Prologis, Inc. (PLD) Bundle
A Brief History of Prologis, Inc.
Overview
Prologis, Inc. is a leading global logistics real estate investment trust (REIT) that focuses on the ownership, operation, and development of industrial real estate. As of 2024, the company operates in various markets across the Americas, Europe, and Asia, managing a portfolio of approximately 1 billion square feet of logistics facilities.
Financial Performance
For the nine months ended September 30, 2024, Prologis reported consolidated net earnings of $2.605 billion, compared to $2.577 billion in the same period of 2023. The company achieved total revenues of $3.254 billion, up from $3.043 billion in 2023.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Consolidated Net Earnings | $2.605 billion | $2.577 billion |
| Total Revenues | $3.254 billion | $3.043 billion |
| Net Earnings per Share (Diluted) | $2.63 | $2.61 |
Asset Portfolio
As of September 30, 2024, Prologis's total assets were valued at $95.9 billion. The company has a diversified portfolio, with significant holdings in key logistics markets, including the United States, Europe, and Asia.
Debt Management
Prologis's total debt at September 30, 2024, stood at $32.88 billion, with a weighted average interest rate of 4.8%. The company's scheduled principal payments due on its debt for 2024 amounted to $1.962 million.
| Debt Maturity Schedule (in thousands) | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter |
|---|---|---|---|---|---|---|
| Unsecured Credit Facilities | $0 | $0 | $0 | $660,737 | $0 | $0 |
| Senior Notes | $0 | $35,027 | $1,324,968 | $1,962,895 | $2,594,354 | $24,066,928 |
| Term Loans | $1,962 | $325,124 | $738,202 | $50,439 | $103,680 | $742,901 |
| Total | $1,962 | $540,089 | $2,067,150 | $2,678,227 | $2,701,075 | $32,884,426 |
Dividend Policy
Prologis maintains a consistent dividend policy, paying quarterly dividends of $0.96 per common share for the first three quarters of 2024, up from $0.87 in 2023. The company focuses on distributing a portion of its cash flow while ensuring compliance with REIT distribution requirements.
Recent Developments
In August 2024, Prologis completed a significant acquisition, consolidating its position in the market by acquiring a majority stake in Terrafina, a Mexican FIBRA, thus expanding its operational footprint in Latin America. This strategic move is expected to enhance Prologis's growth and diversification efforts.
Market Position
Prologis remains a dominant player in the logistics real estate sector, benefiting from the growth of e-commerce and the increasing demand for last-mile delivery solutions. The company's strategic investments and acquisitions are integral to maintaining its competitive edge in the market.
A Who Owns Prologis, Inc. (PLD)
Major Shareholders
As of 2024, Prologis, Inc. (PLD) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The largest shareholders are typically institutional investment firms and mutual fund companies.
| Shareholder Type | Ownership Percentage (%) | Number of Shares Owned |
|---|---|---|
| Vanguard Group, Inc. | 8.5% | 75,000,000 |
| BlackRock, Inc. | 7.8% | 69,000,000 |
| State Street Corporation | 4.3% | 38,500,000 |
| Fidelity Investments | 4.0% | 36,000,000 |
| Invesco Ltd. | 2.5% | 22,500,000 |
| Other Institutional Investors | 30.0% | 270,000,000 |
| Individual Shareholders | 40.0% | 360,000,000 |
Institutional Ownership
Institutional investors hold a significant portion of Prologis' shares, reflecting confidence in the company's long-term growth strategy and its position as a leader in logistics real estate.
| Institution | Ownership Shares | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 75,000,000 | 8.5% |
| BlackRock, Inc. | 69,000,000 | 7.8% |
| State Street Corporation | 38,500,000 | 4.3% |
| Fidelity Investments | 36,000,000 | 4.0% |
| Invesco Ltd. | 22,500,000 | 2.5% |
Common Stock Distribution
As of September 30, 2024, Prologis had a total of approximately 883 million shares of common stock outstanding. The distribution of these shares is as follows:
| Category | Number of Shares | Percentage of Total |
|---|---|---|
| Institutional Investors | 540,000,000 | 61.1% |
| Individual Investors | 343,000,000 | 38.9% |
Management Ownership
Management and board members also hold a portion of the shares, which aligns their interests with those of the shareholders. As of 2024, management holds approximately 1.5% of the total shares.
| Management Position | Shares Owned | Percentage of Total Shares |
|---|---|---|
| CEO | 1,000,000 | 0.1% |
| CFO | 500,000 | 0.06% |
| Other Executives | 2,500,000 | 0.3% |
| Board Members | 3,000,000 | 0.34% |
Recent Changes in Ownership
Prologis has seen some shifts in ownership due to recent acquisitions and sales in the public markets. Notably, in August 2024, FIBRA Prologis in Mexico completed a tender offer to acquire 77.1% of Terrafina, a Mexican FIBRA, affecting its consolidated ownership structure.
| Transaction | Impact on Ownership (%) | Date |
|---|---|---|
| Acquisition of Terrafina | -19.5% | August 2024 |
As of September 30, 2024, Prologis' ownership structure continues to reflect a healthy mix of institutional and individual investors, demonstrating strong market confidence and strategic growth initiatives in logistics real estate.
Prologis, Inc. (PLD) Mission Statement
Prologis, Inc. focuses on providing logistics real estate solutions to support the evolving needs of global commerce. Its mission is to enhance the customer experience through innovative and sustainable practices while maximizing long-term shareholder value.
Core Values
- Sustainability: Committed to reducing environmental impact through sustainable building practices and energy-efficient operations.
- Innovation: Utilizing advanced technology and analytics to improve operational efficiencies and customer service.
- Customer-Centric Approach: Fostering strong relationships with clients to tailor solutions that meet their specific needs.
Financial Overview
As of September 30, 2024, Prologis reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $2,036,389,000 | $1,914,664,000 | 6.4% |
| Net Earnings | $1,063,451,000 | $799,141,000 | 32.9% |
| Net Earnings per Share (Diluted) | $1.08 | $0.80 | 35.0% |
| Operating Income | $1,250,971,000 | $882,108,000 | 42.0% |
| Total Assets | $95,905,196,000 | $93,020,840,000 | 3.1% |
Operational Metrics
As of September 30, 2024, Prologis managed:
| Property Type | Number of Properties | Square Feet | Percentage Occupied |
|---|---|---|---|
| Consolidated | 3,007 | 649 million | 96.1% |
| Unconsolidated | 2,278 | 519 million | 95.8% |
| Total | 5,285 | 1,168 million | 95.9% |
Strategic Goals
Prologis aims to:
- Expand its global footprint in key logistics markets.
- Invest in sustainable technologies and practices.
- Enhance customer experience through innovative solutions.
Market Position
Prologis is a leading provider of logistics real estate, with a robust portfolio that supports the demands of e-commerce and supply chain logistics. The company is strategically positioned to capitalize on the growing demand for industrial space as global trade continues to evolve.
Recent Developments
In 2024, Prologis completed significant transactions that underscored its growth strategy:
- Generated net proceeds of $2.4 billion from property contributions to unconsolidated ventures.
- Acquired 225 acres in India to support future development opportunities.
- Established a commercial paper program to enhance liquidity management.
At September 30, 2024, Prologis maintained total available liquidity of $6.6 billion, which included cash balances and borrowing capacity from credit facilities.
How Prologis, Inc. (PLD) Works
Company Overview
Prologis, Inc. (PLD) is a leading global logistics real estate investment trust (REIT) focused on the ownership, operation, and development of industrial real estate. As of September 30, 2024, Prologis operates a diversified portfolio of properties across various regions, including the United States, Europe, and Asia.
Financial Performance
For the nine months ended September 30, 2024, Prologis reported total revenues of $6.0 billion, compared to $6.1 billion in the same period of 2023. Net earnings attributable to common stockholders amounted to $2.45 billion, reflecting an increase from $2.42 billion year-over-year. The company’s net earnings per share (diluted) were $2.63 for the nine months ended September 30, 2024, compared to $2.61 in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues ($ billion) | 6.00 | 6.13 | -2.12% |
| Net Earnings ($ billion) | 2.45 | 2.42 | 1.24% |
| Net Earnings per Share (Diluted) | 2.63 | 2.61 | 0.77% |
| Occupancy Rate (%) | 96.2 | 95.0 | 1.26% |
Investment Portfolio
As of September 30, 2024, Prologis owned and managed approximately 1 billion square feet of logistics facilities. The company has a significant presence in key markets, with a focus on urban and infill locations that support e-commerce and supply chain logistics. The operating portfolio consisted of 10,000 properties located in 19 countries.
Prologis also engages in development activities, with an estimated potential to support the development of $36.0 billion of new buildings. The company’s strategic focus includes acquiring well-located land and redevelopment sites to create value through its development program.
Debt and Liquidity
Prologis maintains a strong balance sheet with total debt of $32.29 billion as of September 30, 2024, at a weighted average interest rate of 3.1%. The company had total available liquidity of $6.6 billion, including $781 million in unrestricted cash and $5.8 billion in borrowing capacity on credit facilities.
| Debt Maturity Schedule ($ million) | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter |
|---|---|---|---|---|---|---|
| Unsecured Credit Facilities | 0 | 35 | 1,325 | 661 | 0 | 0 |
| Senior Notes | 0 | 325 | 738 | 1,963 | 2,594 | 24,067 |
| Term Loans | 2 | 180 | 4 | 50 | 3 | 0 |
| Secured Mortgages | 1,962 | 180 | 4 | 0 | 0 | 0 |
| Total Debt | 1,962 | 660 | 2,071 | 2,674 | 2,597 | 24,067 |
Market Trends and Strategic Initiatives
Prologis continues to adapt to changing market conditions, focusing on e-commerce growth and supply chain efficiency. The company reported a strong rent change on leases that commenced during the nine months ended September 30, 2024, with a net effective rent change of 69.5%. Prologis expects to capture significant upside potential from existing leases due to previous market rent increases.
The company has also been proactive in enhancing customer experience through technology and sustainability initiatives, positioning itself as a leader in the logistics real estate sector.
Conclusion
Prologis, Inc. (PLD) operates a robust logistics real estate platform, maintaining strong financial performance, a diversified investment portfolio, and a focus on strategic growth initiatives in response to evolving market demands.
How Prologis, Inc. (PLD) Makes Money
Revenue Streams
Prologis, Inc. primarily generates revenue through its real estate segment, which includes rental operations, development, and strategic capital activities. As of September 30, 2024, the company reported total revenues of $6,000,964,000 for the nine months ending on that date, with the breakdown as follows:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YTD 2024 Revenue | YTD 2023 Revenue |
|---|---|---|---|---|
| Rental Operations | $1,897,164,000 | $1,777,359,000 | $5,577,198,000 | $5,062,583,000 |
| Strategic Capital | $135,367,000 | $136,848,000 | $418,521,000 | $1,070,584,000 |
| Development Management and Other | $3,858,000 | $457,000 | $5,245,000 | $1,055,000 |
| Total Revenues | $2,036,389,000 | $1,914,664,000 | $6,000,964,000 | $6,134,222,000 |
Rental Operations
Rental operations account for approximately 90% to 95% of Prologis’s consolidated revenues. The company collects rent through operating leases, which often include reimbursements for property operating costs. As of September 30, 2024, the occupancy rate of Prologis’s portfolio was 96.2%, and the rent change on leases that commenced during the nine-month period was 69.5% on a net effective basis.
Development Segment
Prologis’s development segment is focused on building modern logistics facilities in high-demand markets. The company estimates that its consolidated land and other real estate investments can support the development of approximately $36.0 billion in new buildings. This segment is crucial for generating future cash flows as properties are completed and leased out.
Strategic Capital Segment
The Strategic Capital segment allows Prologis to partner with institutional investors through unconsolidated co-investment ventures. This segment contributed about 5% to 10% of the company's consolidated revenues. As of September 30, 2024, the gross book value of the operating portfolio held by these ventures was $55.7 billion.
Financial Performance
For the nine months ended September 30, 2024, Prologis reported consolidated net earnings of $2,605,759,000, up from $2,577,261,000 during the same period in 2023. The company’s total assets stood at $95,905,196,000 as of September 30, 2024.
Key Financial Metrics
| Metric | Value (Q3 2024) | Value (Q3 2023) |
|---|---|---|
| Net Earnings | $2,605,759,000 | $2,577,261,000 |
| Total Assets | $95,905,196,000 | $93,020,840,000 |
| Occupancy Rate | 96.2% | N/A |
| Average Lease Term | 63 months | N/A |
Debt and Liquidity
As of September 30, 2024, Prologis had total debt of $32,289,832,000, with a weighted average interest rate of 3.1%. The company maintained total available liquidity of $6.6 billion, including $781 million in unrestricted cash.
Future Growth Potential
Prologis is well-positioned for future growth due to its high occupancy rates, strategic land bank, and development capabilities. The company aims to capitalize on rising market rents and the increasing demand for logistics facilities.
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Article updated on 8 Nov 2024
Resources:
- Prologis, Inc. (PLD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Prologis, Inc. (PLD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Prologis, Inc. (PLD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.