10-KPeriod: FY2025

Prologis, Inc. Annual Report, Year Ended Dec 31, 2025

Filed February 13, 2026For Securities:PLDPLDGP

Summary

Prologis, Inc. (PLD) demonstrated resilience in its 2025 fiscal year, with operating results and leasing activity remaining strong despite economic uncertainties. The company reported significant growth in its Real Estate Segment, driven by a 50.1% increase in net effective rents on new and renewed leases and a robust 95.6% occupancy rate. Prologis continues to execute its strategy of expanding its global logistics real estate portfolio through development and acquisitions, with $2.9 billion in consolidated development starts during the year. The Strategic Capital segment also showed solid performance, though revenues were down compared to the prior year, largely due to a decrease in promote revenue. The company maintains a strong balance sheet with $7.6 billion in total liquidity and a weighted average debt term of 9 years at a low effective interest rate of 3.2%, positioning it well to capitalize on future opportunities and manage its business effectively. The focus on sustainable development and innovation, including selective data center development, aligns with long-term structural demand drivers in the logistics sector.

Financial Highlights

39 data points
Beta

Revenue

$8.79B

Net Income

$3.32B

37.8% Net Margin

EPS (Diluted)

$3.56

Total Assets

$98.72B

Cash & Equivalents

$1.15B

Free Cash Flow

$5.01B

Financial Statements
Beta
Revenue$8.79B
Operating Expenses-$2.28B
Operating Income$4.36B
Interest Expense$1.00B
Net Income$3.32B
EPS (Basic)$3.58
EPS (Diluted)$3.56
Shares Outstanding (Basic)928.47M
Shares Outstanding (Diluted)956.83M

Key Highlights

  • 1Prologis reported a 50.1% rent change on leases commenced in 2025, indicating strong rental rate growth on new and renewed leases within its operating portfolio.
  • 2Occupancy remained high at 95.6% across the consolidated operating portfolio.
  • 3The company commenced $2.9 billion in consolidated development projects, with 60.9% of this activity being build-to-suit, underscoring a customer-driven development strategy.
  • 4Prologis generated $2.7 billion in net proceeds from real estate transactions, including contributions to co-investment ventures and sales to third parties, demonstrating effective capital recycling.
  • 5Total liquidity stood at a healthy $7.6 billion at year-end 2025, providing significant financial flexibility.
  • 6The company maintained a strong balance sheet with total debt of $35.0 billion and a weighted average term of 9 years at an effective interest rate of 3.2%.
  • 7Prologis successfully achieved its 2025 sustainability goals related to LED lighting installations and solar generation capacity.

Frequently Asked Questions

Prologis's growth strategy is centered on its high-quality, global portfolio of logistics facilities. Key value creation drivers include capturing upside from in-place leases through mark-to-market opportunities, leveraging its global development program to build modern facilities and pursue higher-and-better-use conversions like data centers, and utilizing its Strategic Capital business to raise third-party capital for portfolio expansion and generate management fees. A strong balance sheet and focus on customer relationships further support its growth initiatives.

The Real Estate Segment saw a significant increase in Net Operating Income (NOI) of $471 million compared to 2024, reaching $6.19 billion. This growth was driven by strong rental revenue growth, primarily from lease rollovers resulting in a 50.1% increase in net effective rents on leases commenced during the year. Occupancy remained high at 95.6% of Prologis's share of the O&M portfolio.

Prologis had a substantial development pipeline, with $5.1 billion in Total Estimated Investment (TEI) for properties expected to be completed before September 2027. At year-end 2025, this portfolio was 53.5% leased. The company is strategically focusing on developing logistics facilities, including investing in data centers, and plans to increase its development activities in the coming year.

Prologis maintains a strong balance sheet with conservative leverage. At December 31, 2025, total debt was $35.0 billion, with a weighted average remaining term of 9 years and an effective interest rate of 3.2%. The company had $7.6 billion in total available liquidity, including $6.5 billion in credit facility capacity, providing ample resources to fund its operations, development activities, and debt obligations.