01—Abstract
Summary
Summary of the 10-K filed February 13, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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 billionb 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.
02—Key points
Key Highlights
- Prologis 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.
- Occupancy remained high at 95.6% across the consolidated operating portfolio.
- The 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.
- Prologis 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.
- Total liquidity stood at a healthy $7.6 billion at year-end 2025, providing significant financial flexibility.
- The 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%.
- Prologis successfully achieved its 2025 sustainability goals related to LED lighting installations and solar generation capacity.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 13, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $8.79B$8.20B | +7.2% |
| Operating Expenses | -$2.28B-$2.10B | −8.4% |
| Operating Income | $4.36B$4.42B | −1.3% |
| Interest Expense | $1.00B$863.93M | +16.0% |
| Net Income | $3.32B$3.73B | −10.8% |
| EPS (Basic) | $3.58$4.02 | −10.9% |
| EPS (Diluted) | $3.56$4.01 | −11.2% |
| Shares Outstanding (Basic) | 928.47M926.17M | +0.2% |
| Shares Outstanding (Diluted) | 956.83M953.59M | +0.3% |
05—Questions
Frequently Asked Questions
What is Prologis's strategy for growth and value creation?
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.
How did Prologis perform in its Real Estate Segment in 2025?
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.
What is the outlook for Prologis's development pipeline?
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.
How does Prologis manage its debt and liquidity?
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.
06—Continue