Prologis Inc.

PLD
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Margin Profile
Gross 71%
FY2025
Net Debt
$31.0B
Cash $1.0B · Debt $32.0B · FY2025
Diluted Shares
952M
FY2025

Business Overview

ticker: PLD step: 01 generated: 2026-05-12 source: quick-research

Prologis, Inc. (PLD) — Business Overview

Business Description

Prologis is the world's largest industrial real estate investment trust (REIT) by market cap and square footage, operating 1.3B square feet across 5,881 buildings in 20 countries. The 2026 transformation is generational: pivoting from pure-play warehouse REIT to "infrastructure platform" combining (1) logistics real estate, (2) Prologis Energy (battery storage + solar), (3) ramping data center development pipeline (5.7 GW power pipeline, 10 GW target). Q1 2026: data center starts at $1.3B (62% of $2.1B total starts); 95.1% occupancy. CEO Hamid Moghadam (since founding).

Revenue Model

  • Rental Income (~95% of revenue): Logistics warehouses leased to e-commerce, retail, food, manufacturing tenants
  • Development & Disposition Gains: Capitalizing built assets to fund growth
  • Strategic Capital (~5%): Co-investment vehicle fees (Prologis Strategic Capital, $80B+ AUM)
  • Future: Data Center Revenue (ramping): Lease income + power infrastructure

Products & Services

Core Logistics
  • Class A modern warehouses: Built to spec for e-commerce + 3PL + retail tenants
  • Last-mile + Distribution + Multi-Market locations
  • Global Network: US, Europe, Mexico, Japan, China, Brazil
  • Tenants: Amazon, Walmart, FedEx, UPS, Home Depot, etc.
Data Centers (Rapid Growth)
  • 5.7 GW power pipeline; 10 GW target over decade
  • $30-50B investment over decade
  • 62% of Q1 2026 development starts ($1.3B)
  • 40% of 2026 development plan ($1.6-2.0B)
  • Converting existing warehouse sites + utility relationships to data center campuses
Prologis Energy
  • 10 battery storage sites in Texas: 60 MW / 100 MWh activated during Jan 2026 winter storm
  • Solar + battery deployments across portfolio
  • Power infrastructure for tenants
Prologis Essentials
  • Operating services for tenants: labor, equipment, supplies, technology

Customer Base & Go-to-Market

  • E-commerce tenants: Amazon (largest tenant), Walmart, Wayfair, Target
  • 3PL operators: FedEx, UPS, DHL, XPO Logistics
  • Manufacturers: Auto, food, pharma
  • Data center tenants (emerging): Hyperscalers
  • Geographic mix: ~65% Americas, ~25% Europe, ~10% Asia
  • 5,800+ tenants globally

Competitive Position

Prologis is the world's #1 logistics REIT by significant margin — 1.3B SF + diversified geography. Moats: (1) irreplaceable land in primary logistics markets (Inland Empire, NJ, Chicago, Atlanta), (2) tenant relationships + scale, (3) 5.7 GW power pipeline + 10 GW data center conversion potential, (4) $80B+ Strategic Capital AUM. Competitors: Duke Realty (smaller), STAG Industrial, EastGroup Properties. In data center: Digital Realty, Equinix face Prologis as new entrant — but Prologis has land + power, vs DLR/EQIX have customer relationships.

Key Facts

  • Founded: 1983 (AMB merger with ProLogis 2011 created current entity)
  • Headquarters: San Francisco, CA + Denver, CO
  • Employees: ~2,500
  • Exchange: NYSE
  • Sector / Industry: Real Estate / Industrial REITs
  • Market Cap: ~$105B (May 2026)
  • CEO: Hamid R. Moghadam (founding CEO)
  • Dividend: $3.92 annual ($0.98 quarterly) — 3.6% yield
  • 11+ consecutive years of dividend growth
  • Total portfolio: 1.3B SF, 5,881 buildings, 20 countries

Financial Snapshot

ticker: PLD step: 04 generated: 2026-05-12 source: quick-research

Prologis, Inc. (PLD) — Financial Snapshot

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY
Rental Revenue $7.7B $8.0B $8.3B +4%
Total Revenue $8.0B $8.2B $8.6B +5%
Net Earnings/Share (GAAP) $3.55 $4.01 $3.56 -11%
Core FFO/Share $5.40 $5.56 $5.81 +4%
Core FFO/Share ex-Promotes $5.10 $5.53 $5.86 +6%

Q1 2026 Highlights

Metric Q1 2026
Occupancy 95.1% (290bps above market)
Same-Store NOI Growth (Cash) +8.8%
Same-Store NOI Growth (Net Effective) +6.1%
Net Effective Rent Change +44% (Q4 2025), decelerating
Leases Signed (FY25 record) 228M SF
Avg lease gestation 64 days (rising — tariff uncertainty)

Development Activity (2026)

Metric Value
Q1 2026 Development Starts $2.1B
Q1 Data Center Starts $1.3B (62%)
FY26 Development Starts Guide $4-5B
FY26 Data Center % of starts 40% (up from 10% in 2025)
10-Year Data Center Plan $30-50B investment
Total Power Pipeline 5.7 GW
Target Data Center Capacity 10 GW over decade
Advanced-Stage Power 2.2 GW

2026 Guidance (raised in Q1)

Metric 2026 Guide
Core FFO/Share ~$5.95-6.05
Same Store NOI Growth Mid-single-digit
Occupancy 95%+
Development Starts $4-5B

Geographic Mix

Region % of Portfolio
Americas (US + Canada) ~65%
Europe ~25%
Asia (Japan, China, India) ~10%
International SF 452M SF

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow ~$5B
Capital Expenditures ~$4B
Free Cash Flow ~$1B
Cash & Equivalents ~$1B
Total Debt ~$32B
Net Debt/EBITDA ~5.0x (typical REIT)
Investment Grade rating A (S&P), A3 (Moody's)

Key Ratios (approximate, May 2026)

  • P/FFO (forward): ~19x | EV/EBITDA: ~22x | Dividend Yield: ~3.6%
  • Dividend coverage: 1.5x+ Core FFO
  • ROIC: low cap rate (~6-7% typical for industrial)

Growth Profile

2026 inflection from pure-warehouse REIT to "infrastructure platform" with data center pivot. Q1 2026 occupancy 95.1%, same-store NOI +8.8% cash. Data center starts $1.3B in Q1 alone. Raised 2026 EPS guidance + European logistics venture expansion. Tariff uncertainty extending lease decision timelines (64 day gestation vs prior shorter).

Forward Estimates

  • FY2026E Core FFO/Share: $5.95-6.05 (mgmt raised)
  • FY2026E Net Earnings: ~$3.80
  • FY2027E Core FFO/Share: $6.30-6.50 (+5-8%)
  • FY2030E Data Center Revenue: Multi-billion contribution if 10 GW target achieved

Capital Return

  • Dividend $3.92 annual = ~$3.7B paid — 3.6% yield
  • 11+ consecutive years of dividend growth
  • Buybacks: minimal (REITs reinvest cash flow)
  • Total return: ~3.6% dividend + 5-8% Core FFO growth

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $PLD.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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