation potential from its existing lease structure.

Prologis maintains a strong balance sheet with total debt of $30.9 billion at year-end 2024, featuring a weighted average remaining maturity of 9 years and an average interest rate of 3.1%. The company reported total available liquidity of $7.4 billion, demonstrating robust financial flexibility to fund its operations and growth initiatives.

Prologis' growth is primarily driven by positive rent growth on lease rollovers, its extensive development pipeline with a Total Estimated Investment (TEI) of $4.7 billion upon completion, and its Strategic Capital business which facilitates capital growth. The company is also focused on enhancing customer value through its Prologis Essentials platform and investing in technology and sustainability initiatives to stay 'Ahead of What’s Next™'.

Prologis has integrated ESG principles into its business strategy, setting ambitious goals for environmental sustainability, including installing LED lighting across 80% of its operating properties and deploying 1 gigawatt of solar generation and storage capacity by 2025. Socially, the company has successfully met its goal to train 25,000 individuals through its CWI program and is committed to community development and employee well-being.