Earnings surge at Prologis (NYSE: PLD) as Q1 2026 gains boosted by asset sales
Rhea-AI Filing Summary
Prologis, Inc. (PLD) and Prologis, L.P. reported strong first‑quarter 2026 results. Total revenues reached $2,297,723 thousand for the quarter, up from $2,139,665 thousand a year earlier, driven mainly by higher rental income and strategic capital fees.
Consolidated net earnings were $1,044,815 thousand versus $639,520 thousand in the prior‑year quarter. Net earnings attributable to common stockholders rose to $980,476 thousand from $591,501 thousand, with diluted earnings per share increasing to $1.05 from $0.63. Gains on dispositions of development properties, land and other real estate totaled $384,023 thousand, a large step up from $64,250 thousand.
The company generated $1,288,136 thousand of net cash from operating activities, while investing activities used $400,615 thousand and financing activities used $1,158,280 thousand. At March 31, 2026, Prologis reported total assets of $98,133,451 thousand, total debt of $34,669,592 thousand and total liquidity of $6,672 million, including $861,144 thousand of cash.
Positive
- Significant earnings growth: Net earnings attributable to common stockholders rose to $980,476 thousand from $591,501 thousand, with diluted EPS increasing to $1.05 from $0.63 year over year.
- Large realized gains on real estate: Gains on dispositions of development properties, land and other investments in real estate totaled $384,023 thousand, up sharply from $64,250 thousand in the prior-year quarter.
- Strong operating cash flow: Net cash provided by operating activities was $1,288,136 thousand, exceeding common dividends and distributions of approximately $1,000,000 thousand for the quarter.
Negative
- None.
Insights
Q1 2026 shows sharply higher earnings, boosted by sizable asset sales and solid cash generation.
Prologis delivered total revenues of $2,297,723 thousand for Q1 2026, modestly higher than Q1 2025. The headline driver was profit growth: consolidated net earnings rose to $1,044,815 thousand, and net earnings to common stockholders climbed to $980,476 thousand from $591,501 thousand.
A major factor was gains on real estate activity. Gains on dispositions of development properties and land reached $292,983 thousand, with a further $91,040 thousand from other real estate sales, far above the prior‑year combined total. Core rental and strategic capital income also increased, supporting segment net operating income of $1,685,428 thousand.
Cash flow was robust: operating cash flow of $1,288,136 thousand comfortably covered common dividends and distributions of about $1,000,000 thousand. The balance sheet remains large, with total assets of $98,133,451 thousand and debt of $34,669,592 thousand; liquidity of $6,672 million provides flexibility for development, acquisitions and refinancing over coming periods.
Key Figures
Key Terms
Real Estate Segment financial
Strategic Capital Segment financial
unconsolidated co-investment ventures financial
net investment hedges financial
LTIP Units financial
Accumulated Other Comprehensive Income (Loss) financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the quarterly period ended
For the transition period from ______________ to ______________
Commission File Number:
(Exact name of registrant as specified in its charter)
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Securities registered pursuant to Section 12(b) of the Act:
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Title of Each Class |
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Name of Each Exchange on Which Registered |
Prologis, Inc. |
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Prologis, L.P. |
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Prologis, L.P. |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Prologis, Inc. |
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No |
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Prologis, L.P. |
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No |
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Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter periods that the registrant was required to submit such files).
Prologis, Inc. |
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No |
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Prologis, L.P. |
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No |
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Prologis, Inc.: |
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Accelerated filer ☐ |
Non-accelerated filer ☐ |
Smaller reporting company |
Emerging growth company |
Prologis, L.P.: |
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Large accelerated filer ☐ |
Accelerated filer ☐ |
Smaller reporting company |
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Prologis, Inc. |
Yes |
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No |
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Prologis, L.P. |
Yes |
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No |
The number of shares of Prologis, Inc.’s common stock outstanding at April 28, 2026, was approximately
EXPLANATORY NOTE
This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2026, of Prologis, Inc. and Prologis, L.P. Unless stated otherwise or the context otherwise requires, references to “Prologis, Inc.” or the “Parent” mean Prologis, Inc. and its consolidated subsidiaries; and references to “Prologis, L.P.” or the “Operating Partnership” or the “OP” mean Prologis, L.P., and its consolidated subsidiaries. The terms “the Company,” “Prologis,” “we,” “our” or “us” means the Parent and the OP collectively.
The Parent is a real estate investment trust (a “REIT”) and the general partner of the OP. At March 31, 2026, the Parent owned a 97.93% common general partnership interest in the OP and substantially all of the preferred units in the OP. The remaining 2.07% common limited partnership interests are owned by unaffiliated investors and certain current and former directors and officers of the Parent.
We operate the Parent and the OP as one enterprise. The management of the Parent consists of the same members as the management of the OP. These members are officers of the Parent and employees of the OP or one of its subsidiaries. As sole general partner, the Parent has control of the OP through complete responsibility and discretion in the day-to-day management and therefore, consolidates the OP for financial reporting purposes. Because the only significant asset of the Parent is its investment in the OP, the assets and liabilities of the Parent and the OP are the same on their respective financial statements.
We believe combining the quarterly reports on Form 10-Q of the Parent and the OP into this single report results in the following benefits:
It is important to understand the few differences between the Parent and the OP in the context of how we operate the Company. The Parent does not conduct business itself, other than acting as the sole general partner of the OP and issuing public equity from time to time. The OP holds substantially all the assets of the business, directly or indirectly. The OP conducts the operations of the business and is structured as a partnership with no publicly traded equity. Except for net proceeds from equity issuances by the Parent, which are contributed to the OP in exchange for partnership units, the OP generates capital required by the business through the OP’s operations, incurrence of indebtedness and issuance of partnership units to third parties.
The presentation of noncontrolling interests, stockholders’ equity and partners’ capital are the main areas of difference between the consolidated financial statements of the Parent and those of the OP. The differences in the presentations between stockholders’ equity and partners’ capital result from the differences in the equity and capital issuances in the Parent and in the OP.
The preferred stock, common stock, additional paid-in capital, accumulated other comprehensive income (loss) and distributions in excess of net earnings of the Parent are presented as stockholders’ equity in the Parent’s consolidated financial statements. These items represent the common and preferred general partnership interests held by the Parent in the OP and are presented as general partner’s capital within partners’ capital in the OP’s consolidated financial statements. The common limited partnership interests held by the limited partners in the OP are presented as noncontrolling interest within equity in the Parent’s consolidated financial statements and as limited partners’ capital within partners’ capital in the OP’s consolidated financial statements.
To highlight the differences between the Parent and the OP, separate sections in this report, as applicable, individually discuss the Parent and the OP, including separate financial statements and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure of the Parent and the OP, this report refers to actions or holdings as being actions or holdings of Prologis.
PROLOGIS
INDEX
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Page Number |
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PART I. |
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Financial Information |
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Item 1. |
Financial Statements |
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1 |
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Prologis, Inc.: |
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Consolidated Balance Sheets – March 31, 2026 and December 31, 2025 |
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1 |
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Consolidated Statements of Income – Three Months Ended March 31, 2026 and 2025 |
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Consolidated Statements of Comprehensive Income – Three Months Ended March 31, 2026 and 2025 |
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Consolidated Statements of Equity – Three Months Ended March 31, 2026 and 2025 |
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Consolidated Statements of Cash Flows – Three Months Ended March 31, 2026 and 2025 |
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Prologis, L.P.: |
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Consolidated Balance Sheets – March 31, 2026 and December 31, 2025 |
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Consolidated Statements of Income – Three Months Ended March 31, 2026 and 2025 |
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Consolidated Statements of Comprehensive Income – Three Months Ended March 31, 2026 and 2025 |
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8 |
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Consolidated Statements of Capital – Three Months Ended March 31, 2026 and 2025 |
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9 |
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Consolidated Statements of Cash Flows – Three Months Ended March 31, 2026 and 2025 |
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10 |
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Prologis, Inc. and Prologis, L.P.: |
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Notes to the Consolidated Financial Statements |
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11 |
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Note 1. General |
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11 |
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Note 2. Real Estate |
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12 |
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Note 3. Unconsolidated Entities |
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13 |
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Note 4. Assets Held for Sale or Contribution |
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14 |
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Note 5. Debt |
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15 |
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Note 6. Noncontrolling Interests |
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17 |
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Note 7. Long-Term Compensation |
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18 |
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Note 8. Earnings Per Common Share or Unit |
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19 |
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Note 9. Financial Instruments and Fair Value Measurements |
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20 |
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Note 10. Reportable Segments |
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24 |
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Note 11. Supplemental Cash Flow Information |
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26 |
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Reports of Independent Registered Public Accounting Firm |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
Quantitative and Qualitative Disclosures About Market Risk |
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48 |
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Item 4. |
Controls and Procedures |
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PART II. |
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Other Information |
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Item 1. |
Legal Proceedings |
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Item 1A. |
Risk Factors |
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Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
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Item 3. |
Defaults Upon Senior Securities |
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Item 4. |
Mine Safety Disclosures |
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Item 5. |
Other Information |
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Item 6. |
Exhibits |
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Index
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
PROLOGIS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share data)
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March 31, 2026 |
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December 31, 2025 |
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ASSETS |
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Investments in real estate properties |
$ |
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$ |
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Less accumulated depreciation |
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Net investments in real estate properties |
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Investments in and advances to unconsolidated entities |
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Assets held for sale or contribution |
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Net investments in real estate |
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Cash and cash equivalents |
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Other assets |
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Total assets |
$ |
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$ |
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LIABILITIES AND EQUITY |
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Liabilities: |
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Debt |
$ |
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$ |
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Accounts payable and accrued expenses |
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Other liabilities |
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Total liabilities |
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Equity: |
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Prologis, Inc. stockholders’ equity: |
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Series Q preferred stock at stated liquidation preference of $ |
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Additional paid-in capital |
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Accumulated other comprehensive loss |
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Distributions in excess of net earnings |
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Total Prologis, Inc. stockholders’ equity |
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Noncontrolling interests |
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Total equity |
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Total liabilities and equity |
$ |
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$ |
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The accompanying notes are an integral part of these Consolidated Financial Statements.
1
Index
PROLOGIS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
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Three Months Ended |
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March 31, |
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2026 |
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2025 |
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Revenues: |
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Rental |
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$ |
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$ |
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Strategic capital |
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Development management and other |
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Total revenues |
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Expenses: |
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Rental |
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Strategic capital |
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General and administrative |
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Depreciation and amortization |
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Other |
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Total expenses |
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Operating income before gains on real estate transactions, net |
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Gains on dispositions of development properties and land, net |
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Gains on other dispositions of investments in real estate, net |
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Operating income |
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Other income (expense): |
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Earnings from unconsolidated entities, net |
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Interest expense |
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Foreign currency, derivative and other gains (losses) and other income |
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Gains (losses) on early extinguishment of debt, net |
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Total other income (expense) |
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( |
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Earnings before income taxes |
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Income tax expense |
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( |
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( |
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Consolidated net earnings |
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Less net earnings attributable to noncontrolling interests |
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Net earnings attributable to controlling interests |
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Less preferred stock dividends |
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Net earnings attributable to common stockholders |
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$ |
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$ |
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Weighted average common shares outstanding – Basic |
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Weighted average common shares outstanding – Diluted |
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Net earnings per share attributable to common stockholders – Basic |
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$ |
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$ |
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Net earnings per share attributable to common stockholders – Diluted |
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$ |
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$ |
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The accompanying notes are an integral part of these Consolidated Financial Statements.
2
Index
PROLOGIS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In thousands)
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Three Months Ended |
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March 31, |
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2026 |
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2025 |
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Consolidated net earnings |
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$ |
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$ |
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Other comprehensive income: |
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Foreign currency translation gains (losses), net |
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Unrealized gains (losses) on derivative contracts, net |
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( |
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Comprehensive income |
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Net earnings attributable to noncontrolling interests |
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( |
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( |
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Other comprehensive loss (income) attributable to noncontrolling interests |
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( |
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Comprehensive income attributable to common stockholders |
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$ |
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$ |
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The accompanying notes are an integral part of these Consolidated Financial Statements.
3
Index
PROLOGIS, INC.
CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended March 31, 2026 and 2025
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Common Stock |
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Accumulated |
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Distributions |
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Number |
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Additional |
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Other |
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in Excess of |
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Non- |
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Preferred |
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of |
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Par |
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Paid-in |
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Comprehensive |
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Net |
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controlling |
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Total |
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Stock |
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Shares |
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Value |
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Capital |
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Income (Loss) |
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Earnings |
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Interests |
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Equity |
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Balance at January 1, 2026 |
$ |
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$ |
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$ |
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$ |
( |
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$ |
( |
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$ |
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$ |
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Consolidated net earnings |
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- |
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- |
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- |
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- |
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- |
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Effect of equity compensation plans |
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- |
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- |
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- |
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Capital contributions |
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- |
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- |
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- |
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- |
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- |
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- |
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Redemption of noncontrolling interests |
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- |
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- |
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- |
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( |
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( |
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Foreign currency translation gains (losses), net |
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- |
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- |
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- |
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- |
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- |
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Unrealized gains (losses) on |
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- |
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- |
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- |
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- |
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- |
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Reallocation of equity |
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- |
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- |
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- |
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( |
) |
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- |
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- |
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- |
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Dividends ($ |
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- |
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- |
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- |
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- |
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( |
) |
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( |
) |
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( |
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Balance at March 31, 2026 |
$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
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$ |
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$ |
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Common Stock |
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Accumulated |
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Distributions |
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Number |
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Additional |
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Other |
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in Excess of |
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Non- |
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|
Preferred |
|
|
of |
|
|
Par |
|
|
Paid-in |
|
|
Comprehensive |
|
|
Net |
|
|
controlling |
|
|
Total |
|
||||||||
|
Stock |
|
|
Shares |
|
|
Value |
|
|
Capital |
|
|
Income (Loss) |
|
|
Earnings |
|
|
Interests |
|
|
Equity |
|
||||||||
Balance at January 1, 2025 |
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||||
Consolidated net earnings |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|||
Effect of equity compensation plans |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|||||
Capital contributions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
||
Redemption of noncontrolling interests |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|||
Foreign currency translation gains (losses), net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
Unrealized gains (losses) on |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
Reallocation of equity |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
Dividends ($ |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Balance at March 31, 2025 |
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||||||
The accompanying notes are an integral part of these Consolidated Financial Statements.
4
Index
PROLOGIS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Operating activities: |
|
|
|
|
|
|
||
Consolidated net earnings |
|
$ |
|
|
$ |
|
||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Straight-lined rents and amortization of above and below market leases |
|
|
( |
) |
|
|
( |
) |
Equity-based compensation awards |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
|
|
|
|
||
Earnings from unconsolidated entities, net |
|
|
( |
) |
|
|
( |
) |
Operating distributions from unconsolidated entities |
|
|
|
|
|
|
||
Decrease (increase) in operating receivables from unconsolidated entities |
|
|
|
|
|
|
||
Amortization of debt discounts and debt issuance costs, net |
|
|
|
|
|
|
||
Gains on dispositions of development properties and land, net |
|
|
( |
) |
|
|
( |
) |
Gains on other dispositions of investments in real estate, net |
|
|
( |
) |
|
|
( |
) |
Unrealized foreign currency and derivative losses (gains), net |
|
|
( |
) |
|
|
|
|
Losses (gains) on early extinguishment of debt, net |
|
|
|
|
|
|
||
Deferred income tax expense (benefit) |
|
|
|
|
|
|
||
Decrease (increase) in other assets |
|
|
|
|
|
|
||
Increase (decrease) in accounts payable and accrued expenses and other liabilities |
|
|
( |
) |
|
|
( |
) |
Net cash provided by (used in) operating activities |
|
|
|
|
|
|
||
Investing activities: |
|
|
|
|
|
|
||
Real estate development |
|
|
( |
) |
|
|
( |
) |
Real estate acquisitions |
|
|
( |
) |
|
|
( |
) |
Tenant improvements and lease commissions on previously leased space |
|
|
( |
) |
|
|
( |
) |
Property improvements |
|
|
( |
) |
|
|
( |
) |
Proceeds from dispositions and contributions of real estate |
|
|
|
|
|
|
||
Investments in and advances to unconsolidated entities |
|
|
( |
) |
|
|
( |
) |
Return of investment from unconsolidated entities |
|
|
|
|
|
|
||
Proceeds from the settlement of net investment hedges |
|
|
|
|
|
|
||
Proceeds from maturity of short-term investments |
|
|
|
|
|
|
||
Net cash provided by (used in) investing activities |
|
|
( |
) |
|
|
( |
) |
Financing activities: |
|
|
|
|
|
|
||
Dividends paid on common and preferred stock |
|
|
( |
) |
|
|
( |
) |
Noncontrolling interests contributions |
|
|
|
|
|
|
||
Noncontrolling interests distributions |
|
|
( |
) |
|
|
( |
) |
Settlement of noncontrolling interests |
|
|
( |
) |
|
|
( |
) |
Tax paid with shares withheld |
|
|
( |
) |
|
|
( |
) |
Debt and equity issuance costs paid |
|
|
( |
) |
|
|
( |
) |
Net proceeds from (payments on) credit facilities and commercial paper |
|
|
|
|
|
|
||
Repurchase of and payments on debt |
|
|
( |
) |
|
|
( |
) |
Proceeds from the issuance of debt |
|
|
|
|
|
|
||
Net cash provided by (used in) financing activities |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
||
Effect of foreign currency exchange rate changes on cash |
|
|
( |
) |
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
( |
) |
|
|
( |
) |
Cash and cash equivalents, beginning of period |
|
|
|
|
|
|
||
Cash and cash equivalents, end of period |
|
$ |
|
|
$ |
|
||
See Note 11 for information on noncash investing and financing activities and other information.
The accompanying notes are an integral part of these Consolidated Financial Statements.
5
Index
PROLOGIS, L.P.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
|
March 31, 2026 |
|
|
December 31, 2025 |
|
||
ASSETS |
|
|
|
|
|
||
Investments in real estate properties |
$ |
|
|
$ |
|
||
Less accumulated depreciation |
|
|
|
|
|
||
Net investments in real estate properties |
|
|
|
|
|
||
Investments in and advances to unconsolidated entities |
|
|
|
|
|
||
Assets held for sale or contribution |
|
|
|
|
|
||
Net investments in real estate |
|
|
|
|
|
||
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
|
|
|
||
Other assets |
|
|
|
|
|
||
Total assets |
$ |
|
|
$ |
|
||
|
|
|
|
|
|
||
LIABILITIES AND CAPITAL |
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
||
Debt |
$ |
|
|
$ |
|
||
Accounts payable and accrued expenses |
|
|
|
|
|
||
Other liabilities |
|
|
|
|
|
||
Total liabilities |
|
|
|
|
|
||
|
|
|
|
|
|
||
Capital: |
|
|
|
|
|
||
Partners’ capital: |
|
|
|
|
|
||
General partner – preferred |
|
|
|
|
|
||
General partner – common |
|
|
|
|
|
||
Limited partners – common |
|
|
|
|
|
||
Total partners’ capital |
|
|
|
|
|
||
Noncontrolling interests |
|
|
|
|
|
||
Total capital |
|
|
|
|
|
||
Total liabilities and capital |
$ |
|
|
$ |
|
||
The accompanying notes are an integral part of these Consolidated Financial Statements.
6
Index
PROLOGIS, L.P.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per unit amounts)
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Revenues: |
|
|
|
|
|
|
||
Rental |
|
$ |
|
|
$ |
|
||
Strategic capital |
|
|
|
|
|
|
||
Development management and other |
|
|
|
|
|
|
||
Total revenues |
|
|
|
|
|
|
||
Expenses: |
|
|
|
|
|
|
||
Rental |
|
|
|
|
|
|
||
Strategic capital |
|
|
|
|
|
|
||
General and administrative |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
|
|
|
|
||
Other |
|
|
|
|
|
|
||
Total expenses |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Operating income before gains on real estate transactions, net |
|
|
|
|
|
|
||
Gains on dispositions of development properties and land, net |
|
|
|
|
|
|
||
Gains on other dispositions of investments in real estate, net |
|
|
|
|
|
|
||
Operating income |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Other income (expense): |
|
|
|
|
|
|
||
Earnings from unconsolidated entities, net |
|
|
|
|
|
|
||
Interest expense |
|
|
( |
) |
|
|
( |
) |
Foreign currency, derivative and other gains (losses) and other income |
|
|
|
|
|
( |
) |
|
Gains (losses) on early extinguishment of debt, net |
|
|
( |
) |
|
|
|
|
Total other income (expense) |
|
|
( |
) |
|
|
( |
) |
Earnings before income taxes |
|
|
|
|
|
|
||
Income tax expense |
|
|
( |
) |
|
|
( |
) |
Consolidated net earnings |
|
|
|
|
|
|
||
Less net earnings attributable to noncontrolling interests |
|
|
|
|
|
|
||
Net earnings attributable to controlling interests |
|
|
|
|
|
|
||
Less preferred unit distributions |
|
|
|
|
|
|
||
Net earnings attributable to common unitholders |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Weighted average common units outstanding – Basic |
|
|
|
|
|
|
||
Weighted average common units outstanding – Diluted |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Net earnings per unit attributable to common unitholders – Basic |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Net earnings per unit attributable to common unitholders – Diluted |
|
$ |
|
|
$ |
|
||
The accompanying notes are an integral part of these Consolidated Financial Statements.
7
Index
PROLOGIS, L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In thousands)
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Consolidated net earnings |
|
$ |
|
|
$ |
|
||
Other comprehensive income: |
|
|
|
|
|
|
||
Foreign currency translation gains (losses), net |
|
|
|
|
|
( |
) |
|
Unrealized gains (losses) on derivative contracts, net |
|
|
|
|
|
( |
) |
|
Comprehensive income |
|
|
|
|
|
|
||
Net earnings attributable to noncontrolling interests |
|
|
( |
) |
|
|
( |
) |
Other comprehensive loss (income) attributable to noncontrolling interests |
|
|
|
|
|
( |
) |
|
Comprehensive income attributable to common unitholders |
|
$ |
|
|
$ |
|
||
The accompanying notes are an integral part of these Consolidated Financial Statements.
8
Index
PROLOGIS, L.P.
CONSOLIDATED STATEMENTS OF CAPITAL
(Unaudited)
(In thousands, except per unit amounts)
Three Months Ended March 31, 2026 and 2025
|
General Partner |
|
|
Limited Partners |
|
|
Non- |
|
|
|
|
||||||||||||||||||||||||||||
|
Preferred |
|
|
Common |
|
|
Common |
|
|
controlling |
|
|
Total |
|
|||||||||||||||||||||||||
|
Units |
|
|
Amount |
|
|
Units |
|
|
Amount |
|
|
Units |
|
|
Amount |
|
|
Interests |
|
|
Capital |
|
||||||||||||||||
Balance at January 1, 2026 |
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
|
||||||||||
Consolidated net earnings |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Effect of equity compensation plans |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|||||||
Capital contributions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
||||
Redemption of limited partnership units |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
||||
Foreign currency translation gains (losses), net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||||
Unrealized gains (losses) on |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|||||
Reallocation of capital |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|||
Distributions ($ |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
|
- |
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
||||||
Balance at March 31, 2026 |
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
$ |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
General Partner |
|
|
Limited Partners |
|
|
Non- |
|
|
|
|
||||||||||||||||||||||||||||
|
Preferred |
|
|
Common |
|
|
Common |
|
|
Class A Common |
|
|
controlling |
|
|
Total |
|
||||||||||||||||||||||
|
Units |
|
|
Amount |
|
|
Units |
|
|
Amount |
|
|
Units |
|
|
Amount |
|
|
Units |
|
|
Amount |
|
|
Interests |
|
|
Capital |
|
||||||||||
Balance at January 1, 2025 |
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||||
Consolidated net earnings |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|||||
Effect of equity compensation plans |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|||||
Capital contributions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
||
Redemption of limited partnership units |
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
||||
Foreign currency translation gains (losses), net |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Unrealized gains (losses) on |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
Reallocation of capital |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
Distributions ($ |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Balance at March 31, 2025 |
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||||
The accompanying notes are an integral part of these Consolidated Financial Statements.
9
Index
PROLOGIS, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Operating activities: |
|
|
|
|
|
|
||
Consolidated net earnings |
|
$ |
|
|
$ |
|
||
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Straight-lined rents and amortization of above and below market leases |
|
|
( |
) |
|
|
( |
) |
Equity-based compensation awards |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
|
|
|
|
||
Earnings from unconsolidated entities, net |
|
|
( |
) |
|
|
( |
) |
Operating distributions from unconsolidated entities |
|
|
|
|
|
|
||
Decrease (increase) in operating receivables from unconsolidated entities |
|
|
|
|
|
|
||
Amortization of debt discounts and debt issuance costs, net |
|
|
|
|
|
|
||
Gains on dispositions of development properties and land, net |
|
|
( |
) |
|
|
( |
) |
Gains on other dispositions of investments in real estate, net |
|
|
( |
) |
|
|
( |
) |
Unrealized foreign currency and derivative losses (gains), net |
|
|
( |
) |
|
|
|
|
Losses (gains) on early extinguishment of debt, net |
|
|
|
|
|
|
||
Deferred income tax expense (benefit) |
|
|
|
|
|
|
||
Decrease (increase) in other assets |
|
|
|
|
|
|
||
Increase (decrease) in accounts payable and accrued expenses and other liabilities |
|
|
( |
) |
|
|
( |
) |
Net cash provided by (used in) operating activities |
|
|
|
|
|
|
||
Investing activities: |
|
|
|
|
|
|
||
Real estate development |
|
|
( |
) |
|
|
( |
) |
Real estate acquisitions |
|
|
( |
) |
|
|
( |
) |
Tenant improvements and lease commissions on previously leased space |
|
|
( |
) |
|
|
( |
) |
Property improvements |
|
|
( |
) |
|
|
( |
) |
Proceeds from dispositions and contributions of real estate |
|
|
|
|
|
|
||
Investments in and advances to unconsolidated entities |
|
|
( |
) |
|
|
( |
) |
Return of investment from unconsolidated entities |
|
|
|
|
|
|
||
Proceeds from the settlement of net investment hedges |
|
|
|
|
|
|
||
Proceeds from maturity of short-term investments |
|
|
|
|
|
|
||
Net cash provided by (used in) investing activities |
|
|
( |
) |
|
|
( |
) |
Financing activities: |
|
|
|
|
|
|
||
Distributions paid on common and preferred units |
|
|
( |
) |
|
|
( |
) |
Noncontrolling interests contributions |
|
|
|
|
|
|
||
Noncontrolling interests distributions |
|
|
( |
) |
|
|
( |
) |
Redemption of common limited partnership units |
|
|
( |
) |
|
|
( |
) |
Tax paid with shares of the Parent withheld |
|
|
( |
) |
|
|
( |
) |
Debt and equity issuance costs paid |
|
|
( |
) |
|
|
( |
) |
Net proceeds from (payments on) credit facilities and commercial paper |
|
|
|
|
|
|
||
Repurchase of and payments on debt |
|
|
( |
) |
|
|
( |
) |
Proceeds from the issuance of debt |
|
|
|
|
|
|
||
Net cash provided by (used in) financing activities |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
||
Effect of foreign currency exchange rate changes on cash |
|
|
( |
) |
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
( |
) |
|
|
( |
) |
Cash and cash equivalents, beginning of period |
|
|
|
|
|
|
||
Cash and cash equivalents, end of period |
|
$ |
|
|
$ |
|
||
See Note 11 for information on noncash investing and financing activities and other information.
The accompanying notes are an integral part of these Consolidated Financial Statements.
10
Index
PROLOGIS, INC. AND PROLOGIS, L.P.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. GENERAL
Business. Prologis, Inc. (or the “Parent”) commenced operations as a fully integrated real estate company in 1997, elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code” or “IRC”), and believes the current organization and method of operation will enable it to maintain its status as a REIT. The Parent is the general partner of Prologis, L.P. (or the “Operating Partnership” or “OP”). Through the OP, we are engaged in the ownership, acquisition, development and management of logistics facilities with a focus on key markets in
For each share of preferred or common stock the Parent issues, the OP issues a corresponding preferred or common partnership unit, as applicable, to the Parent in exchange for the contribution of the proceeds from the stock issuance. At March 31, 2026, the Parent owned a
As the sole general partner of the OP, the Parent has complete responsibility and discretion in the day-to-day management and control of the OP, and we operate the Parent and the OP as one enterprise. The management of the Parent consists of the same members as the management of the OP. These members are officers of the Parent and employees of the OP or one of its subsidiaries. As general partner with control of the OP, the Parent is the primary beneficiary and therefore consolidates the OP. Because the Parent’s only significant asset is its investment in the OP, the assets and liabilities of the Parent and the OP are the same on their respective financial statements.
Basis of Presentation. The accompanying Consolidated Financial Statements are prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) and are presented in our reporting currency, the U.S. dollar. Intercompany transactions with consolidated entities have been eliminated.
The accompanying unaudited interim financial information has been prepared according to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and note disclosures normally included in our annual financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with such rules and regulations. Our management believes that the disclosures presented in these financial statements are adequate to make the information presented not misleading. In our opinion, all adjustments and eliminations, consisting only of normal recurring adjustments, necessary to present fairly the financial position and results of operations for both the Parent and the OP for the reported periods have been included. The results of operations for such interim periods are not necessarily indicative of the results for the full year. The accompanying unaudited interim financial information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC, and other public information.
Accounting Pronouncements.
New Accounting Standards Issued but not yet Adopted
Disaggregation of Income Statement Expenses. In November 2024, the FASB issued an ASU to enhance disclosures about certain expense types in commonly presented expense captions on the Consolidated Statements of Income. The ASU requires additional disclosures that disaggregate expense captions into specific components with qualitative descriptions. This standard is effective for the fiscal year ended December 31, 2027, and interim periods thereafter, on a prospective or retrospective basis. We do not expect the standard to have a material impact on our Consolidated Financial Statements as we anticipate the primary change will be additional disclosure.
Hedge Accounting Improvements. In December 2025, the FASB issued an ASU to clarify certain aspects of hedge accounting and address incremental hedge accounting issues arising from global reference rate reform. The ASU targets more closely aligning hedge
11
Index
accounting with the economics of an entity’s risk management activities and clarifies strategies in financial reporting that can be utilized to enable entities to achieve and maintain hedge accounting for highly effective economic hedges of forecasted transactions. This standard is effective for the interim period ended March 31, 2027, and interim and annual periods thereafter, on a prospective basis. We do not expect the standard to have a material impact on our Consolidated Financial Statements.
NOTE 2. REAL ESTATE
Investments in real estate properties consisted of the following (dollars and square feet in thousands):
|
Square Feet |
|
Number of Buildings |
|
|
|
||||||||||||
|
Mar 31, |
|
Dec 31, |
|
Mar 31, |
|
Dec 31, |
|
Mar 31, |
|
Dec 31, |
|
||||||
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
||||||
Operating properties: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Buildings and improvements |
|
|
|
|
|
|
|
|
$ |
|
$ |
|
||||||
Improved land |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Development portfolio, including |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Prestabilized |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Properties under development |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Land (1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other real estate investments (2) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total investments in real estate |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Less accumulated depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net investments in real estate |
|
|
|
|
|
|
|
|
$ |
|
$ |
|
||||||
Acquisitions
The following table summarizes our real estate acquisition activity (dollars and square feet in thousands):
|
|
Three Months Ended |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Number of operating properties |
|
|
|
|
|
|
||
Square feet |
|
|
|
|
|
|
||
Acres of land |
|
|
|
|
|
|
||
Acquisition cost of net investments in real estate, excluding other real estate investments |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Acquisition cost of other real estate investments |
|
$ |
|
|
$ |
|
||
12
Index
Dispositions
The following table summarizes our dispositions of net investments in real estate which include contributions to unconsolidated co-investment ventures and dispositions to third parties (dollars and square feet in thousands):
|
|
Three Months Ended |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Dispositions of development properties and land, net (1)(2) |
|
|
|
|
|
|
||
Number of properties |
|
|
|
|
|
|
||
Square feet |
|
|
|
|
|
|
||
Acres of land |
|
|
|
|
|
|
||
Net proceeds |
|
$ |
|
|
$ |
|
||
Gains on dispositions of development properties and land, net |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Other dispositions of investments in real estate, net |
|
|
|
|
|
|
||
Number of properties |
|
|
|
|
|
|
||
Square feet |
|
|
|
|
|
|
||
Net proceeds |
|
$ |
|
|
$ |
|
||
Gains on other dispositions of investments in real estate, net |
|
$ |
|
|
$ |
|
||
Leases
We recognized lease right-of-use assets of $
NOTE 3. UNCONSOLIDATED ENTITIES
Summary of Investments
We have investments in entities through a variety of ventures. We co-invest in entities that own multiple properties with partners and investors and we provide asset management and property management services to these entities, which we refer to as co-investment ventures. These entities may be consolidated or unconsolidated depending on the structure, our partner’s participation and other rights and our level of control of the entity. This note details our investments in unconsolidated co-investment ventures, which are related parties and accounted for using the equity method of accounting. See Note 6 for more detail regarding our consolidated investments that are not wholly owned.
We also have investments in other ventures, generally with one partner, which we primarily account for using the equity method. We refer to our investments in both unconsolidated co-investment ventures and other ventures, collectively, as unconsolidated entities.
The following table summarizes our investments in and advances to unconsolidated entities (in thousands):
|
|
March 31, |
|
|
December 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Unconsolidated co-investment ventures |
|
$ |
|
|
$ |
|
||
Other ventures |
|
|
|
|
|
|
||
Total |
|
$ |
|
|
$ |
|
||
13
Index
Unconsolidated Co-Investment Ventures
The following table summarizes the Strategic Capital Revenues we recognized in the Consolidated Statements of Income related to our unconsolidated co-investment ventures (in thousands):
|
|
Three Months Ended |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Recurring fees |
|
$ |
|
|
$ |
|
||
Transactional fees |
|
|
|
|
|
|
||
Promote revenue |
|
|
|
|
|
|
||
Total strategic capital revenues from unconsolidated co-investment ventures (1) |
|
$ |
|
|
$ |
|
||
The following table summarizes the key property information, financial position and operating information of our unconsolidated co-investment ventures on a U.S. GAAP basis (not our proportionate share) and the amounts we recognized in the Consolidated Financial Statements related to these ventures (dollars and square feet in millions):
|
U.S. (1) |
|
|
Other Americas (2) |
|
|
Europe |
|
|
Asia (1) |
|
|
Total |
|
|||||||||||||||||||||||||
At: |
Mar 31, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
||||||||||
Key property information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating properties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Square feet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial position: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Third-party debt ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Our investment balance ($) (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Our weighted average ownership (4) |
|
% |
|
|
% |
|
|
% |
|
|
% |
|
|
% |
|
|
% |
|
|
% |
|
|
% |
|
|
% |
|
|
% |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. (1) |
|
|
Other Americas (2) |
|
|
Europe |
|
|
Asia (1) |
|
|
Total |
|
|||||||||||||||||||||||||
Operating Information: |
Mar 31, |
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Mar 31, |
|
|
Mar 31, |
|
||||||||||
For the three months ended: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenues ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Our earnings from unconsolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity Commitments Related to Certain Unconsolidated Co-Investment Ventures
At March 31, 2026, our outstanding equity commitments were $
NOTE 4. ASSETS HELD FOR SALE OR CONTRIBUTION
We had investments in certain real estate properties that met the criteria to be classified as held for sale or contribution at March 31, 2026 and December 31, 2025. At the time of classification, these properties were expected to be sold to third parties or were recently
14
Index
stabilized and expected to be contributed to unconsolidated co-investment ventures within twelve months. The amounts included in Assets Held for Sale or Contribution in the Consolidated Balance Sheets represented real estate investment balances and the related assets and liabilities.
Assets held for sale or contribution consisted of the following (dollars and square feet in thousands):
|
|
March 31, |
|
|
December 31, |
|
||
Number of operating properties |
|
|
|
|
|
|
||
Square feet |
|
|
|
|
|
|
||
Total assets held for sale or contribution |
|
$ |
|
|
$ |
|
||
Total liabilities associated with assets held for sale or contribution – included in Other Liabilities |
|
$ |
|
|
$ |
|
||
NOTE 5. DEBT
All debt is incurred by the OP or its consolidated subsidiaries. The following table summarizes our debt (dollars in thousands):
|
March 31, 2026 |
|
|
December 31, 2025 |
|
||||||||||||||
|
Weighted Average |
|
Amount |
|
|
Weighted Average |
|
Amount |
|
||||||||||
|
Interest Rate (1) |
|
Term (Years) (2) |
|
Outstanding (3) |
|
|
Interest Rate (1) |
|
Term (Years) (2) |
|
Outstanding (3) |
|
||||||
Credit facilities and |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||||
Senior notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Term loans and |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Secured mortgage |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||||
|
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
||||||||||||||
|
|
|
Weighted Average Interest Rate |
|
Amount Outstanding |
|
|
% of Total |
|
|
Weighted Average Interest Rate |
|
Amount Outstanding |
|
|
% of Total |
|
||||
|
British pound sterling |
|
|
$ |
|
|
|
% |
|
|
$ |
|
|
|
% |
||||||
|
Canadian dollar |
|
|
|
|
|
|
% |
|
|
|
|
|
|
% |
||||||
|
Euro |
|
|
|
|
|
|
% |
|
|
|
|
|
|
% |
||||||
|
Japanese yen |
|
|
|
|
|
|
% |
|
|
|
|
|
|
% |
||||||
|
U.S. dollar |
|
|
|
|
|
|
% |
|
|
|
|
|
|
% |
||||||
|
Other |
|
|
|
|
|
|
% |
|
|
|
|
|
|
% |
||||||
|
Total |
|
|
$ |
|
|
|
% |
|
|
$ |
|
|
|
% |
||||||
15
Index
Credit Facilities and Commercial Paper
The following table summarizes information about our available liquidity at March 31, 2026 (in millions):
Aggregate lender commitments |
|
|
|
|
Credit facilities |
|
$ |
|
|
Less: |
|
|
|
|
Credit facility borrowings outstanding |
|
|
|
|
Commercial paper borrowings outstanding (1) |
|
|
|
|
Outstanding letters of credit |
|
|
|
|
Current availability |
|
|
|
|
Cash and cash equivalents |
|
|
|
|
Total liquidity |
|
$ |
|
|
Credit Facilities
In March 2026, we amended and restated one of our global senior credit facilities (the "2023 Global Facility") as the 2026 Global Facility. Each of the global senior credit facilities, the 2025 Global Facility and the 2026 Global Facility, have a borrowing capacity of $
We also have a Japanese yen revolver (the "Yen Credit Facility") with a borrowing capacity of ¥
We refer to the 2025 Global Facility, the 2026 Global Facility and the Yen Credit Facility, collectively, as our “Credit Facilities.” Pricing for the Credit Facilities, including the spread over the applicable benchmark and the rates applicable to facility fees and letter of credit fees, varies based on the public debt ratings of the OP.
Our Credit Facilities are utilized to support our cash needs for general corporate purposes on a short-term basis. The maturities of the borrowings under the Credit Facilities generally range from overnight to three months.
Commercial Paper
We have commercial paper programs under which we may issue, repay and re-issue short-term unsecured commercial paper notes. Under our existing U.S. dollar-denominated program, the aggregate principal amount of notes outstanding at any time cannot exceed $
16
Index
Long-Term Debt Maturities
Scheduled principal payments due on our debt for the remainder of 2026 and for each year through the period ended December 31, 2030, and thereafter were as follows at March 31, 2026 (in thousands):
|
|
Unsecured |
|
|
|
|
|
|
||||||||||||
|
|
Credit Facilities |
|
|
Senior |
|
|
Term Loans |
|
|
Secured |
|
|
|
|
|||||
Maturity |
|
Commercial Paper |
|
|
Notes |
|
|
and Other |
|
|
Mortgage |
|
|
Total |
|
|||||
2026 (1)(2) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
2027 (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
2028 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
2029 (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
2030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Thereafter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Subtotal |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Unamortized premiums (discounts), net |
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|||
Unamortized debt issuance costs, net |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
Financial Debt Covenants
Our Credit Facilities, senior notes and term loans outstanding at March 31, 2026 were subject to certain financial covenants under their related documents. At March 31, 2026, we were in compliance with all of our financial debt covenants.
Guarantee of Finance Subsidiary Debt
We have finance subsidiaries as part of our operations in Europe (Prologis Euro Finance LLC), Japan (Prologis Yen Finance LLC) and the U.K. (Prologis Sterling Finance LLC) in order to mitigate our foreign currency risk by borrowing in the currencies in which we invest. These entities are
NOTE 6. NONCONTROLLING INTERESTS
Prologis, L.P.
We report noncontrolling interests related to several entities we consolidate but of which we do not own 100% of the equity. These entities include two real estate partnerships that have issued limited partnership units to third parties. Depending on the specific partnership agreements, these limited partnership units are redeemable for cash or, at our option, shares of the Parent’s common stock, generally at a rate of
Prologis, Inc.
The noncontrolling interests of the Parent include the noncontrolling interests described above for the OP, as well as the limited partnership units in the OP that are not owned by the Parent. The outstanding limited partnership units receive quarterly cash distributions equal to the quarterly dividends paid on our common stock pursuant to the terms of the applicable partnership agreements.
17
Index
The following table summarizes these entities (dollars in thousands):
|
Our Ownership Percentage |
|
|
Noncontrolling Interests |
|
|
Total Assets |
|
|
Total Liabilities |
|
||||||||||||||||||||
|
Mar 31, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Dec 31, |
|
||||||||
Prologis U.S. Logistics Venture |
|
% |
|
|
% |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
Other consolidated entities (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Prologis, L.P. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Limited partners in Prologis, L.P. (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Prologis, Inc. |
|
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||||
NOTE 7. LONG-TERM COMPENSATION
Equity-Based Compensation Programs
Performance Stock Unit ("PSU") Program
PSUs are granted under the Company's 2020 Long-Term Incentive Plan and are settled in equity at the end of a
The fair value of the awards is measured at the grant date and amortized over the period from the grant date to the date at which the awards vest, regardless of whether the market condition has been satisfied, which ranges from to
Prologis Outperformance Plan (“POP”)
In prior years, we granted awards under our POP. After 2024, no new awards were granted under the POP. The RSUs and LTIP Units table below includes POP awards that were earned but are unvested, while any vested awards are reflected within the Consolidated Statements of Equity and Capital.
Other Equity-Based Compensation Programs
Our other equity-based compensation programs include: (i) the Prologis Promote Plan; (ii) the annual long-term incentive equity award program; and (iii) the annual bonus exchange program. Awards under these programs may be issued in the form of RSUs or LTIP Units at the participants' elections. RSUs and LTIP Units are valued based on the market price of the Parent’s common stock at the grant date, and the grant date fair value is recognized as compensation expense over the service period.
18
Index
Summary of Award Activity
PSUs
The following table summarizes the activity for PSUs for the three months ended March 31, 2026 (units in thousands):
|
|
PSUs |
|
|||||
|
|
Unearned |
|
|
Weighted Average Grant Date Fair Value |
|
||
Balance at January 1, 2026 |
|
|
|
|
$ |
|
||
Granted |
|
|
|
|
|
|
||
Earned |
|
|
|
|
|
|
||
Forfeited |
|
|
( |
) |
|
|
|
|
Balance at March 31, 2026 |
|
|
|
|
$ |
|
||
RSUs and LTIP Units
The following table summarizes the activity for RSUs and LTIP Units for the three months ended March 31, 2026 (units in thousands):
|
|
RSUs |
|
|
LTIP Units |
|
||||||||||
|
|
Unvested |
|
|
Weighted Average Grant Date Fair Value |
|
|
Unvested |
|
|
Weighted Average Grant Date Fair Value |
|
||||
Balance at January 1, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Granted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Conversion of earned PSUs |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Vested |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Forfeited |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Balance at March 31, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
NOTE 8. EARNINGS PER COMMON SHARE OR UNIT
We determine basic earnings per share or unit based on the weighted average number of shares of common stock or units outstanding during the period. We compute diluted earnings per share or unit based on the weighted average number of shares or units outstanding combined with the incremental weighted average effect from all outstanding potentially dilutive instruments. During the year ended December 31, 2025 all Class A Units in the OP were converted to limited partnership units in the OP.
The computation of our basic and diluted earnings per share and unit was as follows (in thousands, except per share and unit amounts):
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
Prologis, Inc. |
|
2026 |
|
|
2025 |
|
||
Net earnings attributable to common stockholders – Basic |
|
$ |
|
|
$ |
|
||
Net earnings attributable to exchangeable limited partnership units (1) |
|
|
|
|
|
|
||
Adjusted net earnings attributable to common stockholders – Diluted |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Weighted average common shares outstanding – Basic |
|
|
|
|
|
|
||
Incremental weighted average effect on exchange of limited partnership units (1) |
|
|
|
|
|
|
||
Incremental weighted average effect of equity awards |
|
|
|
|
|
|
||
Weighted average common shares outstanding – Diluted (2) |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Net earnings per share attributable to common stockholders: |
|
|
|
|
|
|
||
Basic |
|
$ |
|
|
$ |
|
||
Diluted |
|
$ |
|
|
$ |
|
||
19
Index
|
|
Three Months Ended |
|
|||||
|
|
March 31, |
|
|||||
Prologis, L.P. |
|
2026 |
|
|
2025 |
|
||
Net earnings attributable to common unitholders |
|
$ |
|
|
$ |
|
||
Net earnings attributable to Class A Units |
|
|
|
|
|
( |
) |
|
Net earnings attributable to common unitholders – Basic |
|
|
|
|
|
|
||
Net earnings attributable to Class A Units |
|
|
|
|
|
|
||
Net earnings attributable to exchangeable other limited partnership units |
|
|
|
|
|
|
||
Adjusted net earnings attributable to common unitholders – Diluted |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Weighted average common partnership units outstanding – Basic |
|
|
|
|
|
|
||
Incremental weighted average effect on exchange of Class A Units |
|
|
|
|
|
|
||
Incremental weighted average effect on exchange of other limited partnership units |
|
|
|
|
|
|
||
Incremental weighted average effect of equity awards of Prologis, Inc. |
|
|
|
|
|
|
||
Weighted average common units outstanding – Diluted (2) |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Net earnings per unit attributable to common unitholders: |
|
|
|
|
|
|
||
Basic |
|
$ |
|
|
$ |
|
||
Diluted |
|
$ |
|
|
$ |
|
||
|
|
|
Three Months Ended |
|
|||||
|
|
|
March 31, |
|
|||||
|
|
|
2026 |
|
|
2025 |
|
||
|
Class A Units |
|
|
|
|
|
|
||
|
Other limited partnership units |
|
|
|
|
|
|
||
|
Equity awards |
|
|
|
|
|
|
||
|
Prologis, L.P. |
|
|
|
|
|
|
||
|
Common limited partnership units |
|
|
|
|
|
|
||
|
Prologis, Inc. |
|
|
|
|
|
|
||
NOTE 9. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
Derivative Financial Instruments
In the normal course of business, our operations are exposed to market risks, including the effect of changes in foreign currency exchange rates and interest rates. We may enter into derivative financial instruments to offset these underlying market risks. There have been no significant changes in our policy and strategy from what was disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
20
Index
The following table presents the fair value of our derivative financial instruments recognized within Other Assets and Other Liabilities in the Consolidated Balance Sheets (in thousands):
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
||||||||||
|
|
Asset |
|
|
Liability |
|
|
Asset |
|
|
Liability |
|
||||
Undesignated derivatives |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency contracts |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Forwards |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Brazilian real |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
British pound sterling |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Canadian dollar |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Euro |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Japanese yen |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Swedish krona |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Options |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mexican peso |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Designated derivatives |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency contracts |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net investment hedges |
|
|
|
|
|
|
|
|
|
|
|
|
||||
British pound sterling |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Canadian dollar |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate contracts |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Canadian dollar (1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Euro |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Japanese yen |
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. dollar |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total fair value of derivatives |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Undesignated Derivative Financial Instruments
Foreign Currency Contracts
The following table summarizes the activity of our undesignated foreign currency contracts for the three months ended March 31 (in millions, except for weighted average forward rates and number of active contracts):
|
2026 |
|
|
2025 |
|
||||||||||||||||||||||||||||||||||||||||||
|
CAD |
|
|
EUR |
|
|
GBP |
|
|
JPY |
|
|
Other |
|
|
Total |
|
|
CAD |
|
|
EUR |
|
|
GBP |
|
|
JPY |
|
|
Other |
|
|
Total |
|
||||||||||||
Notional amounts at January 1 ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||||||||
New contracts ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Matured, expired or settled contracts ($) |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
||
Notional amounts at March 31 ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average forward rate at March 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Active contracts at March 31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
The following table summarizes the undesignated derivative financial instruments exercised and associated realized and unrealized gains (losses), respectively, in Foreign Currency, Derivative and Other Gains (Losses) and Other Income (Expense), Net in the Consolidated Statements of Income (in millions, except for number of exercised contracts):
|
|
Three Months Ended |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Exercised contracts |
|
|
|
|
|
|
||
Realized gains (losses) on the matured, expired or settled contracts |
|
$ |
|
|
$ |
|
||
Unrealized gains (losses) on the change in fair value of outstanding contracts |
|
$ |
|
|
$ |
( |
) |
|
21
Index
Designated Derivative Financial Instruments
Changes in the fair value of derivatives that are designated as net investment hedges ("NIHs") of our foreign operations and cash flow hedges ("CFHs") are recorded in Accumulated Other Comprehensive Income (Loss) (“AOCI/L”) in the Consolidated Balance Sheets and reflected within the AOCI/L table below.
Foreign Currency Contracts
The following table summarizes the activity of our foreign currency contracts designated as NIHs for the three months ended March 31 (in millions, except for weighted average forward rates and number of active contracts):
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2026 |
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2025 |
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|
CAD |
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|
GBP |
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Total |
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CAD |
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|
GBP |
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Total |
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||||||
Notional amounts at January 1 ($) |
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New contracts ($) |
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||||||
Matured, expired or settled contracts ($) |
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|
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|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Notional amounts at March 31 ($) |
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||||||
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Weighted average forward rate at March 31 |
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Active contracts at March 31 |
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Interest Rate Contracts
The following table summarizes the activity of our interest rate contracts designated as CFHs for the three months ended March 31 (in millions):
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2026 |
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|
2025 |
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|
CAD |
|
|
EUR |
|
|
JPY |
|
|
USD |
|
|
Total |
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|
CAD |
|
|
USD |
|
|
Total |
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||||||||
Notional amounts at January 1 ($) |
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|
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New contracts ($) |
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|
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||||||||
Matured, expired or settled contracts ($) |
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|
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|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|||
Notional amounts at March 31 ($) |
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||||||||
Designated Nonderivative Financial Instruments
The following table summarizes our debt and accrued interest, designated as a hedge of our net investment in international subsidiaries at the quarter ended (in millions):
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
||
British pound sterling |
|
$ |
|
|
$ |
|
||
Canadian dollar |
|
$ |
|
|
$ |
|
||
Chinese renminbi |
|
$ |
|
|
$ |
|
||
The following table summarizes the unrealized gains (losses) in Foreign Currency, Derivative and Other Gains (Losses) and Other Income (Expense), Net in the Consolidated Statements of Income on the remeasurement of the unhedged portion of our foreign denominated debt and accrued interest (in millions):
|
|
Three Months Ended |
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|||||
|
|
2026 |
|
|
2025 |
|
||
Unrealized gains (losses) on the unhedged portion |
|
$ |
( |
) |
|
$ |
( |
) |
Accumulated Other Comprehensive Income (Loss) ("AOCI/L")
The change in AOCI/L in the Consolidated Statements of Equity during the periods presented was due to the following: (i) the currency translation adjustments ("CTA") that we recognize due to the translation of the financial statements of our consolidated subsidiaries, whose functional currency is not the U.S. dollar, into U.S. dollars; and (ii) the change in the fair value of the effective portion of our derivative financial instruments that have been designated as NIHs and CFHs and the translation of the hedged portion of our debt.
22
Index
The following tables present these changes in AOCI/L (in thousands):
|
|
Unrealized gains (losses) |
|
|
Our share of derivatives from unconsolidated entities |
|
|
Derivative NIHs |
|
|
Debt designated as nonderivative NIHs (2) |
|
|
CTA |
|
|
Total AOCI/L |
|
||||||
Balance at |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|||
Other comprehensive |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|||
|
|
Unrealized gains (losses) |
|
|
Our share of derivatives from unconsolidated entities |
|
|
Derivative NIHs |
|
|
Debt designated as nonderivative NIHs (2) |
|
|
CTA |
|
|
Total AOCI/L |
|
||||||
Balance at |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|||
Other comprehensive |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
Balance at |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|||
Fair Value Measurements
There have been no significant changes in our policy from what was disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
Fair Value Measurements on a Recurring Basis
At March 31, 2026 and December 31, 2025, other than the derivatives discussed previously, we had no significant financial assets or financial liabilities that were measured at fair value on a recurring basis in the Consolidated Financial Statements. All of our derivatives held at March 31, 2026 and December 31, 2025, were classified as Level 2 of the fair value hierarchy.
Fair Value Measurements on Nonrecurring Basis
Acquired properties, assets we expect to sell or contribute and assets subject to impairment charges are significant nonfinancial assets that met the criteria to be measured at fair value on a nonrecurring basis. At March 31, 2026 and December 31, 2025, we estimated the fair value of our properties using Level 2 or Level 3 inputs from the fair value hierarchy. See more information on our acquired properties in Note 2 and assets held for sale or contribution in Note 4.
Fair Value of Financial Instruments
At March 31, 2026 and December 31, 2025, the carrying amounts of certain financial instruments, including cash and cash equivalents, accounts and notes receivable, accounts payable and accrued expenses were representative of their fair values.
The differences in the fair value of our debt from the carrying value in the table below were the result of differences in interest rates or borrowing spreads that were available to us at March 31, 2026 and December 31, 2025, as compared with those in effect when the debt was issued or assumed, including lower borrowing spreads due to our credit ratings. See Note 5 for more information on our debt activity.
23
Index
The following table reflects the carrying amounts and estimated fair values of our debt (in thousands):
|
|
March 31, 2026 |
|
|
December 31, 2025 |
|
||||||||||
|
|
Carrying Value |
|
|
Fair Value |
|
|
Carrying Value |
|
|
Fair Value |
|
||||
Credit facilities and commercial paper |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Senior notes |
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|
|
|
|
|
|
|
|
|
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|
||||
Term loans and unsecured other |
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|
||||
Secured mortgage |
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|
|
|
|
|
|
|
|
||||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
NOTE 10. REPORTABLE SEGMENTS
Our current business strategy includes
Our management Executive Committee (“EC”) is our Chief Operating Decision Maker (“CODM”) and regularly reviews operating results and makes strategic and operating decisions with regards to assessing performance and allocating resources based on our two reportable segments. At March 31, 2026,
NOI from the Real Estate Segment is calculated directly from the Consolidated Statements of Income as Rental Revenues and Development Management and Other Revenues less Rental Expenses and Other Expenses.
NOI from the Strategic Capital Segment is calculated directly from the Consolidated Statements of Income as Strategic Capital Revenues less Strategic Capital Expenses.
Our EC analyzes the NOI of each reportable segment on a quarterly basis comparing actuals to prior period actuals, along with forecasted future amounts and utilizes operating metrics to understand and evaluate the performance of our operations and to allocate resources.
Below we present: (i) each reportable segment’s revenues from external customers to Total Revenues; (ii) each reportable segment’s expenses to Total Expenses; (iii) each reportable segment’s net operating income from external customers, calculated as each reportable segment's revenues less segment expenses, to Operating Income and Earnings Before Income Taxes; and (iv) each reportable segment’s assets to Total Assets.
The applicable components of Total Revenues, Total Expenses, Operating Income, Earnings Before Income Taxes and Total Assets in the Consolidated Financial Statements are allocated to each reportable segment’s revenues, expenses, net operating income and assets.
Items that are not directly assignable to a reportable segment, are not allocated but reflected as non-segment items (general and administrative expenses and real estate adjustments for depreciation and gains and losses on contributions and sales) due to how our CODM utilizes segment information for planning and execution of our business strategy.
24
Index
The following reportable segment net operating income and assets are presented in thousands:
|
|
Three Months Ended March 31, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
Revenues: |
|
|
|
|
|
|
||
Real estate segment: |
|
|
|
|
|
|
||
U.S. |
|
$ |
|
|
$ |
|
||
Other Americas |
|
|
|
|
|
|
||
Europe |
|
|
|
|
|
|
||
Asia |
|
|
|
|
|
|
||
Total real estate segment |
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|
|
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|
||
Strategic capital segment: |
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|
|
|
|
|
||
U.S. |
|
|
|
|
|
|
||
Other Americas |
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|
|
|
|
|
||
Europe |
|
|
|
|
|
|
||
Asia |
|
|
|
|
|
|
||
Total strategic capital segment |
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|
|
|
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|
||
|
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|
||
Total revenues |
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|
|
|
|
|
||
|
|
|
|
|
|
|
||
Expenses: |
|
|
|
|
|
|
||
Real estate segment: |
|
|
|
|
|
|
||
U.S. (1) |
|
|
( |
) |
|
|
( |
) |
Other Americas |
|
|
( |
) |
|
|
( |
) |
Europe |
|
|
( |
) |
|
|
( |
) |
Asia |
|
|
( |
) |
|
|
( |
) |
Total real estate segment |
|
|
( |
) |
|
|
( |
) |
Strategic capital segment: |
|
|
|
|
|
|
||
U.S. (1) |
|
|
( |
) |
|
|
( |
) |
Other Americas |
|
|
( |
) |
|
|
( |
) |
Europe |
|
|
( |
) |
|
|
( |
) |
Asia |
|
|
( |
) |
|
|
( |
) |
Total strategic capital segment |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
||
Total expenses |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
||
Segment net operating income: |
|
|
|
|
|
|
||
Real estate segment: |
|
|
|
|
|
|
||
U.S. (1) |
|
|
|
|
|
|
||
Other Americas |
|
|
|
|
|
|
||
Europe |
|
|
|
|
|
|
||
Asia |
|
|
|
|
|
|
||
Total real estate segment |
|
|
|
|
|
|
||
Strategic capital segment: |
|
|
|
|
|
|
||
U.S. (1) |
|
|
|
|
|
|
||
Other Americas |
|
|
|
|
|
|
||
Europe |
|
|
|
|
|
|
||
Asia |
|
|
|
|
|
|
||
Total strategic capital segment |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Total segment net operating income |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Non-segment items: |
|
|
|
|
|
|
||
General and administrative expenses |
|
|
( |
) |
|
|
( |
) |
Depreciation and amortization expenses |
|
|
( |
) |
|
|
( |
) |
Gains on dispositions of development properties and land, net |
|
|
|
|
|
|
||
Gains on other dispositions of investments in real estate, net |
|
|
|
|
|
|
||
Operating income |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Earnings from unconsolidated entities, net |
|
|
|
|
|
|
||
Interest expense |
|
|
( |
) |
|
|
( |
) |
Foreign currency, derivative and other gains (losses) and other income (expense), net |
|
|
|
|
|
( |
) |
|
Gains (losses) on early extinguishment of debt, net |
|
|
( |
) |
|
|
|
|
Earnings before income taxes |
|
$ |
|
|
$ |
|
||
25
Index
|
|
March 31, |
|
|
December 31, |
|
||
Segment assets: |
|
|
|
|
|
|
||
Real estate segment: |
|
|
|
|
|
|
||
U.S. |
|
$ |
|
|
$ |
|
||
Other Americas |
|
|
|
|
|
|
||
Europe |
|
|
|
|
|
|
||
Asia |
|
|
|
|
|
|
||
Total real estate segment |
|
|
|
|
|
|
||
Strategic capital segment: (2) |
|
|
|
|
|
|
||
U.S. |
|
|
|
|
|
|
||
Europe |
|
|
|
|
|
|
||
Asia |
|
|
|
|
|
|
||
Total strategic capital segment |
|
|
|
|
|
|
||
Total segment assets |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Non-segment items: |
|
|
|
|
|
|
||
Investments in and advances to unconsolidated entities |
|
|
|
|
|
|
||
Assets held for sale or contribution |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
|
|
|
|
||
Other assets |
|
|
|
|
|
|
||
Total non-segment items |
|
|
|
|
|
|
||
Total assets |
|
$ |
|
|
$ |
|
||
NOTE 11. SUPPLEMENTAL CASH FLOW INFORMATION
Our significant noncash investing and financing activities for the three months ended March 31, 2026 and 2025 included the following:
We paid $
We paid $
26
Index
Report of Independent Registered Public Accounting Firm
To the Stockholders and Board of Directors
Prologis, Inc.:
Results of Review of Interim Financial Information
We have reviewed the consolidated balance sheet of Prologis, Inc. and subsidiaries (the Company) as of March 31, 2026, the related consolidated statements of income, comprehensive income, equity, and cash flows for the three-month periods ended March 31, 2026 and 2025, and the related notes (collectively, the consolidated interim financial information). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial information for it to be in conformity with U.S. generally accepted accounting principles.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2025, and the related consolidated statements of income, comprehensive income, equity, and cash flows for the year then ended (not presented herein); and in our report dated February 13, 2026, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2025 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.
Basis for Review Results
This consolidated interim financial information is the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our reviews in accordance with the standards of the PCAOB. A review of consolidated interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
/s/ KPMG LLP
Denver, Colorado
April 30, 2026
27
Index
Report of Independent Registered Public Accounting Firm
To the Partners of Prologis, L.P. and the Board of Directors of Prologis, Inc.:
Results of Review of Interim Financial Information
We have reviewed the consolidated balance sheet of Prologis, L.P. and subsidiaries (the Operating Partnership) as of March 31, 2026, the related consolidated statements of income, comprehensive income, capital, and cash flows for the three-month periods ended March 31, 2026 and 2025, and the related notes (collectively, the consolidated interim financial information). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial information for it to be in conformity with U.S. generally accepted accounting principles.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Operating Partnership as of December 31, 2025, and the related consolidated statements of income, comprehensive income, capital, and cash flows for the year then ended (not presented herein); and in our report dated February 13, 2026, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of December 31, 2025 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.
Basis for Review Results
This consolidated interim financial information is the responsibility of the Operating Partnership’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our reviews in accordance with the standards of the PCAOB. A review of consolidated interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
/s/ KPMG LLP
Denver, Colorado
April 30, 2026
28
Index
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following should be read in conjunction with the Consolidated Financial Statements and related Notes included in Item 1 of this report and our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”).
The statements in this report that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management’s beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “aims,” and “estimates,” including variations of such words and similar expressions, are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures or form new co-investment ventures and the availability of capital in existing or new co-investment ventures — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained, and therefore actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties, including the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust (“REIT”) status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in and management of our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; (x) risks related to global pandemics; and (xi) those additional factors discussed under Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025. We undertake no duty to update any forward-looking statements appearing in this report except as may be required by law.
Prologis, Inc. is a self-administered and self-managed REIT and is the sole general partner of Prologis, L.P. through which it holds substantially all of its assets. We operate Prologis, Inc. and Prologis, L.P. as one enterprise and, therefore, our discussion and analysis refers to Prologis, Inc. and its consolidated subsidiaries, including Prologis, L.P. We invest in real estate through wholly owned subsidiaries and other entities through which we co-invest with partners and investors ("co-investment ventures"). We have a significant ownership interest in the co-investment ventures, which are either consolidated or unconsolidated based on our level of control of the entity.
We operate, manage and measure the operating performance of our properties on an owned and managed (“O&M”) basis. Our O&M portfolio includes our consolidated properties as well as properties owned by our unconsolidated co-investment ventures, which we manage. We make operating decisions based on our total O&M portfolio as we manage the properties without regard to their ownership. We also evaluate our results based on our proportionate economic ownership of each property included in the O&M portfolio (“our share”).
Included in our discussion below are references to funds from operations (“FFO”) and net operating income (“NOI”), neither of which are U.S. generally accepted accounting principles (“GAAP”). See below for a reconciliation of Net Earnings Attributable to Common Stockholders/Unitholders in the Consolidated Statements of Income to our FFO measures and a reconciliation of NOI to Operating Income in the Consolidated Statements of Income, the most directly comparable GAAP measures.
MANAGEMENT'S OVERVIEW
Prologis is the global leader in logistics real estate, operating in high-barrier, high-growth markets across 20 countries on four continents. Our portfolio is concentrated in key commercial hubs strategically located near end consumers to enable the efficient flow of goods. We own, manage and develop high-quality logistics facilities and deliver integrated infrastructure solutions that optimize how our customers operate within our buildings. Our services address the evolving needs of modern supply chains, including the growing convergence of physical, digital and energy infrastructure, as logistics facilities increasingly support power and data-intensive operations. Consistent with this strategy, we are leveraging our development capabilities, energy solutions and strategic locations to deliver digital infrastructure requirements through selective development of data centers.
Logistics real estate demand is driven by the essential role supply chains play in the global economy and heightened by several long-term structural factors. These include: (i) customers repositioning their supply chains to meet rising e-commerce penetration and service expectations; (ii) growth in global consumption; (iii) an increased focus on supply chain efficiency and resiliency; and (iv) the need for modern, well-located facilities to support evolving distribution and fulfillment requirements. We believe these factors will
29
Index
continue to support demand for logistics space and relatively low vacancy rates over the long term. In the near term, while economic and geopolitical uncertainty has increased, our proprietary metrics and customer dialogue continue to indicate that customers are engaged and moving forward with real estate decisions.
Our teams actively manage our portfolio by delivering comprehensive real estate services, including leasing, property management, development, acquisition and disposition expertise. We invest significant capital into new properties through acquisition and development activity, including build-to-suit development, speculative development and redevelopment of properties into industrial properties and data centers. Proceeds from property dispositions, typically through contributions of newly developed properties to our co-investment ventures, data center sales or sales of non-strategic assets to third parties, allow us to recycle capital back into our ongoing investment activities, providing the ability to realize long-term value creation.
While the majority of our properties in the U.S. are wholly owned, we also hold significant ownership interest in properties both in the U.S. and internationally through our investment in co-investment ventures. Partnering with many of the world’s largest institutional investors through co-investment ventures broadens our access to capital and allows us to expand our investment capacity and enhance and diversify our returns through a combination of co-investment performance and recurring fee-based income from asset management and related services, while mitigating our exposure to foreign currency movements.
Our scale and customer-focused strategy have driven us to expand the services we offer. Our 1.3 billion square foot portfolio serves as the foundation for a comprehensive platform of solutions that address the challenges our customers face in global fulfillment today. Leveraging this scale, we deliver integrated solutions that support our customers’ operational and energy needs. Our customer experience teams and proprietary technology are central to how we operate and enable us to provide differentiated insights and scalable infrastructure solutions that help customers improve performance and build resilience. The principles of environmental, social and governance are embedded in our business strategy through an integrated approach to global impact and sustainability, which we believe creates value for our customers, investors, employees and communities.
Our Global Presence
At March 31, 2026, we owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.3 billion square feet across the following geographies:
Throughout this discussion, amounts are presented in U.S. dollars, our reporting currency. Included in these amounts are consolidated and unconsolidated investments denominated in foreign currencies, principally the British pound sterling, Canadian dollar, euro and Japanese yen that are impacted by fluctuations in exchange rates when translated to U.S. dollars. We mitigate our exposure to foreign currency fluctuations by investing outside the U.S. through co-investment ventures, borrowing in the functional currency of our subsidiaries and utilizing derivative financial instruments.
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Index
Our business comprises two reportable segments: Real Estate (Rental Operations and Development) and Strategic Capital.
Below is information summarizing consolidated activity within our segments (in millions):
|
Real Estate Segment
Rental Operations. Rental operations comprise the largest component of our reportable segments and generally contributes 90% to 95% of our consolidated revenues, earnings and FFO. We collect rent from our customers through operating leases, including reimbursements for the majority of our property operating costs. Through our global footprint, we have a diversified lease portfolio and our revenues from in-place leases are contractual with fixed or inflation-linked escalations. For the trailing twelve months ended March 31, 2026, the weighted average lease term for leases commenced in our consolidated operating portfolio was 67 months. We expect to generate earnings growth by increasing rents, maintaining high occupancy rates and controlling expenses. The primary driver of our revenue growth will be the rolling of in-place leases to current market rents upon lease expiration. We believe our active portfolio management, combined with the skills of our property management, maintenance, energy, sustainability and risk management teams allow us to maximize NOI across our portfolio. Substantially all of our consolidated rental revenue, NOI and cash flows from rental operations are generated in the U.S.
Development. Our development business provides the opportunity to profitably build modern logistics facilities that address the evolving requirements of our customers while deepening our presence in our target markets. We are also selectively expanding our development activities to include data centers in certain markets, by focusing on procuring power and securing build-to-suit lease transactions. We believe we have a competitive advantage due to: (i) the strategic locations of our buildings and land sites; (ii) the multidisciplinary expertise of our teams; (iii) the depth of our customer relationships; (iv) our ability to secure and grow access to power; (v) our procurement capabilities that enable us to secure high-demand data center equipment; and (vi) our ability to procure high demand construction materials at a lower cost. Successful development projects contribute significantly to earnings growth as they are leased, begin generating income and increase the value of our Real Estate Segment. In general, we develop properties in the U.S. to hold for the long term or to contribute to our unconsolidated co-investment ventures, and outside the U.S. primarily to contribute to these ventures.
Strategic Capital Segment
We partner with many of the world’s largest institutional investors through co-investment ventures. The business is capitalized through private and public equity, and is comprised of 92% open-ended ventures, long-term ventures and three publicly traded vehicles: (i) Nippon Prologis REIT, Inc. in Japan; (ii) China AMC Prologis Logistics REIT in China; and (iii) FIBRA Prologis in Mexico. We align our interests with our partners by holding significant ownership interests in the co-investment ventures. Thirteen of the co-investment ventures are unconsolidated entities, and one is consolidated, with our ownership in the co-investment ventures ranging from 15% to 55%. This structure allows us to reduce our exposure to foreign currency fluctuations for non-U.S. investments. Management of the unconsolidated co-investment ventures comprises our Strategic Capital Segment.
This segment generates durable, long-term cash flows and generally contributes 5% to 10% of our consolidated revenues, earnings and FFO, excluding promotes. We generate strategic capital revenue from our unconsolidated co-investment ventures, principally through asset management and property management services. Revenue earned from asset management fees is primarily driven by
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Index
the quarterly valuation of the real estate properties owned by the respective ventures. We earn additional revenues by providing leasing, acquisition, construction management, development and disposition services. The majority of the strategic capital revenues are generated outside the U.S. In certain ventures, we also have the ability to earn revenues through incentive fees (“promotes” or “promote revenues”) periodically during the life of a venture, upon liquidation of a venture or upon stabilization of individual venture assets, based primarily on the total return of the investments over certain financial hurdles. Promote revenue is recognized when earned, either at the end of the promote period, or for certain ventures, without a scheduled promote period, upon achieving cumulative return thresholds or upon liquidation or stabilization.
FUTURE GROWTH
We believe that the quality and scale of our portfolio, our ability to add value creation through development, our strategic capital business, the depth of our customer relationships and the strength of our balance sheet are differentiators that allow us to drive growth in revenues, NOI, earnings, FFO and cash flows.
|
Rent change represents the percentage change in net effective rental rates (average rate over the lease term), on new and renewed leases, commenced during the period compared with previous net effective rental rates for the same respective spaces.
Based on our current estimates, our consolidated land and other real estate investments, including options and CLPs, have the potential to support the development of $36.3 billion ($41.5 billion on an O&M basis) of TEI of newly developed buildings. We measure the estimated value creation of a development project as the stabilized value above our TEI. As properties are completed and leased, we expect to capture the value creation principally through gains realized upon contributing these properties to unconsolidated co-investment ventures, data center sales and through increases in the NOI of the consolidated portfolio.
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Index
SUMMARY OF THE THREE MONTHS ENDED MARCH 31, 2026
Our operating results and leasing activity were strong during the three months ended March 31, 2026, despite economic and geopolitical uncertainty. Leasing activity in our consolidated portfolio was robust, supported by healthy customer demand and strong retention.
Our results during the three months ended March 31, 2026 continued to reflect the favorable mark-to-market of our existing leases, reflecting increases in market rents over the past several years. As a result, rent change on rollover and same-store growth in our O&M portfolio remained strong. This lease mark-to-market remained meaningfully positive at approximately 17% (on an NER and our share basis), reflecting the accumulated rent growth embedded in our in-place leases remaining to be realized despite recent quarters of lower or even negative market rental growth.
These factors contributed to occupancy in our operating portfolio of 95.3% at March 31, 2026 and rent change on leases that commenced during the three months ended March 31, 2026 of 31.9% on a net effective basis, both metrics based on our ownership share.
While we believe we are well-positioned for long-term revenue growth, supported by the embedded rent growth in our in-place portfolio, the potential impact of ongoing economic volatility on our business, future financial condition and operating results remains difficult to predict.
We completed the following significant activities in 2026, as described in the Notes to the Consolidated Financial Statements:
RESULTS OF OPERATIONS – THREE MONTHS ENDED MARCH 31, 2026 AND 2025
We evaluate our business operations based on the NOI of our two reportable segments: Real Estate (Rental Operations and Development) and Strategic Capital. NOI by segment is a non-GAAP performance measure that is calculated using revenues and expenses directly from our financial statements. We consider NOI by segment to be an appropriate supplemental measure of our performance because it helps management and investors understand our operating results.
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Index
Below is our NOI by segment per the Consolidated Financial Statements and a reconciliation of NOI by segment to Operating Income per the Consolidated Financial Statements for the three months ended March 31 (in millions):
|
|
2026 |
|
|
2025 |
|
||
Real estate segment: |
|
|
|
|
|
|
||
Rental revenues |
|
$ |
2,125 |
|
|
$ |
1,987 |
|
Development management and other revenues |
|
|
12 |
|
|
|
11 |
|
Rental expenses |
|
|
(520 |
) |
|
|
(488 |
) |
Other expenses |
|
|
(10 |
) |
|
|
(9 |
) |
Real Estate Segment – NOI |
|
|
1,607 |
|
|
|
1,501 |
|
|
|
|
|
|
|
|
||
Strategic capital segment: |
|
|
|
|
|
|
||
Strategic capital revenues |
|
|
161 |
|
|
|
141 |
|
Strategic capital expenses |
|
|
(82 |
) |
|
|
(61 |
) |
Strategic Capital Segment – NOI |
|
|
79 |
|
|
|
80 |
|
|
|
|
|
|
|
|
||
General and administrative expenses |
|
|
(127 |
) |
|
|
(115 |
) |
Depreciation and amortization expenses |
|
|
(732 |
) |
|
|
(652 |
) |
Operating income before gains on real estate transactions, net |
|
|
827 |
|
|
|
814 |
|
Gains on dispositions of development properties and land, net |
|
|
293 |
|
|
|
27 |
|
Gains on other dispositions of investments in real estate, net |
|
|
91 |
|
|
|
37 |
|
Operating income |
|
$ |
1,211 |
|
|
$ |
878 |
|
See Note 10 to the Consolidated Financial Statements for more information on our segments and a reconciliation of each reportable segment’s NOI to Operating Income and Earnings Before Income Taxes.
Real Estate Segment
This reportable segment principally includes rental revenue and rental expenses recognized from our consolidated properties. This segment also includes the operating results of our renewable energy assets. We allocate the costs of our property management and leasing functions to the Real Estate Segment through Rental Expenses and the Strategic Capital Segment through Strategic Capital Expenses, both in the Consolidated Financial Statements, based on the square footage of the relative portfolios. In addition, this segment is impacted by our development, acquisition and disposition activities.
Below are the components of Real Estate Segment NOI for the three months ended March 31, derived directly from line items in the Consolidated Financial Statements (in millions):
|
|
2026 |
|
|
2025 |
|
||
Rental revenues |
|
$ |
2,125 |
|
|
$ |
1,987 |
|
Development management and other revenues |
|
|
12 |
|
|
|
11 |
|
Rental expenses |
|
|
(520 |
) |
|
|
(488 |
) |
Other expenses |
|
|
(10 |
) |
|
|
(9 |
) |
Real Estate Segment – NOI |
|
$ |
1,607 |
|
|
$ |
1,501 |
|
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Index
The $106 million change in Real Estate Segment (“RES”) NOI for the three months ended March 31 compared to the same period in 2025, was impacted by the following activities (in millions):
|
|
|
Below are key operating metrics of our consolidated operating portfolio.
|
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Index
Development Activity
The following table summarizes consolidated development activity for the three months ended March 31 (dollars and square feet in millions):
|
|
2026 |
|
|
2025 |
|
||
Starts: |
|
|
|
|
|
|
||
Number of new development buildings started during the period |
|
|
9 |
|
|
|
11 |
|
Square feet |
|
|
2 |
|
|
|
3 |
|
TEI |
|
$ |
1,574 |
|
|
$ |
646 |
|
Percentage of build-to-suits based on TEI |
|
|
95.5 |
% |
|
|
78.0 |
% |
|
|
|
|
|
|
|
||
Stabilizations: |
|
|
|
|
|
|
||
Number of development buildings stabilized during the period |
|
|
17 |
|
|
|
14 |
|
Square feet |
|
|
5 |
|
|
|
4 |
|
TEI |
|
$ |
1,024 |
|
|
$ |
945 |
|
Percentage of build-to-suits based on TEI |
|
|
44.3 |
% |
|
|
65.6 |
% |
Weighted average stabilized yield (1) |
|
|
7.7 |
% |
|
|
6.9 |
% |
Estimated value at completion |
|
$ |
1,373 |
|
|
$ |
1,191 |
|
Estimated weighted average margin (2) |
|
|
34.0 |
% |
|
|
26.1 |
% |
Estimated value creation |
|
$ |
349 |
|
|
$ |
246 |
|
At March 31, 2026, the consolidated development portfolio, including properties under development and pre-stabilized properties, was expected to be completed before February 2028 with a TEI of $5.1 billion and was 45.9% leased, including $1.7 billion of TEI for data centers with power capacity of 423 megawatts. Our investment in the development portfolio was $2.5 billion at March 31, 2026.
Capital Expenditures
We capitalize costs incurred in improving and leasing our consolidated operating properties and other real estate investments as part of the investment basis or within Other Assets in the Consolidated Balance Sheets. The following graph summarizes capitalized expenditures and leasing costs during each quarter and excludes development costs and spend subsequent to stabilization that is structural in nature:
Strategic Capital Segment
This reportable segment includes revenues from asset management and property management services, transactional services for acquisition, disposition and leasing activity and promote revenue earned from the unconsolidated co-investment ventures. Revenues associated with the Strategic Capital Segment fluctuate because of changes in the size of the portfolios through acquisitions and dispositions, the fair value of the properties, timing of promotes, foreign currency exchange rates and other transactional activity. These
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Index
revenues are reduced by the direct costs associated with the asset and property-level management expenses for the properties owned by these ventures. We allocate the costs of our property management and leasing functions to the Strategic Capital Segment through Strategic Capital Expenses and to the Real Estate Segment through Rental Expenses both in the Consolidated Financial Statements, based on the square footage of the relative portfolios. For further details regarding the key property information and summarized financial condition and operating results of our unconsolidated co-investment ventures, refer to Note 3 to the Consolidated Financial Statements.
Below are the components of Strategic Capital Segment NOI for the three months ended March 31, derived directly from the line items in the Consolidated Financial Statements (in millions):
|
|
2026 |
|
|
2025 |
|
||
Strategic capital revenues |
|
$ |
161 |
|
|
$ |
141 |
|
Strategic capital expenses |
|
|
(82 |
) |
|
|
(61 |
) |
Strategic Capital Segment – NOI |
|
$ |
79 |
|
|
$ |
80 |
|
Below is additional detail of our Strategic Capital Segment revenues, expenses and NOI for the three months ended March 31 (in millions):
|
|
U.S. (1) |
|
|
Other Americas |
|
|
Europe |
|
|
Asia |
|
|
Total |
|
|||||||||||||||||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||||||||
Strategic capital revenues ($) (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recurring fees (3) |
|
|
47 |
|
|
|
43 |
|
|
|
22 |
|
|
|
20 |
|
|
|
51 |
|
|
|
44 |
|
|
|
18 |
|
|
|
17 |
|
|
|
138 |
|
|
|
124 |
|
Transactional fees (4) |
|
|
7 |
|
|
|
5 |
|
|
|
4 |
|
|
|
1 |
|
|
|
8 |
|
|
|
7 |
|
|
|
4 |
|
|
|
4 |
|
|
|
23 |
|
|
|
17 |
|
Total strategic capital revenues ($) |
|
|
54 |
|
|
|
48 |
|
|
|
26 |
|
|
|
21 |
|
|
|
59 |
|
|
|
51 |
|
|
|
22 |
|
|
|
21 |
|
|
|
161 |
|
|
|
141 |
|
Strategic capital expenses ($) (2) |
|
|
(39 |
) |
|
|
(28 |
) |
|
|
(6 |
) |
|
|
(3 |
) |
|
|
(24 |
) |
|
|
(18 |
) |
|
|
(13 |
) |
|
|
(12 |
) |
|
|
(82 |
) |
|
|
(61 |
) |
Strategic Capital Segment – NOI ($) |
|
|
15 |
|
|
|
20 |
|
|
|
20 |
|
|
|
18 |
|
|
|
35 |
|
|
|
33 |
|
|
|
9 |
|
|
|
9 |
|
|
|
79 |
|
|
|
80 |
|
The Prologis Promote Plan ("PPP") awards up to 25% of the third-party portion of the promotes earned by us from the co-investment ventures to our employees. This award is issued as a combination of cash and equity-based awards, pursuant to the terms of the PPP and expensed through Strategic Capital Expenses in the Consolidated Statements of Income, as vested. As a result, expenses recognized in the current period may relate to promote revenues recognized in prior periods.
G&A Expenses
G&A expenses were $127 million and $115 million for the three months ended March 31, 2026 and 2025, respectively. We capitalize certain internal costs that are incremental and directly related to our development and building improvement activities.
The following table summarizes capitalized G&A expenses for the three months ended March 31 (dollars in millions):
|
|
2026 |
|
|
2025 |
|
||
Building and land development activities |
|
$ |
27 |
|
|
$ |
31 |
|
Operating building improvements and other |
|
|
20 |
|
|
|
13 |
|
Total capitalized G&A expenses |
|
$ |
47 |
|
|
$ |
44 |
|
Capitalized compensation and related costs as a percentage of total |
|
|
19.5 |
% |
|
|
21.0 |
% |
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Index
Depreciation and Amortization Expenses
We recognized depreciation and amortization expenses of $732 million and $652 million for the three months ended March 31, 2026 and 2025, respectively.
The depreciation and amortization expenses we recognize can be impacted by: (i) the size and timing of real estate acquisitions, dispositions and contributions; (ii) timing of when development properties are completed and placed into service; and (iii) foreign currency exchange rates and other activity.
Gains on Real Estate Transactions, Net
Gains on the disposition of development properties and land were $293 million and $27 million for the three months ended March 31, 2026 and 2025, respectively, principally from the contribution of land and development properties to unconsolidated co-investment ventures in the U.S. in 2026.
Gains on other dispositions of investments in real estate were $91 million and $37 million for the three months ended March 31, 2026 and 2025, respectively, principally from sales of properties to third parties in the U.S. during both years.
Historically, we have utilized the proceeds from these dispositions primarily to fund our acquisition and development activities. See Note 2 to the Consolidated Financial Statements for further information on these transactions.
Our Owned and Managed (“O&M”) Operating Portfolio
We manage our business and evaluate operating performance on an O&M basis, which includes our consolidated properties and properties owned by our unconsolidated co-investment ventures. We believe reviewing the results on this basis enables management to assess performance more comprehensively as we manage the properties without regard to their ownership. We do not control the unconsolidated co-investment ventures for purposes of GAAP and the presentation of the ventures’ operating information does not represent a legal claim.
Our O&M operating portfolio excludes our development portfolio, value-added properties, non-industrial properties and properties we consider non-strategic that we do not intend to hold for the long term, including those classified as held for sale or within other real estate investments. Value-added properties are properties we have either acquired at a discount and believe we could provide greater returns post-stabilization or properties we expect to repurpose to higher uses. See below for information on our O&M operating portfolio (square feet in millions):
|
March 31, 2026 |
|
December 31, 2025 |
||||||||||||||||
|
Number of Properties |
|
|
Square |
|
|
Percentage Occupied |
|
Number of Properties |
|
|
Square |
|
|
Percentage Occupied |
||||
Consolidated |
|
2,975 |
|
|
|
649 |
|
|
95.3% |
|
|
2,968 |
|
|
|
645 |
|
|
95.4% |
Unconsolidated |
|
2,469 |
|
|
|
562 |
|
|
95.3% |
|
|
2,472 |
|
|
|
562 |
|
|
96.3% |
Total |
|
5,444 |
|
|
|
1,211 |
|
|
95.3% |
|
|
5,440 |
|
|
|
1,207 |
|
|
95.8% |
38
Index
Below are the key leasing metrics of our O&M operating portfolio.
|
Same Store Analysis
Our same store metrics are non-GAAP financial measures, which are commonly used in the real estate industry and expected from the financial community, on both a net effective and cash basis. We evaluate the performance of the operating properties we own and manage using a “same store” analysis because the population of properties in this analysis is consistent from period to period, which allows us and investors to analyze our ongoing business operations. We determine our same store metrics on property NOI, which is calculated as rental revenue less rental expense for the applicable properties in the same store population for both consolidated and unconsolidated properties based on our ownership interest, as further defined below.
We define our same store population for the three months ended March 31, 2026 as the properties in our O&M operating portfolio, including the property NOI for both consolidated properties and properties owned by the unconsolidated co-investment ventures, at January 1, 2025 and owned throughout the same three-month period in both 2025 and 2026. We believe the drivers of property NOI for the consolidated portfolio are generally the same for the properties owned by the ventures in which we invest and therefore we evaluate the same store metrics of the O&M portfolio based on Prologis’ ownership in the properties (“Prologis Share”). The same store population excludes properties held for sale to third parties, along with development properties that were not stabilized at the beginning of the period (January 1, 2025) and properties acquired or disposed of to third parties during the period. To derive an appropriate measure of period-to-period operating performance, we remove the effects of foreign currency exchange rate movements by using the reported period-end exchange rate to translate from local currency into the U.S. dollar, for both periods.
39
Index
As non-GAAP financial measures, the same store metrics have certain limitations as an analytical tool and may vary among real estate companies. As a result, we provide a reconciliation of Rental Revenues less Rental Expenses (“Property NOI”) (from our Consolidated Financial Statements prepared in accordance with U.S. GAAP) to our Same Store Property NOI measures, as follows for the three months ended March 31 (dollars in millions):
|
|
|
|
|
|
|
Percentage |
|
|||
|
2026 |
|
|
2025 |
|
|
Change |
|
|||
Reconciliation of Consolidated Property NOI to Same Store Property NOI measures: |
|
||||||||||
|
|
|
|
|
|
|
|
|
|||
Rental revenues |
$ |
2,125 |
|
|
$ |
1,987 |
|
|
|
|
|
Rental expenses |
|
(520 |
) |
|
|
(488 |
) |
|
|
|
|
Consolidated Property NOI |
$ |
1,605 |
|
|
$ |
1,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Adjustments to derive same store results: |
|
|
|
|
|
|
|
|
|||
Property NOI from consolidated properties not included in same store portfolio and |
|
(151 |
) |
|
|
(122 |
) |
|
|
|
|
Property NOI from unconsolidated co-investment ventures included in same store portfolio (1)(2) |
|
1,010 |
|
|
|
956 |
|
|
|
|
|
Third parties' share of Property NOI from properties included in same store portfolio (1)(2) |
|
(785 |
) |
|
|
(750 |
) |
|
|
|
|
Prologis Share of Same Store Property NOI – Net Effective (2) |
$ |
1,679 |
|
|
$ |
1,583 |
|
|
|
6.1 |
% |
Consolidated properties straight-line rent and fair value lease amortization |
|
(134 |
) |
|
|
(156 |
) |
|
|
|
|
Unconsolidated co-investment ventures straight-line rent and fair value lease |
|
(46 |
) |
|
|
(57 |
) |
|
|
|
|
Third parties' share of straight-line rent and fair value lease amortization included |
|
36 |
|
|
|
41 |
|
|
|
|
|
Prologis Share of Same Store Property NOI – Cash (2)(3) |
$ |
1,535 |
|
|
$ |
1,411 |
|
|
|
8.8 |
% |
During the periods presented, certain wholly owned properties were contributed to a co-investment venture and are included in the same store portfolio. Neither our consolidated results nor those of the co-investment ventures, when viewed individually, would be comparable on a same store basis because of the changes in composition of the respective portfolios from period to period (e.g. the results of a contributed property are included in our consolidated results through the contribution date and in the results of the venture subsequent to the contribution date based on our ownership interest at the end of the period). As a result, only line items labeled “Prologis Share of Same Store Property NOI” are comparable period over period.
We manage our business and compensate our executives based on the same store results of our O&M portfolio at 100% as we manage our portfolio on an ownership blind basis. We calculate those results by including 100% of the properties included in our same store portfolio.
40
Index
Other Components of Income (Expense)
Earnings from Unconsolidated Entities, Net
We recognized net earnings from unconsolidated entities, which are primarily accounted for using the equity method, of $93 million and $68 million for the three months ended March 31, 2026 and 2025, respectively.
The earnings we recognize from unconsolidated entities can be impacted by: (i) the size, rental rates and occupancy of the portfolio of properties owned by each venture; (ii) interest expense based on the size and terms of the debt; (iii) gains or losses from dispositions of properties, impairments and extinguishments of debt; (iv) our ownership interest in each venture; (v) other variances in revenues and expenses of each venture; and (vi) fluctuations in foreign currency exchange rates used to translate our share of net earnings to U.S. dollars.
See the discussion of our unconsolidated entities above in the Strategic Capital Segment discussion and in Note 3 to the Consolidated Financial Statements for a further breakdown of our share of net earnings recognized.
Interest Expense
The following table details our net interest expense for the three months ended March 31 (dollars in millions):
|
|
2026 |
|
|
2025 |
|
||
Gross interest expense |
|
$ |
267 |
|
|
$ |
234 |
|
Amortization of debt discount and debt issuance costs, net |
|
|
20 |
|
|
|
21 |
|
Capitalized amounts |
|
|
(33 |
) |
|
|
(23 |
) |
Net interest expense |
|
$ |
254 |
|
|
$ |
232 |
|
Weighted average effective interest rate during the period |
|
|
3.2 |
% |
|
|
3.2 |
% |
Interest expense increased during the three months ended March 31, 2026, as compared to the same period in 2025, principally due to the issuance of senior notes to finance our acquisition and development activities and higher interest rates on new issuances. We issued $3.4 billion of senior notes during the year ended December 31, 2025, with a weighted average interest rate of 4.2% at the issuance date.
See Note 5 to the Consolidated Financial Statements and the Liquidity and Capital Resources section below, for further discussion of our debt and borrowing costs.
Foreign Currency, Derivative and Other Gains (Losses) and Other Income (Expense), Net
We recognized foreign currency, derivative and other gains (losses) and other income (expense), net, of $45 million in gains and $32 million in losses for the three months ended March 31, 2026 and 2025. This activity resulted principally from three types of transactions during the three months ended March 31, 2026 and 2025: (i) interest income earned on short-term investments and other income ($15 million and $14 million, respectively); (ii) realized settlement of undesignated derivatives ($15 million of gains and $9 million of gains, respectively); and (iii) unrealized changes in the fair value of undesignated derivatives and the remeasurement of the unhedged foreign debt that was designated as a nonderivative net investment hedge ($14 million of gains and $62 million of losses, respectively).
Given the global nature of our operations, we are exposed to foreign currency exchange risk related to investments in and earnings from our foreign investments. We primarily hedge our foreign currency risk related to our investments by borrowing in the currencies in which we invest thereby providing a natural hedge. We have issued debt in a currency that is not the same functional currency of the borrowing entity and have designated a portion of the debt as a nonderivative net investment hedge. We recognize the remeasurement and settlement of the translation adjustment on the unhedged portion of the debt and accrued interest in unrealized gains or losses. We may use derivative financial instruments to manage foreign currency exchange rate risk related to our earnings. We recognize the change in fair value of the undesignated derivative contracts in unrealized gains and losses. Upon settlement of these transactions, we recognize realized gains or losses.
See Note 9 to the Consolidated Financial Statements for more information about our derivative and nonderivative transactions.
Income Tax Expense
We recognize income tax expense related to our taxable REIT subsidiaries and in the local, state and foreign jurisdictions in which we operate. Our current income tax expense (benefit) fluctuates from period to period based primarily on the timing of our taxable income, including gains on the disposition of properties, fees earned from the co-investment ventures and taxable earnings from unconsolidated co-investment ventures. Deferred income tax expense (benefit) is generally a function of the period’s temporary differences and the utilization of net operating losses generated in prior years that had been previously recognized as deferred income tax assets in taxable subsidiaries.
41
Index
The following table summarizes our income tax expense (benefit) for the three months ended March 31 (in millions):
|
|
2026 |
|
|
2025 |
|
||
Current income tax expense (benefit): |
|
|
|
|
|
|
||
Income tax expense (benefit) |
|
$ |
47 |
|
|
$ |
35 |
|
Income tax expense (benefit) on dispositions |
|
|
1 |
|
|
|
1 |
|
Total current income tax expense (benefit) |
|
|
48 |
|
|
|
36 |
|
|
|
|
|
|
|
|
||
Deferred income tax expense (benefit): |
|
|
|
|
|
|
||
Income tax expense (benefit) |
|
|
- |
|
|
|
7 |
|
Total deferred income tax expense (benefit) |
|
|
- |
|
|
|
7 |
|
Total income tax expense |
|
$ |
48 |
|
|
$ |
43 |
|
Net Earnings Attributable to Noncontrolling Interests
Net earnings attributable to noncontrolling interests represents the third-party investors’ share of the earnings generated in consolidated entities in which we do not own 100% of the equity, reduced by the third-party share of fees or promotes we earned during the period. We had net earnings attributable to noncontrolling interests of $63 million and $47 million for the three months ended March 31, 2026 and 2025, respectively. Included in these amounts were $23 million and $15 million for the three months ended March 31, 2026 and 2025, respectively, of net earnings attributable to the common limited partnership unitholders of Prologis, L.P.
See Note 6 to the Consolidated Financial Statements for further information on our noncontrolling interests.
Other Comprehensive Income (Loss)
The key driver of changes in Accumulated Other Comprehensive Income (Loss) (“AOCI/L”) in the Consolidated Financial Statements during the three months ended March 31, 2026 and 2025, was the currency translation adjustment derived from changes in exchange rates during both periods principally on our net investments in real estate outside the U.S. and the borrowings we issue in the functional currencies of the countries where we invest. These borrowings serve as a natural hedge of our foreign investments. In addition, we use derivative financial instruments, such as foreign currency contracts to manage foreign currency exchange rate risk related to our foreign investments and interest rate contracts to manage interest rate risk, that when designated the change in fair value is included in AOCI/L.
See Note 9 to the Consolidated Financial Statements for more information on changes in other comprehensive income and about our derivative and nonderivative transactions.
LIQUIDITY AND CAPITAL RESOURCES
Overview
We believe our ability to generate cash from operating activities, distributions from our co-investment ventures, contributions and dispositions of properties and available financing sources provides sufficient capacity to meet our anticipated future development, acquisition, operating, debt service, dividend and distribution requirements.
Near-Term Principal Cash Sources and Uses
In addition to dividends and distributions, we expect our primary cash needs will consist of the following:
42
Index
We expect to fund our cash needs principally from the following sources (subject to market conditions):
In the long term, we may also voluntarily repurchase our outstanding debt or equity securities (depending on prevailing market conditions, our liquidity, contractual restrictions and other factors) through cash purchases, open-market purchases, privately negotiated transactions, tender offers or otherwise. We may also fund our cash needs from the issuance of equity securities, subject to market conditions, and through the sale of a portion of our investments in co-investment ventures.
Debt
The following table summarizes information about our consolidated debt by currency (dollars in millions):
|
|
March 31, 2026 |
|
|
|
|
|
December 31, 2025 |
|
|
|
|
||||||||||
|
|
Weighted Average |
|
|
Amount |
|
|
% of Total |
|
|
Weighted Average |
|
Amount |
|
|
% of Total |
|
|||||
British pound sterling |
|
3.0% |
|
|
|
$ |
1,813 |
|
|
|
5.2 |
% |
|
3.0% |
|
$ |
1,844 |
|
|
|
5.3 |
% |
Canadian dollar |
|
4.4% |
|
|
|
|
1,969 |
|
|
|
5.7 |
% |
|
4.4% |
|
|
2,005 |
|
|
|
5.7 |
% |
Euro |
|
2.2% |
|
|
|
|
11,777 |
|
|
|
34.0 |
% |
|
2.2% |
|
|
12,302 |
|
|
|
35.1 |
% |
Japanese yen |
|
1.3% |
|
|
|
|
2,957 |
|
|
|
8.5 |
% |
|
1.2% |
|
|
2,930 |
|
|
|
8.4 |
% |
U.S. dollar |
|
4.1% |
|
|
|
|
15,569 |
|
|
|
44.9 |
% |
|
4.1% |
|
|
15,386 |
|
|
|
43.9 |
% |
Other |
|
3.8% |
|
|
|
|
585 |
|
|
|
1.7 |
% |
|
3.8% |
|
|
570 |
|
|
|
1.6 |
% |
Total debt (1) |
|
3.2% |
|
|
|
$ |
34,670 |
|
|
|
100.0 |
% |
|
3.2% |
|
$ |
35,037 |
|
|
|
100.0 |
% |
At March 31, 2026, our credit ratings were A from Standard and Poor's and A2 from Moody's, both with stable outlooks. These ratings support our ability to access capital at favorable interest rates. Adverse changes to our credit ratings could negatively affect our business and our future growth, particularly our refinancing and capital markets activities, our ability to manage debt maturities and our development and acquisition plans. A securities rating is not a recommendation to buy, sell or hold securities and may be revised or withdrawn at any time by the issuing agency.
At March 31, 2026, we were in compliance with all of our financial debt covenants. These covenants include customary financial covenants, such as maintaining debt service coverage, leverage and fixed charge coverage ratios.
43
Index
See Note 5 to the Consolidated Financial Statements for further discussion on our debt.
Equity Commitments Related to Certain Co-Investment Ventures
Certain co-investment ventures have equity commitments from us and our venture partners. Our venture partners fulfill their equity commitment with cash. We may fulfill our equity commitment through contributions of properties or cash.
The following table summarizes the remaining equity commitments at March 31, 2026 (dollars in millions):
|
Equity Commitments (1) |
|
|
|
|
|||||||||||||
|
Number of Ventures |
|
|
Prologis |
|
|
Venture |
|
|
Total |
|
|
Expiration Date (3) |
|||||
U.S. |
|
2 |
|
|
$ |
765 |
|
|
$ |
961 |
|
|
$ |
1,726 |
|
|
|
2028 |
Other Americas |
|
1 |
|
|
|
34 |
|
|
|
135 |
|
|
|
169 |
|
|
|
2026 |
Europe |
|
1 |
|
|
|
- |
|
|
|
35 |
|
|
|
35 |
|
|
|
2029 (2) |
Asia |
|
2 |
|
|
|
110 |
|
|
|
496 |
|
|
|
606 |
|
|
|
2034 |
Total |
|
6 |
|
|
$ |
909 |
|
|
$ |
1,627 |
|
|
$ |
2,536 |
|
|
|
|
See the Cash Flow Summary below for more information about our investment activity in our co-investment ventures.
Cash Flow Summary
The following table summarizes our cash flow activity for the three months ended March 31 (in millions):
|
2026 |
|
|
2025 |
|
||
Net cash provided by (used in) operating activities |
$ |
1,288 |
|
|
$ |
1,161 |
|
Net cash provided by (used in) investing activities |
$ |
(401 |
) |
|
$ |
(1,551 |
) |
Net cash provided by (used in) financing activities |
$ |
(1,158 |
) |
|
$ |
(276 |
) |
Net increase (decrease) in cash and cash equivalents, including the effect of foreign currency exchange |
$ |
(285 |
) |
|
$ |
(647 |
) |
Operating Activities
Cash provided by and used in operating activities, exclusive of changes in receivables and payables, was impacted by the following significant activities during the three months ended March 31, 2026 and 2025:
44
Index
Investing Activities
Cash provided by investing activities is driven by proceeds from the sale of real estate assets that include the contribution of properties we developed to our unconsolidated co-investment ventures as well as the sale of data centers and non-strategic operating properties. Cash used in investing activities is principally driven by our capital deployment activities of investing in the development of operating properties and data centers, acquisitions and capital expenditures as discussed above. Acquisition activity includes operating properties, real estate portfolios, land for future development and other real estate assets that we acquired with the intent to redevelop in the future. See Note 2 to the Consolidated Financial Statements for further information on these activities. In addition, the following significant transactions also impacted our cash used in and provided by investing activities during the three months ended March 31, 2026 and 2025:
Financing Activities
Cash provided by and used in financing activities is principally driven by proceeds from and payments on credit facilities, commercial paper and other debt, along with dividends paid on common and preferred stock and noncontrolling interest contributions and distributions. Our credit facilities and our commercial paper support our cash needs for general corporate purposes on a short-term basis. The maturities of the borrowings under the credit facilities and the notes under the commercial paper programs generally range from overnight to three months.
Our repurchase of and payments on debt and proceeds from the issuance of debt consisted of the following activity for the three months ended March 31 (in millions):
|
|
2026 |
|
|
2025 |
|
||
Repurchase of and payments on debt (including extinguishment costs) |
|
|
|
|
|
|
||
Regularly scheduled debt principal payments and payments at maturity |
|
$ |
51 |
|
|
$ |
71 |
|
Senior notes |
|
|
584 |
|
|
|
- |
|
Term loans |
|
|
51 |
|
|
|
- |
|
Total |
|
$ |
686 |
|
|
$ |
71 |
|
|
|
|
|
|
|
|
||
Proceeds from the issuance of debt |
|
|
|
|
|
|
||
Secured mortgage debt |
|
$ |
72 |
|
|
$ |
1 |
|
Senior notes |
|
|
- |
|
|
|
518 |
|
Term loans |
|
|
90 |
|
|
|
1 |
|
Total |
|
$ |
162 |
|
|
$ |
520 |
|
45
Index
Unconsolidated Co-Investment Venture Debt
We had investments in and advances to our unconsolidated co-investment ventures of $10.4 billion at March 31, 2026. These ventures had total third-party debt of $19.9 billion at March 31, 2026 with a weighted average remaining term of 6 years and weighted average interest rate of 3.5%. The weighted average loan-to-value ratio for all unconsolidated co-investment ventures was 30.3% at March 31, 2026 based on gross book value. Loan-to-value, a non-GAAP measure, was calculated as the percentage of total third-party debt to the gross book value of real estate for each venture and weighted based on the cumulative gross book value of all unconsolidated co-investment ventures.
At March 31, 2026, we did not guarantee any third-party debt of the unconsolidated co-investment ventures.
Dividend and Distribution Requirements
Our dividend policy on our common stock is to distribute a percentage of our cash flow to ensure that we will meet the dividend requirements of the Internal Revenue Code ("IRC"), relative to maintaining our REIT status, while still allowing us to retain cash to fund our capital deployment and other investment activities.
Under the IRC, REITs may be subject to certain federal income and excise taxes on undistributed taxable income.
Outstanding Common Shares and Units Eligible for Dividends and Distributions
At March 31, 2026, the total outstanding shares of the Parent's common stock and common limited partnership units in the OP eligible for dividends and distributions were as follows (in thousands):
|
Shares/Units |
|
|
Common shares outstanding |
|
932,283 |
|
Common limited partnership units outstanding |
|
19,693 |
|
Total outstanding common shares and units eligible for dividends and distributions |
|
951,976 |
|
We paid quarterly cash dividends of $1.07 and $1.01 per common share in the first quarter of 2026 and 2025, respectively. Our future common stock dividends, if and as declared, may vary and will be determined by the Board based upon the circumstances prevailing at the time, including our financial condition, operating results and REIT distribution requirements, and may be adjusted at the discretion of the Board during the year.
We make distributions on the common limited partnership units outstanding at the same per unit amount as our common stock dividend.
Preferred Stock Dividends
At March 31, 2026, our Series Q preferred stock had an annual dividend rate of 8.54% per share and the dividends are payable quarterly in arrears.
Pursuant to the terms of our preferred stock, we are restricted from declaring or paying any dividend with respect to our common stock unless and until all cumulative dividends with respect to the preferred stock have been paid and sufficient funds have been set aside for dividends that have been declared for the relevant dividend period with respect to the preferred stock.
Other Commitments
On an ongoing basis, we are engaged in various stages of negotiations for the acquisition or disposition of individual properties or portfolios of properties.
FUNDS FROM OPERATIONS ATTRIBUTABLE TO COMMON STOCKHOLDERS/UNITHOLDERS (“FFO”)
FFO is a non-GAAP financial measure that is commonly used in the real estate industry, with net earnings as the most directly comparable GAAP measure.
The National Association of Real Estate Investment Trusts ("NAREIT") defines FFO as earnings computed under GAAP to exclude depreciation and gains and losses from sales net of any related tax, along with impairment charges, of previously depreciated properties. We exclude the gains on revaluation of equity investments upon acquisition of a controlling interest and the gain recognized from a partial sale of our investment, as these are similar to gains from the sales of previously depreciated properties. This measure excludes similar adjustments from our unconsolidated entities and the third parties' share of our consolidated ventures.
46
Index
Our FFO Measures
Our FFO measures begin with NAREIT’s definition, with certain adjustments to calculate FFO, as modified by Prologis, and Core FFO, both as defined below, to reflect our business and execution of our management strategy. While these adjustments are subject to significant fluctuations from period to period, with both positive and negative short-term impacts, the removal of the effects of these items enhances our understanding of the core operating performance of our properties over the long term.
We use FFO, as modified by Prologis, so that management, analysts and investors are able to evaluate our performance against other REITs that do not have similar operations or operations in jurisdictions outside the U.S. We use Core FFO to (i) assess our operating performance as compared to other real estate companies; (ii) evaluate our performance and the performance of our properties in comparison with expected results and results of previous periods; (iii) evaluate the performance of our management; (iv) budget and forecast future results to assist in the allocation of resources; (v) provide guidance to the financial markets to understand our expected operating performance; and (vi) evaluate how a specific potential investment will impact our future results.
We calculate our FFO measures based on our proportionate ownership share of both our unconsolidated entities and consolidated ventures. We reflect our share of our FFO measures for unconsolidated entities by applying our average ownership percentage for the period to the applicable adjustments on an entity-by-entity basis. We reflect our share for consolidated ventures in which we do not own 100% of the equity, by removing the noncontrolling interests share of the applicable adjustments based on our average ownership percentage for the applicable periods.
FFO, as modified by Prologis attributable to common stockholders/unitholders (“FFO, as modified by Prologis”)
To arrive at FFO, as modified by Prologis, we adjust the NAREIT defined FFO measure to exclude:
Core FFO attributable to common stockholders/unitholders (“Core FFO”)
To arrive at Core FFO, we adjust FFO, as modified by Prologis, to exclude the following:
47
Index
Limitations on the use of our FFO measures
While we believe our modified FFO measures are important supplemental measures, neither NAREIT's measures or our measures of FFO should be used alone because they exclude significant components of net earnings computed under GAAP and are, therefore, limited as an analytical tool. Some of these limitations arise from excluding income tax expense that may be payable or depreciation and amortization expenses that reflect costs necessary to maintain operating performance. In addition, our FFO measure does not reflect changes in asset values resulting from fluctuations in market conditions or foreign currency exchange rates nor costs or benefits from settlement of deferred income taxes or the extinguishment of debt. We do not use NAREIT's measures or our measures of FFO as alternatives to net earnings computed under GAAP or as alternatives to cash from operating activities computed under GAAP or as indicators of our ability to fund our cash needs.
We compensate for the limitations by using our FFO measures only in conjunction with net earnings computed under GAAP when making our decisions. This information should be read with our complete Consolidated Financial Statements prepared under GAAP. To assist investors in compensating for these limitations, we reconcile our modified FFO measures from consolidated net earnings attributable to common stockholders computed under GAAP for the three months ended March 31 as follows (in millions):
|
|
2026 |
|
|
2025 |
|
||
Reconciliation of net earnings attributable to common stockholders to FFO measures: |
|
|
|
|
|
|
||
Net earnings attributable to common stockholders |
|
$ |
980 |
|
|
$ |
592 |
|
|
|
|
|
|
|
|
||
Add (deduct) NAREIT defined adjustments: |
|
|
|
|
|
|
||
Real estate related depreciation and amortization |
|
|
706 |
|
|
|
633 |
|
Gains on other dispositions of investments in real estate, net of taxes (excluding development |
|
|
(91 |
) |
|
|
(36 |
) |
Adjustments related to noncontrolling interests |
|
|
(11 |
) |
|
|
(18 |
) |
Our proportionate share of adjustments related to unconsolidated entities |
|
|
151 |
|
|
|
150 |
|
NAREIT defined FFO attributable to common stockholders/unitholders |
|
$ |
1,735 |
|
|
$ |
1,321 |
|
|
|
|
|
|
|
|
||
Add (deduct) our modified adjustments: |
|
|
|
|
|
|
||
Unrealized foreign currency, derivative and other losses (gains), net |
|
|
(14 |
) |
|
|
55 |
|
Deferred income tax expense (benefit) |
|
|
- |
|
|
|
7 |
|
Adjustments related to noncontrolling interests |
|
|
1 |
|
|
|
- |
|
Our proportionate share of adjustments related to unconsolidated entities |
|
|
(1 |
) |
|
|
1 |
|
FFO, as modified by Prologis attributable to common stockholders/unitholders |
|
$ |
1,721 |
|
|
$ |
1,384 |
|
|
|
|
|
|
|
|
||
Adjustments to arrive at Core FFO: |
|
|
|
|
|
|
||
Gains on dispositions of development properties and land, net |
|
|
(293 |
) |
|
|
(27 |
) |
Current income tax expense (benefit) on dispositions |
|
|
1 |
|
|
|
- |
|
Losses (gains) on early extinguishment of debt, net |
|
|
2 |
|
|
|
- |
|
Our proportionate share of adjustments related to unconsolidated entities |
|
|
9 |
|
|
|
(1 |
) |
Core FFO attributable to common stockholders/unitholders |
|
$ |
1,440 |
|
|
$ |
1,356 |
|
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
We are exposed to the impact of foreign exchange-related variability and earnings volatility on our foreign investments and interest rate changes. See our risk factors in Part 1, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2025. See also Note 9 in the Consolidated Financial Statements in Item 1 for more information about our foreign operations and derivative financial instruments.
We monitor our market risk exposures using a sensitivity analysis. Our sensitivity analysis estimates the exposure to market risk sensitive instruments assuming a hypothetical 10% adverse change in foreign currency exchange rates or interest rates at March 31, 2026. The results of the sensitivity analysis are summarized in the following sections. The sensitivity analysis is of limited predictive value. As a result, revenues and expenses, as well as our ultimate realized gains or losses with respect to foreign currency exchange rate and interest rate fluctuations will depend on the exposures that arise during a future period, hedging strategies at the time and the prevailing foreign currency exchange rates and interest rates.
Foreign Currency Risk
We are exposed to foreign currency exchange variability related to investments in and earnings from our foreign investments. Foreign currency market risk is the possibility that our results of operations or financial position could be better or worse than planned because of changes in foreign currency exchange rates. We primarily mitigate this risk by borrowing in the currencies where we invest, creating a natural hedge. In addition, we use derivative financial instruments, such as foreign currency contracts designated as net investment
48
Index
hedges, which offset translation adjustments on the net assets of our foreign investments. At March 31, 2026, after consideration of our ability to borrow in the foreign currencies in which we invest and also derivative and nonderivative financial instruments as discussed in Note 9 to the Consolidated Financial Statements, we had minimal net equity denominated in a currency other than the U.S. dollar.
For the three months ended March 31, 2026, $197 million or 8.6% of our total consolidated revenue was denominated in foreign currencies. We enter into foreign currency contracts that we do not designate, such as forwards, to reduce the impact from fluctuations in foreign currency associated with the translation of the future earnings of our international subsidiaries. At March 31, 2026, we had foreign currency contracts denominated principally in British pound sterling, Canadian dollar, euro and Japanese yen, with an aggregate notional amount of $1.6 billion. As we do not designate these foreign currency contracts as hedges, the gain or loss on settlement is included in our earnings and offsets the lower or higher translation of earnings from our investments denominated in currencies other than the U.S. dollar. Although the impact to net earnings is mitigated through higher translated U.S. dollar earnings from these currencies, a weakening of the U.S. dollar against these currencies by 10% could result in a $162 million cash payment on settlement of these contracts.
Interest Rate Risk
We are also exposed to the impact of interest rate changes on future earnings and cash flows. To mitigate that risk, we generally borrow with fixed rate debt and we may use derivative instruments to fix the interest rate on our variable rate debt. At March 31, 2026, $33.8 billion of our debt bore interest at fixed rates and therefore the fair value of these instruments was affected by changes in market interest rates. At March 31, 2026, $1.4 billion of our debt bore interest at variable rates. The following table summarizes the future repayment of debt and scheduled principal payments at March 31, 2026 (dollars in millions):
|
|
2026 |
|
|
2027 |
|
|
2028 |
|
|
2029 |
|
|
Thereafter |
|
|
Total |
|
|
Fair Value |
|
|||||||
Fixed rate debt |
|
$ |
590 |
|
|
$ |
2,021 |
|
|
$ |
2,607 |
|
|
$ |
3,384 |
|
|
$ |
25,218 |
|
|
$ |
33,820 |
|
|
$ |
30,815 |
|
Weighted average interest rate (1) |
|
|
2.7 |
% |
|
|
2.2 |
% |
|
|
3.2 |
% |
|
|
2.7 |
% |
|
|
3.4 |
% |
|
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Variable rate debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Credit facilities |
|
$ |
310 |
|
|
$ |
93 |
|
|
$ |
- |
|
|
$ |
150 |
|
|
$ |
- |
|
|
$ |
553 |
|
|
$ |
554 |
|
Term loans |
|
|
144 |
|
|
|
9 |
|
|
|
84 |
|
|
|
- |
|
|
|
585 |
|
|
|
822 |
|
|
|
821 |
|
Total variable rate debt |
|
$ |
454 |
|
|
$ |
102 |
|
|
$ |
84 |
|
|
$ |
150 |
|
|
$ |
585 |
|
|
$ |
1,375 |
|
|
$ |
1,375 |
|
At March 31, 2026, the weighted average effective interest rate on our variable rate debt was 2.7%, which was calculated using an average balance on our credit facilities throughout the year and our other variable rate debt balances at March 31, 2026. Changes in interest rates can cause interest expense to fluctuate on our variable rate debt. On the basis of our sensitivity analysis, a 10% increase in interest rates on our average outstanding variable rate debt balances would result in additional annual interest expense of $4 million for the quarter ended March 31, 2026, which equates to a change in interest rates of 27 basis points on our average outstanding variable rate debt balances and 1 basis point on our average total debt balances.
ITEM 4. Controls and Procedures
Controls and Procedures (Prologis, Inc.)
Prologis, Inc. carried out an evaluation under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the disclosure controls and procedures (as defined in Rule 13a-15(e)) under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), at March 31, 2026. Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the disclosure controls and procedures are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms.
Changes in Internal Control over Financial Reporting
During the quarter ended March 31, 2026, we began implementing a new financial system to further automate our global close and consolidation processes and the related controls. There have been no other changes in Prologis, Inc.’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, Prologis, Inc.’s internal control over financial reporting.
49
Index
Controls and Procedures (Prologis, L.P.)
Prologis, L.P. carried out an evaluation under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the disclosure controls and procedures (as defined in Rule 13a-15(e)) under the Exchange Act at March 31, 2026. Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the disclosure controls and procedures are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms.
Changes in Internal Control over Financial Reporting
During the quarter ended March 31, 2026, we began implementing a new financial system to further automate our global close and consolidation processes and related controls. There have been no other changes in Prologis, L.P.’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, Prologis, L.P.’s internal control over financial reporting.
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings
Prologis and our unconsolidated entities are party to a variety of legal proceedings arising in the ordinary course of business. With respect to any such matters to which we are currently a party, the ultimate disposition of any such matters will not result in a material adverse effect on our business, financial position or results of operations.
ITEM 1A. Risk Factors
At March 31, 2026, no material changes had occurred in our risk factors as discussed in Item 1A. in our Annual Report on Form 10-K for the year ended December 31, 2025.
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
During the quarterly period ended March 31, 2026, we issued 2.8 million shares of common stock of Prologis, Inc. in connection with the redemption of common units of Prologis, L.P. pursuant to the terms of the limited partnership agreement of Prologis, L.P. These issuances were made in reliance on the exemption from registration requirements of the Securities Act of 1933, as amended, afforded by Section 4(a)(2) thereof.
ITEM 3. Defaults Upon Senior Securities
None.
ITEM 4. Mine Safety Disclosures
Not Applicable.
ITEM 5. Other Information
On
ITEM 6. Exhibits
The exhibits required by this item are set forth on the Exhibit Index attached hereto.
50
Index
INDEX TO EXHIBITS
Certain of the following documents are filed herewith. Certain other of the following documents that have been previously filed with the Securities and Exchange Commission (“SEC”) and, pursuant to Rule 12b-32, are incorporated herein by reference.
10.1 |
Second Amended and Restated Global Senior Credit Agreement dated as of March 26, 2026 among Prologis, L.P., various affiliates of Prologis, L.P., various lenders and agents, and Bank of America, N.A., as Global Administrative Agent (incorporated by reference to Exhibit 10.1 to Prologis' Current Report on Form 8-K filed on March 31, 2026). |
|
|
10.2 |
First Amendment dated as of March 26, 2026 among Prologis, L.P., various lenders and agents, and Bank of America, N.A., as Global Administrative Agent to the Amended and Restated Global Senior Credit Agreement dated as of May 22, 2025 (incorporated by reference to Exhibit 10.2 to Prologis' Current Report on Form 8-K filed on March 31, 2026). |
|
|
15.1† |
KPMG LLP Awareness Letter of Prologis, Inc. |
|
|
15.2† |
KPMG LLP Awareness Letter of Prologis, L.P. |
|
|
22.1† |
Subsidiary guarantors and issuers of guaranteed securities. |
|
|
31.1† |
Certification of Chief Executive Officer of Prologis, Inc. |
|
|
31.2† |
Certification of Chief Financial Officer of Prologis, Inc. |
|
|
31.3† |
Certification of Chief Executive Officer for Prologis, L.P. |
|
|
31.4† |
Certification of Chief Financial Officer for Prologis, L.P. |
|
|
32.1† |
Certification of Chief Executive Officer and Chief Financial Officer of Prologis, Inc., pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|
|
32.2† |
Certification of Chief Executive Officer and Chief Financial Officer for Prologis, L.P., pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|
|
101.INS† |
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL Document. |
|
|
101.SCH† |
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents. |
|
|
104 |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
|
|
† |
Filed herewith |
51
Index
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.
|
PROLOGIS, INC. |
|
|
|
|
|
By: |
/s/ Timothy D. Arndt |
|
|
Timothy D. Arndt |
|
|
Chief Financial Officer |
|
|
|
|
By: |
/s/ Trisha L. Burns |
|
|
Trisha L. Burns |
|
|
Managing Director and Chief Accounting Officer |
|
|
|
|
PROLOGIS, L.P. |
|
|
|
|
|
By: |
Prologis, Inc., its general partner |
|
|
|
|
By: |
/s/ Timothy D. Arndt |
|
|
Timothy D. Arndt |
|
|
Chief Financial Officer |
|
|
|
|
By: |
/s/ Trisha L. Burns |
|
|
Trisha L. Burns |
|
|
Managing Director and Chief Accounting Officer |
|
|
|
Date: April 30, 2026
52