Prologis (PLD) FY2025 results: revenue $8.8 billion, up 7.2% on the year

Prologis owns, develops and manages logistics real estate: the warehouses and distribution buildings that goods pass through on the way to the consumer. It operates across 20 countries on four continents, in markets it describes as high-barrier and high-growth, and its portfolio, wholly owned and through partnerships, totals about 1.3 billion square feet. It began as a fully integrated real estate company in 1997 and is taxed as a REIT. Head office is in San Francisco.

Owned, and owned with partners

Two ownership routes sit side by side. Prologis owns some buildings outright, and holds interests in others through co-investment ventures with institutional investors. Ownership in those ventures runs from 15 to 55 percent; ten are unconsolidated and one is consolidated. The company says the venture structure broadens its access to capital, expands its investment capacity and diversifies its returns, while mitigating its exposure to foreign currency movements. Three of the vehicles are publicly traded in their own right: Nippon Prologis REIT in Japan, China AMC Prologis Logistics REIT in China, and FIBRA Prologis in Mexico.

Because of this, the company manages and measures its properties on an owned and managed basis, covering both its consolidated buildings and those owned by the ventures it manages, and separately looks at its proportionate economic share of each.

Two segments

Real Estate, which is rental operations plus development, generally contributes between 90 percent and 95 percent of consolidated revenues, earnings and funds from operations. Strategic Capital, the management of the co-investment ventures, generally contributes between 5 percent and 10 percent, excluding promotes.

Rental operations collect rent under operating leases that also reimburse most property operating costs, with fixed or inflation-linked increases written into the contracts. For leases that started in 2025 the weighted average lease term in the consolidated operating portfolio was 70 months. The company states that the main driver of revenue growth is rolling expiring leases up to current market rents. Substantially all of the consolidated rental revenue and cash flow from rental operations is generated in the United States.

Development builds new logistics facilities, both to order for a specific customer and on a speculative basis, and redevelops existing properties. Inside the US, Prologis generally develops to hold for the long term or to contribute into its co-investment ventures; outside the US it develops primarily to contribute to those ventures. Contributing a newly built property to a venture, selling a data centre or selling a non-strategic asset returns capital that funds the next round of building.

Strategic Capital earns asset management and property management fees, with asset management fees driven mainly by the quarterly valuation of the properties the ventures own, plus fees for leasing, acquisition, construction management, development and disposition. Most of that revenue is generated outside the US. On some ventures Prologis can also earn promote revenue, an incentive fee paid periodically or on liquidation.

Data centres

The company is extending its development activity into data centres in selected markets, focusing on securing power and on signing build-to-suit leases before building. It links this to the convergence of physical, digital and energy infrastructure, as logistics facilities increasingly support power and data-intensive operations.

Customers, and energy on the roof

At the end of 2025 the consolidated properties had more than 4,000 customers occupying 649 million square feet of operating logistics property, and the owned and managed portfolio had 6,500 customers across 1.3 billion square feet. The company describes the base as international, national, regional and local logistics users across various industries.

Beyond the buildings, Prologis sells services to those occupiers through a platform it calls Prologis Essentials, covering operational, energy and sustainability needs, and it has more than 1 gigawatt of solar generation and storage capacity across the owned and managed portfolio, counting both its own and third-party projects. It also runs an internal venture capital arm, Prologis Ventures, investing in growth stage companies in the logistics sector.

Offices outside San Francisco are in Amsterdam, Denver, Mexico City, Sao Paulo, Shanghai, Singapore and Tokyo. Foreign currency exposure, principally to sterling, the Canadian dollar, the euro and the yen, is managed by investing abroad through the ventures, borrowing in each subsidiary's own currency and using derivatives.

From Prologis's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 13 February 2026: read the full 10-K.