Slide 1: Prologis Supplemental Information
THIRD QUARTER 2023 Prologis Supplemental Information Unaudited
Slide 2: Contents
Contents 3Q 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
Slide 3: Overview
Overview 3Q 2023 Supplemental Prologis, Inc., is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At September 30, 2023, the company owned or had investments in, on a wholly-owned basis or through co-investment ventures, properties and development project
Slide 4: Company Profile
Highlights 3Q 2023 Supplemental Company Profile OPERATIONS STRATEGIC CAPITAL DEVELOPMENT $5.6B in annual NOI* (A) $887M of fees and promotes (B) $1.0B in value creation from stabilizations(C) 86% 79% 62% 38% 14% 21% U.S. Outside the U.S. U.S. Outside the U.S. U.S. Outside the U.S. GROSS AUM PROLOGIS
Slide 5: Company Performance
Highlights 3Q 2023 Supplemental Company Performance dollars in millions, except per share/unit data Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Rental and other revenues $ 1,778 $ 1,156 $ 5,063 $ 3,337 Strategic capital revenues 137 595 1,071 885 Total revenu
Slide 6: Company Performance Charts
Highlights 3Q 2023 Supplemental Company Performance NET EARNINGS ATTRIBUTABLE TO COMMON STOCKHOLDERS CORE FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS/ in millions UNITHOLDERS* in millions $5,000 $5,000 $4,188 $4,132 $4,000 $3,359 $4,000 $2,934 $3,172 $2,864 $3,000 $2,424 $3,000 $2,164 $2,000 $1,567 $1,4
Slide 7: Prologis Leading Indicators and Proprietary Metrics
Highlights 3Q 2023 Supplemental Prologis Leading Indicators and Proprietary Metrics* LEASE PROPOSALS U.S. IBI ACTIVITY INDEX in millions of square feet diffusion index, points 80 Average 70 80 Average 57.7 60 60 57.9 40 40 20 20 0 0 NEW LEASE NEGOTIATION GESTATION U.S. SPACE UTILIZATION in days perc
Slide 8: Guidance
Highlights 3Q 2023 Supplemental Guidance(A) dollars in millions, except per share amounts 2023 Guidance Low High Net earnings attributable to common stockholders (B) $ 3.30 $ 3.35 (B) Core FFO attributable to common stockholders/unitholders* $ 5.58 $ 5.60 Core FFO attributable to common stockholders
Slide 9: Consolidated Balance Sheets
Financial Information 3Q 2023 Supplemental Consolidated Balance Sheets in thousands September 30, 2023 June 30, 2023 December 31, 2022 Assets: Investments in real estate properties: Operating properties $ 73,866,759 $ 73,543,219 $ 69,038,795 Development portfolio 4,420,246 4,219,758 4,212,154 Land 3
Slide 10: Consolidated Statements of Income
Financial Information 3Q 2023 Supplemental Consolidated Statements of Income Three Months Ended Nine Months Ended September 30, September 30, in thousands, except per share amounts 2023 2022 2023 2022 Revenues: Rental $ 1,777,359 $ 1,151,846 $ 5,062,583 $ 3,322,159 Strategic capital 136,848 594,752
Slide 11: Reconciliations of Net Earnings to FFO
Financial Information 3Q 2023 Supplemental Reconciliations of Net Earnings to FFO* Three Months Ended Nine Months Ended September 30, September 30, in thousands 2023 2022 2023 2022 Net earnings attributable to common stockholders $ 746,174 $ 1,013,933 $ 2,423,897 $ 2,773,042 Add (deduct) NAREIT defi
Slide 12: Reconciliations of Net Earnings to Adjusted EBITDA
Financial Information 3Q 2023 Supplemental Reconciliations of Net Earnings to Adjusted EBITDA* Three Months Ended Nine Months Ended September 30, September 30, in thousands 2023 2022 2023 2022 Net earnings attributable to common stockholders $ 746,174 $ 1,013,933 $ 2,423,897 $ 2,773,042 Gains on oth
Slide 13: Operations Overview
Operations 3Q 2023 Supplemental Overview OCCUPANCY CUSTOMER RETENTION 100% 100% 97.7% 97.8% 98.0% 98.2% 98.0% 98.0% 97.5% 97.2% 97.1% 97.5% 82.4% 76.4% 77.2% 76.8% 95% 80% 70.5% 90% 60% 85% 40% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Average Period End SAME ST
Slide 14: Operating Metrics – Owned and Managed
Operations 3Q 2023 Supplemental Operating Metrics – Owned and Managed PERIOD ENDING OCCUPANCY 100% 98.3% 98.2% 98.4% 98.3% 98.6% 98.8% 98.6% 98.7% 98.6% 98.2% 97.9% 97.7% 97.7% 97.3% 97.2% 96.1% 95.1% 94.7% 94.3% 94.5% 95% 90% Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 22 Q4 22 Q
Slide 15: Operating Metrics – Owned and Managed
Operations 3Q 2023 Supplemental Operating Metrics – Owned and Managed CAPITAL EXPENDITURES(A) SAME STORE INFORMATION Thousands, except for percentages Thousands, except for percentages Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Property improvements $ 106,995 $ 1
Slide 16: Operating Portfolio – Square Feet, Occupied and Leased
Operations 3Q 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)
Slide 17: Operating Portfolio – NOI and Gross Book Value
Operations 3Q 2023 Supplemental Operating Portfolio – NOI* and Gross Book Value Third 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 $ 332,72
Slide 18: Operating Portfolio – Summary by Division
Operations 3Q 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
Slide 19: Customer Information
Operations 3Q 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
Slide 20: Capital Deployment Overview – Prologis Share
Capital Deployment 3Q 2023 Supplemental Overview – Prologis Share U.S. Outside the U.S. YTD Q3 DEVELOPMENT STARTS (TEI) DEVELOPMENT STABILIZATIONS (TEI) in millions dollars in millions $5,000 $4,675 $3,000 $2,888 $2,469 $2,493 $2,501 $4,000 $3,625 $2,400 $2,854 $1,925 $3,000 $1,800 $2,112 $2,000 $1,
Slide 21: Development Stabilizations
Capital Deployment 3Q 2023 Supplemental Development Stabilizations Q3 2023 FY 2023 TEI TEI square feet and dollars in thousands Square Feet Owned and Managed Prologis Share Square Feet Owned and Managed Prologis Share Central 206 $ 26,499 $ 26,499 1,612 $ 259,110 $ 251,443 East - - - 3,040 446,894 3
Slide 22: Development Starts
Capital Deployment 3Q 2023 Supplemental Development Starts Q3 2023 FY 2023 TEI TEI Square Leased % at Owned and Prologis Square Leased % at Owned and Prologis square feet and dollars in thousands Feet Start Managed Share Feet Start Managed Share Central(A) 362 100.0 $ 622,169 $ 600,065 761 47.6 $ 68
Slide 23: Development Portfolio
Capital Deployment 3Q 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 Owned and Prologis Owned and Prologis Owned and square
Slide 24: Third-Party Acquisitions
Capital Deployment 3Q 2023 Supplemental Third-Party Acquisitions Q3 2023 FY 2023 Square Feet Acquisition Price Square Feet Acquisition Price Owned and Owned and Owned and Prologis Owned and Prologis square feet and dollars in thousands Managed Prologis Share Managed Prologis Share Managed Share Mana
Slide 25: Dispositions and Contributions
Capital Deployment 3Q 2023 Supplemental Dispositions and Contributions Q3 2023 FY 2023 Square Feet Sales Price Square Feet Sales Price Owned and Prologis Owned and Prologis Owned and Prologis Owned and Prologis square feet and dollars in thousands Managed Share Managed Share Managed Share Managed Sh
Slide 26: Land Portfolio – Owned and Managed
Capital Deployment 3Q 2023 Supplemental Land Portfolio – Owned and Managed Acres Current Book Value square feet and dollars in thousands, ordered by Prologis Share Owned and Prologis Estimated Build Out Owned and Prologis % of of NOI (%) of the Operating Portfolio Managed Share (sq ft) Managed Share
Slide 27: Land Portfolio – Summary and Roll Forward
Capital Deployment 3Q 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 1,492 1,477 18.2 $ 486,872 $ 484,244 12.8 East 1,358 1,340 16.5 655,617 650,
Slide 28: Strategic Capital Overview
Strategic Capital 3Q 2023 Supplemental Overview THIRD-PARTY AUM THIRD-PARTY FEE RELATED AND PROMOTE REVENUE dollars in billions in millions $80 $1,250 $66 $62 $60 $955 $1,000 $901 $60 $53 $45 $750 $40 $528 $411 $456 $500 $20 $250 $0 $0 12/31/19 12/31/20 12/31/21 12/31/22 9/30/23 2019 2020 2021 2022
Slide 29: Summary and Financial Highlights
Strategic Capital 3Q 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
Slide 30: Operating and Balance Sheet Information of Unconsolidated Co-Investment Ventures
Strategic Capital 3Q 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 September 30, 2023 Rental revenues $ 330,231 $ 108,655
Slide 31: Non-GAAP Pro-Rata Financial Information
Strategic Capital 3Q 2023 Supplemental Non-GAAP Pro-Rata Financial Information(A) Noncontrolling Interests included in Prologis Share of Unconsolidated dollars in thousands Consolidated Amounts* Co-Investment Ventures* Operating Information For the Three Months Ended September 30, 2023 Rental revenu
Slide 32: Capitalization Overview
Capitalization 3Q 2023 Supplemental Overview ASSETS UNDER MANAGEMENT U.S. DOLLAR EXPOSURE dollars in millions dollars in millions $137,285 $197,231 $197,231 $137,285 $30,975 $106,310 $210,000 Investment Capacity Asia $180,000 $2,385 7.4% Investors' share Europe Outside U.S. of ventures 15.6% Outside
Slide 33: Debt Components – Consolidated
Capitalization 3Q 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 $ - $ - $ - $ 1,684 $ 1,684 4.0% 100% 2024 317,820 - - 96,121 413,941 2.1% 62% 2025 33,504 - 501
Slide 34: Debt Components – Noncontrolling Interests and Unconsolidated
Capitalization 3Q 2023 Supplemental Debt Components – Noncontrolling Interests and Unconsolidated(A) dollars in thousands Noncontrolling Interests Prologis Share of Unconsolidated Co-Investment Ventures Wtd. Avg. Interest Wtd. Avg. Interest (B) Maturity Unsecured Secured Total Rate % Fixed Unsecured
Slide 35: Net Asset Value Components – Prologis Share
Net Asset Value 3Q 2023 Supplemental Components – Prologis Share in thousands, except for percentages and per square foot amounts Operating Portfolio Adjusted Cash Adjusted Cash NOI Annualized Adjusted Square Feet Gross Book Value GBV per Sq Ft NOI (Actual)* (Pro Forma)* Cash NOI* Percent Occupied C
Slide 36: Net Asset Value Components – continued
Net Asset Value 3Q 2023 Supplemental Components – continued in thousands Balance Sheet and Other Items Other assets Cash and cash equivalents $ 740,841 Restricted cash 38,732 Accounts receivable, prepaid assets and other tangible assets 1,336,353 Gross book value of other real estate investments and
Slide 37: Notes and Definitions
3Q 2023 Supplemental Tres Rios, Mexico City, Mexico Notes and Definitions
Slide 38: Notes and Definitions
Notes and Definitions 3Q 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
Slide 39: Notes and Definitions (continued)
Notes and Definitions (continued) 3Q 2023 Supplemental Business Line Reporting is a non-GAAP financial measure. Core FFO and development gains are Three Months Ended Nine Months Ended generated by our three lines of business: (i) real estate operations; (ii) strategic capital; and (iii) Sept. 30, Se
Slide 40: Notes and Definitions (continued)
Notes and Definitions (continued) 3Q 2023 Supplemental Three Months Ended Three Months Ended Sept. 30, Jun. 30, Sept. 30, Jun. 30, dollars in thousands 2023 2023 dollars in thousands 2023 2023 Debt as a % of gross real estate assets: Fixed Charge Coverage ratio: Consolidated debt $ 27,578,197 $ 28,1
Slide 41: Notes and Definitions (continued)
Notes and Definitions (continued) 3Q 2023 Supplemental Estimated Weighted Average Stabilized Yield is calculated on the properties in the Development The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as earnings Portfolio as Stabilized NOI divided by TEI. The yields on
Slide 42: Notes and Definitions (continued)
Notes and Definitions (continued) 3Q 2023 Supplemental (c) derivative financial instruments related to any such debt transactions, and (d) mark-to-market While we believe our modified FFO measures are important supplemental measures, neither NAREIT’s adjustments associated with other derivative fina
Slide 43: Notes and Definitions (continued)
Notes and Definitions (continued) 3Q 2023 Supplemental Three Months Ended Nine Months Ended Interest Expense. Sept. 30, Sept. 30, Three Months Ended Nine Months Ended in thousands 2023 2022 2023 2022 Sept. 30, Sept. 30, Building and land development activities $ 29,153 $ 27,337 $ 96,294 $ 78,608 in
Slide 44: Notes and Definitions (continued)
Notes and Definitions (continued) 3Q 2023 Supplemental Net Promote Income is promote revenue earned from third-party investors during the period, net of Owned and Managed represents the consolidated properties as well as properties owned by our related cash and stock compensation expenses, and taxes
Slide 45: Notes and Definitions (continued)
Notes and Definitions (continued) 3Q 2023 Supplemental The same store population excludes properties held for sale to third parties, along with development portfolio of the co-investment ventures by subtracting the third parties’ share of both consolidated and properties that were not stabilized at