Prologis (PLD) 47th Annual Raymond James Institutional Investor Conference summary

Company overview and strategic positioning

• Operates 1.3 billion sq ft of logistics and warehouse facilities across 20 countries, serving a diversified customer base with Amazon as the largest tenant at 5% of rent roll.

• About $240 billion in assets under management, with $170 billion on balance sheet and $70 billion in third-party equity via Strategic Capital business.

• Focuses on high-barrier, supply-constrained markets near major global consumption centers, largely agnostic to shifting global trade patterns.

• Maintains a land bank supporting $43 billion in future logistics development, providing 8–10 years of runway.

• 90% of earnings come from core rental and operations business, with logistics as the main driver.

Growth drivers and market trends

• E-commerce continues to drive strong demand, with warehouse space intensity much higher than traditional retail.

• Recent years saw a surge in demand during COVID, followed by normalization and increased vacancy to just over 7% in the U.S.

• Market rents are currently 18% above in-place rents, with replacement cost economics suggesting further upside.

• Southern California, especially Inland Empire West, is rebounding after a period of rent volatility and supply challenges.

• Record leasing quarters and stabilizing rents signal an inflection point in logistics demand.

Data center and energy initiatives

• Sees significant opportunity to convert or develop logistics assets for data center use, leveraging 6,000 buildings and 14,000 acres of land.

• Has secured 1.8 GW of power for data centers, with 3.9 GW in advanced stages, mostly in the U.S.; all power is dual-fed utility grid.

• Executes data center projects on a build-to-suit basis, selling stabilized assets to long-term owners or using third-party capital for partial ownership.

• Largest on-site corporate solar producer in the U.S., with 1 GW of production and storage, targeting 2 GW by decade's end.

• Offers on-premises power solutions, including solar, storage, and LNG, to meet evolving customer and data center needs.