10-QPeriod: Q3 FY2025

Prologis, Inc. Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 28, 2025For Securities:PLDPLDGP

Summary

Prologis, Inc. (PLD) reported its third-quarter results ending September 29, 2025. The company demonstrated resilience with solid financial performance, driven by strong rental revenue growth and efficient operations. Total revenues for the nine months ended September 30, 2025, increased to $6.54 billion from $6.00 billion in the prior year, reflecting the continued demand for logistics facilities. Net earnings attributable to common stockholders for the nine months decreased year-over-year to $1.92 billion from $2.45 billion, impacted by lower gains on real estate dispositions compared to the prior year. Despite some economic uncertainties, Prologis maintained high occupancy rates across its portfolio, which stood at 95.2% at quarter-end. The company continues to benefit from its "lease mark-to-market" opportunity, with significant upside in resetting in-place leases to current market rates upon expiration. Strategic capital segment revenues also showed growth, indicating the success of its co-investment ventures and asset management services. Prologis maintained a strong liquidity position with $7.5 billion in total available liquidity, underscoring its financial stability and capacity for future investments and operations.

Financial Highlights

34 data points
Beta

Revenue

$2.21B

Net Income

$762.90M

34.5% Net Margin

EPS (Diluted)

$0.82

Total Assets

$98.34B

Cash & Equivalents

$1.19B

Free Cash Flow

$1.45B

Financial Statements
Beta
Revenue$2.21B
Operating Expenses$562.63M
Operating Income$940.26M
Net Income$762.90M
EPS (Basic)$0.82
EPS (Diluted)$0.82
Shares Outstanding (Basic)928.85M
Shares Outstanding (Diluted)956.60M

Key Highlights

  • 1Total revenues for the nine months ended September 30, 2025, increased to $6.54 billion, up from $6.00 billion in the same period of 2024.
  • 2Net earnings attributable to common stockholders for the nine months ended September 30, 2025, were $1.92 billion, compared to $2.45 billion in the prior year, reflecting lower real estate disposition gains.
  • 3Portfolio occupancy remained strong at 95.2% as of September 30, 2025.
  • 4The company reported a "lease mark-to-market" upside of approximately 19% on an NER basis, indicating significant potential for future rent growth.
  • 5Total liquidity stood at $7.5 billion at September 30, 2025, including $6.3 billion in available credit facilities and $1.2 billion in cash and cash equivalents.
  • 6Consolidated development starts totaled $2.0 billion for the nine months ended September 30, 2025, with 68.3% being build-to-suit projects.
  • 7Debt issuance in the first nine months of 2025 included $2.9 billion of senior notes, with a weighted average interest rate of 4.3%.

Frequently Asked Questions

Prologis maintained a strong financial position and liquidity at September 30, 2025, with $7.5 billion in total available liquidity, comprising $6.3 billion in available credit facilities and $1.2 billion in cash and cash equivalents. The company also reported compliance with all its financial debt covenants, indicating a stable leverage profile.

Rental revenues for the nine months ended September 30, 2025, increased to $6.07 billion from $5.58 billion in the same period of 2024. This growth was driven by strong occupancy rates (95.2%) and a significant lease mark-to-market opportunity, with an estimated 19% upside in resetting in-place leases to current market rates.

Prologis continues to invest in development, with $2.0 billion in consolidated development starts for the nine months ended September 30, 2025, a significant portion of which were build-to-suit projects. The company also generated $169 million in net gains on real estate transactions during this period, primarily from contributions to its co-investment ventures and third-party sales, indicating ongoing capital recycling and value creation strategies.

Prologis primarily mitigates foreign currency exchange risk by borrowing in the local currencies of its international investments, creating a natural hedge. Additionally, the company utilizes derivative financial instruments, such as foreign currency contracts designated as net investment hedges, to further manage this exposure. At September 30, 2025, the company reported minimal net equity denominated in currencies other than the U.S. dollar after these hedging strategies.