Prologis
Prologis, Inc. is a leading American real estate investment trust (REIT) specializing in the ownership, management, and development of logistics real estate facilities worldwide. Headquartered in San Francisco, California, the company focuses on high-barrier, high-growth markets to provide modern warehouses and distribution centers that support global supply chains, e-commerce, and retail logistics. As of September 30, 2025, Prologis owns or has investments in approximately 1.3 billion square feet (122 million square meters) of logistics real estate across 5,887 buildings in 20 countries on four continents, serving around 6,500 customers including major e-commerce and logistics firms.[1][2] Founded in 1983 as AMB Property Corporation by Douglas Abbey, Hamid Moghadam, and T. Robert Burke, the company initially invested in office, industrial, and retail properties.[3] It evolved through key mergers and expansions, including the 1998 rebranding of Security Capital Industrial Trust to Prologis, the 2005 acquisition of Catellus Development Corporation for $5.3 billion to bolster U.S. holdings, and the 2011 merger with AMB Property Corporation, which created a global entity with over $40 billion in assets.[3] Further growth came with entry into markets like Mexico in 1996, Europe in 1997, and Japan in 2001, culminating in the 2022 acquisition of Duke Realty for $23 billion, solidifying its position as the largest logistics REIT by market capitalization.[3] Today, Prologis operates as a S&P 500 company ranked #99, with assets under management exceeding $215 billion and a strong credit rating of A/A2 from major agencies.[1] The company's portfolio is strategically located near major transportation hubs, ports, and urban centers to optimize supply chain efficiency, leasing space to a diverse customer base that includes business-to-business distributors and online fulfillment operators.[4] Prologis emphasizes innovation in logistics technologies, such as energy-efficient buildings and electrification solutions for fleets, while maintaining a robust development pipeline to meet rising demand from global trade.[5] In terms of sustainability, it ranks #2 in the U.S. for onsite solar installations and has received the NAREIT Leader in the Light Award for 12 consecutive years, with all new developments meeting LEED or BREEAM standards.[4] Economically, Prologis facilities handled $3.2 trillion in goods in 2024 (equivalent to 2.9% of global GDP), supporting 3.6 million jobs worldwide and contributing $348 billion to the global economy.[6]Overview
Company profile
Prologis, Inc. is a prominent real estate investment trust (REIT) specializing in logistics and industrial properties, listed on the New York Stock Exchange under the ticker symbol PLD.[7] The company traces its origins to 1983, when its predecessor entities were established, and underwent significant rebranding and mergers, evolving into its current form focused on global logistics real estate.[3] Headquartered in San Francisco, California, Prologis employs approximately 2,700 people worldwide as of 2024.[8] At its core, Prologis owns, operates, and develops modern logistics facilities designed to facilitate efficient global supply chains, with a particular emphasis on supporting the growth of e-commerce, retail distribution, and third-party logistics providers.[9] This mission positions the company as a key enabler of commerce, providing strategically located warehouses and distribution centers that connect producers, retailers, and consumers.[1] Prologis manages an extensive portfolio of 1.3 billion square feet of industrial space, encompassing 5,887 buildings across 20 countries on four continents.[10] This vast network serves more than 6,500 tenants, including major e-commerce platforms, retailers, and logistics firms, underscoring the company's scale and influence in the sector.[1]Business model
Prologis operates as a real estate investment trust (REIT), a structure that provides tax advantages by allowing the company to avoid corporate-level taxation in exchange for distributing at least 90% of its taxable income to shareholders as dividends.[11] This model emphasizes ownership and management of industrial and logistics properties, such as warehouses and distribution centers, rather than retail or office spaces, enabling focused investment in facilities critical to global supply chains.[11] By maintaining this specialized portfolio, Prologis benefits from steady income generation while meeting REIT regulatory requirements for asset composition and income distribution.[12] The company's primary revenue stream derives from rental income generated through long-term leases on its properties, which form the core of its operations.[13] Additional revenue comes from the development and sale of new logistics facilities, capitalizing on demand for modern infrastructure.[14] Since 2018, Prologis has diversified further with Prologis Essentials, a platform offering non-real estate services such as energy solutions—including solar installations and energy storage—to generate fees and enhance tenant value.[3][15] Prologis's strategy centers on strategic property locations near urban markets to support last-mile delivery efficiency for tenants.[16] The company prioritizes developing and acquiring high-quality, modern warehouses designed for automation, robotics, and sustainability features like renewable energy integration, aligning with evolving logistics needs.[17] This approach ensures properties remain competitive and adaptable to technological advancements in supply chain operations.[18] The tenant base primarily consists of logistics firms, e-commerce giants such as Amazon (Prologis's largest tenant), and manufacturers requiring distribution and storage capabilities.[19][11] Leases typically feature average terms of 5 to 7 years, providing income stability; for instance, new leases commencing in 2023 had a weighted average term of 66 months.[20] This diverse customer mix, exceeding 6,500 globally, underscores Prologis's role in supporting e-commerce and business-to-business logistics.[21]History
Founding and early development
Prologis traces its origins to 1983, when Douglas Abbey and Hamid Moghadam founded AMB Property Corporation, an investment firm focused on acquiring and managing industrial, office, and retail properties for institutional investors in the United States.[3] T. Robert Burke joined the firm in 1984, and by 1987, AMB had exited the office sector to concentrate on industrial and shopping center assets in high-demand infill locations, laying the groundwork for its emphasis on logistics-related real estate.[3] In 1991, Security Capital Industrial Trust (SCI), a direct predecessor to Prologis, was incorporated as a real estate investment trust (REIT) specializing in industrial properties, marking an early pivot toward logistics-focused investments.[3] SCI went public via an initial public offering on the New York Stock Exchange in 1994, becoming one of the pioneering logistics REITs and raising capital to acquire properties in key U.S. markets such as California and New Jersey, where demand for distribution facilities was growing.[22] Throughout the 1990s, SCI expanded its U.S. portfolio through strategic acquisitions, including the $1.5 billion purchase of Meridian Industrial Trust in 1998, which bolstered its holdings in prime logistics hubs.[3] In 1998, SCI rebranded to Prologis to signal its ambitions in the evolving logistics sector, coinciding with a broader industry shift from traditional warehousing to modern distribution centers driven by the nascent rise of e-commerce and just-in-time supply chains.[22] This transition positioned Prologis as a leader in developing facilities optimized for efficient goods handling and rapid delivery, reflecting the changing needs of U.S. businesses in the late 1990s.[23] Meanwhile, AMB completed its own IPO in 1997 with over $2.8 billion in assets under management, further solidifying the industrial focus that would later integrate with Prologis's operations.[3]International expansion
Prologis's international expansion began in the late 1990s, marking a strategic shift from its U.S.-focused origins to global diversification in logistics real estate. In 1996, the company, then operating as Security Capital Industrial Trust (SCI), made its first foray outside the United States by acquiring properties in Mexico, establishing a presence in key industrial areas near major trade routes.[3] That same year, Prologis opened its first European office in Amsterdam, laying the groundwork for operations across the continent by targeting high-demand distribution markets.[3] Building on this foundation, Prologis pursued opportunities in the Asia-Pacific region during the early 2000s. In 2001, the company entered the Japanese market, followed in 2002 by the formation of the Prologis Japan Properties Fund, a $1 billion joint venture with the Government of Singapore Investment Corporation to develop and manage industrial facilities.[3] By 2003, Prologis expanded into China, capitalizing on the country's rapid economic growth and logistics needs. This was solidified in 2004 with the creation of its first joint venture in China alongside Suzhou Logistics Center Co. Ltd., focusing on modern distribution centers in urban hubs.[3] In Europe, Prologis strengthened its portfolio through the 2005 merger with Catellus Development Corporation for $5.3 billion, which enhanced development capabilities applicable to international projects, though primarily North American in scope.[3] Key milestones in European growth included the 2006 initial public offering of the Prologis European Properties Fund on the Euronext Amsterdam exchange, which raised capital for acquisitions and developments across the region, positioning Prologis as a major player in pan-European logistics.[3] By 2010, Prologis had deepened its commitments in emerging markets, including significant investments in China aimed at doubling its logistics holdings to support e-commerce and supply chain demands, with plans to invest up to $2 billion by year's end.[24] Expansion into Brazil also accelerated around this time through strategic partnerships, focusing on industrial parks in trade-centric locations like São Paulo, though full ownership was achieved post-2011.[25] Throughout this period, Prologis navigated challenges inherent to international operations, such as varying local regulations that required tailored compliance strategies in markets like Mexico and China, and exposure to currency fluctuations that impacted financial reporting and investment returns.[26] To mitigate these risks, the company emphasized urban logistics hubs proximate to ports and airports, ensuring resilience through diversified portfolios and hedging instruments for foreign exchange volatility.[27] This adaptive approach allowed Prologis to build a robust global platform by 2011, with operations spanning multiple continents.Merger and modern era
In 2011, Prologis merged with AMB Property Corporation in an all-stock merger of equals valued at $8.7 billion, creating the world's largest industrial real estate investment trust with a combined portfolio of approximately 600 million square feet (55.7 million square meters) across 22 countries.[28][29] The transaction, completed on June 3, 2011, positioned the new entity as a dominant player in logistics real estate, with Hamid R. Moghadam serving as CEO to lead the integrated operations.[30][31] Following the merger, Prologis pursued growth through strategic joint ventures and acquisitions from 2012 to 2020, enhancing its global footprint in high-demand markets. Notable examples include the formation of a €2.4 billion joint venture with Norges Bank Investment Management in 2012 to acquire distribution facilities across 11 European markets, the launch of a $1 billion joint venture in China in 2013 focused on developing logistics properties, and the sponsorship of the initial public offering of Nippon Prologis REIT in 2013, which expanded its ownership in premium logistics assets.[32][33][34] Significant acquisitions during this period included KTR Capital Partners in 2015 for $5.9 billion, DCT Industrial Trust in 2018 for $8.5 billion, and Liberty Property Trust in 2020 for $13 billion, which bolstered its U.S. holdings.[3] This period emphasized co-investments to scale development and asset management without overextending balance sheets.[3] A pivotal expansion occurred in 2022 with the $23 billion all-stock acquisition of Duke Realty, completed in October, which added approximately 153 million square feet of operating industrial properties and over 500 customers across 19 U.S. markets, including key infill locations near urban centers.[35][36] The deal strengthened Prologis's market share in high-growth regions like Southern California and the Southeast, aligning with rising demand for modern logistics facilities.[37] In recent years, Prologis has advanced sustainability and operational innovations, exemplified by the 2024 launch of North America's largest heavy-duty electric vehicle charging hub at its Denker facility in Torrance, California, in partnership with A.P. Moller - Maersk.[38] This 9-megawatt microgrid-powered depot supports up to 96 trucks simultaneously, addressing electrification needs for heavy-duty fleets amid regulatory shifts toward zero-emission transport.[39] The company has also adapted to supply chain disruptions, including the post-COVID e-commerce surge, by optimizing its portfolio for faster delivery networks and increased inventory storage, which has driven sustained demand for well-located warehouses as online retail penetration approaches 30% by 2030.[40] In its third-quarter 2025 results, announced on October 15, Prologis reported core FFO per share of $1.50, up 3.4% year-over-year, with same-store NOI growth guidance raised to 4.25%-4.75% on a net effective basis for the full year, reflecting robust leasing activity and market resilience.[41][42] Leadership transitioned in early 2025, with co-founder Hamid R. Moghadam announcing his retirement from the CEO role effective January 1, 2026, after over 40 years with the company; he will remain as executive chairman to provide strategic oversight.[43][44] Dan Letter, Prologis's president since 2019, was appointed as the incoming CEO, bringing expertise in global strategy and operations to guide the firm through evolving logistics trends.[45] This succession ensures continuity while positioning Prologis for long-term innovation in sustainable supply chain solutions.Operations
Property portfolio
Prologis's property portfolio primarily comprises Class A industrial properties, such as warehouses and distribution centers, designed for logistics, storage, manufacturing, and research and development activities. As of the third quarter of 2025, the owned and managed portfolio totals approximately 1.3 billion square feet across thousands of facilities worldwide. These properties emphasize modern features, including clear heights of 32 feet or more, energy-efficient LED lighting with motion sensors, and early suppression fast-response (ESFR) sprinkler systems to facilitate efficient operations and meet tenant demands for high-performance spaces.[46][47][48] The company's in-house development pipeline drives portfolio growth, with projected stabilizations valued between $1.9 billion and $2.3 billion for 2025, generating substantial value—such as $169 million from third-quarter stabilizations alone through higher yields and margins averaging 27.9%. Prologis annually advances developments encompassing hundreds of millions of square feet, with a significant portion (63.9% in Q3 2025) dedicated to build-to-suit projects tailored for major tenants, enhancing long-term value creation.[42][10] Prologis maintains high occupancy rates above 97% in stabilized properties, reaching 95.3% across the owned and managed portfolio by September 30, 2025, supported by proactive management practices including data-driven tenant optimization and integration of smart building technologies for improved efficiency. The tenant base spans approximately 6,500 customers, principally in business-to-business logistics and retail/e-commerce (accounting for over 60% of leasing activity), alongside other industrial sectors like manufacturing, with average net effective rent growth exceeding 49% on renewed and new leases in Q3 2025.[10][40][10]Global presence
Prologis maintains a significant international footprint, operating in 20 countries across North America, Europe, Asia-Pacific, and Latin America, with a total operating portfolio of approximately 1.3 billion square feet as of September 30, 2025.[2] The company's assets under management (AUM) reached $215 billion in 2025, reflecting its scale in high-barrier, high-growth logistics markets.[49] In North America, which accounts for roughly 70% of the portfolio, Prologis dominates operations in the United States (802 million square feet), and other Americas countries including Canada (~13 million square feet), Mexico (~67 million square feet), and Brazil (~20 million square feet) (totaling 128 million square feet), contributing about 90% of net operating income (NOI).[49] Europe represents around 20% of the portfolio with 252 million square feet across key markets including the United Kingdom, Netherlands, Germany, France, Belgium, the Czech Republic, Poland, Spain, Italy, and the Nordics, generating 9% of NOI.[49][50] The Asia-Pacific region holds about 8% with 114 million square feet primarily in Japan and China, contributing 1% to NOI, while Latin America, focused on Brazil (~20 million square feet), forms a smaller portion of the other Americas segment.[49][51] As the global leader in logistics real estate, Prologis leverages localized strategies to navigate regional dynamics.[52] In Asia-Pacific, the company employs joint ventures to ensure regulatory compliance and foster partnerships with local entities, such as ongoing collaborations in China and recent expansions in India through developments, acquisitions, and co-investments.[53][54] Recent expansions from 2023 to 2025 highlight Prologis's adaptation to emerging trends, including significant investments in electric vehicle (EV) infrastructure across Europe to support customer fleet electrification, such as partnerships for modular charging platforms and workplace solutions in key markets like the UK and Netherlands. On November 12, 2025, Prologis unveiled its first microgrid-powered logistics facility in Europe.[55][56][57] However, operations in China face challenges from geopolitical risks and trade uncertainties, which have influenced supply chain decisions and prompted hedging strategies to mitigate exposure.[58] Overall, 98% of Prologis's forecasted 2025 earnings are denominated in U.S. dollars or hedged through derivatives, providing stability amid international fluctuations.[10]Financial performance
Revenue and key metrics
Prologis reported annual revenue of $8.20 billion for 2024, reflecting steady growth driven by its logistics real estate portfolio.[59] Net income for the year reached $3.73 billion, supported by gains from property dispositions and operational efficiencies.[60] Total assets stood at $95.33 billion as of December 31, 2024, underscoring the company's expansive scale in industrial properties.[61] For 2025, Prologis projects revenue exceeding $8.5 billion, with trailing twelve-month figures already at $8.74 billion through September 30.[62] Core funds from operations (FFO) per share guidance has been raised to $5.78–$5.81, implying year-over-year growth of approximately 5% from 2024's $5.53, though earlier estimates targeted 8–10% amid favorable market conditions.[41] [63] Key metrics include net operating income (NOI) of $6.6 billion annually as of September 30, 2025, bolstered by high occupancy rates averaging 94.75%–95.25%.[1] The company's dividend yield remains around 3.2%, with consistent payouts reflecting its REIT structure and commitment to shareholder returns.[64] Revenue trends in 2025 show a 9% increase in the first half, fueled by rent escalations averaging 29.4% on cash rents and net effective changes of 49.4%, alongside occupancy improvements that enhanced earnings stability.[65] [41] In Q3 2025, revenue rose to $2.21 billion, up 8.6% year-over-year, while core FFO per share hit $1.49, exceeding forecasts.[42] Approximately 98% of 2025 earnings are hedged against currency and interest rate risks, mitigating volatility. As of November 17, 2025, Prologis's market capitalization was $116.8 billion, with shares trading at $123.06.[41] [66]| Metric | 2024 Value | 2025 Projection/TTM |
|---|---|---|
| Revenue | $8.20B | $8.5B+ / $8.74B |
| Net Income | $3.73B | $3.40–$3.50 (EPS) |
| NOI | N/A | $6.6B |
| Core FFO per Share | $5.53 | $5.78–$5.81 |
| Total Assets | $95.33B | N/A |
| Dividend Yield | ~3% | ~3.2% |