Prologis, Inc. · NYSE:PLD
Prologis — Q1 2024 Earnings Presentation
46 slides from Prologis's earnings presentation, Apr 17, 2024
Slide 1: Prologis Supplemental Information First Quarter 2024
Prologis Park Koga 4, Koga City, Ibaraki, Japan FIRST QUARTER 2024 Prologis Supplemental Information Unaudited
Slide 2: Contents
Contents 1Q 2024 Supplemental Highlights Strategic Capital 1 Company Profile 26 Overview 2 Company Performance 27 Summary and Financial Highlights 4 Prologis Leading Indicators and Proprietary Metrics 28 Operating and Balance Sheet Information of the Unconsolidated 5 Guidance Co-Investment Ventures
Slide 3: Overview
Overview 1Q 2024 Supplemental 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 ex
Slide 4: Company Profile
Highlights 1Q 2024 Supplemental Company Profile OPERATIONS STRATEGIC CAPITAL DEVELOPMENT $5.8B in annual NOI* (A) $834M of fees and promotes (B) $691M in value creation from stabilizations(C) 86% 80% 59% 41% 14% 20% 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
Highlights 1Q 2024 Supplemental Company Performance dollars in millions, except per share/unit data Three Months Ended March 31, 2024 2023 Rental and other revenues $ 1,828 $ 1,634 Strategic capital revenues 129 135 Total revenues 1,957 1,769 Net earnings attributable to common stockholders 584 463
Slide 6: Company Performance: Earnings, FFO, AFFO and Dividends
Highlights 1Q 2024 Supplemental Company Performance NET EARNINGS ATTRIBUTABLE TO COMMON STOCKHOLDERS CORE FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS/ in millions UNITHOLDERS* in millions $5,000 $6,250 $5,334 $4,000 $3,359 $5,000 $4,188 $2,934 $3,053 $3,000 $2,864 $3,172 $3,750 $2,000 $1,473 $2,500 $1,2
Slide 7: Prologis Leading Indicators and Proprietary Metrics
Highlights 1Q 2024 Supplemental Prologis Leading Indicators and Proprietary Metrics* LEASE PROPOSALS U.S. IBI ACTIVITY INDEX in millions of square feet diffusion index, points 100 80 95 Average 71 Average 57.7 75 60 57.9 50 40 25 20 0 0 NEW LEASE NEGOTIATION GESTATION U.S. SPACE UTILIZATION in days
Slide 8: Guidance
Highlights 1Q 2024 Supplemental Guidance(A) dollars in millions, except per share amounts 2024 Guidance Low High (B) Net earnings attributable to common stockholders $ 3.15 $ 3.35 (B) Core FFO attributable to common stockholders/unitholders* $ 5.37 $ 5.47 (C) Core FFO attributable to common stockhol
Slide 9: Consolidated Balance Sheets
Financial Information 1Q 2024 Supplemental Consolidated Balance Sheets in thousands March 31, 2024 December 31, 2023 Assets: Investments in real estate properties: Operating properties $ 75,974,027 $ 75,435,497 Development portfolio 4,362,752 4,367,455 Land 4,072,212 3,775,553 Other real estate inve
Slide 10: Consolidated Statements of Income
Financial Information 1Q 2024 Supplemental Consolidated Statements of Income Three Months Ended March 31, in thousands, except per share amounts 2024 2023 Revenues: Rental $ 1,827,658 $ 1,633,770 Strategic capital 128,412 134,701 Development management and other 551 116 Total revenues 1,956,621 1,76
Slide 11: Reconciliations of Net Earnings to FFO
Financial Information 1Q 2024 Supplemental Reconciliations of Net Earnings to FFO* Three Months Ended March 31, in thousands 2024 2023 Net earnings attributable to common stockholders $ 584,263 $ 463,170 Add (deduct) NAREIT FFO defined adjustments: Real estate related depreciation and amortization 6
Slide 12: Reconciliations of Net Earnings to Adjusted EBITDA
Financial Information 1Q 2024 Supplemental Reconciliations of Net Earnings to Adjusted EBITDA* Three Months Ended March 31, in thousands 2024 2023 Net earnings attributable to common stockholders $ 584,263 $ 463,170 Gains on other dispositions of investments in real estate, net (excluding developmen
Slide 13: Operations Overview
Operations 1Q 2024 Supplemental Overview OCCUPANCY – OWNED AND MANAGED CUSTOMER RETENTION Average Period End 100% 100% 98.0% 98.0% 97.5% 97.2% 97.1% 97.5% 97.1% 97.6% 96.8% 97.0% 95% 80% 77.2% 76.8% 73.1% 74.3% 70.5% 90% 60% 85% 40% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4
Slide 14: Operating Metrics – Owned and Managed
Operations 1Q 2024 Supplemental Operating Metrics – Owned and Managed PERIOD ENDING OCCUPANCY 100% 99.4% 98.6% 98.8% 99.1% 98.6% 98.2% 98.2% 97.3% 97.7% 97.6% 97.7% 97.7% 97.0% 97.2% 97.0% 95.9% 95.3% 94.7% 94.3% 94.5% 95% 90% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 23 Q
Slide 15: Operating Metrics: Capital Expenditures and Same Store
Operations 1Q 2024 Supplemental Operating Metrics – Owned and Managed CAPITAL EXPENDITURES SAME STORE INFORMATION Thousands, except for percentages Thousands, except for percentages Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Property improvements(A) $ 52,407 $ 10
Slide 16: Operating Portfolio – Square Feet, Occupied and Leased
Operations 1Q 2024 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 Share Total
Slide 17: Operating Portfolio – NOI and Gross Book Value
Operations 1Q 2024 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 Share Total Managed Share Total Southern California $ 351,835 $ 29
Slide 18: Operating Portfolio – Summary by Division
Operations 1Q 2024 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 1Q 2024 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
Capital Deployment 1Q 2024 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 $4,000 $3,625 $2,888 $3,151 $4,000 $3,200 $3,397 $2,493 $2,501 $3,000 $2,400 $2,112 $2,000 $1,600 $1,
Slide 21: Development Stabilizations
Capital Deployment 1Q 2024 Supplemental Development Stabilizations Q1 2024 TEI square feet and dollars in thousands Square Feet Owned and Managed Prologis Share Central 229 $ 31,904 $ 31,904 East 318 48,839 48,839 West 1,393 250,513 250,081 Total U.S. 1,940 331,256 330,824 Canada - - - Mexico 274 20
Slide 22: Development Starts
Capital Deployment 1Q 2024 Supplemental Development Starts Q1 2024 TEI Square Leased % at Owned and Prologis square feet and dollars in thousands Feet Start Managed Share Central 30 100.0 $ 5,722 $ 5,722 East 683 0.0 161,481 155,736 West - - - - Total U.S. 713 4.2 167,203 161,458 Canada - - - - Mexi
Slide 23: Development Portfolio
Capital Deployment 1Q 2024 Supplemental Development Portfolio Under Development 2025 and Thereafter Expected Pre-Stabilized Developments 2024 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 1Q 2024 Supplemental Third-Party Acquisitions Q1 2024 Square Feet Acquisition Price Owned and Owned and square feet and dollars in thousands Managed Prologis Share Managed Prologis Share Total U.S. - - $ - $ - FIBRA Prologis 50 21 8,094 3,341 Prologis European Logistics Fund 12 3
Slide 25: Dispositions and Contributions
Capital Deployment 1Q 2024 Supplemental Dispositions and Contributions Q1 2024 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
Slide 26: Land Portfolio – Owned and Managed
Capital Deployment 1Q 2024 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 1Q 2024 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 1,398 1,384 16.5 $ 475,370 $ 472,858 11.5 East 1,268 1,245 14.9 727,379 720,
Slide 28: Solar Operating and Development Portfolios
Capital Deployment 1Q 2024 Supplemental Solar Operating and Development Portfolios – Owned and Managed Operating Portfolio Development Portfolio dollars in thousands Solar Capacity (MW) Gross Book Value Solar Capacity (MW) Current Investment TEI Southern California 14 $ 29,201 26 $ 30,838 $ 82,210 N
Slide 29: Strategic Capital Overview
Strategic Capital 1Q 2024 Supplemental Overview THIRD-PARTY AUM THIRD-PARTY FEE RELATED AND PROMOTE REVENUE dollars in billions in millions $80 $2,000 $66 $62 $60 $59 $60 $53 $1,500 $1,046 $40 $901 $1,000 $528 $456 $20 $500 $89 $0 $0 12/31/20 12/31/21 12/31/22 12/31/23 3/31/24 2020 2021 2022 2023 YT
Slide 30: Strategic Capital Summary and Financial Highlights
Strategic Capital 1Q 2024 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 2024* Prologis Targeted U.S. Logistics F
Slide 31: Unconsolidated Co-Investment Ventures Operating and Balance Sheet Information
Strategic Capital 1Q 2024 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, 2024 Rental revenue $ 353,248 $ 119,713 $ 461
Slide 32: Non-GAAP Pro-Rata Financial Information
Strategic Capital 1Q 2024 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 March 31, 2024 Rental revenue $
Slide 33: Capitalization Overview
Capitalization 1Q 2024 Supplemental Overview ASSETS UNDER MANAGEMENT U.S. DOLLAR EXPOSURE dollars in millions dollars in millions $156,933 $216,176 $216,176 $156,933 $33,373 $123,560 $225,000 Investment Asia Capacity 6.7% $200,000 $2,393 Investors' share Europe of ventures Other Outside U.S. Outside
Slide 34: Debt Components – Consolidated
Capitalization 1Q 2024 Supplemental Debt Components – Consolidated dollars in thousands Unsecured Credit Secured Wtd. Avg. Interest Maturity Senior Facilities(A) Other(B) Mortgage Total Rate % Fixed 2024 $ - $ - $ - $ 5,352 $ 5,352 4.0% 100% 2025 33,071 - 582 178,913 212,566 4.2% 80% 2026 1,305,718
Slide 35: Debt Components – Noncontrolling Interests and Unconsolidated
Capitalization 1Q 2024 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 36: Net Asset Value Components – Prologis Share
Net Asset Value 1Q 2024 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 37: Net Asset Value Components – Continued
Net Asset Value 1Q 2024 Supplemental Components – Continued in thousands Balance Sheet and Other Items Other assets Cash and cash equivalents $ 500,589 Restricted cash 27,304 Accounts receivable, prepaid assets and other tangible assets 1,227,357 Gross book value of other real estate investments and
Slide 38: Notes and Definitions
1Q 2024 Supplemental Prologis Park Morioka, Morioka, Iwate, Japan Notes and Definitions
Slide 39: Notes and Definitions
Notes and Definitions 1Q 2024 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 40: Notes and Definitions (continued)
Notes and Definitions (continued) 1Q 2024 Supplemental Business Line Reporting is a non-GAAP financial measure. Core FFO and development gains are Three Months Ended generated by our three lines of business: (i) real estate operations; (ii) strategic capital; and (iii) March 31, development. The rea
Slide 41: Notes and Definitions (continued)
Notes and Definitions (continued) 1Q 2024 Supplemental Three Months Ended Three Months Ended March 31, Dec. 31, March 31, Dec. 31, dollars in thousands 2024 2023 dollars in thousands 2024 2023 Debt as a % of gross real estate assets: Fixed Charge Coverage ratio: Consolidated debt $ 29,557,667 $ 29,0
Slide 42: Notes and Definitions (continued)
Notes and Definitions (continued) 1Q 2024 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
Slide 43: Notes and Definitions (continued)
Notes and Definitions (continued) 1Q 2024 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
Slide 44: Notes and Definitions (continued)
Notes and Definitions (continued) 1Q 2024 Supplemental Three Months Ended Interest Expense. March 31, Three Months Ended in thousands 2024 2023 March 31, Building and land development activities $ 39,759 $ 37,121 in thousands 2024 2023 Operating building improvements and other 15,846 14,937 Gross in
Slide 45: Notes and Definitions (continued)
Notes and Definitions (continued) 1Q 2024 Supplemental Net Promote Income (Expense) is promote revenue earned from third-party investors during the Owned and Managed represents the consolidated properties as well as properties owned by our period, net of related cash and stock compensation expenses,
Slide 46: Notes and Definitions (continued)
Notes and Definitions (continued) 1Q 2024 Supplemental The same store population excludes properties held for sale to third parties, along with development of the co-investment ventures by subtracting the third parties’ share of both consolidated and properties that were not stabilized at the beginn