Prologis, Inc. · NYSE:PLD

Prologis — Q1 2023 Earnings Presentation

45 slides from Prologis's earnings presentation, Apr 18, 2023

  1. Slide 1: Prologis Supplemental Information First Quarter 2023

    Park Neufahrn, Neufahrn, Germany FIRST QUARTER 2023 Prologis Supplemental Information Unaudited

  2. Slide 2: Contents

    Contents 1Q 2023 Supplemental Highlights Strategic Capital 1 Company Profile 25 Overview 2 Company Performance 26 Summary and Financial Highlights 4 Prologis Leading Indicators and Proprietary Metrics 27 Operating and Balance Sheet Information of the Unconsolidated 5 Guidance Co-Investment Ventures

  3. Slide 3: Overview

    Overview 1Q 2023 Supplemental Prologis, Inc., is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At March 31, 2023, the company owned or had investments in, on a wholly-owned basis or through co-investment ventures, properties and development projects ex

  4. Slide 4: Company Profile

    Highlights 1Q 2023 Supplemental Company Profile OPERATIONS STRATEGIC CAPITAL DEVELOPMENT $5.2B in annual NOI* (A) $829M of fees and promotes (B) $1.7B in value creation from stabilizations(C) 86% 79% 63% 37% 14% 21% U.S. Outside the U.S. U.S. Outside the U.S. U.S. Outside the U.S. GROSS AUM PROLOGIS

  5. Slide 5: Company Performance Highlights

    Highlights 1Q 2023 Supplemental Company Performance dollars in millions, except per share/unit data Three Months ended March 31, 2023 2022 Rental and other revenues $ 1,634 $ 1,085 Strategic capital revenues 135 134 Total revenues 1,769 1,219 Net earnings attributable to common stockholders 463 1,14

  6. Slide 6: Company Performance: Earnings, FFO, AFFO and Dividends

    Highlights 1Q 2023 Supplemental Company Performance NET EARNINGS ATTRIBUTABLE TO COMMON STOCKHOLDERS CORE FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS/ in millions UNITHOLDERS* in millions $4,000 $5,000 $3,359 $4,188 $2,934 $4,000 $3,000 $3,172 $3,000 $2,864 $2,000 $1,567 $2,164 $1,473 $2,000 $1,157 $1,0

  7. Slide 7: Prologis Leading Indicators and Proprietary Metrics

    Highlights 1Q 2023 Supplemental Prologis Leading Indicators and Proprietary Metrics* LEASE PROPOSALS U.S. IBI ACTIVITY INDEX in millions of square feet diffusion index, points 40 80 30 Average 23 Average 58.0 60 20 53.3 40 10 0 20 NEW LEASE NEGOTIATION GESTATION U.S. SPACE UTILIZATION in days percen

  8. Slide 8: Guidance

    Highlights 1Q 2023 Supplemental Guidance (A) dollars in millions, except per share amounts 2023 Guidance Low High Net earnings attributable to common stockholders (B) $ 3.10 $ 3.25 Core FFO attributable to common stockholders/unitholders* (B) $ 5.42 $ 5.50 Core FFO attributable to common stockholder

  9. Slide 9: Consolidated Balance Sheets

    Financial Information 1Q 2023 Supplemental Consolidated Balance Sheets in thousands March 31, 2023 December 31, 2022 Assets: Investments in real estate properties: Operating properties $ 69,569,484 $ 69,038,795 Development portfolio 4,252,643 4,212,154 Land 3,444,294 3,338,121 Other real estate inve

  10. Slide 10: Consolidated Statements of Income

    Financial Information 1Q 2023 Supplemental Consolidated Statements of Income Three Months Ended March 31, in thousands, except per share amounts 2023 2022 Revenues: Rental $ 1,633,770 $ 1,076,861 Strategic capital 134,701 133,925 Development management and other 116 8,342 Total revenues 1,768,587 1,

  11. Slide 11: Reconciliations of Net Earnings to FFO

    Financial Information 1Q 2023 Supplemental Reconciliations of Net Earnings to FFO* Three Months Ended March 31, in thousands 2023 2022 Net earnings attributable to common stockholders $ 463,170 $ 1,149,254 Add (deduct) NAREIT defined adjustments: Real estate related depreciation and amortization 590

  12. Slide 12: Reconciliations of Net Earnings to Adjusted EBITDA

    Financial Information 1Q 2023 Supplemental Reconciliations of Net Earnings to Adjusted EBITDA* Three Months Ended March 31, in thousands 2023 2022 Net earnings attributable to common stockholders $ 463,170 $ 1,149,254 Gains on other dispositions of investments in real estate, net (excluding developm

  13. Slide 13: Operations Overview

    Operations 1Q 2023 Supplemental Overview OCCUPANCY CUSTOMER RETENTION 100% 100% 97.7% 97.8% 98.0% 98.2% 98.0% 98.0% 97.4% 97.4% 97.6% 97.7% 82.4% 78.6% 77.2% 75.4% 76.4% 95% 75% 90% 50% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Average Period End SAME STORE CHAN

  14. Slide 14: Operating Metrics – Owned and Managed

    Operations 1Q 2023 Supplemental Operating Metrics – Owned and Managed PERIOD ENDING OCCUPANCY 100% 98.4% 98.4% 98.4% 98.6% 98.6% 98.7% 98.6% 98.3% 98.2% 98.3% 98.0% 97.6% 97.8% 97.9% 97.8% 95.9% 96.1% 95.1% 94.7% 95% 94.6% 90% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q

  15. Slide 15: Operating Metrics – Capex and Same Store

    Operations 1Q 2023 Supplemental Operating Metrics – Owned and Managed CAPITAL EXPENDITURES(A) SAME STORE INFORMATION Thousands, except for percentages Thousands, except for percentages Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Property improvements $ 40,266 $ 87

  16. Slide 16: Operating Portfolio – Square Feet, Occupied and Leased

    Operations 1Q 2023 Supplemental Operating Portfolio – Square Feet, Occupied and Leased # of Buildings Square Feet Occupied % Leased % Owned and Owned and Prologis % of Owned and Prologis Owned and Prologis square feet in thousands and ordered by Prologis share of NOI (%) Managed Managed(A) Share(A)

  17. Slide 17: Operating Portfolio – NOI and Gross Book Value

    Operations 1Q 2023 Supplemental Operating Portfolio – NOI* and Gross Book Value First Quarter NOI* Gross Book Value Owned and Prologis % of Owned and Prologis % of dollars in thousands and ordered by Prologis share of NOI (%) Managed(A) Share(A) Total Managed Share Total Southern California $ 302,50

  18. Slide 18: Operating Portfolio – Summary by Division

    Operations 1Q 2023 Supplemental Operating Portfolio – Summary by Division # of Buildings Square Feet Occupied % Leased % Owned and Owned and Prologis % of Owned and Prologis Owned and Prologis square feet and dollars in thousands Managed Managed Share Total Managed Share Managed Share Consolidated T

  19. Slide 19: Customer Information

    Operations 1Q 2023 Supplemental Customer Information Top Customers Remaining Lease Expirations - Operating Portfolio square feet in thousands square feet and dollars in thousands, except per square foot amounts Owned and Managed Owned and Managed % of Net Effective Net Effective Rent Rent Total Squa

  20. Slide 20: Capital Deployment Overview – Prologis Share

    Capital Deployment 1Q 2023 Supplemental Overview – Prologis Share U.S. Outside the U.S. YTD Q1 DEVELOPMENT STARTS (TEI) DEVELOPMENT STABILIZATIONS (TEI) in millions dollars in millions $5,000 $4,675 $3,600 $3,000 $2,888 $4,000 $3,625 $2,469 $2,493 $2,501 $2,400 $3,000 $2,854 $2,112 $1,800 $2,000 $1,

  21. Slide 21: Development Stabilizations

    Capital Deployment 1Q 2023 Supplemental Development Stabilizations Q1 2023 TEI square feet and dollars in thousands Square Feet Owned and Managed Prologis Share Central 671 $ 94,291 $ 94,291 East 2,493 382,897 266,926 West (A) 966 138,156 138,156 Total U.S. 4,130 615,344 499,373 Canada - - - Mexico

  22. Slide 22: Development Starts

    Capital Deployment 1Q 2023 Supplemental Development Starts Q1 2023 TEI Square Leased % at Owned and Prologis square feet and dollars in thousands Feet Start Managed Share Central - - $ - $ - East 89 100.0 14,347 12,195 West - - - - Total U.S. 89 100.0 14,347 12,195 Canada - - - - Mexico - - - - Braz

  23. Slide 23: Development Portfolio

    Capital Deployment 1Q 2023 Supplemental Development Portfolio Under Development 2024 and Thereafter Expected Pre-Stabilized Developments 2023 Expected Completion Completion Total Development Portfolio TEI TEI TEI Owned and Managed Prologis Share Leased Owned and Prologis Owned and Prologis Owned and

  24. Slide 24: Third-Party Acquisitions

    Capital Deployment 1Q 2023 Supplemental Third-Party Acquisitions Q1 2023 Square Feet Acquisition Price Owned and Owned and square feet and dollars in thousands Managed Prologis Share Managed Prologis Share Total U.S. - - $ - $ - Total Outside the U.S. - - - - Total Third-Party Building Acquisitions

  25. Slide 25: Dispositions and Contributions

    Capital Deployment 1Q 2023 Supplemental Dispositions and Contributions Q1 2023 Square Feet Sales Price Owned and Prologis Owned and Prologis square feet and dollars in thousands Managed Share Managed Share Third-Party Building Dispositions Total U.S. - - $ - $ - Total Outside the U.S. - - - - Total

  26. Slide 26: Land Portfolio – Owned and Managed

    Capital Deployment 1Q 2023 Supplemental Land Portfolio – Owned and Managed Acres Current Book Value square feet and dollars in thousands, ordered by Prologis Owned and Prologis Estimated Build Out Owned and Prologis % of Share of NOI (%) of the Operating Portfolio Managed Share (sq ft) Managed Share

  27. Slide 27: Land Portfolio – Summary and Roll Forward

    Capital Deployment 1Q 2023 Supplemental Land Portfolio – Summary and Roll Forward Acres Current Book Value dollars in thousands Owned and Managed Prologis Share % of Total Owned and Managed Prologis Share % of Total Central 1,539 1,524 20.6 $ 484,724 $ 482,303 13.8 East 1,262 1,244 16.8 548,203 543,

  28. Slide 28: Strategic Capital Overview

    Strategic Capital 1Q 2023 Supplemental Overview THIRD-PARTY AUM THIRD-PARTY FEE RELATED AND PROMOTE REVENUE dollars in billions in millions $80 $66 $1,000 $901 $62 $62 $60 $53 $800 $45 $600 $528 $40 $456 $411 $400 $20 $200 $98 $0 $0 12/31/19 12/31/20 12/31/21 12/31/22 3/31/23 2019 2020 2021 2022 YTD

  29. Slide 29: Summary and Financial Highlights

    Strategic Capital 1Q 2023 Supplemental Summary and Financial Highlights Next Promote Co-Investment Ventures Region Type Established Accounting Method Ownership Structure Opportunity Prologis U.S. Logistics Venture U.S. Core 2014 Consolidated 55.0% Open end Q4 2023* Prologis Targeted U.S. Logistics F

  30. Slide 30: Operating and Balance Sheet Information of Unconsolidated Co-Investment Ventures

    Strategic Capital 1Q 2023 Supplemental Operating and Balance Sheet Information of the Unconsolidated Co-Investment Ventures (at 100%)(A) dollars in thousands U.S. Other Americas Europe Asia Total Operating Information For the Three Months Ended March 31, 2023 Rental revenues $ 324,248 $ 103,080 $ 41

  31. Slide 31: Non-GAAP Pro-Rata Financial Information

    Strategic Capital 1Q 2023 Supplemental Non-GAAP Pro-Rata Financial Information(A) Non Controlling Interests included in Prologis Share of Unconsolidated dollars in thousands Consolidated Amounts* Co-Investment Ventures* Operating Information For the Three Months Ended March 31, 2023 Rental revenues

  32. Slide 32: Capitalization Overview

    Capitalization 1Q 2023 Supplemental Overview ASSETS UNDER MANAGEMENT U.S. DOLLAR EXPOSURE dollars in millions dollars in millions $146,529 $208,240 $208,240 $146,529 $28,352 $118,177 $210,000 Investment Asia Capacity Investors' share 7.1% $1,392 of ventures Europe $180,000 $60,319 15.3% Outside U.S.

  33. Slide 33: Debt Components – Consolidated

    Capitalization 1Q 2023 Supplemental Debt Components – Consolidated dollars in thousands Unsecured Credit Secured Wtd. Avg. Interest Maturity Senior Facilities (A) Other (B) Mortgage Total Rate % Fixed 2023 $ - $ - $ - $ 31,619 $ 31,619 3.8% 88% 2024 326,250 - - 95,292 421,542 1.7% 61% 2025 37,544 98

  34. Slide 34: Debt Components – Noncontrolling Interests and Unconsolidated

    Capitalization 1Q 2023 Supplemental Debt Components – Noncontrolling Interests and Unconsolidated (A) dollars in thousands Noncontrolling Interests Prologis Share of Unconsolidated Co-Investment Ventures Wtd. Avg. Wtd. Avg. Maturity Unsecured Secured Total Interest Rate % Fixed Unsecured (B) Secured

  35. Slide 35: Net Asset Value Components – Prologis Share

    Net Asset Value 1Q 2023 Supplemental Components – Prologis Share in thousands, except for percentages and per square foot amounts Operating Portfolio Gross Book Adjusted Cash Adjusted Cash NOI Annualized Square Feet Value GBV per Sq Ft NOI (Actual)* (Pro Forma)* Adjusted Cash NOI* Percent Occupied C

  36. Slide 36: Net Asset Value Components – continued

    Net Asset Value 1Q 2023 Supplemental Components – continued in thousands Balance Sheet and Other Items Other assets Cash and cash equivalents $ 522,501 Restricted cash 39,377 Accounts receivable, prepaid assets and other tangible assets 1,344,034 Gross book value of other real estate investments and

  37. Slide 37: Notes and Definitions

    1Q 2023 Supplemental Prologis Park Venlo, Venlo, the Netherlands Notes and Definitions

  38. Slide 38: Notes and Definitions

    Notes and Definitions 1Q 2023 Supplemental Please refer to our annual and quarterly financial statements filed with the Securities and Exchange We calculate Adjusted EBITDA by beginning with consolidated net earnings attributable to common Commission on Forms 10-K and 10-Q and other public reports f

  39. Slide 39: Notes and Definitions (continued)

    Notes and Definitions (continued) 1Q 2023 Supplemental Business Line Reporting is a non-GAAP financial measure. Core FFO and development gains are Calculation of Per Share Amounts generated by our three lines of business: (i) real estate operations; (ii) strategic capital; and (iii) Three Months End

  40. Slide 40: Notes and Definitions (continued)

    Notes and Definitions (continued) 1Q 2023 Supplemental Three Months Ended Three Months Ended March 31, Dec. 31, March 31, Dec. 31, dollars in thousands 2023 2022 dollars in thousands 2023 2022 Debt as a % of gross real estate assets: Fixed Charge Coverage ratio: Consolidated debt $ 25,153,342 $ 23,8

  41. Slide 41: Notes and Definitions (continued)

    Notes and Definitions (continued) 1Q 2023 Supplemental Estimated Weighted Average Stabilized Yield is calculated on the properties in the Development the gains on revaluation of equity investments upon acquisition of a controlling interest and the gain Portfolio as Stabilized NOI divided by TEI. The

  42. Slide 42: Notes and Definitions (continued)

    Notes and Definitions (continued) 1Q 2023 Supplemental We use FFO, as modified by Prologis, so that management, analysts and investors are able to evaluate these are only a few of the many measures we use when analyzing our business. Some of the our performance against other REITs that do not have s

  43. Slide 43: Notes and Definitions (continued)

    Notes and Definitions (continued) 1Q 2023 Supplemental Three Months Ended Interest Expense. March 31, Three Months Ended in thousands 2023 2022 March 31, Building and land development activities $ 37,121 $ 25,259 in thousands 2023 2022 Operating building improvements and other 14,937 10,490 Gross in

  44. Slide 44: Notes and Definitions (continued)

    Notes and Definitions (continued) 1Q 2023 Supplemental Net Promote Income is promote revenue earned from third-party investors during the period, net of and Tampa. The European countries not presented consist of Belgium, Czech Republic, Hungary, Italy, related cash and stock compensation expenses, a

  45. Slide 45: Notes and Definitions (continued)

    Notes and Definitions (continued) 1Q 2023 Supplemental We believe the drivers of property NOI for the consolidated portfolio are generally the same for the apply our ownership percentage at March 31, 2023 to the Property NOI for both periods, including the properties owned by the ventures in which w

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