10-QPeriod: Q1 FY2022

Prologis, Inc. Quarterly Report for Q1 Ended Mar 31, 2022

Filed April 26, 2022For Securities:PLDPLDGP

Summary

Prologis, Inc. (PLD) reported strong financial results for the first quarter of 2022, with net earnings attributable to common stockholders reaching $1.15 billion, a significant increase from $365.8 million in the prior year period. This growth was driven by robust rental income and substantial gains from real estate dispositions. Total revenues increased to $1.22 billion from $1.15 billion year-over-year, reflecting strong performance across both its Real Estate Operations and Strategic Capital segments. The company's balance sheet remains solid, with total assets growing to $59.78 billion from $58.49 billion. Debt levels increased slightly to $18.37 billion, but the company maintained a healthy liquidity position with $6.76 billion in total liquidity available. Prologis continues to demonstrate a strong ability to generate cash from operations, which provides ample capacity for future development, acquisitions, and shareholder distributions.

Financial Highlights

35 data points
Beta

Revenue

$1.22B

Net Income

$1.15B

94.3% Net Margin

EPS (Diluted)

$1.54

Total Assets

$59.78B

Cash & Equivalents

$1.91B

Free Cash Flow

$841.53M

Financial Statements
Beta
Revenue$1.22B
Operating Income$1.21B
Interest Expense$64.06M
Net Income$1.15B
EPS (Basic)$1.55
EPS (Diluted)$1.54
Shares Outstanding (Basic)740.37M
Shares Outstanding (Diluted)765.52M

Key Highlights

  • 1Net earnings attributable to common stockholders surged to $1.15 billion for Q1 2022, compared to $365.8 million in Q1 2021.
  • 2Total revenues increased to $1.22 billion in Q1 2022, up from $1.15 billion in Q1 2021.
  • 3Significant gains were realized from real estate dispositions, with $795 million in net gains reported for Q1 2022.
  • 4The company maintained strong occupancy rates at 97.4% across its owned and managed (O&M) portfolio.
  • 5Total liquidity stood at $6.76 billion as of March 31, 2022, providing significant financial flexibility.
  • 6The weighted average remaining maturity of consolidated debt was 10 years, indicating a well-laddered debt maturity profile.
  • 7Prologis issued $1.8 billion in senior notes during Q1 2022, primarily to finance green projects and refinance existing debt.

Frequently Asked Questions

The substantial increase in net earnings was primarily driven by robust rental income from its extensive logistics portfolio and significant gains realized from the disposition of real estate assets, including contributions to unconsolidated co-investment ventures and sales of non-strategic properties.

Prologis' debt increased slightly to $18.37 billion, but the company maintains a strong liquidity position with $6.76 billion available, comprising $4.85 billion in credit facilities and $1.91 billion in cash and cash equivalents. The weighted average remaining maturity of its consolidated debt is 10 years, and the company stated it was in compliance with all financial debt covenants.

Prologis anticipates continued rent growth due to strong demand for well-located logistics real estate, driven by e-commerce expansion and supply chain reconfigurations. The company's in-place leases offer significant upside potential, with an estimated net effective lease mark-to-market of approximately 47%. Development activity remains a key growth driver, with a global land bank positioned to support significant future development valued at over $24 billion on a consolidated basis.

Prologis is actively integrating sustainability into its operations through initiatives like the Prologis Essentials business, which offers product and service solutions that support customers' sustainability goals. This includes implementing sustainable building standards, promoting solar power and LED lighting, and facilitating the adoption of electric vehicle fleets. The company also leverages data analytics and digitization to enhance customer experiences and operational efficiencies.