8-K
Prologis, Inc. (PLD)
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 17, 2024
Prologis, Inc.
Prologis, L.P.
(Exact name of registrant as specified in charter)
| Maryland (Prologis, Inc.)<br>Delaware (Prologis, L.P.)<br>(State or other jurisdiction<br>of Incorporation) | 001-13545 (Prologis, Inc.)<br>001-14245 (Prologis, L.P.)<br>(Commission File Number) | 94-3281941 (Prologis, Inc.)<br>94-3285362 (Prologis, L.P.)<br>(I.R.S. Employer Identification<br>No.) |
|---|---|---|
| Pier 1, Bay 1, San Francisco, California | 94111 | |
| --- | --- | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrants’ Telephone Number, including Area Code: (415) 394-9000
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | |
|---|---|---|---|
| Prologis, Inc. | Common Stock, $0.01 par value | PLD | New York Stock Exchange |
| Prologis, L.P. | 3.000% Notes due 2026 | PLD/26 | New York Stock Exchange |
| Prologis, L.P. | 2.250% Notes due 2029 | PLD/29 | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐
Item 2.02. Results of Operations and Financial Condition (Prologis, Inc.) and
Item 7.01. Regulation FD Disclosure (Prologis, Inc. and Prologis, L.P.).
On April 17, 2024, Prologis, Inc., the general partner of Prologis, L.P., issued a press release announcing first quarter 2024 financial results. A copy of the supplemental information as well as the press release is furnished with this report as Exhibit 99.1 and Exhibit 99.2, respectively, and incorporated herein by reference.
The information in this report and the exhibits attached hereto is being furnished, not filed, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and pursuant to Items 2.02 and 7.01 of Form 8-K will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
99.1 Supplemental information, dated April 17, 2024.
99.2 Press release, dated April 17, 2024.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
| PROLOGIS, INC. | ||
|---|---|---|
| April 17, 2024 | By: | /s/ Timothy D. Arndt |
| Name: Timothy D. Arndt | ||
| Title: Chief Financial Officer | ||
| PROLOGIS, L.P., | ||
| --- | --- | --- |
| April 17, 2024 | By: Prologis, Inc., its general partner | |
| By: | /s/ Timothy D. Arndt | |
| Name: Timothy D. Arndt | ||
| Title: Chief Financial Officer |
Prologis Supplemental Information FIRST quarter 2024 Unaudited Prologis Park Koga 4, Koga City, Ibaraki, Japan
Highlights 1 Company Profile 2 Company Performance 4 Prologis Leading Indicators and Proprietary Metrics 5 Guidance Financial Information 6 Consolidated Balance Sheets 7 Consolidated Statements of Income 8 Reconciliations of Net Earnings to FFO 9 Reconciliations of Net Earnings to Adjusted EBITDA Operations 10 Overview 11 Operating Metrics 13 Operating Portfolio 16 Customer Information Capital Deployment 17 Overview 18 Development Stabilizations 19 Development Starts 20 Development Portfolio 21 Third-Party Acquisitions 22 Dispositions and Contributions 23 Land Portfolio 25 Solar Operating and Development Portfolios Strategic Capital 26 Overview 27 Summary and Financial Highlights 28 Operating and Balance Sheet Information of the Unconsolidated Co-Investment Ventures 29 Non-GAAP Pro-Rata Financial Information Capitalization 30 Overview 31 Debt Components - Consolidated 32 Debt Components - Noncontrolling Interests and Unconsolidated Net Asset Value 33 Components Notes and Definitions 35 Notes and Definitions Contents 1Q 2024 Supplemental
* This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. NOI calculation based on Prologis Share of the Operating Portfolio. 1Q 2024 Supplemental Overview Prologis, Inc., is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At March 31, 2024, the company owned or had investments in, on a wholly-owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (115 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment. 5,618 Buildings 1.2B Square Feet $38.5B Build Out of Land (TEI) U.S. 803M SF 86% of NOI*(A) Other Americas 83M SF 4% of NOI*(A) Europe 243M SF 8% of NOI*(A) Asia 113M SF 2% of NOI*(A)
Company Profile * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. 1Q 2024 Prologis Share of NOI of the Operating Portfolio annualized. 1Q 2024 third-party share of asset management fees annualized plus trailing twelve months third-party share of transactional fees and Net Promote Income (Expense). Prologis Share of trailing twelve month Estimated Value Creation from development stabilizations. Mexico is included in the U.S. as it is U.S. dollar functional. 1Q 2024 Supplemental Highlights Operations $5.8B in annual NOI*(A) Development $691M in value creation from stabilizations(C) Gross AUM $216B Prologis Share AUM $157B Market Equity $124B Strategic capital $834M of fees and promotes(B) 1 U.S.(D) Outside the U.S. U.S.(D) Outside the U.S. U.S.(D) Outside the U.S.
Company Performance * This is a non-GAAP financial measure. Please see reconciliations from Net Earnings Attributable to Common Stockholders on page 8 and reference our Notes and Definitions for further explanation. 1Q 2024 Supplemental Highlights Net earnings attributable to common stockholders Core FFO attributable to common stockholders/unitholders* AFFO attributable to common stockholders/unitholders* 2
Net earnings attributable to common stockholders in millions Core ffo attributable to common stockholders/ unitholders* in millions affO attributable to common stockholders/unitholders* in millions Dividends and distributions in millions * This is a non-GAAP financial measure. Please see reconciliations from Net Earnings Attributable to Common Stockholders on page 8 and reference our Notes and Definitions for further explanation. Highlights Company Performance 1Q 2024 Supplemental 3
Average 57.7 Average 54 Average 85.5% Lease Proposals in millions of square feet U.s. IBI activity index diffusion index, points New Lease negotiation Gestation in days U.S. space utilization * Please see our Notes and Definitions for further explanation. Prologis Leading Indicators and Proprietary Metrics* 1Q 2024 Supplemental Average 71 4 percent Highlights 49
Guidance(A) * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Our guidance for 2024 is based on management’s current beliefs and assumptions about our business, the industry and the markets in which we operate. Please refer to “Forward-Looking Statements” and “Risk Factors” referred to in our annual and quarterly financial statements on Forms 10-K and 10-Q filed with the Securities and Exchange Commission (“SEC”) for more information. The difference between Core FFO and Net Earnings predominately relates to real estate depreciation and amortization and gains or losses on dispositions of real estate. See the Notes and Definitions for a reconciliation. We are further adjusting Core FFO to exclude $0.08 of net promote expense. The expense relates to amortization of stock compensation issued to employees related to promote income recognized in prior periods. 1Q 2024 Supplemental Highlights 5
Consolidated Balance Sheets 1Q 2024 Supplemental Financial Information 6
Consolidated Statements of Income 1Q 2024 Supplemental Financial Information 7
Reconciliations of Net Earnings to FFO* *This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. 1Q 2024 Supplemental Financial Information 8
Reconciliations of Net Earnings to Adjusted EBITDA* * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. 1Q 2024 Supplemental Financial Information 9
56.3% 64.0% 70.6% 76.4% 75.9% Occupancy – Owned and Managed Customer Retention Same Store Change Over Prior Year - Prologis Share* Rent Change - Prologis Share * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Operations Overview 1Q 2024 Supplemental Trailing four quarters – net effective 10 Average occupancy – Prologis Share 98.3% 97.9% 97.5% 97.4% 96.9%
Operating Metrics – Owned and Managed Amounts exclusive of leases of less than one year, unless otherwise noted. 1Q 2024 Supplemental Operations 11
Operating Metrics – Owned and Managed * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. This data includes recurring capital expenditures and NOI of our Operating Portfolio. Excluded from recurring capital expenditures is spend for our properties that is structural in nature and therefore non-recurring. 1Q 2024 Supplemental Operations CAPITAL EXPENDITURES Thousands, except for percentages SAME STORE INFORMATION Thousands, except for percentages PROPERTY IMPROVEMENTS TURNOVER COSTS ON LEASES COMMENCED COMPOSITION OF PORTFOLIO (BY UNIT SIZE) Trailing four quarter average Per square foot ($) As a % of lease value Per square foot ($) 12
Operating Portfolio – Square Feet, Occupied and Leased 1Q 2024 Supplemental Operations 13
Operating Portfolio – NOI* and Gross Book Value * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. 1Q 2024 Supplemental Operations 14
Operating Portfolio – Summary by Division * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. 1Q 2024 Supplemental Operations 15
Customer Information We have signed leases, which were due to expire in 2024 and 2025, totaling 42 million square feet and 11 million square feet, in our owned and managed portfolio (3.1% and 0.7% of total net effective rent) and 26 million square feet and 6 million square feet on a Prologis Share basis (2.9% and 0.6% of total net effective rent). These are excluded from 2024 and 2025 expirations and are reflected in the new year of expiration. 1Q 2024 Supplemental Operations 16
M&A and Significant Portfolio Activity $14,600 - $23,200 $3,100 - Development Starts (TEI) in millions Development Stabilizations (TEI) dollars in millions Acquisition Activity(a) in millions Land Portfolio in millions This data excludes acquisitions of land. The estimated build out includes the land portfolio, Covered Land Plays and other land that we could develop through options, ground leases, unconsolidated joint ventures and other contractual arrangements. Capital Deployment Overview – Prologis Share 1Q 2024 Supplemental Outside the U.S. U.S. Est Value Creation $942 $1,326 $1,583 $917 $50 Est Wtd Avg Stabilized Yield 6.3% 6.1% 6.3% 6.3% 5.7% Est Build Out(B): Sq. Ft. 203 TEI $35,600 17 YTD Q1
Development Stabilizations . 1Q 2024 Supplemental Capital Deployment 18
Development Starts 1Q 2024 Supplemental Capital Deployment 19
Development Portfolio TEI amount includes development on yards, parking lots and other non-industrial assets that will be included in Other Real Estate Investments upon completion. 1Q 2024 Supplemental Capital Deployment 20
Third-Party Acquisitions 1Q 2024 Supplemental Capital Deployment 21
Dispositions and Contributions 1Q 2024 Supplemental Capital Deployment 22
Land Portfolio – Owned and Managed 1Q 2024 Supplemental Capital Deployment 23
Land Portfolio – Summary and Roll Forward Amounts include approximately 3,300 acres that we could develop through options, ground leases, unconsolidated joint ventures and other contractual arrangements. 1Q 2024 Supplemental Capital Deployment 24
Solar Operating and Development Portfolios – Owned and Managed 1Q 2024 Supplemental Capital Deployment 25
Third-party aum dollars in billions Third-Party Fee Related and promote revenue in millions Fee related earnings annualized* in millions Net Promote income (EXPENSE) dollars in millions *This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Net Promote Income (Expense) in 2024 is negative due to expense primarily from the amortization of stock compensation issued to employees related to promote income recognized in prior periods. Please refer to Highlights for Guidance for 2024 Net Promote Income (Expense). Strategic Capital Overview 1Q 2024 Supplemental 91.4% 94.9% 95.0% 93.0% 93.2% % Open end/Public Trailing 3-year basis points of third-party AUM 26 27.2 21.6 37.1 51.5 50.3
Summary and Financial Highlights * The next promote opportunity is related to the Stabilization of individual development project(s). Values represent the entire venture at 100%, not Prologis’ proportionate share. Values are presented at Prologis’ adjusted basis derived from the ventures’ U.S. GAAP information and may not be comparable to values reflected in the ventures’ stand alone financial statements calculated on a different basis. Throughout this document we use the most recent public information for these co-investment ventures. 1Q 2024 Supplemental Strategic Capital 27
Operating and Balance Sheet Information of the Unconsolidated Co-Investment Ventures (at 100%)(A) * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Values represent the entire venture at 100%, not Prologis’ proportionate share. Values are presented at Prologis’ adjusted basis derived from the ventures’ U.S. GAAP information and may not be comparable to values reflected in the ventures’ stand alone financial statements calculated on a different basis. 1Q 2024 Supplemental Strategic Capital 28
Non-GAAP Pro-Rata Financial Information(A) * This is a non-GAAP financial measure, please see our Notes and Definitions for further explanation. See our Notes and Definitions for further explanation of how these amounts are calculated. 1Q 2024 Supplemental Strategic Capital 29
Europe 14.7% $156,933 $216,176 Debt $33,373 Investment Capacity $2,393 U.S.(B) 76.5% $216,176 Direct owned and other $128,384 Market Equity $123,560 AUM Strategic Capital $87,792 Investors' share of ventures $56,850 Prologis Share of ventures $28,549 Total Enterprise Value $156,933 $156,933 U.S. Dollar (B) 96.5% Outside U.S. 3.5% Other Americas 2.1% $33,373 $123,560 Asia 6.7% Overview * This is a non-GAAP financial measure. Please see our Notes and Definitions for detailed calculation. Enterprise value is calculated using Prologis’ stock price of $130.22 at March 31, 2024. Prologis’ stock price was $133.30 at December 31, 2023. Mexico is included in the U.S. as it is U.S. dollar functional. The detailed calculations are included in the Notes and Definitions section and are not in accordance with the applicable SEC rules. A securities rating is not a recommendation to buy, sell or hold securities and is subject to revision or withdrawal at any time by the rating organization. 1Q 2024 Supplemental Capitalization ASSETS UNDER MANAGEMENT dollars in millions Enterprise Value(A) AUM by Geography Market Equity U.S. DOLLAR EXPOSURE dollars in millions Enterprise Value(A) Debt U.S. Dollar(B) 44.7% U.S. Dollar (B) 85.0% Outside U.S. 15.0% Outside U.S. 55.3% DEBT BY CURRENCY – PROLOGIS SHARE UNENCUMBERED ASSETS – PROLOGIS SHARE: $99.6B in billions 30 AUM by Ownership
Debt Components – Consolidated The maturities for the 2022 Global Facility ($330 million), 2023 Global Facility ($483 million), and the Yen Revolver ($218 million) are reflected at the extended maturity date, as the extension is at our option. The maturity of certain debt ($323 million) is reflected at the extended maturity dates as the extension is at our option. We manage our exposure to changes in foreign currency exchange rates using foreign currency forward contracts, including those that are accounted for as net investment hedges, to economically reduce our exposure to fluctuations in foreign currency rates. The effect is reflected in the table under Investment Hedges. See also page 30 for our market equity exposure by currency. 1Q 2024 Supplemental Capitalization 31
Debt Components – Noncontrolling Interests and Unconsolidated(A) Refer to Notes and Definitions under Non-GAAP Pro-Rata Financial Information for further explanation on how these amounts are calculated. The maturity of certain unsecured debt (Prologis Share $248 million) is reflected at the extended maturity dates as the extension is at the venture’s option. We manage our exposure to changes in foreign currency exchange rates using foreign currency forward contracts, including those that are accounted for as net investment hedges, to economically reduce our exposure to fluctuations in foreign currency rates. The effect is reflected in the table under Investment Hedges. See also page 30 for our market equity exposure by currency. 1Q 2024 Supplemental Capitalization 32
Components – Prologis Share * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. 1Q 2024 Supplemental Net Asset Value 33
Components – Continued Net Promote Income (Expense) is negative due to expense primarily from amortization of stock compensation issued to employees related to promote income recognized in prior periods. 1Q 2024 Supplemental Net Asset Value 34
Notes and Definitions 1Q 2024 Supplemental Prologis Park Morioka, Morioka, Iwate, Japan
1Q 2024 Supplemental Notes and Definitions 36
1Q 2024 Supplemental Notes and Definitions (continued) 37
1Q 2024 Supplemental Notes and Definitions (continued) 38
1Q 2024 Supplemental Notes and Definitions (continued) 39
1Q 2024 Supplemental Notes and Definitions (continued) 40
1Q 2024 Supplemental Notes and Definitions (continued) 41
1Q 2024 Supplemental Notes and Definitions (continued) 42
1Q 2024 Supplemental Notes and Definitions (continued) 43
EX-99.2
FOR IMMEDIATE RELEASE
Prologis Reports First Quarter Results
Positive Long-Term Outlook Amid Near-Term Macroeconomic Uncertainty
SAN FRANCISCO (April 17, 2024) – Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, today reported first quarter results for 2024.
Net earnings per diluted share was $0.63 for the first quarter of 2024 compared with $0.50 for the first quarter of 2023.
Core funds from operations (Core FFO)* per diluted share was $1.28 for the first quarter of 2024, compared with $1.22 for the same period in 2023. Core FFO, excluding Net Promote Income (Expense)* per diluted share for the first quarter of 2024 was $1.31 compared with $1.23 for the first quarter of 2023.
“While operating conditions are healthy in the majority of our markets, customers remain focused on controlling costs, which is weighing on decision making and the pace of leasing,” said Hamid R. Moghadam, co-founder, chairman and CEO, Prologis. “A volatile and persistently high interest rate environment, together with mounting geopolitical concerns, contribute to this indecision and its short-term effect on net absorption. We remain optimistic about the fundamentals of our business, while being prepared for a slower environment in the next quarter or two.”
OPERATING PERFORMANCE
| Owned & Managed | 1Q24 | Notes |
|---|---|---|
| Average Occupancy | 96.8% | |
| Leases Commenced | 48.1MSF | 45.0MSF operating portfolio and 3.1MSF development portfolio |
| Retention | 74.3% | |
| Prologis Share | 1Q24 | Notes |
| --- | --- | --- |
| Cash Same Store NOI* | 5.7% | Impacted by ~175 bps of one-time items |
| Net Effective Rent Change | 67.6% | |
| Cash Rent Change | 48.2% |
DEPLOYMENT ACTIVITY
| Prologis Share | 1Q24 |
|---|---|
| Acquisitions | $5M |
| Weighted avg stabilized cap rate (excluding other real estate) | 7.1% |
| Development Stabilizations | $517M |
| --- | --- |
| Estimated weighted avg yield | 5.7% |
| Estimated weighted avg margin | 9.6% |
| Estimated value creation | $50M |
| % Build-to-suit | 43.3% |
| Development Starts | $273M |
| Estimated weighted avg yield | 6.9% |
| Estimated weighted avg margin | 26.7% |
| Estimated value creation | $73M |
| % Build-to-suit | 24.9% |
| Total Dispositions and Contributions | $254M |
| Weighted avg stabilized cap rate (excluding land and other real estate) | 4.8% |
BALANCE SHEET STRENGTH & LIQUIDITY
"As always, we maintain a philosophy to build and preserve financial strength for any environment, with liquidity of almost $6 billion at the end of the quarter, low leverage and insulated earnings from foreign exchange movements," said Timothy D. Arndt, chief financial officer, Prologis. "Our capital raising efforts this quarter, across both debt and Strategic Capital, highlight our strength and reputation as an issuer as well as the broad, global access that we have to optimize our capital structure.”
During the first quarter, Prologis and its co-investment ventures issued an aggregate of $4.1 billion of debt at a weighted average interest rate of 4.7%, and a weighted average term of 9.5 years. This activity includes an inaugural issuance of a CNH bond, which further diversifies our funding sources in the currencies we operate in. Also, during the quarter, Prologis established a Commercial Paper program permitting issuances of up to $1 billion. The program received A-1/P-2 short-term ratings from S&P and Moody’s, respectively.
At March 31, 2024, debt as a percentage of total market capitalization was 21.0%, and the company’s weighted average interest rate on its share of total debt was 3.1%, with a weighted average term of 9.3 years and no significant debt maturities until 2026.
FOREIGN CURRENCY STRATEGY
Prologis hedges its exposure to foreign currency fluctuations by borrowing in the currencies in which it invests and using derivative financial instruments. At March 31, 2024, 96.5% of Prologis’ equity was in USD and forecasted earnings for 2024, 2025 and 2026 are 98%, 98% and 97%, respectively, in USD or hedged through derivative contracts.
2024 GUIDANCE
Prologis’ guidance for net earnings is included in the table below as well as guidance for Core FFO*, which are reconciled in our supplemental information.
"While we had a successful first quarter, we expect net absorption in the upcoming quarters to be lower than our prior expectations and leasing to stay competitive in a handful of our larger, higher-rent markets,” said Arndt. “With that, our current view calls for lower average occupancy in the year. Accordingly, we have reduced full-year guidance ranges for occupancy, same-store growth and earnings, but view the adjustments more as a matter of timing as the outlook on new supply remains very favorable.”
Arndt added: “At the midpoint, we project Core FFO growth, excluding promotes, of nearly 8%, and Cash Same Store NOI growth to be 6.75%. While our Southern California portfolio faces near-term headwinds, we remain very positive about long-term growth and value given the market’s supply barriers and secular forces driving future demand.”
2024 GUIDANCE
Earnings (per diluted share) Previous Revised Change at M.P.
| Net earnings attributable to common stockholders | $3.20 to $3.45 | $3.15 to $3.35 | (2.3)% |
|---|---|---|---|
| Core FFO attributable to common stockholders/unitholders* | $5.42 to $5.56 | $5.37 to $5.47 | (1.3)% |
| Core FFO attributable to common stockholders/unitholders, excluding Net Promote Income (Expense)*1 | $5.50 to $5.64 | $5.45 to $5.55 | (1.3)% |
Operations – Prologis Share
| Average occupancy | 96.50% to 97.50% | 95.75% to 96.75% | (75) bps |
|---|---|---|---|
| Cash Same Store NOI* | 8.00% to 9.00% | 6.25% to 7.25% | (175) bps |
Strategic Capital (in millions) Previous Revised Change at M.P.
| Strategic Capital revenue,<br><br>excluding promote revenue | $530 to $550 | $530 to $550 | - |
|---|---|---|---|
| Net Promote Income (Expense) | $(80) | $(80) | - |
G&A (in millions)
| General & administrative expenses | $420 to $440 | $415 to $430 | (1.7)% |
|---|
Capital Deployment – Prologis Share (in millions)
| Development stabilizations | $3,600 to $4,000 | $3,600 to $4,000 | - |
|---|---|---|---|
| Development starts | $3,000 to $3,500 | $2,500 to $3,000 | (15.4)% |
| Acquisitions | $500 to $1,000 | $500 to $1,000 | - |
| Contributions | $1,750 to $2,250 | $1,750 to $2,250 | - |
| Dispositions | $800 to $1,200 | $800 to $1,200 | - |
| Net sources/(uses) | $(950) to $(1,050) | $(450) to $(550) | 50.0% |
| Realized development gains | $300 to $400 | $300 to $400 | - |
1. We are further adjusting Core FFO to exclude $0.08 of net promote expense. The expense relates to amortization of stock compensation issued to employees related to promote income recognized in prior periods.
* This is a non-GAAP financial measure. See the Notes and Definitions in our supplemental information for further explanation and a reconciliation to the most directly comparable GAAP measure.
The earnings guidance described above includes potential gains recognized from real estate transactions but excludes any future or potential foreign currency or derivative gains or losses as our guidance assumes constant foreign currency rates. In reconciling from net earnings to Core FFO*, Prologis makes certain adjustments, including but not limited to real estate depreciation and amortization expense, gains (losses) recognized from real estate transactions and early extinguishment of debt, impairment charges, deferred taxes and unrealized gains or losses on foreign currency or derivative activity. The difference between the company's Core FFO* and net earnings guidance relates predominantly to these items. Please refer to our quarterly Supplemental Information,
which is available on our Investor Relations website at https://ir.prologis.com and on the SEC’s website at www.sec.gov for a definition of Core FFO* and other non-GAAP measures used by Prologis, along with reconciliations of these items to the closest GAAP measure for our results and guidance.
APRIL 17, 2024, CALL DETAILS The call will take place on Wednesday, April 17, 2024, at 9:00 a.m. PT/12:00 p.m. ET. To access a live broadcast of the call, please dial +1 (877) 897-2615 (toll-free from the United States and Canada) or +1 (201) 689-8514 (from all other countries). A live webcast can be accessed from the Investor Relations section of www.prologis.com.
A telephonic replay will be available April 17 – May 1 at +1 (877) 660-6853 (from the United States and Canada) or +1 (201) 612-7415 (from all other countries) using access code 13745294. The webcast replay will be posted in the Investor Relations section of www.prologis.com under “Events & Presentations.”
ABOUT PROLOGIS Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At March 31, 2024, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (115 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment.
FORWARD-LOOKING STATEMENTS
The statements in this document 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," 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, contribution and disposition activity, general conditions in the geographic areas where we operate, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, 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 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 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 in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.
CONTACTS
Investors: Prologis Investor Relations
Media: Prologis Corporate Communications