Open the filing on EDGARPrologis Supplemental Information FIRST QUARTER 2026 Unaudited Prologis Airport Center 4, West Palm Beach, Florida
Contents Highlights 3 Company Profile 5 Company Performance 7 Prologis Leading Indicators and Proprietary Metrics 8 Guidance Financial Information 9 Consolidated Balance Sheets 10 Consolidated Statements of Income 11 Reconciliations of Net Earnings to FFO 12 Reconciliations of Net Earnings to Adjusted EBITDA Operations 13 Overview 14 Operating Metrics 16 Operating Portfolio 19 Customer Information Capital Deployment 20 Overview 21 Development Stabilizations 22 Development Starts 23 Development Portfolio 24 Third-Party Acquisitions 25 Dispositions and Contributions 26 Land Portfolio 28 Solar and Energy Storage Portfolios Strategic Capital 29 Overview 30 Summary of Co-Investment Ventures 31 Operating and Balance Sheet Information of the Unconsolidated Co-Investment Ventures 32 Non-GAAP Pro-Rata Financial Information Capitalization 33 Overview 34 Debt Components - Consolidated 35 Debt Components - Noncontrolling Interests and Unconsolidated Net Asset Value 36 Components Notes and Definitions 38 Notes and Definitions
$41.5B Build Out of Land (TEI) * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. NOI calculation based on Prologis Share of the Operating Portfolio.
Overview Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At March 31, 2026, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.3 billion square feet (121 million square meters) in 20 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,500 customers principally across two major categories: business-to-business and retail/online fulfillment. 5,881 Buildings 1.3B Square Feet Europe 257M SF 9% of NOI*(A) Asia 115M SF 2% of NOI*(A) U.S. 804M SF 84% of NOI*(A) Other Americas 129M SF 5% of NOI*(A)
Company Profile Highlights OPERATIONS $6.9B in annual NOI*(A) DEVELOPMENT $715M in value creationfrom stabilizations(C) GROSS AUM $235B DATA CENTER POWER PIPELINE 5.6GW secured or in advanced stage(E) MARKET EQUITY $126B STRATEGIC CAPITAL $366M of fees and promotes(B) (D) (D) * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Q1 2026 Prologis Share of NOI of the Operating Portfolio annualized.
Q1 2026 third-party share of asset management fees annualized plus trailing twelve months third-party share of transactional fees and Net Promote Income (Expense). Prologis Share of trailing twelve month Estimated Value Creation from development stabilizations. Mexico is included in the U.S. as it is U.S. dollar functional.
Our Power Pipeline is comprised of 1.7GW Secured Power (including 423MW under development) and 3.9GW Advanced Stage Power. Please see our Notes and Definitions for further explanation.
Company Performance Highlights NET EARNINGS ATTRIBUTABLE TO COMMON STOCKHOLDERS CORE FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS/UNITHOLDERS* AFFO ATTRIBUTABLE TO COMMONSTOCKHOLDERS/UNITHOLDERS* dollars in millions, except per share/unit data Three Months Ended March 31, 2026 2025 Rental and other revenues $ 2,137 $ 1,999 Strategic capital revenues 161 141 Total revenues 2,298 2,140 Net earnings attributable to common stockholders 980 592 Core FFO attributable to common stockholders/unitholders* 1,440 1,356 AFFO attributable to common stockholders/unitholders* 1,472 1,084 Adjusted EBITDA attributable to common stockholders/unitholders* 2,178 1,771 Estimated value creation from development stabilizations - Prologis Share 387 240 Common stock dividends and common limited partnership unit distributions 1,026 965 Per common share - diluted: Net earnings attributable to common stockholders $ 1.05 $ 0.63 Core FFO attributable to common stockholders/unitholders* 1.50 1.42 Core FFO attributable to common stockholders/unitholders, excluding Net Promote Income (Expense)* 1.52 1.43 Business line reporting: Real estate* 1.45 1.36 Strategic capital* 0.05 0.06 Core FFO attributable to common stockholders/unitholders* 1.50 1.42 Realized development gains, net of taxes* 0.30 0.03 Dividends and distributions per common share/unit 1.07 1.01 * This is a non-GAAP financial measure. Please see reconciliations from Net Earnings Attributable to Common Stockholders on page 8 and reference our Notes and Definitions for further explanation.
NET EARNINGS ATTRIBUTABLE TO COMMON STOCKHOLDERS in millions CORE FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS/UNITHOLDERS* in millions AFFO ATTRIBUTABLE TO COMMON STOCKHOLDERS/UNITHOLDERS* in millions Highlights Company Performance DIVIDENDS AND DISTRIBUTIONS in millions * This is a non-GAAP financial measure. Please see reconciliations from Net Earnings Attributable to Common Stockholders on page 8 and reference our Notes and Definitions for further explanation.
LEASE PROPOSALS in millions of square feet U.S. IBI ACTIVITY INDEX diffusion index, points NEW LEASE NEGOTIATION GESTATION in days U.S. SPACE UTILIZATION percent Prologis Leading Indicators and Proprietary Metrics* Highlights 136 Average 83 56.1 Average 57.7 59 Average 54 84.0% Average 85.3% Average 40% 40% Net rentable area of proposals Proposals as a % of available net rentable area * Please see our Notes and Definitions for further explanation.
Guidance(A) Highlights dollars in millions, except per share amounts 2026 Guidance Low High Net earnings attributable to common stockholders(B) $ 3.80 $ 4.05 Core FFO attributable to common stockholders/unitholders*(B) $ 6.07 $ 6.23 Core FFO attributable to common stockholders/unitholders, excluding Net Promote Income (Expense)*(B) $ 6.12 $ 6.28 Operations Average occupancy - Prologis Share 95.00 % 95.75 % Same store NOI - cash - Prologis Share* 6.25 % 7.00 % Same store NOI - net effective - Prologis Share* 4.75 % 5.50 % Other Assumptions Strategic capital revenue, excluding promote revenue $ 660 $ 680 Net Promote Income (Expense) $ (50) $ (50) General & administrative expenses $ 510 $ 525 Realized development gains $ 500 $ 700 Capital Deployment PROLOGIS SHARE OWNED AND MANAGED Low High Development stabilizations $ 2,250 $ 2,750 $ 2,500 $ 3,000 Development starts $ 3,500 $ 4,500 $ 4,500 $ 5,500 Acquisitions $ 1,000 $ 1,500 $ 2,000 $ 3,000 Dispositions $ 1,750 $ 2,250 $ 2,500 $ 3,000 Contributions $ 1,750 $ 2,250 $ 3,000 $ 3,500 Exchange Rates We have hedged the rates for the majority of our estimated 2026 Euro, Sterling and Yen Core FFO, effectively insulating 2026 results from FX movements in these currencies. For purposes of capital deployment and other metrics, we assumed effective rates for EUR, GBP and JPY of 1.15 ($/€), 1.32 ($/£) and 159.50 (¥/$), respectively. * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.
Our guidance for 2026 is based on management’s current beliefs and assumptions about our business, the industry and the markets in which we operate. Please refer to “Forward-Looking Statements” and “Risk Factors” referred to in our annual and quarterly financial statements on Forms 10-K and 10-Q filed with the Securities and Exchange Commission (“SEC”) for more information. The difference between Core FFO and Net Earnings predominately relates to real estate depreciation and amortization and gains or losses on dispositions of real estate.
See the Notes and Definitions for a reconciliation.
Consolidated Balance Sheets Financial Information in thousands March 31, 2026 December 31, 2025 Assets: Investments in real estate properties: Operating properties $ 80,875,731 $ 80,561,020 Development portfolio 2,492,161 3,019,009 Land 4,684,949 4,888,153 Other real estate investments 7,188,604 6,661,174 95,241,445 95,129,356 Less accumulated depreciation 15,298,353 14,729,149 Net investments in real estate properties 79,943,092 80,400,207 Investments in and advances to unconsolidated entities 11,241,723 11,093,936 Assets held for sale or contribution 499,799 203,344 Net investments in real estate 91,684,614 91,697,487 Cash and cash equivalents 861,144 1,145,647 Other assets 5,587,693 5,881,122 Total assets $ 98,133,451 $ 98,724,256 Liabilities and Equity: Liabilities: Debt $ 34,669,592 $ 35,037,073 Accounts payable, accrued expenses and other liabilities 5,515,367 5,933,175 Total liabilities 40,184,959 40,970,248 Equity: Stockholders' equity 53,503,401 53,193,178 Noncontrolling interests 3,316,274 3,316,713 Noncontrolling interests - limited partnership unitholders 1,128,817 1,244,117 Total equity 57,948,492 57,754,008 Total liabilities and equity $ 98,133,451 $ 98,724,256
Consolidated Statements of Income Financial Information Three Months Ended March 31, in thousands, except per share amounts 2026 2025 Revenues: Rental $ 2,125,084 $ 1,987,265 Strategic capital 160,812 141,139 Development management and other 11,827 11,261 Total revenues 2,297,723 2,139,665 Expenses: Rental 520,283 488,317 Strategic capital 81,889 60,777 General and administrative 126,890 114,701 Depreciation and amortization 731,506 652,058 Other 10,123 9,649 Total expenses 1,470,691 1,325,502 Operating income before gains on real estate transactions, net $ 827,032 $ 814,163 Gains on dispositions of development properties and land, net 292,983 27,451 Gains on other dispositions of investments in real estate, net 91,040 36,799 Operating income $ 1,211,055 $ 878,413 Other income (expense): Earnings from unconsolidated entities, net 93,296 67,899 Interest expense (254,286) (231,751) Foreign currency, derivative and other gains (losses) and other income (expense), net 44,611 (31,658) Gains (losses) on early extinguishment of debt, net (1,890) - Total other income (expense) (118,269) (195,510) Earnings before income taxes 1,092,786 682,903 Current income tax benefit (expense) (47,781) (36,701) Deferred income tax benefit (expense) (190) (6,682) Consolidated net earnings 1,044,815 639,520 Net earnings attributable to noncontrolling interests (39,978) (31,576) Net earnings attributable to noncontrolling interests - limited partnership units (22,861) (14,991) Net earnings attributable to controlling interests 981,976 592,953 Preferred stock dividends (1,500) (1,452) Net earnings attributable to common stockholders $ 980,476 $ 591,501 Weighted average common shares outstanding - Diluted 957,561 956,080 Net earnings per share attributable to common stockholders - Diluted $ 1.05 $ 0.63
Reconciliations of Net Earnings to FFO* * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Financial Information Three Months Ended March 31, in thousands 2026 2025 Net earnings attributable to common stockholders $ 980,476 $ 591,501 Add (deduct) NAREIT defined adjustments: Real estate related depreciation and amortization 705,550 632,686 Gains on other dispositions of investments in real estate, net of taxes (excluding development properties and land) (91,040) (35,807) Adjustments related to noncontrolling interests (10,737) (18,407) Our proportionate share of adjustments related to unconsolidated entities 151,155 150,624 NAREIT defined FFO attributable to common stockholders/unitholders* $ 1,735,404 $ 1,320,597 Add (deduct) our modified adjustments: Unrealized foreign currency, derivative and other losses (gains), net (14,269) 54,898 Deferred income tax expense (benefit) 190 6,682 Adjustments related to noncontrolling interests 712 - Our proportionate share of adjustments related to unconsolidated entities (725) 1,371 FFO, as modified by Prologis attributable to common stockholders/unitholders* $ 1,721,312 $ 1,383,548 Add (deduct) Core FFO defined adjustments: Gains on dispositions of development properties and land, net (292,983) (27,451) Current income tax expense (benefit) on dispositions 1,302 144 Losses (gains) on early extinguishment of debt, net 1,890 - Adjustments related to noncontrolling interests 271 73 Our proportionate share of adjustments related to unconsolidated entities 8,701 (283) Core FFO attributable to common stockholders/unitholders* $ 1,440,493 $ 1,356,031 Add (deduct) AFFO defined adjustments: Gains on dispositions of development properties and land, net 292,983 27,451 Current income tax benefit (expense) on dispositions (1,302) (144) Straight-lined rents and amortization of lease intangibles (165,749) (180,361) Property improvements (26,065) (34,367) Turnover costs (123,816) (123,123) Amortization of debt discount, financing costs and management contracts, net 21,400 21,112 Stock compensation amortization expense 60,632 53,161 Adjustments related to noncontrolling interests 19,628 13,982 Our proportionate share of adjustments related to unconsolidated entities (46,311) (49,819) AFFO attributable to common stockholders/unitholders* $ 1,471,893 $ 1,083,923
Reconciliations of Net Earnings to Adjusted EBITDA* * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Financial Information Three Months Ended March 31, in thousands 2026 2025 Net earnings attributable to common stockholders $ 980,476 $ 591,501 Gains on other dispositions of investments in real estate, net (excluding development properties and land) (91,040) (36,799) Depreciation and amortization expense 731,506 652,058 Interest charges 237,908 215,650 Current and deferred income tax expense, net 47,971 43,383 Net earnings attributable to noncontrolling interests - limited partnership units 22,861 14,991 NOI adjustments for real estate transactions 9,264 7,829 Preferred stock dividends 1,500 1,452 Unrealized foreign currency, derivative and other losses (gains), net (14,269) 54,898 Stock compensation amortization expense 60,632 53,161 Losses (gains) on early extinguishment of debt, net 1,890 - Adjustments related to noncontrolling interests (33,544) (33,850) Our proportionate share of adjustments related to unconsolidated entities 222,879 207,162 Adjusted EBITDA attributable to common stockholders/unitholders* $ 2,178,034 $ 1,771,436
94.8% 94.8% 94.7% 95.2% 95.4% Average occupancy - Prologis Share OCCUPANCY - OWNED AND MANAGED CUSTOMER RETENTION SAME STORE CHANGE OVER PRIOR YEAR - PROLOGIS SHARE* RENT CHANGE - PROLOGIS SHARE Operations Overview 64.5% 59.9% 55.0% 50.1% 43.5% Trailing four quarters - net effective * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.
Operating Metrics - Owned and Managed Operations square feet in thousands Leasing Activity(A) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Square feet of leases commenced: Operating Portfolio: Renewals 42,136 36,528 42,720 27,581 45,834 New leases 21,115 13,906 19,631 14,712 16,913 Total Operating Portfolio 63,251 50,434 62,351 42,293 62,747 Properties under development 1,868 747 3,252 1,471 3,975 Total Square Feet of Leases Commenced 65,119 51,181 65,603 43,764 66,722 Total square feet of Operating Portfolio leases commenced, including leases greater than one month 70,648 59,237 70,227 51,686 71,968 Weighted average term of leases started (in months) 63 56 59 61 58 Operating Portfolio: Trailing four quarters - square feet of leases commenced 194,817 205,637 218,996 218,329 217,825 Trailing four quarters - average % of portfolio 16.6 % 17.4 % 18.3 % 18.1 % 18.0 % Rent change (net effective) 43.4 % 44.2 % 42.5 % 37.5 % 27.1 % Rent change (net effective) - Prologis Share 53.7 % 53.4 % 49.4 % 43.8 % 31.9 % Rent change (cash) 23.8 % 26.7 % 24.3 % 21.8 % 13.5 % Rent change (cash) - Prologis Share 32.1 % 34.8 % 29.4 % 27.3 % 16.8 % PERIOD ENDING OCCUPANCY U.S. Other Americas Europe Asia Amounts exclusive of leases of less than one year, unless otherwise noted.
Operating Metrics - Owned and Managed Operations CAPITAL EXPENDITURES Thousands, except for percentages SAME STORE INFORMATION Thousands, except for percentages PROPERTY IMPROVEMENTS TURNOVER COSTS ON LEASES COMMENCED COMPOSITION OF PORTFOLIO (BY UNIT SIZE) Trailing four quarter average Per square foot ($) As a % of lease value Per square foot ($) Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Property improvements(A) $ 63,040 $ 127,020 $ 162,406 $ 205,383 $ 55,122 Tenant improvements 91,378 122,474 104,823 114,505 96,020 Leasing commissions 92,391 94,151 108,666 108,667 89,894 Total turnover costs 183,769 216,625 213,489 223,172 185,914 Total Capital Expenditures - Owned and Managed $ 246,809 $ 343,645 $ 375,895 $ 428,555 $ 241,036 Trailing four quarters - % of Operating Portfolio NOI 15.4% 15.4% 15.0% 14.6% 14.2% Weighted average ownership percentage 69.1% 69.3% 70.7% 69.1% 67.8% Total Capital Expenditures - Prologis Share $ 170,468 $ 238,311 $ 265,774 $ 296,158 $ 163,500 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Square feet 1,129,114 1,128,630 1,125,601 1,121,839 1,179,564 Average occupancy 95.5% 95.4% 95.2% 95.7% 95.4% Average occupancy - annual percentage change (1.5%) (1.2%) (1.3%) (0.6%) 0.3% Period ending occupancy 95.5% 95.4% 95.4% 95.8% 95.3% Percentage change - Prologis Share*: NOI - cash 6.2% 4.9% 5.2% 5.7% 8.8% NOI - net effective 5.9% 4.8% 3.9% 4.7% 6.1% 2.9% 2.9% 3.2% 3.5% 4.1% 91.9% 95.0% 96.4% 98.9% Period ending occupancy Free rent as a % of lease value - trailing four quarters * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. Property improvements exclude expenditures related to one-time, structural work on our properties.
Operating Portfolio - Square Feet, Occupied and Leased Operations # of Buildings Square Feet Occupied % Leased % square feet in thousands and ordered by Prologis Share of NOI (%) Owned and Managed Owned and Managed Prologis Share % of Total Owned and Managed Prologis Share Owned and Managed Prologis Share Southern California 556 126,984 106,756 13.7 96.1 95.9 96.8 96.7 New Jersey/New York City 205 54,127 42,603 5.5 94.3 94.2 95.0 95.0 San Francisco Bay Area 295 29,535 24,451 3.1 95.9 96.1 96.2 96.4 Dallas/Ft. Worth 278 61,023 52,017 6.7 96.6 96.8 96.7 96.9 Chicago 320 69,518 54,109 7.0 97.6 97.4 97.6 97.4 South Florida 226 29,943 23,809 3.1 94.1 93.7 94.8 94.5 Atlanta 236 52,060 45,941 5.9 95.8 96.1 96.1 96.5 Lehigh Valley 81 36,108 31,943 4.1 93.3 93.4 93.3 93.4 Houston 220 36,907 31,102 4.0 98.6 98.9 98.6 98.9 Seattle 163 24,967 17,938 2.3 93.3 94.5 93.3 94.5 Central Valley 46 24,137 22,278 2.9 97.4 97.6 97.6 97.9 Baltimore/Washington 134 18,328 14,525 1.9 92.0 92.7 93.1 94.0 Phoenix 82 17,936 15,653 2.0 96.0 96.5 96.7 97.2 Nashville 67 17,553 13,724 1.8 96.8 97.1 96.8 97.1 Orlando 110 14,253 12,785 1.6 94.5 95.0 94.8 95.3 Las Vegas 81 14,760 9,081 1.2 92.3 94.6 92.4 94.8 Central PA 38 19,097 14,342 1.8 90.3 91.6 91.0 92.5 Cincinnati 67 18,751 16,294 2.1 92.1 91.7 92.3 92.0 Indianapolis 57 20,580 16,452 2.1 95.1 96.0 95.1 96.1 Remaining U.S. markets (11 markets) 376 71,790 61,461 7.9 95.0 95.0 95.4 95.5 Total U.S. 3,638 758,357 627,264 80.7 95.4 95.6 95.8 96.0 Mexico 355 67,271 24,205 3.1 96.3 95.2 96.3 95.2 Canada 40 13,154 13,154 1.7 97.1 97.1 97.1 97.1 Brazil 46 20,141 5,308 0.7 95.8 96.8 95.8 96.8 Total Other Americas 441 100,566 42,667 5.5 96.3 96.0 96.3 96.0 United Kingdom 179 32,758 12,732 1.6 95.7 94.2 95.7 94.2 Germany 153 38,830 12,139 1.6 97.7 97.5 97.9 97.7 Netherlands 116 31,330 10,452 1.4 98.2 98.6 98.2 98.6 France 148 36,043 12,471 1.6 94.2 93.2 94.2 93.2 Remaining European countries (8 countries) 508 106,788 38,397 4.9 94.8 92.8 95.4 93.6 Total Europe 1,104 245,749 86,191 11.1 95.7 94.4 96.0 94.8 Japan 74 51,246 11,240 1.4 95.8 87.7 96.6 90.2 China 180 53,291 8,336 1.1 89.2 89.4 89.8 90.0 Singapore 5 951 951 0.1 98.3 98.3 98.3 98.3 India 2 478 406 0.1 88.3 88.3 88.3 88.3 Total Asia 261 105,966 20,933 2.7 92.5 88.9 93.2 90.4 Total Outside the U.S. 1,806 452,281 149,791 19.3 95.1 94.1 95.4 94.5 Total Operating Portfolio 5,444 1,210,638 777,055 100.0 95.3 95.3 95.6 95.8
Operating Portfolio - NOI* and Gross Book Value Operations First Quarter NOI* Gross Book Value dollars in thousands and ordered by Prologis Share of NOI (%) Owned and Managed Prologis Share % of Total Owned and Managed Prologis Share % of Total Southern California $ 407,897 $ 344,700 20.1 $ 20,994,872 $ 18,302,214 19.3 New Jersey/New York City 179,935 142,822 8.3 9,863,906 8,049,410 8.5 San Francisco Bay Area 112,729 94,423 5.5 5,013,782 4,185,676 4.4 Dallas/Ft. Worth 110,311 93,577 5.4 5,639,828 4,791,859 5.0 Chicago 115,771 88,791 5.2 6,851,225 5,324,933 5.6 South Florida 96,325 75,855 4.4 5,450,275 4,433,858 4.7 Atlanta 82,099 71,667 4.2 4,463,232 3,950,463 4.2 Lehigh Valley 73,583 65,443 3.8 4,602,813 4,160,515 4.4 Houston 60,652 51,349 3.0 3,747,688 3,221,103 3.4 Seattle 69,328 51,020 3.0 3,846,519 2,977,429 3.1 Central Valley 44,882 42,183 2.4 2,224,649 2,015,638 2.1 Baltimore/Washington 49,958 39,849 2.3 2,775,123 2,230,286 2.3 Phoenix 35,737 30,720 1.8 2,057,587 1,769,446 1.9 Nashville 35,829 28,611 1.7 1,713,036 1,378,005 1.5 Orlando 27,725 25,039 1.5 1,536,884 1,392,666 1.5 Las Vegas 38,905 24,743 1.4 1,794,148 1,057,084 1.1 Central PA 28,520 22,447 1.3 1,759,918 1,367,556 1.4 Cincinnati 25,376 21,984 1.3 1,327,293 1,177,403 1.2 Indianapolis 26,552 21,768 1.3 1,404,534 1,175,891 1.2 Remaining U.S. markets (11 markets) 126,563 107,397 6.2 6,301,538 5,366,705 5.7 Total U.S. 1,748,677 1,444,388 84.1 93,368,850 78,328,140 82.5 Mexico 133,815 47,921 2.8 5,498,920 1,990,781 2.1 Canada 35,766 35,766 2.1 1,425,840 1,425,840 1.5 Brazil 31,485 8,534 0.5 1,096,602 316,921 0.3 Total Other Americas 201,066 92,221 5.4 8,021,362 3,733,542 3.9 United Kingdom 96,776 36,533 2.1 8,538,568 3,498,586 3.7 Germany 73,832 23,009 1.3 4,857,078 1,498,973 1.6 Netherlands 55,744 18,704 1.1 3,768,810 1,197,983 1.2 France 56,241 18,617 1.1 3,841,594 1,230,161 1.3 Remaining European countries (8 countries) 163,892 57,784 3.4 9,687,029 3,401,616 3.6 Total Europe 446,485 154,647 9.0 30,693,079 10,827,319 11.4 Japan 89,359 17,780 1.0 7,031,289 1,428,455 1.5 China 27,325 4,439 0.3 3,048,430 485,336 0.5 Singapore 3,195 3,195 0.2 150,080 150,080 0.2 India 497 422 0.0 16,304 13,858 0.0 Total Asia 120,376 25,836 1.5 10,246,103 2,077,729 2.2 Total Outside the U.S. 767,927 272,704 15.9 48,960,544 16,638,590 17.5 Total Operating Portfolio $ 2,516,604 $ 1,717,092 100.0 $ 142,329,394 $ 94,966,730 100.0 * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.
Operating Portfolio - Summary by Division Operations # of Buildings Square Feet Occupied % Leased % square feet and dollars in thousands Owned and Managed Owned and Managed Prologis Share % of Total Owned and Managed Prologis Share Owned and Managed Prologis Share Consolidated Total U.S. 2,854 618,444 582,353 74.9 95.7 95.7 96.1 96.2 Total Outside the U.S. 121 30,545 30,473 3.9 87.2 87.2 88.2 88.2 Total Operating Portfolio - Consolidated 2,975 648,989 612,826 78.8 95.3 95.3 95.7 95.8 Unconsolidated Total U.S. 784 139,913 44,911 5.8 94.2 94.3 94.3 94.4 Total Outside the U.S. 1,685 421,736 119,318 15.4 95.7 95.9 95.9 96.2 Total Operating Portfolio - Unconsolidated 2,469 561,649 164,229 21.2 95.3 95.4 95.5 95.7 Total Total U.S. 3,638 758,357 627,264 80.7 95.4 95.6 95.8 96.0 Total Outside the U.S. 1,806 452,281 149,791 19.3 95.1 94.1 95.4 94.5 Total Operating Portfolio 5,444 1,210,638 777,055 100.0 95.3 95.3 95.6 95.8 Value added properties - consolidated 15 3,945 3,665 9.2 9.7 19.4 20.6 Value added properties - unconsolidated 8 1,707 471 68.7 70.6 68.7 70.6 Total Operating Properties 5,467 1,216,290 781,191 95.0 94.9 95.4 95.4 First Quarter NOI* Gross Book Value Owned and Managed Prologis Share % of Total Owned and Managed Prologis Share % of Total Consolidated Total U.S. $ 1,422,365 $ 1,340,142 78.0 $ 77,013,497 $ 73,069,052 77.0 Total Outside the U.S. 62,720 62,645 3.7 3,437,095 3,434,650 3.6 Total Operating Portfolio - Consolidated $ 1,485,085 $ 1,402,787 81.7 $ 80,450,592 $ 76,503,702 80.6 Unconsolidated Total U.S. $ 326,312 $ 104,246 6.1 $ 16,355,353 $ 5,259,088 5.5 Total Outside the U.S. 705,207 210,059 12.2 45,523,449 13,203,940 13.9 Total Operating Portfolio - Unconsolidated $ 1,031,519 $ 314,305 18.3 $ 61,878,802 $ 18,463,028 19.4 Value added properties - consolidated $ 1,107 $ 1,178 $ 693,100 $ 664,032 Value added properties - unconsolidated $ 2,338 $ 717 $ 350,334 $ 95,982 * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.
Customer Information Operations 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 Rent Total Square Feet Occupied Sq Ft Net Effective Rent $ % of Total $ Per Sq Ft 1 Amazon 5.4 49,453 2026(A) 114,801 755,489 7.6 6.58 2 Home Depot 1.7 18,980 2027(A) 202,440 1,480,977 15.0 7.32 3 FedEx 1.4 10,732 2028 180,356 1,489,996 15.1 8.26 4 DSV 1.2 14,400 2029 154,457 1,367,311 13.8 8.85 5 DHL 1.2 12,454 2030 143,791 1,319,473 13.3 9.18 6 Geodis 1.0 14,316 Thereafter 357,767 3,478,129 35.2 9.72 7 GXO 0.9 10,134 Total 1,153,612 9,891,375 100.0 8.57 8 UPS 0.8 10,553 Weighted average term of leases remaining (based on net effective rent) 4.0 years 9 CEVA Logistics 0.8 11,307 10 Kuehne + Nagel 0.8 8,786 Top 10 Customers 15.2 161,115 Prologis Share 11 Walmart 0.7 8,368 Occupied Sq Ft Net Effective Rent 12 Maersk 0.7 6,273 $ % of Total $ Per Sq Ft 13 Pepsi 0.5 4,509 2026(A) 65,078 466,216 6.9 7.16 14 Mercado Libre 0.5 6,213 2027(A) 124,983 991,724 14.7 7.93 15 GigaCloud 0.4 3,609 2028 111,893 988,701 14.7 8.84 16 NFI Industries 0.4 3,543 2029 102,595 946,613 14.0 9.23 17 Lululemon 0.4 2,481 2030 93,260 899,137 13.3 9.64 18 Ryder 0.4 3,600 Thereafter 242,937 2,457,265 36.4 10.11 19 Tesla 0.4 2,818 Total 740,746 6,749,656 100.0 9.11 20 Burlington Stores 0.4 3,130 Weighted average term of leases remaining (based on net effective rent) 4.2 years 21 Samsung 0.4 4,540 22 Wayfair 0.3 5,783 23 Berkshire Hathaway 0.3 2,959 24 ZOZO 0.3 4,886 25 Nippon Express 0.3 3,791 Top 25 Customers 21.6 227,618 We have signed leases, which were due to expire in 2026 and 2027, totaling 57 million square feet and 14 million square feet, in our Owned and Managed portfolio (4.0% and 1.0% of total net effective rent) and 35 million square feet and 7 million square feet on a Prologis Share basis (3.8% and 0.8% of total net effective rent). These are excluded from 2026 and 2027 expirations and are reflected in the new year of expiration.
M&A and Significant Portfolio Activity $23,200 $3,100 $800 - - DEVELOPMENT STARTS (TEI) in millions DEVELOPMENT STABILIZATIONS (TEI) dollars in millions ACQUISITION ACTIVITY(A) in millions LAND PORTFOLIO dollars in millions Capital Deployment Overview - Prologis Share Outside the U.S. U.S. Est Value Creation $1,583 $917 $773 $568 $387 Est Wtd Avg Stabilized Yield 6.3% 6.3% 6.1% 6.7% 7.6% Est Build Out(B): Sq.
Ft. in millions 213 TEI $38,000 YTD This data excludes acquisitions of land. The estimated build out includes the land portfolio, Covered Land Plays and other land that we could develop through options, ground leases, unconsolidated joint ventures and other contractual arrangements.
Development Stabilizations Capital Deployment Three Months Ended March 31, 2026 TEI square feet and dollars in thousands Square Feet Owned and Managed Prologis Share Central 737 $ 101,462 $ 101,462 East 329 76,171 75,928 West(A)(B) 2,144 481,873 392,795 Total Industrial U.S. 3,210 659,506 570,185 Canada - - - Brazil 106 9,009 1,802 Mexico - - - Total Other Americas 106 9,009 1,802 Northern Europe 92 28,346 14,173 Southern Europe 352 35,504 35,504 Central Europe 1,078 79,157 79,157 United Kingdom 174 71,379 71,379 Total Europe 1,696 214,386 200,213 Japan 983 148,206 148,206 China(A) - - - India - - - Total Asia 983 148,206 148,206 Total Industrial Outside the U.S. 2,785 371,601 350,221 Total Data Center 432 214,548 193,093 Total Development Stabilizations 6,427 $ 1,245,655 $ 1,113,499 Percent build-to-suit 47.5 % Estimated weighted average stabilized yield 7.6 % Annualized estimated NOI $ 85,037 Estimated weighted average stabilized cap rate 5.5 % Estimated weighted average margin 34.8 % Estimated value creation $ 387,375 TEI amount includes development on yards, parking lots, and other non-industrial assets that will be included in other real estate investments upon completion. Amounts include a development recorded as a note receivable that is included in other real estate investments.
Development Starts Capital Deployment Three Months Ended March 31, 2026 TEI square feet and dollars in thousands Square Feet Leased % at Start Owned and Managed Prologis Share Central 1,232 0.0 $ 148,951 $ 69,992 East 785 0.0 211,327 94,313 West(A)(B) 828 0.0 250,385 197,405 Total Industrial U.S. 2,845 0.0 610,663 361,710 Canada - - - - Mexico - - - - Brazil - - - - Total Other Americas - - - - Northern Europe 800 15.8 132,082 74,906 Southern Europe - - - - Central Europe 493 100.0 37,652 37,652 United Kingdom 274 23.7 58,394 58,394 Total Europe 1,567 43.7 228,128 170,952 Japan - - - - China - - - - India 480 0.0 20,919 17,782 Total Asia 480 0.0 20,919 17,782 Total Industrial Outside the U.S. 2,047 33.4 249,047 188,734 Total Data Center 1,084 100.0 1,288,820 1,232,165 Total Development Starts 5,976 29.6 $ 2,148,530 $ 1,782,609 Percent build-to-suit 81.2 % Estimated weighted average stabilized yield 8.8 % Annualized estimated NOI $ 156,108 Estimated weighted average stabilized cap rate 6.3 % Estimated weighted average margin 32.0 % Estimated value creation $ 571,235 TEI amount includes development on yards, parking lots, and other non-industrial assets that will be included in other real estate investments upon completion. Amounts include a development recorded as a note receivable that is included in other real estate investments.
Development Portfolio Capital Deployment Under Development Pre-Stabilized Developments 2026 Expected Completion 2027 and Thereafter Expected Completion Total Development Portfolio TEI TEI TEI Owned and Managed Prologis Share square feet and dollars in thousands Sq Ft Leased % Owned and Managed Prologis Share Sq Ft Owned and Managed Prologis Share Sq Ft Owned and Managed Prologis Share Sq Ft Leased % TEI Sq Ft Leased % TEI Central 348 12.1 $ 78,793 $ 78,792 230 $ 42,498 $ 19,970 1,002 $ 106,453 $ 50,022 1,580 2.7 $ 227,744 927 4.5 $ 148,784 East(A)(B) 822 0.0 185,467 182,743 3,068 724,585 614,270 380 149,187 70,103 4,270 48.9 1,059,239 3,320 48.1 867,116 West(A) 954 51.2 201,805 201,540 1,300 375,699 289,951 2,800 349,662 198,519 5,054 58.9 927,166 3,439 52.4 690,010 Total Industrial U.S. 2,124 25.0 466,065 463,075 4,598 1,142,782 924,191 4,182 605,302 318,644 10,904 46.8 2,214,149 7,686 44.7 1,705,910 Canada 1,217 67.7 222,160 222,160 - - - - - - 1,217 67.7 222,160 1,217 67.7 222,160 Mexico 1,021 30.9 117,259 117,259 963 106,681 106,681 - - - 1,984 15.9 223,940 1,984 15.9 223,940 Brazil - - - - 118 10,871 2,174 2,147 187,138 37,428 2,265 94.8 198,009 453 94.8 39,602 Total Other Americas 2,238 50.9 339,419 339,419 1,081 117,552 108,855 2,147 187,138 37,428 5,466 60.1 644,109 3,654 42.9 485,702 Northern Europe 240 0.0 35,197 35,197 622 89,625 61,320 673 114,352 57,176 1,535 26.2 239,174 996 20.0 153,693 Southern Europe 69 50.0 9,581 9,581 661 118,505 114,630 - - - 730 72.1 128,086 700 75.1 124,211 Central Europe - - - - 493 37,652 37,652 - - - 493 100.0 37,652 493 100.0 37,652 United Kingdom(A) 94 0.0 52,296 52,296 2,180 664,238 664,238 - - - 2,274 81.6 716,534 2,274 81.6 716,534 Total Europe 403 8.5 97,074 97,074 3,956 910,020 877,840 673 114,352 57,176 5,032 65.1 1,121,446 4,463 68.9 1,032,090 Japan 785 67.5 125,279 125,279 395 79,962 79,962 2,011 349,894 349,894 3,191 34.0 555,135 3,191 34.0 555,135 China(A) - - - - - - - 1,158 72,480 10,872 1,158 0.0 72,480 174 0.0 10,872 India 561 0.0 25,427 16,210 1,300 55,849 47,472 - - - 1,861 0.0 81,276 1,463 0.0 63,682 Total Asia 1,346 39.4 150,706 141,489 1,695 135,811 127,434 3,169 422,374 360,766 6,210 17.4 708,891 4,828 22.4 629,689 Total Industrial Outside the U.S. 3,987 42.7 587,199 577,982 6,732 1,163,383 1,114,129 5,989 723,864 455,370 16,708 45.8 2,474,446 12,945 44.2 2,147,481 Total Data Center - - - - - - - 1,300 1,739,589 1,637,857 1,300 100.0 1,739,589 1,200 100.0 1,637,857 Total Development Portfolio 6,111 36.5 $ 1,053,264 $ 1,041,057 11,330 $ 2,306,165 $ 2,038,320 11,471 $ 3,068,755 $ 2,411,871 28,912 48.6 $ 6,428,184 21,831 47.5 $ 5,491,248 Cost to complete $116,134 $114,161 $864,282 $759,547 $1,782,756 $1,434,078 $2,763,172 $2,307,786 Percent build-to-suit 2.0 % 52.5 % 75.7 % 53.2 % Estimated weighted average stabilized yield 6.2 % 6.2 % 8.0 % 7.0 % Annualized estimated NOI $ 382,542 Estimated weighted average stabilized cap rate 5.5 % Estimated weighted average margin 19.9 % Estimated value creation $ 1,090,625 TEI amount includes development on yards, parking lots, and other non-industrial assets that will be included in other real estate investments upon completion. Amounts include a development recorded as a note receivable that is included in other real estate investments.
Third-Party Acquisitions Capital Deployment Three Months Ended March 31, 2026 Square Feet Acquisition Price square feet and dollars in thousands Owned and Managed Prologis Share Owned and Managed Prologis Share Prologis Wholly-Owned 915 915 $ 104,161 $ 104,161 Prologis Co-Investment Ventures - - - - Total U.S. 915 915 104,161 104,161 Prologis Wholly-Owned - - - - Prologis Co-Investment Ventures - - - - Total Other Americas - - - - Prologis Wholly-Owned - - - - Prologis Co-Investment Ventures 709 309 110,770 46,691 Total Europe 709 309 110,770 46,691 Prologis Wholly-Owned - - - - Prologis Co-Investment Ventures 338 85 116,419 29,105 Total Asia 338 85 116,419 29,105 Total Outside the U.S. 1,047 394 227,189 75,796 Total Third-Party Building Acquisitions 1,962 1,309 $ 331,350 $ 179,957 Weighted average stabilized cap rate 4.7 % Acquisitions of other real estate investments (A) 87,973 87,973 Total Third-Party Acquisitions $ 419,323 $ 267,930 Amounts include the acquisition of non-industrial assets, including yards and renewable energy assets.
Dispositions and Contributions Capital Deployment Three Months Ended March 31, 2026 Square Feet Sales Price square feet and dollars in thousands Owned and Managed Prologis Share Owned and Managed Prologis Share Third-Party Building Dispositions Prologis Wholly-Owned(A) 1,527 1,526 $ 222,097 $ 222,072 Prologis Co-Investment Ventures - - - - Total U.S. 1,527 1,526 222,097 222,072 Prologis Wholly-Owned - - - - Prologis Co-Investment Ventures 439 152 19,800 6,835 Total Other Americas 439 152 19,800 6,835 Prologis Wholly-Owned - - - - Prologis Co-Investment Ventures 910 456 160,867 80,434 Total Europe 910 456 160,867 80,434 Prologis Wholly-Owned - - - - Prologis Co-Investment Ventures 609 99 98,536 16,012 Total Asia 609 99 98,536 16,012 Total Outside the U.S. 1,958 707 279,203 103,281 Total Third-Party Building Dispositions 3,485 2,233 $ 501,300 $ 325,353 Weighted average stabilized cap rate 5.1 % Contributions of land and properties under development 686,563 339,404 Third-party land dispositions 4,706 4,706 Dispositions of other real estate investments(B) 13,925 6,963 Grand Total Dispositions and Contributions $ 1,206,494 $ 676,426 Amounts include the disposition of properties by a consolidated entity in which we have less than 100% ownership interest. Amounts include the disposition of non-industrial assets, including yards and data centers. Dispositions of Non-Strategic Assets are included as third-party building dispositions.
Land Portfolio - Owned and Managed Capital Deployment Acres Current Book Value square feet and dollars in thousands, including markets where we own land ordered by Prologis Share of Operating Portfolio NOI (%) Owned and Managed Prologis Share Estimated Build Out (sq ft) Owned and Managed Prologis Share % of Total Southern California 534 509 9,671 $ 589,199 $ 579,325 12.1 New Jersey/New York City 316 316 2,926 310,261 310,261 6.5 San Francisco Bay Area 70 61 1,263 138,132 115,501 2.4 Dallas/Ft. Worth 486 450 6,945 193,353 177,107 3.7 Chicago 83 83 1,388 23,785 23,739 0.5 South Florida 81 81 1,092 105,084 105,064 2.2 Atlanta 286 286 2,805 37,883 37,883 0.8 Lehigh Valley 105 105 876 39,098 39,098 0.8 Houston 311 299 4,532 133,048 130,560 2.7 Seattle 45 45 892 39,208 39,208 0.8 Central Valley 634 634 10,926 209,079 209,078 4.4 Baltimore/Washington 111 111 1,253 83,601 83,601 1.7 Phoenix 45 45 730 25,598 25,598 0.5 Nashville 365 365 5,085 174,937 174,937 3.6 Orlando 119 102 1,701 37,126 31,783 0.7 Las Vegas 980 980 14,826 404,448 404,448 8.4 Central PA 104 104 1,117 40,569 40,569 0.9 Cincinnati 146 146 881 37,766 37,766 0.8 Indianapolis 4 4 38 284 284 0.0 Remaining U.S. markets (8 markets) 379 379 5,997 160,080 160,040 3.3 Total U.S. 5,204 5,105 74,944 2,782,539 2,725,850 56.8 Mexico 946 813 17,548 313,785 299,624 6.2 Canada 362 362 6,688 658,245 658,245 13.7 Brazil 704 613 14,288 274,823 261,424 5.5 Total Other Americas 2,012 1,788 38,524 1,246,853 1,219,293 25.4 United Kingdom 278 267 5,742 297,425 246,928 5.1 Germany 90 67 1,911 126,002 93,214 1.9 Netherlands 55 55 1,437 59,185 59,185 1.2 France 171 124 3,340 82,863 74,313 1.6 Remaining European countries (7 countries) 741 672 14,250 182,520 163,101 3.4 Total Europe 1,335 1,185 26,680 747,995 636,741 13.2 Japan 99 99 6,421 152,683 152,683 3.2 China 78 12 2,499 27,900 4,185 0.1 India 256 216 5,992 71,305 60,576 1.3 Total Asia 433 327 14,912 251,888 217,444 4.6 Total Outside the U.S. 3,780 3,300 80,116 2,246,736 2,073,478 43.2 Total Land Portfolio 8,984 8,405 155,060 $ 5,029,275 $ 4,799,328 100.0
Land Portfolio - Summary and Roll Forward Capital Deployment Acres Current Book Value dollars in thousands Owned and Managed Prologis Share % of Total Owned and Managed Prologis Share % of Total Central 1,525 1,477 17.6 $ 610,001 $ 591,221 12.3 East 1,167 1,150 13.7 661,507 656,144 13.7 West 2,512 2,478 29.4 1,511,031 1,478,485 30.8 Total U.S. 5,204 5,105 60.7 2,782,539 2,725,850 56.8 Mexico 946 813 9.7 313,785 299,624 6.2 Canada 362 362 4.3 658,245 658,245 13.7 Brazil 704 613 7.3 274,823 261,424 5.5 Total Other Americas 2,012 1,788 21.3 1,246,853 1,219,293 25.4 Central Europe 467 444 5.3 125,588 121,131 2.5 Northern Europe 188 147 1.7 196,789 158,908 3.3 Southern Europe 402 327 3.9 128,193 109,774 2.3 United Kingdom 278 267 3.2 297,425 246,928 5.1 Total Europe 1,335 1,185 14.1 747,995 636,741 13.2 Japan 99 99 1.2 152,683 152,683 3.2 China 78 12 0.1 27,900 4,185 0.1 India 256 216 2.6 71,305 60,576 1.3 Total Asia 433 327 3.9 251,888 217,444 4.6 Total Outside the U.S. 3,780 3,300 39.3 2,246,736 2,073,478 43.2 Total Land Portfolio 8,984 8,405 100.0 $ 5,029,275 $ 4,799,328 100.0 Estimated build out of land portfolio (in TEI) $ 25,600,000 $ 24,300,000 Estimated build out of Covered Land Plays (in TEI) 7,900,000 6,500,000 Estimated build out of other land (in TEI)(A) 8,000,000 7,200,000 Total $ 41,500,000 $ 38,000,000 Land Roll Forward - Prologis Share U.S. Other Americas Europe Asia Total At December 31, 2025 $ 2,877,409 $ 1,234,578 $ 645,377 $ 221,783 $ 4,979,147 Acquisitions - - 2,553 - 2,553 Reclassifications 26,612 (21,728) 9,652 - 14,536 Dispositions and contributions (51,339) - (5,186) - (56,525) Development starts (254,095) - (33,937) (5,834) (293,866) Infrastructure costs 126,943 3,512 30,649 7,113 168,217 Effect of changes in foreign exchange rates and other 320 2,931 (12,367) (5,618) (14,734) At March 31, 2026 $ 2,725,850 $ 1,219,293 $ 636,741 $ 217,444 $ 4,799,328 Amounts include approximately 3,400 acres that we could develop through options, ground leases, unconsolidated joint ventures and other contractual arrangements.
Solar and Energy Storage Portfolios - Owned and Managed Capital Deployment dollars in thousands, including markets we own solar ordered by Prologis Share of Operating Portfolio NOI (%) Operating Portfolio Under Development Capacity (MW) Gross Book Value Capacity (MW) Current Investment TEI Southern California 56 $ 132,487 46 $ 92,541 $ 130,482 New Jersey/New York City 80 188,512 39 120,212 150,811 Chicago 13 33,648 44 105,141 142,489 San Francisco Bay Area 14 32,846 27 43,333 77,842 Central Valley 30 60,403 8 14,564 22,376 Baltimore/Washington 2 4,672 14 45,809 61,536 Remaining U.S. markets (5 markets) 7 13,430 6 8,357 19,349 Total U.S. 202 465,998 184 429,957 604,885 Mexico 10 8,733 29 15,742 28,149 Total Other Americas 10 8,733 29 15,742 28,149 Germany 50 42,377 7 2,152 6,610 Italy 15 9,313 8 2,999 7,959 Remaining European countries (6 countries) 14 14,052 20 4,119 15,679 Total Europe 79 65,742 35 9,270 30,248 Japan 62 77,610 12 2,806 8,795 China 25 14,150 - - - Singapore 5 4,076 - - - Total Asia 92 95,836 12 2,806 8,795 Total Outside the U.S 181 170,311 76 27,818 67,192 Total Solar Portfolio 383 636,309 260 457,775 672,077 Energy Storage Portfolio 80 104,165 12 12,665 14,648 Total Solar and Energy Storage Portfolio 463 740,474 272 470,440 686,725 Third party and other 868 Investment Tax Credits ("ITC") (259,324) Projects awaiting final commissioning(A) 18 TEI, Net of ITCs 427,401 Total installed capacity 1,349 Estimated weighted average stabilized yield 11.4 % These projects are also included as under development in the solar and energy storage portfolio.
THIRD-PARTY AUM dollars in billions THIRD-PARTY FEE RELATED AND PROMOTE REVENUE in millions FEE RELATED EARNINGS ANNUALIZED* in millions NET PROMOTE INCOME (EXPENSE) dollars in millions Strategic Capital Overview 37.1 51.5 50.9 24.8 24.8 Trailing 3-year basis points of third-party AUM 95.0% 93.0% 95.0% 93.6% 92.2% % Open end/Public *This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation. A.
Net Promote Income (Expense) in 2025 and 2026 is negative due to expense from the amortization of stock compensation issued to employees related to promote income recognized in prior periods. (A) (A)
Summary of Co-Investment Ventures Strategic Capital Represents an individual co-investment venture eligible to earn promotes. Eligibility does not imply likelihood of realization, and there can be no assurance that any promotes will be earned. Values represent the entire venture at 100%, not Prologis’ proportionate share.
Values are presented at Prologis’ adjusted basis derived from the ventures’ U.S. GAAP information and may not be comparable to values reflected in the ventures’ stand alone financial statements calculated on a different basis. Does not include promotes earned upon liquidation of a venture or stabilization of properties, or for certain ventures, promotes based on cumulative returns that do not have a scheduled promote period.
BY GEOGRAPHY BY STRUCTURE BY STRATEGY Co-Investment Ventures (at 100%) (A) in thousands Consolidated Unconsolidated Total Square Feet 78,187 563,356 641,543 GBV of Operating Buildings $ 8,479,764 $ 62,229,136 $ 70,708,900 GBV of Real Estate $ 8,549,678 $ 65,476,541 $ 74,026,219 Debt $ - $ 19,849,689 $ 19,849,689 FINANCIAL HIGHLIGHTS PROMOTE OPPORTUNITIES (B) THIRD-PARTY AUM: $67.7B in billions, except for (number of ventures) Q1 Q2 Q3 Q4 2026 -
- 2027 -
- - 2028 -
- 2029 -
- - 2030 -
- - •
Operating and Balance Sheet Information of the Unconsolidated Co-Investment Ventures (at 100%)(A) Strategic Capital dollars in thousands U.S. Other Americas Europe Asia Total Operating Information For the Three Months Ended March 31, 2026 Rental revenue $ 447,227 $ 221,872 $ 537,552 $ 154,516 $ 1,361,167 Rental expense (112,551) (28,758) (97,817) (40,534) (279,660) General and administrative expense (21,780) (20,356) (21,809) (16,850) (80,795) Depreciation and amortization expense (141,805) (59,543) (222,740) (54,027) (478,115) Other operating revenue (expense) (924) (266) (1,340) - (2,530) Operating income (expense) before gains on real estate transactions, net 170,167 112,949 193,846 43,105 520,067 Gains (losses) on dispositions of investments in real estate, net 185 3,493 (14,071) 13,538 3,145 Operating income (expense) 170,352 116,442 179,775 56,643 523,212 Interest expense (71,105) (32,637) (53,656) (16,639) (174,037) Gains (losses) on early extinguishment of debt, net - (23,727) - - (23,727) Current and deferred income tax benefit (expense) (171) (484) (34,372) (4,637) (39,664) Foreign currency, derivative and other gains (losses) and other income (expense), net 2,582 4,308 (127) 2,533 9,296 Net earnings (loss) 101,658 63,902 91,620 37,900 295,080 Real estate related depreciation and amortization expense 137,505 61,979 217,754 51,624 468,862 (Gains) losses on dispositions of investments in real estate, net of taxes (179) (3,545) 12,496 (13,538) (4,766) Unrealized foreign currency, derivative and other losses (gains), net - (1,793) 957 (4,580) (5,416) FFO, as modified by Prologis* 238,984 120,543 322,827 71,406 753,760 Core FFO defined adjustments (6) 23,779 1,575 - 25,348 Core FFO* $ 238,978 $ 144,322 $ 324,402 $ 71,406 $ 779,108 Balance Sheet Information At March 31, 2026 Operating properties, before depreciation $ 16,415,777 $ 6,345,824 $ 29,684,567 $ 9,782,968 $ 62,229,136 Accumulated depreciation (3,388,729) (1,043,143) (5,738,951) (1,354,848) (11,525,671) Properties under development, land and other real estate 1,097,783 1,416,877 476,229 256,516 3,247,405 Other assets 1,687,901 511,473 1,614,252 647,342 4,460,968 Total assets $ 15,812,732 $ 7,231,031 $ 26,036,097 $ 9,331,978 $ 58,411,838 Third-party debt $ 6,860,945 $ 2,443,378 $ 6,990,751 $ 3,554,615 $ 19,849,689 Other liabilities 1,028,765 279,658 2,153,586 407,837 3,869,846 Total liabilities $ 7,889,710 $ 2,723,036 $ 9,144,337 $ 3,962,452 $ 23,719,535 Weighted average ownership 32.7 % 32.2 % 32.9 % 15.7 % 30.1 % * This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.
Values represent the entire venture at 100%, not Prologis’ proportionate share. Values are presented at Prologis’ adjusted basis derived from the ventures’ U.S. GAAP information and may not be comparable to values reflected in the ventures’ stand alone financial statements calculated on a different basis.
Non-GAAP Pro-Rata Financial Information(A) Strategic Capital dollars in thousands Noncontrolling Interests included in Consolidated Amounts* Prologis Share of Unconsolidated Co-Investment Ventures* Operating Information For the Three Months Ended March 31, 2026 Rental revenue $ 113,049 $ 413,659 Rental expense (28,445) (82,515) General and administrative expense (11,948) (26,298) Depreciation and amortization expense (33,999) (145,075) Other operating income (expense) 368 (1,061) Operating income before gains 39,025 158,710 Gains (losses) on dispositions of investments in real estate, net 75 (4,142) Operating income 39,100 154,568 Interest expense (421) (50,702) Losses on early extinguishment of debt, net - (8,190) Current and deferred income tax benefit (expense) 666 (12,073) Foreign currency, derivative and other gains (losses) and other income (expense), net 590 4,095 Earnings from unconsolidated co-investment ventures, net 43 - Net earnings 39,978 87,698 Real estate related depreciation and amortization expense 33,423 142,308 (Gains) losses on other dispositions of investments in real estate, net of taxes (excluding development properties and land) 196 2,894 NAREIT defined FFO* 73,597 232,900 Unrealized foreign currency, derivative and other losses (gains), net - (853) Deferred income tax expense (benefit) (712) - FFO, as modified by Prologis* 72,885 232,047 Core FFO defined adjustments (271) 8,879 Core FFO* $ 72,614 $ 240,926 Balance Sheet Information At March 31, 2026 Operating properties, before depreciation $ 3,975,958 $ 18,559,010 Accumulated depreciation (954,228) (3,500,922) Properties under development, land and other real estate 175,707 1,149,762 Other assets 235,191 1,148,354 Total assets $ 3,432,628 $ 17,356,204 Third-party debt $ 26,056 $ 5,429,782 Other liabilities 90,298 1,115,055 Total liabilities $ 116,354 $ 6,544,837 Weighted average ownership 33.6 % 30.1 % Noncontrolling interests investment $ 3,316,274 Investment in and advances to unconsolidated co-investment ventures $ 10,397,182 Investment in and advances to other unconsolidated ventures 844,541 Investment in and advances to unconsolidated entities $ 11,241,723 * This is a non-GAAP financial measure, please see our Notes and Definitions for further explanation. See our Notes and Definitions for further explanation of how these amounts are calculated.
Overview Capitalization ASSETS UNDER MANAGEMENT dollars in millions U.S. DOLLAR EXPOSURE dollars in millions DEBT BY CURRENCY - PROLOGIS SHARE UNENCUMBERED ASSETS - PROLOGIS SHARE: $110.4B in billions Debt Metrics(C) - Prologis Share March 31, 2026 December 31, 2025 Debt as % of gross Market Capitalization* 23.8 % 24.6 % Debt as % of gross real estate assets* 35.4 % 35.7 % Secured debt as % of gross real estate assets* 0.4 % 0.3 % Unencumbered gross real estate assets to unsecured debt* 274.5 % 271.1 % Fixed charge coverage ratio* 6.4x 5.9x Fixed charge coverage ratio, excluding development gains* 6.0x 5.7x Debt/Adjusted EBITDA* 4.8x 5.3x Debt/Adjusted EBITDA, excluding development gains* 5.1x 5.4x Weighted average interest rate 3.3 % 3.3 % Weighted average remaining maturity in years 8.1 8.2 Percentage of floating rate debt 4.6 % 3.8 % Credit Ratings at March 31, 2026(D) Moody's A2 (Outlook Stable) Standard & Poor's A (Outlook Stable) $165,969 $235,165 $235,165 Investment Capacity $4,021 AUM Strategic Capital $103,107 Total Enterprise Value(A) $165,969 $165,969 $40,073 $125,896 Direct owned and other Market Equity Prologis Share of ventures $33,911 Investors' share of ventures $65,175 U.S.(B) 75.7% U.S. Dollar (B) 83.2% Outside U.S. 16.8% U.S.
Dollar(B) Outside U.S. 55.6% U.S. Dollar (B) 95.6% Outside U.S. 4.4% 44.4% Enterprise Value(A) Debt Market Equity Enterprise Value(A) AUM by Ownership AUM by Geography * This is a non-GAAP financial measure. Please see our Notes and Definitions for detailed calculation.
Enterprise value is calculated using Prologis’ stock price of $132.18 at March 31, 2026. Mexico is included in the U.S. as it is U.S. dollar functional. The detailed calculations are included in the Notes and Definitions section and are not in accordance with the applicable SEC rules.
A securities rating is not a recommendation to buy, sell or hold securities and is subject to revision or withdrawal at any time by the rating organization. Debt Europe 15.7% Asia 6.0% Other Americas 2.6% $125,896 $40,073 $132,058
Debt Components - Consolidated Capitalization dollars in thousands Unsecured Maturity Senior Notes Credit Facilities and Commercial Paper(A) Term Loans and Other(B) Secured Mortgage Total Wtd. Avg. Interest Rate % Fixed 2026 $ 399,879 $ 310,446 $ 144,531 $ 45,807 $ 900,663 2.5 % 66 % 2027 1,970,940 - 197,544 4,156 2,172,640 2.3 % 93 % 2028 2,574,695 93,419 113,652 3,041 2,784,807 3.2 % 94 % 2029 3,381,285 - - 3,191 3,384,476 2.7 % 100 % 2030 2,831,665 150,000 31,348 3,345 3,016,358 2.8 % 94 % 2031 2,580,885 - 125,394 17,607 2,723,886 2.9 % 100 % 2032 2,729,915 - 752,364 18,715 3,500,994 2.3 % 89 % 2033 2,882,676 - 163,479 98,216 3,144,371 4.4 % 98 % 2034 3,044,740 - 389,577 - 3,434,317 3.7 % 97 % 2035 2,609,914 - - - 2,609,914 3.6 % 100 % 2036 181,194 - - 15,000 196,194 1.3 % 100 % Thereafter 7,326,358 - - - 7,326,358 3.6 % 100 % Subtotal $ 32,514,146 $ 553,865 $ 1,917,889 $ 209,078 $ 35,194,978 3.2 % 96 % Unamortized net premiums (discounts) (397,056) - - 6,169 (390,887) Unamortized finance costs (129,271) - (4,241) (987) (134,499) Total consolidated debt, net of premiums (discounts) $ 31,987,819 $ 553,865 $ 1,913,648 $ 214,260 $ 34,669,592 Weighted average interest rate 3.3 % 2.5 % 2.0 % 4.2 % 3.2 % Weighted average remaining maturity in years 8.7 1.5 5.6 5.7 8.4 Prologis consolidated debt by local currency Liquidity Senior Notes Credit Facilities and Commercial Paper Term Loans and Other Secured Mortgage Total Investment Hedges(C) Total % of Total Aggregate lender commitments: USD $ 15,240,354 $ 150,000 $ 6,747 $ 171,346 $ 15,568,447 $ (882,334) $ 14,686,113 42 % Credit facilities $ 6,390,386 EUR 11,234,256 310,446 232,468 - 11,777,170 - 11,777,170 34 % Less: Credit facilities borrowings outstanding 243,419 GBP 1,813,412 - - - 1,813,412 682,334 2,495,746 7 % Less: Commercial paper borrowings outstanding(D) 310,446 JPY 1,506,902 93,419 1,356,844 - 2,957,165 - 2,957,165 9 % Less: Outstanding letters of credit 26,133 CAD 1,782,580 - 143,486 42,914 1,968,980 200,000 2,168,980 6 % Current availability 5,810,388 Other 410,315 - 174,103 - 584,418 - 584,418 2 % Cash and cash equivalents 861,144 Total debt $ 31,987,819 $ 553,865 $ 1,913,648 $ 214,260 $ 34,669,592 $ - $ 34,669,592 100 % Total liquidity $ 6,671,532 The maturities for the 2025 Global Facility ($150 million) and the Yen Revolver ($93 million) are reflected at the extended maturity date, as the extension is at our option.
The maturity of certain debt ($144 million) is reflected at the extended maturity dates as the extension is at our option. We manage our exposure to changes in foreign currency exchange rates using foreign currency forward contracts, including those that are accounted for as net investment hedges, to economically reduce our exposure to fluctuations in foreign currency rates. The effect is reflected in the table under Investment Hedges.
See page 30 for our market equity exposure by currency. We are required to maintain available commitments under our credit facilities in an amount at least equal to the commercial paper borrowings outstanding.
Debt Components - Noncontrolling Interests and Unconsolidated(A) Capitalization dollars in thousands Noncontrolling Interests Prologis Share of Unconsolidated Co-Investment Ventures Maturity Unsecured Secured Total Wtd. Avg. Interest Rate % Fixed Unsecured(B) Secured Total Wtd.
Avg. Interest Rate % Fixed 2026 $ - $ 562 $ 562 3.7 % 100 % $ 131,214 $ 27,381 $ 158,595 3.7 % 35 % 2027 3,217 829 4,046 6.4 % 20 % 196,870 39,842 236,712 3.3 % 96 % 2028 3,129 390 3,519 7.0 % 11 % 512,288 78,148 590,436 4.2 % 60 % 2029 - 410 410 3.3 % 100 % 541,106 3,784 544,890 3.4 % 92 % 2030 - 430 430 3.3 % 100 % 485,152 1,126 486,278 3.0 % 98 % 2031 - 1,861 1,861 3.3 % 100 % 590,480 347 590,827 3.2 % 85 % 2032 - 473 473 3.3 % 100 % 467,604 20,629 488,233 2.5 % 96 % 2033 - 12,306 12,306 4.1 % 100 % 470,912 37,990 508,902 3.2 % 100 % 2034 - - - - - 404,944 15,625 420,569 4.5 % 100 % 2035 - - - - - 606,545 - 606,545 4.9 % 100 % 2036 - 1,500 1,500 5.6 % 100 % 370,560 - 370,560 4.6 % 100 % Thereafter - - - - - 459,837 - 459,837 4.5 % 100 % Subtotal $ 6,346 $ 18,761 $ 25,107 4.9 % 75 % $ 5,237,512 $ 224,872 $ 5,462,384 3.8 % 91 % Unamortized net premiums (discounts) - 1,053 1,053 (11,740) 230 (11,510) Unamortized finance costs - (104) (104) (20,162) (930) (21,092) Noncontrolling interests and Prologis Share of unconsolidated debt, net of unamortized premiums (discounts) and finance costs $ 6,346 $ 19,710 $ 26,056 $ 5,205,610 $ 224,172 $ 5,429,782 Weighted average interest rate 7.3 % 4.0 % 4.9 % 3.8 % 3.6 % 3.8 % Weighted average remaining maturity in years 2.0 7.1 7.7 6.3 4.0 6.2 Noncontrolling interests share of consolidated debt by local currency Prologis Share of unconsolidated debt by local currency Unsecured Secured Total % of Total Unsecured Secured Total Investment Hedges(C) Total % of Total USD $ - $ 19,710 $ 19,710 76 % $ 3,093,040 $ 21,647 $ 3,114,687 $ - $ 3,114,687 57 % EUR - - - - 1,547,630 48,331 1,595,961 (534,544) 1,061,417 20 % GBP - - - - 190,381 24,251 214,632 436,115 650,747 12 % JPY - - - - 346,064 74,491 420,555 - 420,555 8 % CAD - - - - - - - - - - Other 6,346 - 6,346 24 % 28,495 55,452 83,947 98,429 182,376 3 % Total debt $ 6,346 $ 19,710 $ 26,056 100 % $ 5,205,610 $ 224,172 $ 5,429,782 $ - $ 5,429,782 100 % Refer to Notes and Definitions under Non-GAAP Pro-Rata Financial Information for further explanation on how these amounts are calculated. The maturity of certain unsecured debt (Prologis Share $478 million) is reflected at the extended maturity dates as the extension is at the venture’s option.
We manage our exposure to changes in foreign currency exchange rates using foreign currency forward contracts, including those that are accounted for as net investment hedges, to economically reduce our exposure to fluctuations in foreign currency rates. The effect is reflected in the table under Investment Hedges. See also page 30 for our market equity exposure by currency.
Components - Prologis Share Net Asset Value Operating Portfolio Square Feet Gross Book Value GBV per Sq Ft Adjusted Cash NOI (Actual)* Adjusted Cash NOI (Pro Forma)* Annualized Adjusted Cash NOI* Percent Occupied Consolidated U.S. 582,353 $ 73,069,052 $ 125 $ 1,305,284 $ 1,305,284 $ 5,221,136 95.7 % Other Americas 16,460 1,698,139 103 39,409 39,409 157,636 94.9 % Europe 8,671 1,162,965 134 12,081 12,080 48,320 79.9 % Asia 5,342 573,546 107 8,277 8,277 33,108 75.5 % NOI adjustments for mid-quarter acquisitions/development completions 7,354 29,416 Total consolidated operating portfolio 612,826 76,503,702 125 1,365,051 1,372,404 5,489,616 95.3 % Unconsolidated U.S. 44,911 5,259,088 117 117,213 117,213 468,852 94.3 % Other Americas 26,207 2,035,403 78 55,793 55,793 223,172 96.7 % Europe 77,520 9,664,354 125 149,500 149,500 598,000 96.0 % Asia 15,591 1,504,183 96 17,583 17,583 70,332 93.4 % Net Property Management Income 8,553 46,089 NOI adjustments for mid-quarter acquisitions/development completions 2,045 8,180 Total unconsolidated operating portfolio 164,229 18,463,028 112 340,089 350,687 1,414,625 95.4 % Total Operating Portfolio 777,055 $ 94,966,730 $ 122 $ 1,705,140 $ 1,723,091 $ 6,904,241 95.3 % Development Portfolio Square Feet Investment Balance TEI TEI per Sq Ft Annualized Estimated NOI Percent Leased Consolidated Prestabilized U.S. 2,105 $ 399,194 $ 463,075 $ 220 $ 26,924 25.1 % Other Americas 2,238 294,088 339,419 152 22,183 50.9 % Europe 403 89,651 97,074 241 5,152 8.5 % Asia 1,142 129,095 141,489 124 10,429 46.4 % Properties under development U.S.(A) 3,945 1,330,739 2,454,280 622 202,377 Other Americas 963 31,980 106,681 111 9,593 Europe 3,621 290,458 863,844 239 46,734 Asia 3,511 66,237 477,327 136 23,835 Total consolidated development portfolio 17,928 2,631,442 4,943,189 276 347,227 Unconsolidated U.S. 2,836 254,093 426,412 150 27,632 Other Americas 453 16,224 39,602 87 2,951 Europe 439 23,656 71,172 162 4,112 Asia 175 3,128 10,873 62 620 Total unconsolidated development portfolio 3,903 297,101 548,059 140 35,315 Total Development Portfolio 21,831 $ 2,928,543 $ 5,491,248 $ 252 $ 382,542 Prologis Share of est. value creation (see Capital Deployment - Development Portfolio) 1,090,625 Total Development Portfolio, including est. value creation $ 4,019,168 in thousands, except for percentages and per square foot amounts * This is a non-GAAP financial measure. Please see our Notes and Definitions for detailed calculation. Amounts include a development recorded as a note receivable that is included in other real estate investments.
Components - Continued Net Asset Value in thousands Balance Sheet and Other Items Other assets Cash and cash equivalents $ 861,144 Restricted cash 41,739 Accounts receivable, prepaid assets and other tangible assets 1,593,453 Gross book value of other real estate investments and assets held for sale 7,073,329 Value added operating properties 693,100 Prologis receivable from unconsolidated co-investment ventures 321,966 Investments in and advances to other unconsolidated joint ventures 844,541 Total other assets $ 11,429,272 Other liabilities Accounts payable and other current liabilities $ 1,684,048 Deferred income taxes 159,631 Value added tax and other tax liabilities 35,164 Tenant security deposits 437,350 Other liabilities 808,632 Total other liabilities $ 3,124,825 Noncontrolling Interests and Unconsolidated Co-investment Ventures Less: noncontrolling interests share of net tangible other liabilities (assets) $ (90,220) Prologis Share of unconsolidated net tangible other assets (liabilities) 556,093 Less: noncontrolling interests share of value added operating properties (29,068) Prologis Share of unconsolidated value added operating properties 95,982 Land Current book value of land 4,684,949 Less: noncontrolling interests share of the current book value of land (30,410) Prologis Share of book value of land in unconsolidated co-investment ventures 144,789 Debt (at par) and Preferred Stock Consolidated debt $ 35,194,978 Noncontrolling interests share of consolidated debt (25,107) Prologis Share of unconsolidated co-investment ventures' debt 5,462,384 Preferred stock 63,948 Common Stock and Limited Partnership Units Outstanding shares of common stock and limited partnership units 951,976 Strategic Capital / Development Management Strategic Capital Third party share of asset management fees from consolidated and unconsolidated co-investment and other ventures (current quarter/annualized) $ 94,755 $ 379,020 Third party share of transactional fees from consolidated and unconsolidated co-investment and other ventures (current quarter/trailing twelve months) 10,995 37,142 Strategic capital expenses for asset management and transactional fees (current quarter/trailing twelve months) (40,077) (143,943) Fee Related Earnings $ 65,673 $ 272,219 Net Promote Income (Expense) (current quarter/trailing twelve months)(A) $ (12,382) $ (50,448) Net Promote Income (Expense) (five year average) $ 188,767 Development management revenue (current quarter/trailing twelve months) $ 11,827 $ 39,436 Net Promote Income (Expense) is negative due to expense primarily from amortization of stock compensation issued to employees related to promote income recognized in prior periods.
Notes and Definitions Prologis Lehigh Valley West 34 -19, Allentown, Pennsylvania
Adjusted Cash NOI (Pro Forma) is a non-GAAP financial measure and consists of Adjusted Cash NOI (Actual) for the properties in our Operating Portfolio adjusted to reflect NOI for a full quarter for operating properties that were acquired or stabilized during the quarter. 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: gains or losses from the disposition of investments in real estate (excluding development properties and land); depreciation and amortization expense; impairment charges; interest charges; current and deferred income taxes; preferred stock dividends; unrealized gains or losses on foreign currency and derivatives; stock compensation amortization expense; gains from the revaluation of equity investments upon acquisition of a controlling interest; and gains or losses on early extinguishment of debt and derivative contracts (including cash charges).
We also include an 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, 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.
Annualized Estimated NOI for the properties in our Development Portfolio is based on current TEI multiplied by the Estimated Weighted Average Stabilized Yield. Notes and Definitions Rental revenues $ 2,125,084 Rental expenses (520,283) NOI 1,604,801 Net termination fees and adjustments (a) (1,676) Less: actual NOI for Development Portfolio and Other Real Estate Investments and other (75,475) Less: Net Property Management Income (40,296) Less: properties contributed or sold (b) (65) Less: noncontrolling interests share of NOI less termination fees and adjustments (84,502) Prologis Share of adjusted NOI for consolidated Operating Portfolio at March 31, 2026 $ 1,402,787 Straight-line rents (c) (77,188) Free rent (c) 67,574 Amortization of lease intangibles (c) (66,712) Net Property Management Income 40,296 Effect of foreign currency exchange (d) (984) Less: noncontrolling interests (722) First Quarter Adjusted Cash NOI (Actual) $ 1,365,051 Please refer to our annual and quarterly financial statements filed with the Securities and Exchange Commission on Forms 10-K and 10-Q and other public reports for further information about us and our business. Certain amounts from previous periods presented in the Supplemental Information have been reclassified to conform to the current presentation.
Certain statements in this document are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Please refer to our “Forward-Looking Statements” and “Risk Factors” disclosure in our Forms 10-K and 10-Q for more information. Acquisition Price, as presented for building acquisitions, represents economic cost.
This amount includes the building purchase price plus 1) transaction closing costs, 2) due diligence costs, 3) immediate capital expenditures (including two years of property improvements and all leasing commissions and tenant improvements required to stabilize the property), and 4) the effects of marking assumed debt to market. Adjusted Cash NOI (Actual) is a non-Generally Accepted Accounting Principles ("GAAP") financial measure and a component of Net Asset Value ("NAV"). It is used to assess the operating performance of our properties and enables both management and investors to estimate the fair value of our Operating Portfolio.
A reconciliation for the most recent quarter ended of our rental income and rental expenses included in our Consolidated Statement of Income to Adjusted Cash NOI for the consolidated Operating Portfolio is as follows (in thousands): Net termination fees generally represent the gross fee negotiated at the time a customer is allowed to terminate its lease agreement. The termination fee is offset by that customer's rent leveling asset or liability and fair value lease asset or liability write off, if any, that has been previously recognized. Removing the net termination fees from rental income allows for the calculation of Adjusted Cash NOI (Actual) to include only rental income that is indicative of the property's recurring operating performance.
Actual NOI for properties that were contributed or sold during the three-month period is removed. Straight-line rents, free rent and amortization of lease intangibles (above and below market leases) are removed from the rental income of our Operating Portfolio to allow for the calculation of a cash yield. Actual NOI and related adjustments are calculated in local currency and translated at the period end rate to allow for consistency with other assets and liabilities as of the reporting date.
Notes and Definitions (continued) Calculation of Per Share Amounts Three Months Ended Mar. 31, in thousands, except per share amount 2026 2025 Net earnings Net earnings attributable to common stockholders $ 980,476 $ 591,501 Noncontrolling interest attributable to exchangeable limited partnership units 23,027 14,991 Adjusted net earnings attributable to common stockholders - Diluted $ 1,003,503 $ 606,492 Weighted average common shares outstanding - Basic 931,261 927,338 Incremental weighted average effect on exchange of limited partnership units 21,979 23,501 Incremental weighted average effect of equity awards 4,321 5,241 Weighted average common shares outstanding - Diluted 957,561 956,080 Net earnings per share - Basic $ 1.05 $ 0.64 Net earnings per share - Diluted $ 1.05 $ 0.63 Three Months Ended Mar. 31, in thousands, except per share amount 2026 2025 Core FFO Core FFO attributable to common stockholders/ unitholders $ 1,440,493 $ 1,356,031 Noncontrolling interest attributable to exchangeable limited partnership units 232 294 Core FFO attributable to common stockholders/ unitholders - Diluted $ 1,440,725 $ 1,356,325 Less: Net Promote Income (Expense) (12,382) (10,893) Core FFO attributable to common stockholders/ unitholders, excluding Net Promote Income (Expense) - Diluted $ 1,453,107 $ 1,367,218 Weighted average common shares outstanding - Basic 931,261 927,338 Incremental weighted average effect on exchange of limited partnership units 21,979 23,779 Incremental weighted average effect of equity awards 4,321 5,241 Weighted average common shares outstanding - Diluted 957,561 956,358 Core FFO per share - Diluted $ 1.50 $ 1.42 Core FFO per share, excluding Net Promote Income (Expense) - Diluted $ 1.52 $ 1.43 Covered Land Plays are income generating assets acquired with the intention to redevelop for higher and better use as industrial properties. These assets may be included in our Operating Portfolio, Value-Added Properties or other real estate investments. Assets Under Management (“AUM”) represents the estimated fair value of the assets we own or manage through both our consolidated entities and unconsolidated co-investment ventures.
We calculate AUM by adding Investment Capacity and the third-party investors’ share of the estimated fair value of the assets in the co-investment ventures to Enterprise Value. Third-Party AUM represents the third-party investors' share of the estimated fair value of the assets in the co-investment ventures plus the Investment Capacity from the third-party investors. 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. Debt Metrics. We evaluate the following debt metrics to monitor the strength and flexibility of our capital structure and evaluate the performance of our management.
Investors can utilize these metrics to make a determination about our ability to service or refinance our debt. See below for the calculations. Indenture Global Line Covenant Actual Covenant Actual Leverage ratio <60% 31.5 % <60% 23.7 % Fixed charge coverage ratio >1.5x 7.3x >1.5x 8.3x Secured debt leverage ratio <40% 0.2 % <40% 0.1 % Unencumbered asset to unsecured debt ratio >150% 285.7 % N/A N/A Unencumbered debt service coverage ratio N/A N/A >150% 775.6 % Debt Covenants are calculated in accordance with the respective debt agreements and may be different than other covenants or metrics presented.
They are not calculated in accordance with the applicable Securities Exchange Commission rules. Please refer to the respective agreements for full financial covenant descriptions. Debt covenants as of the period end were as follows:
Notes and Definitions (continued) Refer to page 9 for a reconciliation to Adjusted EBITDA from Consolidated Net Earnings Attributable to Common Stockholders. Prologis Share of gains on dispositions of development properties and land for the trailing 12 months was $511.6 million and $247.0 million for the current quarter and the previous quarter, respectively. 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 March 31, 2026, total TEI for yards, parking lots, data centers and non-industrial assets was $2.0 billion on an Owned and Managed and $1.9 billion on a Prologis Share basis. We do not disclose square footage for yards and parking lots. Enterprise Value equals our Market Equity plus our share of total debt.
Estimated Build Out (TEI and sq ft) represents the estimated TEI and finished square feet available for lease upon completion of an industrial building on existing parcels of land. 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. Three Months Ended Mar. 31, Dec. 31, dollars in thousands 2026 2025 Debt as a % of gross real estate assets: Consolidated debt $ 34,669,592 $ 35,037,073 Unamortized deferred financing costs and discount, net 525,386 540,973 Consolidated debt (at par) 35,194,978 35,578,046 Noncontrolling interests share of consolidated debt (at par) (25,107) (22,122) Prologis Share of unconsolidated debt (at par) 5,462,384 5,363,417 Total Prologis Share of debt (at par) 40,632,255 40,919,341 Prologis Share of outstanding foreign currency derivatives (11,811) 3,423 Consolidated cash and cash equivalents (861,144) (1,145,647) Noncontrolling interests share of consolidated cash and cash equivalents 25,455 26,685 Prologis Share of unconsolidated cash and cash equivalents (381,729) (298,652) Total Prologis Share of debt, net of adjustments $ 39,403,026 $ 39,505,150 Consolidated gross investments in real estate 95,241,445 95,129,356 Assets held for sale or contribution 499,799 203,344 Acquired intangible liabilities, net of assets (817,598) (856,305) Consolidated gross real estate assets 94,923,646 94,476,395 Noncontrolling interests share of consolidated gross real estate assets (4,158,370) (4,061,330) Prologis Share of unconsolidated gross real estate assets 20,522,301 20,342,476 Total Prologis Share of gross real estate assets $ 111,287,577 $ 110,757,541 Debt as a % of gross real estate assets 35.4 % 35.7 % Debt as a % of gross Market Capitalization: Total Prologis Share of debt, net of adjustments $ 39,403,026 $ 39,505,150 Total outstanding common stock and limited partnership units 951,976 950,912 Share price at quarter end $ 132.18 $ 127.66 Total equity capitalization $ 125,832,188 $ 121,393,426 Total Prologis Share of debt, net of adjustments 39,403,026 39,505,150 Gross Market Capitalization $ 165,235,214 $ 160,898,576 Debt as a % of gross Market Capitalization 23.8 % 24.6 % Secured debt as a % of gross real estate assets: Consolidated secured debt (at par) $ 209,078 $ 189,530 Noncontrolling interests share of consolidated secured debt (at par) (18,761) (16,832) Prologis Share of unconsolidated secured debt (at par) 224,872 214,062 Total Prologis Share of secured debt (at par) $ 415,189 $ 386,760 Total Prologis Share of gross real estate assets $ 111,287,577 $ 110,757,541 Secured debt as a % of gross real estate assets 0.4 % 0.3 % Unencumbered gross real estate assets to unsecured debt: Consolidated unencumbered gross real estate assets $ 94,459,212 $ 94,034,407 Noncontrolling interests share of consolidated unencumbered gross real estate assets (4,095,962) (4,001,217) Prologis Share of unconsolidated unencumbered gross real estate assets 20,042,720 19,853,941 Total Prologis Share of unencumbered gross real estate assets $ 110,405,970 $ 109,887,131 Consolidated unsecured debt (at par) 34,985,900 35,388,516 Noncontrolling interests share of consolidated unsecured debt (at par) (6,346) (5,290) Prologis Share of unconsolidated unsecured debt (at par) 5,237,512 5,149,355 Total Prologis Share of unsecured debt (at par) $ 40,217,066 $ 40,532,581 Unencumbered gross real estate assets to unsecured debt 274.5 % 271.1 % Three Months Ended Mar. 31, Dec. 31, dollars in thousands 2026 2025 Fixed Charge Coverage ratio: Adjusted EBITDA (a) $ 2,178,034 $ 2,002,231 Adjusted EBITDA-annualized including trailing 12 months of development gains and other and excluding Net Promote Income (Expense) (b) $ 8,223,228 $ 7,552,027 Net Promote Income (Expense) for the trailing 12 months (50,448) (48,960) Adjusted EBITDA-annualized $ 8,172,780 $ 7,503,067 Annualized NOI adjustment for real estate transactions (37,056) 39,696 Adjusted EBITDA, including NOI from real estate transactions, annualized $ 8,135,724 $ 7,542,763 Interest expense $ 254,286 $ 260,453 Amortization and write-off of deferred loan costs (7,472) (7,696) Amortization of debt discount, net (13,160) (13,501) Capitalized interest 33,038 31,779 Preferred stock dividends 1,500 1,556 Noncontrolling interests share of consolidated fixed charges (407) (371) Prologis Share of unconsolidated fixed charges 49,064 48,122 Total Prologis Share of fixed charges $ 316,849 $ 320,342 Total Prologis Share of fixed charges, annualized $ 1,267,396 $ 1,281,368 Fixed charge coverage ratio 6.4x 5.9x Debt to Adjusted EBITDA: Total Prologis Share of debt, net of adjustments $ 39,403,026 $ 39,505,150 Adjusted EBITDA-annualized $ 8,172,780 $ 7,503,067 Debt to Adjusted EBITDA ratio 4.8x 5.3x
Notes and Definitions (continued) 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 2026 Expected Completion 2027 and Thereafter Expected Completion Total Development Portfolio U.S. 5.8 % 6.6 % 8.6 % 7.7 % Other Americas 6.5 % 9.0 % 7.5 % 7.1 % Europe 5.3 % 5.4 % 5.6 % 5.4 % Asia 7.4 % 6.2 % 4.6 % 5.5 % Total 6.2 % 6.2 % 8.0 % 7.0 % Fee Related Earnings ("FRE") is a non-GAAP financial measure and component of NAV.
It is used to assess the performance of our strategic capital business and enables management and investors to estimate the corresponding fair value. FRE is calculated as the third-party share of asset management fees and transactional fees from our consolidated and unconsolidated co-investment ventures and other ventures, net of direct and allocated related expenses. As non-GAAP financial measures, FRE has certain limitations as an analytical tool and may vary among real estate and asset management companies.
As a result, we provide a reconciliation of Strategic Capital Revenues (from our Consolidated Financial Statements prepared in accordance with U.S. GAAP) to our FRE measure, as follows: Three Months Ended in thousands Mar. 31, 2026 Strategic capital revenues $ 160,812 Less: Strategic capital revenue from property management fees (41,480) Less: Prologis Share of asset management fees and transactional fees from unconsolidated entities (25,982) Add: Third-party share of asset management fees and transactional fees from consolidated ventures 12,069 Effect of foreign currency exchange 391 Third-party share of fee related and promote revenue $ 105,810 Less: Promote revenue (60) Fee related revenue $ 105,750 Less: Strategic capital expenses for asset management fees and transactional fees (40,077) Fee Related Earnings $ 65,673 Fee Related Earnings Annualized utilizes the components of the current quarter FRE to calculate an estimated annual FRE amount. FRE annualized is calculated as the current quarter third-party share of asset management fees from consolidated and unconsolidated co-investment ventures multiplied by four plus the third-party share of transactional fees from consolidated and unconsolidated co-investment ventures for the trailing twelve months.
This total is reduced by trailing twelve months of strategic capital expenses for asset management and transactional fees. 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. We exclude 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; (v) provide guidance to the financial markets to understand our expected operating performance; and (vi) 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: deferred income tax benefits and deferred income tax expenses recognized by our subsidiaries; 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 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.
Notes and Definitions (continued) Core FFO To arrive at Core FFO, we adjust FFO, as modified by Prologis, to exclude the following: gains or losses from the disposition of land and development properties that were developed with the intent to contribute or sell; income tax expense related to the sale of investments in real estate; 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 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, turnover costs and property improvements and exclude the following items that we recognize directly in Core FFO: straight-line rents; amortization of above- and below-market lease intangibles; amortization of management contracts; amortization of debt premiums and discounts and financing costs, net of amounts capitalized; and 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.
Some of these limitations arise from excluding income tax expense that may be payable or depreciation and amortization expenses that reflect costs necessary to maintain operating performance. In addition, our FFO measure does not reflect changes in asset values resulting from fluctuations in market conditions or foreign currency exchange rates nor costs or benefits from settlement of deferred income taxes or the extinguishment of debt. 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.
General and Administrative Expenses ("G&A"). Our property management personnel perform the property-level management of the properties in our owned and managed portfolio, which include properties we consolidate and those we manage that are owned by the unconsolidated co-investment ventures. We allocate the costs of our property management function to the properties we consolidate (included in Rental Expenses) and the properties owned by the unconsolidated co-investment ventures (included in Strategic Capital Expenses) by using the square feet owned by the respective portfolios.
Strategic Capital Expenses also include the direct expenses associated with the asset management of the unconsolidated co-investment ventures provided by our employees who are assigned to our strategic capital segment as well as promote expenses. We do not allocate indirect costs to Strategic Capital Expenses. Three Months Ended Mar. 31, in thousands 2026 2025 Building and land development activities $ 26,942 $ 30,670 Operating building improvements and other 20,008 12,978 Total capitalized G&A $ 46,950 $ 43,648 G&A as a Percent of Gross Book Value/Assets Under Management (dollars in thousands) Adjusted G&A (trailing twelve months): Net G&A $ 481,303 Add: strategic capital expenses (excluding promote expense) 238,965 Less: strategic capital property management expenses (95,022) Adjusted G&A $ 625,246 Gross book value at period end (a): Operating properties $ 143,372,828 Development portfolio - TEI 6,428,184 Land portfolio 5,029,275 Other real estate investments and assets held for sale 9,836,586 Total gross book value at period end (a) $ 164,666,873 G&A as % of gross book value at period end (a) 0.38 % Total value of Assets Under Management (a) $ 235,165,000 G&A as % of Assets Under Management 0.27 % (a) On an Owned and Managed basis.
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) $ 3.80 $ 4.05 Our share of: Depreciation and amortization 3.22 3.28 Net gains on real estate transactions, net of taxes (0.95) (1.10) Unrealized foreign currency losses (gains), losses (gains) on early extinguishment of debt and other, net - - Core FFO attributable to common stockholders/unitholders $ 6.07 $ 6.23 Less: Net Promote Income (Expense) (0.05) (0.05) Core FFO attributable to common stockholders/unitholders, excluding Net Promote Income (Expense) $ 6.12 $ 6.28 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. IBI Activity Index is a seasonally-adjusted diffusion index based on a monthly survey of business activity from a geographically-diverse group of respondents across the U.S.
Readings greater than 50 reflect growth in activity. These are proprietary metrics for the U.S. Prologis portfolio.
We capitalize certain costs directly related to our development. Capitalized G&A expenses include salaries and related costs as well as other G&A costs. The capitalized costs were as follows:
Notes and Definitions (continued) Income Taxes. Three Months Ended Mar. 31, in thousands 2026 2025 Current income tax expense $ 46,479 $ 35,565 Current income tax expense (benefit) on dispositions 1,302 1,136 Total current income tax expense (benefit) 47,781 36,701 Deferred income tax expense (benefit) 190 6,682 Total income tax expense (benefit) $ 47,971 $ 43,383 Three Months Ended Mar. 31, in thousands 2026 2025 Gross interest expense $ 266,692 $ 234,277 Amortization of debt discounts, net 13,160 13,766 Amortization of finance costs 7,472 7,069 Interest expense before capitalization 287,324 255,112 Capitalized amounts (33,038) (23,361) Interest Expense $ 254,286 $ 231,751 Interest Expense. Net Effective Rent is calculated at the beginning of the lease using estimated total cash base rent to be received over the term and annualized, and excludes fair value lease amortization from acquisitions.
Amounts derived in a currency other than the U.S. dollar have been translated using the average rate from the previous twelve months. The per square foot number is calculated by dividing the Net Effective Rent by the occupied square feet of the lease. Net Operating Income ("NOI") is a non-GAAP financial measure used to evaluate our operating performance and represents rental revenue less rental expenses.
For our consolidated properties, it is calculated directly from our Consolidated Financial Statements as Rental Revenue less Rental Expenses. 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. Net Property Management Income represents property management fees less the actual costs of providing property management services.
Non-GAAP Pro-Rata Financial Information. This information includes non-GAAP financial measures. The Prologis Share of unconsolidated co-investment ventures are derived on an entity-by-entity basis by applying our ownership percentage to each line item in the GAAP financial statements of these ventures to calculate our share of that line item.
For purposes of balance sheet data, we use our ownership percentage at the end of the period and for operating information we use our average ownership percentage during the period consistent with how we calculate our share of net earnings (loss) during the period for our consolidated financial statements. We use a similar calculation to derive the noncontrolling interests share of each line item in our consolidated financial statements. We believe this form of presentation offers insights into the financial performance and condition of our company as a whole, given the significance of our co-investment ventures that are accounted for either under the equity method or consolidated with the third parties' share included in noncontrolling interests, although the presentation of such information may not accurately depict the legal and economic implications of holding a noncontrolling interest in the co-investment venture.
Other companies may calculate their proportionate interest differently than we do, limiting the usefulness as a comparative measure. We do not control the unconsolidated co-investment ventures for purposes of GAAP and the presentation of the assets and liabilities and revenues and expenses do not represent a legal claim to such items. The operating agreements of the unconsolidated co-investment ventures generally provide that investors, including Prologis, may receive cash distributions (1) to the extent there is available cash from operations, (2) upon a capital event, such as a refinancing or sale, or (3) upon liquidation of the venture.
The amount of cash each investor receives is based upon specific provisions of each operating agreement and varies depending on factors including the amount of capital contributed by each investor and whether any contributions are entitled to priority distributions. Upon liquidation of the co-investment venture and after all liabilities, priority distributions and initial equity contributions have been repaid, the investors generally would be entitled to any residual cash remaining based on their respective legal ownership percentages. Because of these limitations, the Non-GAAP Pro-Rata Financial Information should not be considered in isolation or as a substitute for our consolidated financial statements as reported under GAAP.
Investment Capacity is our estimate of the gross real estate that could be acquired by our co-investment ventures through the use of existing equity commitments from us and third-party investors, less any unpaid redemption requests, assuming a midpoint of the target leverage range of the ventures. Lease Negotiation Gestation is the measurement of the number of days between the first proposal exchange with the prospective customer and the final lease signing, including lease terms less than twelve months. This is for new leases in our Operating Portfolio only and excludes renewals.
Lease Proposals are the total initial proposals sent to prospective customers in our Operating Portfolio, measured by net rentable area in square feet. Proposals as a percent of available net rentable area refers to proposals on units vacant or expiring in the next twelve months. Includes proposals with lease terms less than twelve months, as well as customer expansions and renewals.
Market Capitalization equals Market Equity, less liquidation preference of the preferred shares/units, plus our share of total debt. Market Equity equals outstanding shares of common stock and units multiplied by the closing stock price plus the liquidation preference of the preferred shares/units. Net Asset Value ("NAV").
We consider NAV to be a useful supplemental measure of our operating performance because it enables both management and investors to estimate the fair value of our business. The assessment of the fair value of a particular line of our business is subjective in that it involves estimates and can be calculated using various methods. Therefore, we have presented the financial results and investments related to our business components that we believe are important in calculating our NAV but we have not presented any specific methodology nor provided any guidance on the assumptions or estimates that should be used in the calculation.
The components of NAV do not consider the potential changes in rental and fee income streams or the franchise value associated with our global operating platform, strategic capital platform or development platform.
Notes and Definitions (continued) Non-Strategic Assets are industrial properties, which we acquired primarily through Merger and Acquisition ("M&A") transactions, that we do not intend to hold long-term. These industrial properties are classified as other real estate Investments. 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. Three Months Ended Mar. 31, in thousands 2026 2025 Rental revenues $ 1,490,139 $ 1,369,809 Rental recoveries 467,437 438,396 Amortization of lease intangibles 74,673 88,729 Straight-lined rents 92,835 90,331 Rental Revenues $ 2,125,084 $ 1,987,265 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 March 31, 2026 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, 2025 and owned throughout the same three-month period in both 2025 and 2026. 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, 2025) 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: 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. Power Pipeline is expressed in watts and consists of Secured Power and Advanced Stage Power. All sites in the Power Pipeline are owned or controlled by the company and are subject to applicable approvals, including regulatory approvals and entitlements.
Secured Power is utility-fed power capacity that is subject to binding agreements with utilities and expected to support our data center development pipeline, including capacity currently under development. Advanced Stage Power is utility-fed power capacity that is not yet secured but is in advanced discussions with the applicable utilities and is expected to support our data center development pipeline. There is no guarantee that such capacity will become secured power.
Rental Revenues.
Notes and Definitions (continued) 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. 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 March 31, 2026 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. 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. Same Store Average Occupancy represents the average occupied percentage of the Same Store portfolio for the period.
Space Utilization is our customer's assessment of their utilization of their unit on a scale of 0-100% and is based on a monthly survey of a geographically-diverse group of respondents across the U.S 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.
Stabilized NOI is equal to the estimated twelve months of potential gross rental revenue (base rent, including above or below market rents plus operating expense reimbursements) multiplied by 95% to adjust income to a stabilized vacancy factor of 5% minus estimated operating expenses. 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.
Turnover Costs represent the estimated obligations incurred in connection with the signing of a lease; including leasing commissions and tenant improvements and are presented for leases that commenced during the period. Tenant improvements include costs to prepare a space for a new tenant or a lease renewal with the current tenant. It excludes costs for a first generation lease (i.e. a new development property) and short-term leases of less than one year.
Value-Added Properties are properties we have either acquired at a discount and believe we could provide greater returns post-stabilization or properties we expect to repurpose to higher uses. 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.
Three Months Ended Mar. 31, dollars in thousands 2026 2025 Change (%) Reconciliation of Consolidated Property NOI to Same Store Property NOI measures: Rental revenues $ 2,125,084 $ 1,987,265 Rental expenses (520,283) (488,317) Consolidated Property NOI $1,604,801 $ 1,498,948 Adjustments to derive same store results: Property NOI from consolidated properties not included in same store portfolio and other adjustments (a) (150,967) (122,495) Property NOI from unconsolidated co-investment ventures included in same store portfolio (a)(b) 1,010,288 956,327 Third parties' share of Property NOI from properties included in same store portfolio (a)(b) (785,354) (750,429) Prologis Share of Same Store Property NOI - Net Effective (b) $1,678,768 $ 1,582,351 6.1 % Consolidated properties straight-line rent and fair value lease amortization included in the same store portfolio (c) (134,307) (156,391) Unconsolidated co-investment ventures straight-line rent and fair value lease amortization included in the same store portfolio (c) (45,957) (56,807) Third parties' share of straight-line rent and fair value lease amortization included in the same store portfolio (b)(c) 35,810 41,376 Prologis Share of Same Store Property NOI - Cash (b)(c) $1,534,314 $ 1,410,529 8.8 %