Prologis Reports Third Quarter 2025 Results

By PR Newswire | October 15, 2025, 8:00 AM

Record 62 million square feet of lease signings

Expands power capacity to support data center growth

SAN FRANCISCO, Oct. 15, 2025 /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) today announced the following results for the quarter ended September 30, 2025, as compared to the corresponding period in 2024:

Net earnings per diluted share was $0.82 and decreased 24.1%.
Core funds from operations (Core FFO)* per diluted share was $1.49 and increased 4.2%.
Core FFO, excluding Net Promote Income (Expense)* per diluted share was $1.50 and increased 3.4%.

"Our record leasing this quarter underscores the strength and resilience of our platform," said Hamid R. Moghadam, co-founder and CEO of Prologis. "With a solid pipeline, improving customer sentiment and limited new supply, the logistics market is setting up for the next inflection in rent and occupancy growth — one of the most compelling setups I've seen in 40 years."

"We are extending our leadership position in logistics to data centers, where we are investing to meet the growing power demands of digital infrastructure," said Dan Letter, president of Prologis. "With additional advanced power contracts, Prologis now has a 5.2-gigawatt allocation of utility-fed capacity secured or in advanced stages, which we expect to use to unlock significant data center opportunities."

OPERATING PERFORMANCE

Owned & Managed	3Q25
Average Occupancy	94.8 %
Period End Occupancy	95.3 %
Leases Commenced (Operating and Development Portfolio)	65.6 MSF
Retention	77.2 %

Prologis Share	3Q25
Average Occupancy	94.7 %
Cash Same Store NOI*	5.2 %
Net Effective Rent Change	49.4 %
Cash Rent Change	29.4 %

DEPLOYMENT ACTIVITY

Prologis Share	3Q25
Acquisitions	$48M
Weighted avg stabilized cap rate (excluding other real estate)	6.2 %
Development Stabilizations	$604M
Estimated weighted avg yield	6.7 %
Estimated weighted avg margin	27.9 %
Estimated value creation	$169M
% Build-to-suit	23.4 %
Development Starts	$446M
Estimated weighted avg yield	6.3 %
Estimated weighted avg margin	15.0 %
Estimated value creation	$67M
% Build-to-suit	63.9 %
Total Dispositions and Contributions	$71M
Weighted avg stabilized cap rate (excluding land and other real estate)	5.4 %

BALANCE SHEET STRENGTH & LIQUIDITY

During the quarter, the company:

Issued, together with its co-investment ventures, an aggregate of $2.3 billion of debt at a weighted average interest rate of 4.2% and a weighted average term of 5.7 years.

As of quarter-end:

Total available liquidity was approximately $7.5 billion.
Debt-to-EBITDA* was 5.0x and debt as a percentage of total market capitalization was 26.5%.
The weighted average interest rate on the company's share of total debt was 3.2%, with a weighted average term of 8.3 years.
Forecasted earnings for 2025, 2026 and 2027 are 98%, 99% and 98%, respectively, in USD or hedged through derivative contracts and 96% of Prologis' equity was in USD.

2025 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.

2025 GUIDANCE

Earnings (per diluted share)	Previous	Current
Net earnings attributable to common stockholders	$3.00 to $3.15	$3.40 to $3.50
Core FFO attributable to common stockholders/unitholders*	$5.75 to $5.80	$5.78 to $5.81
Core FFO attributable to common stockholders/unitholders, excluding Net Promote Income (Expense)*	$5.80 to $5.85	$5.83 to $5.86

Operations - Prologis Share
Average occupancy	94.75% to 95.25%	94.75% to 95.25%
Cash Same Store NOI*	4.25% to 4.75%	4.75% to 5.25%
Net Effective Same Store NOI*	3.75% to 4.25%	4.25% to 4.75%

Strategic Capital (in millions)
Strategic Capital revenue, excluding promote revenue	$570 to $590	$580 to $590
Net Promote Income (Expense)¹	$(50)	$(50)

G&A (in millions)	Previous	Current
General & administrative expenses	$450 to $470	$460 to $470

Capital Deployment - Prologis Share (in millions)
Development stabilizations	$1,900 to $2,300	$1,900 to $2,300
Development starts	$2,250 to $2,750	$2,750 to $3,250
Acquisitions	$1,000 to $1,250	$1,250 to $1,500
Contributions	$500 to $1,000	$750 to $1,250
Dispositions	$500 to $750	$750 to $1,000
Realized development gains	$150 to $250	$150 to $250


1.	Net promote 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 our share of 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.

October 15, 2025, CALL DETAILS The call will take place on Wednesday, October 15, 2025, 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 October 16 – October 30 at +1 (877) 660-6853 (from the United States and Canada) or +1 (201) 612-7415 (from all other countries) using access code 13750493. The webcast replay will be posted in the Investor Relations section of www.prologis.com under "Events & Presentations."

ABOUT PROLOGIS

The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one–not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.

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, expectations regarding new lines of business, 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.

dollars in millions, except per share/unit data			Three Months Ended September 30,		Nine Months Ended September 30,
			2025	2024	2025	2024
Rental and other revenues			$ 2,064	$ 1,901	$ 6,098	$ 5,583
Strategic capital revenues			150	135	439	418
	Total revenues		2,214	2,036	6,537	6,001
Net earnings attributable to common stockholders			763	1,004	1,924	2,448
Core FFO attributable to common stockholders/unitholders*			1,426	1,367	4,178	3,870
AFFO attributable to common stockholders/unitholders*			1,064	1,014	3,184	3,118
Adjusted EBITDA attributable to common stockholders/unitholders*			1,868	1,734	5,428	5,051
Estimated value creation from development stabilizations - Prologis Share			169	129	473	475
Common stock dividends and common limited partnership unit distributions			967	917	2,898	2,750

Per common share - diluted:
	Net earnings attributable to common stockholders		$ 0.82	$ 1.08	$ 2.06	$ 2.63
	Core FFO attributable to common stockholders/unitholders*		1.49	1.43	4.37	4.06
	Core FFO attributable to common stockholders/unitholders, excluding Net Promote Income (Expense)*		1.50	1.45	4.41	4.11
	Business line reporting:
		Real estate*	1.43	1.37	4.19	3.91
		Strategic capital*	0.06	0.06	0.18	0.15
		Core FFO attributable to common stockholders/unitholders*	1.49	1.43	4.37	4.06
		Realized development gains, net of taxes*	0.01	0.03	0.05	0.16
Dividends and distributions per common share/unit			1.01	0.96	3.03	2.88


*This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.

in thousands				September 30, 2025	June 30, 2025	December 31, 2024
Assets:
	Investments in real estate properties:
		Operating properties		$ 80,688,903	$ 80,115,830	$ 78,279,353
		Development portfolio		2,748,411	2,891,025	2,829,613
		Land		5,095,671	4,826,727	4,453,522
		Other real estate investments		6,504,491	6,498,929	5,683,688
				95,037,476	94,332,511	91,246,176
		Less accumulated depreciation		14,345,033	13,827,462	12,758,159
			Net investments in real estate properties	80,692,443	80,505,049	78,488,017
	Investments in and advances to unconsolidated entities			10,543,057	10,618,184	10,079,448
	Assets held for sale or contribution			358,851	253,331	248,511
			Net investments in real estate	91,594,351	91,376,564	88,815,976

	Cash and cash equivalents			1,186,022	1,066,081	1,318,591
	Other assets			5,560,768	5,274,405	5,194,342
			Total assets	$ 98,341,141	$ 97,717,050	$ 95,328,909

Liabilities and Equity:
	Liabilities:
		Debt		$ 35,302,901	$ 34,666,551	$ 30,879,263
		Accounts payable, accrued expenses and other liabilities		5,826,131	5,743,685	5,832,876
			Total liabilities	41,129,032	40,410,236	36,712,139

	Equity:
		Stockholders' equity		52,635,541	52,728,574	53,951,138
		Noncontrolling interests		3,328,104	3,311,886	3,323,047
		Noncontrolling interests - limited partnership unitholders		1,248,464	1,266,354	1,342,585
			Total equity	57,212,109	57,306,814	58,616,770

			Total liabilities and equity	$ 98,341,141	$ 97,717,050	$ 95,328,909


			Three Months Ended		Nine Months Ended
			September 30,		September 30,
in thousands, except per share amounts			2025	2024	2025	2024
Revenues:
	Rental		$ 2,054,200	$ 1,897,164	$ 6,066,797	$ 5,577,198
	Strategic capital		150,351	135,367	438,652	418,521
	Development management and other		9,330	3,858	31,966	5,245
		Total revenues	2,213,881	2,036,389	6,537,415	6,000,964
Expenses:
	Rental		484,635	427,425	1,460,915	1,326,917
	Strategic capital		69,270	61,342	194,964	210,689
	General and administrative		110,662	98,154	332,234	316,041
	Depreciation and amortization		647,999	649,265	1,957,278	1,924,075
	Other		8,724	15,683	30,079	39,371
		Total expenses	1,321,290	1,251,869	3,975,470	3,817,093

Operating income before gains on real estate transactions, net			$ 892,591	$ 784,520	$ 2,561,945	$ 2,183,871
	Gains on dispositions of development properties and land, net		15,435	32,005	53,363	159,487
	Gains on other dispositions of investments in real estate, net		32,235	434,446	116,078	651,306
Operating income			$ 940,261	$ 1,250,971	$ 2,731,386	$ 2,994,664
Other income (expense):
	Earnings from unconsolidated entities, net		92,827	84,749	268,418	259,558
	Interest expense		(258,274)	(230,113)	(741,891)	(631,700)
	Foreign currency, derivative and other gains (losses) and other income (expense), net		100,981	(37,942)	(53,506)	62,774
	Gains (losses) on early extinguishment of debt, net		-	-	-	536
		Total other income (expense)	(64,466)	(183,306)	(526,979)	(308,832)

Earnings before income taxes			875,795	1,067,665	2,204,407	2,685,832
	Current income tax benefit (expense)		(59,847)	(12,518)	(124,271)	(77,872)
	Deferred income tax benefit (expense)		5,312	8,304	2,948	(2,201)
Consolidated net earnings			821,260	1,063,451	2,083,084	2,605,759
Net earnings attributable to noncontrolling interests			(38,329)	(32,728)	(107,044)	(91,838)
Net earnings attributable to noncontrolling interests - limited partnership units			(18,665)	(25,004)	(47,592)	(61,139)
Net earnings attributable to controlling interests			764,266	1,005,719	1,928,448	2,452,782
Preferred stock dividends			(1,369)	(1,452)	(4,326)	(4,407)
Net earnings attributable to common stockholders			$ 762,897	$ 1,004,267	$ 1,924,122	$ 2,448,375
Weighted average common shares outstanding - Diluted			956,603	953,813	955,824	953,530
Net earnings per share attributable to common stockholders - Diluted			$ 0.82	$ 1.08	$ 2.06	$ 2.63

		Three Months Ended		Nine Months Ended
		September 30,		September 30,
in thousands		2025	2024	2025	2024
Net earnings attributable to common stockholders		$ 762,897	$ 1,004,267	$ 1,924,122	$ 2,448,375
Add (deduct) NAREIT defined adjustments:
	Real estate related depreciation and amortization	626,093	630,077	1,896,978	1,870,061
	Gains on other dispositions of investments in real estate, net of taxes (excluding development properties and land)	(32,277)	(434,174)	(115,048)	(650,565)
	Adjustments related to noncontrolling interests	(13,142)	(5,488)	(48,888)	(31,392)
	Our proportionate share of adjustments related to unconsolidated entities	138,279	111,439	422,637	332,875
NAREIT defined FFO attributable to common stockholders/unitholders*		$ 1,481,850	$ 1,306,121	$ 4,079,801	$ 3,969,354

Add (deduct) our modified adjustments:
	Unrealized foreign currency, derivative and other losses (gains), net	(37,767)	99,122	154,948	61,014
	Deferred income tax expense (benefit)	(5,312)	(8,304)	(2,948)	2,201
	Our proportionate share of adjustments related to unconsolidated entities	(1,183)	552	(2,948)	(3,659)
FFO, as modified by Prologis attributable to common stockholders/unitholders*		$ 1,437,588	$ 1,397,491	$ 4,228,853	$ 4,028,910

Add (deduct) Core FFO defined adjustments:
	Gains on dispositions of development properties and land, net	(15,435)	(32,005)	(53,363)	(159,487)
	Current income tax expense (benefit) on dispositions	2,799	1,729	3,602	6,565
	Losses (gains) on early extinguishment of debt, net	-	-	-	(536)
	Adjustments related to noncontrolling interests	675	-	3,496	78
	Our proportionate share of adjustments related to unconsolidated entities	3	(604)	(4,945)	(5,253)
Core FFO attributable to common stockholders/unitholders*		$ 1,425,630	$ 1,366,611	$ 4,177,643	$ 3,870,277

Add (deduct) AFFO defined adjustments:
	Gains on dispositions of development properties and land, net	15,435	32,005	53,363	159,487
	Current income tax benefit (expense) on dispositions	(2,799)	(1,729)	(3,602)	(6,565)
	Straight-lined rents and amortization of lease intangibles	(162,529)	(166,980)	(530,691)	(470,289)
	Property improvements	(109,397)	(122,556)	(212,536)	(248,868)
	Turnover costs	(138,212)	(131,782)	(413,577)	(347,488)
	Amortization of debt discount, financing costs and management contracts, net	21,989	20,633	65,310	59,333
	Stock compensation amortization expense	44,509	42,520	141,654	164,302
	Adjustments related to noncontrolling interests	25,052	18,191	57,628	38,874
	Our proportionate share of adjustments related to unconsolidated entities	(55,987)	(43,064)	(151,669)	(100,752)
AFFO attributable to common stockholders/unitholders*		$ 1,063,691	$ 1,013,849	$ 3,183,523	$ 3,118,311


*This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.

			Three Months Ended		Nine Months Ended
			September 30,		September 30,
in thousands			2025	2024	2025	2024
Net earnings attributable to common stockholders			$ 762,897	$ 1,004,267	$ 1,924,122	$ 2,448,375
		Gains on other dispositions of investments in real estate, net (excluding development properties and land)	(32,235)	(434,446)	(116,078)	(651,306)
		Depreciation and amortization expense	647,999	649,265	1,957,278	1,924,075
		Interest charges	242,992	212,566	694,500	589,991
		Current and deferred income tax expense, net	54,535	4,214	121,323	80,073
		Net earnings attributable to noncontrolling interests - limited partnership units	18,665	25,004	47,592	61,139
		Pro forma adjustments	1,353	5,386	11,663	12,927
		Preferred stock dividends	1,369	1,452	4,326	4,407
		Unrealized foreign currency, derivative and other losses (gains), net	(37,767)	99,122	154,948	61,014
		Stock compensation amortization expense	44,509	42,520	141,654	164,302
		Losses (gains) on early extinguishment of debt, net	-	-	-	(536)
		Adjustments related to noncontrolling interests	(32,315)	(30,871)	(97,984)	(93,718)
		Our proportionate share of adjustments related to unconsolidated entities	195,704	155,119	585,130	449,921
Adjusted EBITDA attributable to common stockholders/unitholders*			$ 1,867,706	$ 1,733,598	$ 5,428,474	$ 5,050,664

	*This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.

Adjusted EBITDA. We use Adjusted EBITDA attributable to common stockholders/unitholders ("Adjusted EBITDA"), a non-GAAP financial measure, as a measure of our operating performance. The most directly comparable GAAP measure is net earnings.

We believe Adjusted EBITDA provides relevant and useful information by offering insight into our operating performance before the effects of financing decisions, income taxes, and certain non-cash or non-recurring charges.

We calculate Adjusted EBITDA by beginning with consolidated net earnings attributable to common stockholders and removing the effect of:

(i)	gains or losses from the disposition of investments in real estate (excluding development properties and land);
(ii)	depreciation and amortization expense;
(iii)	impairment charges;
(iv)	interest charges;
(v)	current and deferred income taxes;
(vi)	preferred stock dividends;
(vii)	unrealized gains or losses on foreign currency and derivatives;
(viii)	stock compensation amortization expense;
(ix)	gains from the revaluation of equity investments upon acquisition of a controlling interest; and
(x)	gains or losses on early extinguishment of debt and derivative contracts (including cash charges).

We also include a pro forma adjustment to reflect a full period of NOI on the operating properties we acquire or stabilize during the quarter and to remove NOI on properties we dispose of during the quarter, assuming all transactions occurred at the beginning of the quarter. For properties we contribute, we make an adjustment to reflect NOI at the new ownership percentage for the full quarter.

We calculate Adjusted EBITDA based on our proportionate ownership share of both our unconsolidated entities and consolidated ventures. We reflect our share of Adjusted EBITDA measures for unconsolidated entities by applying our average ownership percentage for the period to the applicable adjusting items on an entity-by-entity basis. We reflect our share for consolidated ventures in which we do not own 100% of the equity by removing the noncontrolling interests share of the applicable adjustments based on our average ownership percentage for the applicable periods.

While we believe Adjusted EBITDA is an important supplemental measure for our stockholders, potential investors and financial analysts to understand, it should not be used alone as it excludes significant components of net earnings computed under GAAP and is therefore limited as an analytical tool. We do not use Adjusted EBITDA as an alternative measure to net earnings computed under GAAP or as an alternative to cash from operating activities computed under GAAP or as an indicator of our ability to fund our cash needs. Our computation of Adjusted EBITDA may not be comparable to EBITDA reported by other companies in both the real estate industry and other industries. We compensate for the limitations of Adjusted EBITDA by providing investors with financial statements prepared according to GAAP, along with this detailed discussion of Adjusted EBITDA and a reconciliation to Adjusted EBITDA from consolidated net earnings attributable to common stockholders.

Business Line Reporting is a non-GAAP financial measure. Core FFO and development gains are generated by our three lines of business: (i) real estate operations; (ii) strategic capital; and (iii) development. The real estate operations line of business represents total Prologis Core FFO, less the amount allocated to the strategic capital line of business. The amount of Core FFO allocated to the strategic capital line of business represents the third-party share of asset management fees and transactional fees that we earn from our consolidated and unconsolidated co-investment ventures less costs directly associated with our strategic capital group and Net Promote Income (Expense). Realized development gains include our share of gains on dispositions of development properties and land, net of taxes. To calculate the per share amount, the amount generated by each line of business is divided by the weighted average diluted common shares outstanding used in our Core FFO per share calculation. Management believes evaluating our results by line of business is a useful supplemental measure of our operating performance because it helps the investing public compare the operating performance of Prologis' respective businesses to other companies' comparable businesses. Prologis' computation of FFO by line of business may not be comparable to that reported by other real estate companies as they may use different methodologies in computing such measures.

Calculation of Per Share Amounts


	Three Months Ended		Nine Months Ended
	Sep. 30,		Sep. 30,
in thousands, except per share amount	2025	2024	2025	2024
Net earnings
Net earnings attributable to common stockholders	$ 762,897	$ 1,004,267	$ 1,924,122	$ 2,448,375
Noncontrolling interest attributable to exchangeable limited partnership units	18,781	25,130	47,592	61,851
Adjusted net earnings attributable to common stockholders - Diluted	$ 781,678	$ 1,029,397	$ 1,971,714	$ 2,510,226
Weighted average common shares outstanding - Basic	928,851	926,427	928,186	926,017
Incremental weighted average effect on exchange of limited partnership units	22,809	23,191	22,958	23,424
Incremental weighted average effect of equity awards	4,943	4,195	4,680	4,089
Weighted average common shares outstanding - Diluted	956,603	953,813	955,824	953,530
Net earnings per share - Basic	$ 0.82	$ 1.08	$ 2.07	$ 2.64
Net earnings per share - Diluted	$ 0.82	$ 1.08	$ 2.06	$ 2.63

	Three Months Ended		Nine Months Ended
	Sep. 30,		Sep. 30,
in thousands, except per share amount	2025	2024	2025	2024
Core FFO
Core FFO attributable to common stockholders/unitholders	$ 1,425,630	$ 1,366,611	$ 4,177,643	$ 3,870,277
Noncontrolling interest attributable to exchangeable limited partnership units	273	299	825	863
Core FFO attributable to common stockholders /unitholders - Diluted	$ 1,425,903	$ 1,366,910	$ 4,178,468	$ 3,871,140
Net Promote Income (Expense)	(12,268)	(16,904)	(36,598)	(50,960)
Core FFO attributable to common stockholders /unitholders, excluding Net Promote Income (Expense) - Diluted	$ 1,438,171	$ 1,383,814	$ 4,215,066	$ 3,922,100
Weighted average common shares outstanding - Basic	928,851	926,427	928,186	926,017
Incremental weighted average effect on exchange of limited partnership units	22,909	23,332	23,223	23,434
Incremental weighted average effect of equity awards	4,943	4,195	4,680	4,089
Weighted average common shares outstanding - Diluted	956,703	953,954	956,089	953,540
Core FFO per share - Diluted	$ 1.49	$ 1.43	$ 4.37	$ 4.06
Core FFO per share, excluding Net Promote Income (Expense) - Diluted	$ 1.50	$ 1.45	$ 4.41	$ 4.11

Development Portfolio includes industrial and non-industrial properties, data centers, yards and parking lots that are under development and properties that are developed but have not met Stabilization. At September 30, 2025, total TEI for yards, parking lots, data centers and non-industrial assets was $1.2 billion and $1.1 billion on an Owned and Managed and Prologis Share basis, respectively. We do not disclose square footage for yards and parking lots.

Estimated Value Creation represents the value that we expect to create through our development and leasing activities. We calculate Estimated Value Creation by estimating the Stabilized NOI that the property will generate and applying a stabilized capitalization rate applicable to that property. Estimated Value Creation is calculated as the amount by which the value exceeds our TEI, including closing costs and taxes, if any, and does not include any fees or promotes we may earn.

Estimated Weighted Average Margin is calculated on development properties as Estimated Value Creation, less estimated closing costs and taxes, if any, on properties expected to be sold or contributed, divided by TEI.

Estimated Weighted Average Stabilized Yield is calculated on the properties in the Development Portfolio as Stabilized NOI divided by TEI. The yields on a Prologis Share basis were as follows:

	Pre-Stabilized Developments	2025 Expected Completion	2026 and Thereafter Expected Completion	Total Development Portfolio
U.S.	6.3 %	6.6 %	7.0 %	6.8 %
Other Americas	7.6 %	7.5 %	7.5 %	7.6 %
Europe	5.4 %	6.4 %	5.5 %	5.5 %
Asia	4.9 %	7.5 %	5.1 %	5.1 %
Total	6.4 %	6.6 %	6.4 %	6.4 %

FFO, as modified by Prologis attributable to common stockholders/unitholders ("FFO, as modified by Prologis"); Core FFO attributable to common stockholders/unitholders ("Core FFO"); AFFO attributable to common stockholders/unitholders ("AFFO"); (collectively referred to as "FFO"). FFO is a non-GAAP financial measure that is commonly used in the real estate industry, with net earnings as the most directly comparable GAAP measure.

The National Association of Real Estate Investment Trusts ("NAREIT") defines FFO as earnings computed under GAAP to exclude depreciation and gains and losses from sales net of any related tax, along with impairment charges, of previously depreciated properties. This measure excludes the gains on revaluation of equity investments upon acquisition of a controlling interest and the gain recognized from a partial sale of our investment, as these are similar to gains from the sales of previously depreciated properties. This measure excludes similar adjustments from our unconsolidated entities and the third parties' share of our consolidated ventures.

Our FFO Measures

Our FFO measures begin with NARElT's definition, with certain adjustments to calculate FFO, as modified by Prologis, and Core FFO, both as defined below, to reflect our business and execution of our management strategy. While these adjustments are subject to significant fluctuations from period to period, with both positive and negative short-term impacts, the removal of the effects of these items enhances our understanding of the core operating performance of our properties over the long term.

We use FFO, as modified by Prologis, so that management, analysts and investors are able to evaluate our performance against other REITs that do not have similar operations or operations in jurisdictions outside the U.S. We use both Core FFO and AFFO to (i) assess our operating performance as compared to other real estate companies; (ii) evaluate our performance and the performance of our properties in comparison with expected results and results of previous periods; (iii) evaluate the performance of our management; (iv) budget and forecast future results to assist in the allocation of resources; and (v) evaluate how a specific potential investment will impact our future results.

We calculate our FFO measures based on our proportionate ownership share of both our unconsolidated entities and consolidated ventures. We reflect our share of our FFO measures for unconsolidated entities by applying our average ownership percentage for the period to the applicable adjustments on an entity-by-entity basis. We reflect our share for consolidated ventures in which we do not own 100% of the equity by removing the noncontrolling interests share of the applicable adjustments based on our average ownership percentage for the applicable periods.

FFO, as modified by Prologis

To arrive at FFO, as modified by Prologis, we adjust the NAREIT defined FFO measure to exclude:

(I)	deferred income tax benefits and deferred income tax expenses recognized by our subsidiaries;
(II)	current income tax expense related to acquired tax liabilities that were recorded as deferred tax liabilities in an acquisition, to the extent the expense is offset with a deferred income tax benefit in earnings that is excluded from our defined FFO measure; and
(III)	foreign currency exchange gains and losses resulting from (a) debt transactions between us and our foreign entities; (b) third-party debt that is used to hedge our investment in foreign entities; (c) derivative financial instruments related to any such debt transactions; and (d) mark-to-market adjustments associated with derivative and other financial instruments.

Core FFO

To arrive at Core FFO, we adjust FFO, as modified by Prologis, to exclude the following:

(I)	gains or losses from the disposition of land and development properties that were developed with the intent to contribute or sell;
(II)	income tax expense related to the sale of investments in real estate;
(III)	impairment charges recognized related to our investments in real estate generally as a result of our change in intent to contribute or sell these properties; and
(IV)	gains or losses from the early extinguishment of debt and redemption and repurchase of preferred stock.

AFFO

To arrive at AFFO, we adjust Core FFO to include realized gains from the disposition of land and development properties, net of current tax expense, and recurring capital expenditures and exclude the following items that we recognize directly in Core FFO:

(I)	straight-line rents;
(II)	amortization of above- and below-market lease intangibles;
(III)	amortization of management contracts;
(IV)	amortization of debt premiums and discounts and financing costs, net of amounts capitalized; and,
(V)	stock compensation amortization expense.

Limitations on the use of our FFO measures

While we believe our modified FFO measures are important supplemental measures, neither NAREIT's nor our measures of FFO should be used alone because they exclude significant components of net earnings computed under GAAP and are, therefore, limited as an analytical tool. We do not use NAREIT's nor our measures of FFO as alternatives to net earnings computed under GAAP or as alternatives to cash from operating activities computed under GAAP or as indicators of our ability to fund our cash needs.

We compensate for the limitations by using our FFO measures only in conjunction with net earnings computed under GAAP when making our decisions. This information should be read with our complete Consolidated Financial Statements prepared under GAAP. To assist investors in compensating for these limitations, we reconcile our modified FFO measures from consolidated net earnings attributable to common stockholders.

Guidance. The following is a reconciliation of our annual guided Net Earnings per share to our guided Core FFO per share:

	Low		High
Net earnings attributable to common stockholders (a)	$	3.40	$	3.50
Our share of:
Depreciation and amortization		3.05		3.08
Net gains on real estate transactions, net of taxes		(0.85)		(0.95)
Unrealized foreign currency losses (gains), losses (gains) on early extinguishment of debt and other, net		0.18		0.18
Core FFO attributable to common stockholders/unitholders	$	5.78	$	5.81
Less: Net Promote Expense (Income)		0.05		0.05
Core FFO attributable to common stockholders/unitholders, excluding Net Promote Income (Expense)	$	5.83	$	5.86


(a)	Earnings guidance includes potential future gains recognized from real estate transactions, but excludes future foreign currency or derivative gains or losses as these items are difficult to predict.

Market Capitalization equals Market Equity, less liquidation preference of the preferred shares/units, plus our share of total debt.

Net Promote Income (Expense) is promote revenue earned from third-party investors during the period, net of related cash and stock compensation expenses, and taxes and foreign currency derivative gains and losses, if applicable.

Operating Portfolio represents industrial properties in our Owned and Managed portfolio that have reached Stabilization. Assets held for sale, Non-Strategic Assets and non-industrial assets are excluded from the portfolio. NOI of our Operating Portfolio excludes net termination fees and adjustments. Prologis Share of NOI includes NOI for the properties contributed to or acquired from co-investment ventures at our actual share prior to and subsequent to change in ownership. The U.S. markets not presented consist of Austin, Charlotte, Columbus, Denver, Louisville, Portland, Raleigh-Durham, Reno, San Antonio, Savannah and Tampa. The European countries not presented consist of Belgium, Czech Republic, Hungary, Italy, Poland, Slovakia, Spain and Sweden.

Owned and Managed represents the consolidated properties as well as properties owned by our unconsolidated co-investment ventures, which we manage.

Prologis Share represents our proportionate economic ownership of each entity, or property included in our total Owned and Managed portfolio, whether consolidated or unconsolidated.

Rent Change (Cash) represents the percentage change in starting rental rates per the lease agreement, on new and renewed leases, commenced during the period compared with the previous ending rental rates in that same space. This measure excludes any short-term leases of less than one-year, holdover payments, free rent periods and introductory (teaser rates) defined as 50% or less of the stabilized rate.

Rent Change (Net Effective) represents the percentage change in net effective rental rates (average rate over the lease term), on new and renewed leases, commenced during the period compared with the previous net effective rental rates for the same respective spaces. This measure excludes any short-term leases of less than one year and holdover payments.

Retention is the square footage of all leases commenced during the period that are rented by existing tenants divided by the square footage of all expiring leases during the reporting period. The square footage of tenants that default or buy-out prior to expiration of their lease and short-term leases of less than one year, are not included in the calculation.

Same Store. Our same store metrics are non-GAAP financial measures, which are commonly used in the real estate industry and expected from the financial community, on both a net effective and cash basis. We evaluate the performance of the operating properties we own and manage using a "same store" analysis because the population of properties in this analysis is consistent from period to period, which allows us and investors to analyze our ongoing business operations. We determine our same store metrics on property NOI, which is calculated as rental revenue less rental expense for the applicable properties in the same store population for both consolidated and unconsolidated properties based on our ownership interest, as further defined below.

We define our same store population for the three months ended September 30, 2025 as the properties in our Owned and Managed Operating Portfolio, including the property NOI for both consolidated properties and properties owned by the unconsolidated co-investment ventures at January 1, 2024 and owned throughout the same three-month period in both 2024 and 2025.

We believe the drivers of property NOI for the consolidated portfolio are generally the same for the properties owned by the ventures in which we invest and therefore we evaluate the same store metrics of the Owned and Managed portfolio based on Prologis' ownership in the properties ("Prologis Share").

The same store population excludes properties held for sale to third parties, along with development properties that were not stabilized at the beginning of the period (January 1, 2024) and properties acquired or disposed of to third parties during the periods. To derive an appropriate measure of period-to-period operating performance, we remove the effects of foreign currency exchange rate movements by using the reported period-end exchange rate to translate from local currency into the U.S. dollar, for both periods.

As non-GAAP financial measures, the same store metrics have certain limitations as an analytical tool and may vary among real estate companies. As a result, we provide a reconciliation of Rental Revenues less Rental Expenses ("Property NOI") (from our Consolidated Financial Statements prepared in accordance with U.S. GAAP) to our Same Store Property NOI measures, as follows:

		Three Months Ended
		Sep. 30,
dollars in thousands		2025	2024	Change (%)
Reconciliation of Consolidated Property NOI to Same Store Property NOI measures:
Rental revenues		$ 2,054,200	$ 1,897,164
Rental expenses		(484,635)	(427,425)
Consolidated Property NOI		$ 1,569,565	$ 1,469,739
Adjustments to derive same store results:
	Property NOI from consolidated properties not included in same store portfolio and other adjustments (a)	(221,195)	(146,152)
	Property NOI from unconsolidated co-investment ventures included in same store portfolio (a)(b)	922,394	862,254
	Third parties' share of Property NOI from properties included in same store portfolio (a)(b)	(729,294)	(702,105)
Prologis Share of Same Store Property NOI - Net Effective (b)		$ 1,541,470	$ 1,483,736	3.9 %
	Consolidated properties straight-line rent and fair value lease amortization included in the same store portfolio (c)	(120,889)	(132,304)
	Unconsolidated co-investment ventures straight-line rent and fair value lease amortization included in the same store portfolio (c)	(31,569)	(23,562)
	Third parties' share of straight-line rent and fair value lease amortization included in the same store portfolio (b)(c)	27,061	17,926
Prologis Share of Same Store Property NOI - Cash (b)(c)		$ 1,416,073	$ 1,345,796	5.2 %


(a)	We exclude properties held for sale to third parties, along with development properties that were not stabilized at the beginning of the periods and properties acquired or disposed of to third parties during the periods. We also exclude one-time items due to early lease terminations, including termination fees received from customers and the write-off of related lease assets and liabilities, that are not indicative of the property's recurring operating performance in order to evaluate the growth or decline in each property's rental revenues. Same Store Property NOI is adjusted to include an allocation of property management expenses for our consolidated properties based on the property management services provided to each property (generally, based on a percentage of revenues). On consolidation, these amounts are eliminated and the actual costs of providing property management and leasing services are recognized as part of our consolidated rental expense.
(b)	We include the Property NOI for the same store portfolio for both consolidated properties and properties owned by the co-investment ventures based on our investment in the underlying properties. In order to calculate our share of Same Store Property NOI from the co-investment ventures in which we own less than 100%, we use the co-investment ventures' underlying Property NOI for the same store portfolio and apply our ownership percentage at September 30, 2025 to the Property NOI for both periods, including the properties contributed during the periods. We adjust the total Property NOI from the same store portfolio of the co-investment ventures by subtracting the third parties' share of both consolidated and unconsolidated co-investment ventures.
	During the periods presented, certain wholly-owned properties were contributed to a co-investment venture and are included in the same store portfolio. Neither our consolidated results nor those of the co-investment ventures, when viewed individually, would be comparable on a same store basis because of the changes in composition of the respective portfolios from period to period (e.g. the results of a contributed property are included in our consolidated results through the contribution date and in the results of the venture subsequent to the contribution date based on our ownership interest at the end of the period). As a result, only line items labeled "Prologis Share of Same Store Property NOI" are comparable period over period.
(c)	We further remove certain noncash items (straight-line rent and fair value lease amortization) included in the financial statements prepared in accordance with U.S. GAAP to reflect a Same Store Property NOI – Cash measure.
	We manage our business and compensate our executives based on the same store results of our Owned and Managed portfolio at 100% as we manage our portfolio on an ownership blind basis. We calculate those results by including 100% of the properties included in our same store portfolio.

Stabilization is defined as the earlier of when a property that was developed has been completed for one year, is contributed to a co-investment venture following completion or is 90% occupied. Upon Stabilization, a property is moved into our Operating Portfolio.

Total Expected Investment ("TEI") represents total estimated cost of development or expansion, including land, development and leasing costs. TEI is based on current projections and is subject to change.

Weighted Average Interest Rate is based on the effective rate, which includes the amortization of related premiums and discounts and finance costs.

Weighted Average Stabilized Capitalization ("Cap") Rate is calculated as Stabilized NOI divided by the Acquisition Price.

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SOURCE Prologis, Inc.

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Prologis Reports Third Quarter 2025 Results

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