Prologis (PLD) AI Stock Analysis

• Market Cap: $121.70B
• Dividend Yield: 3.11%
• Average Volume (3M): 3.37M
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.89
• Revenue Growth: 10.75%
• EPS Growth: 4.29%
• Country: US
• Employees: 2,703
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.82
• Shares Outstanding: 928,867,000
• 10 Day Avg. Volume: 3,334,632
• 30 Day Avg. Volume: 3,365,058
• PEG Ratio: 1.19
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 11.94
• P/FCF Ratio: 19.93
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 17.04
• Enterprise Value/Gross Profit: 25.18
• Enterprise Value/Ebitda: 20.70
• 1Y Price Target: $129.73
• Price Target Upside: 2.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $145.00 ▲(14.47% Upside)

Prologis is well-positioned in the REIT - Industrial sector, with strong financial performance and positive earnings call highlights. The technical indicators show a positive trend, although the valuation suggests potential overvaluation. Strategic corporate events further bolster the company's outlook.

Positive Factors

Record Leasing Activity

Record leasing activity indicates strong demand and customer confidence, enhancing Prologis' market position and revenue stability.

Data Center Expansion

Expanding data center capacity positions Prologis to capitalize on growing digital infrastructure needs, diversifying revenue streams.

Strong Cash Flow Generation

Robust cash flow generation supports operational flexibility and strategic investments, underpinning long-term financial health.

Negative Factors

Rising Debt Levels

Rising debt levels may strain financial flexibility, potentially impacting future investment capacity and increasing risk exposure.

Elevated Bad Debt Expense

Higher bad debt expenses could signal financial strain among tenants, potentially affecting Prologis' revenue reliability.

Market Rent Declines

Continued market rent declines could pressure revenue growth and profitability, challenging Prologis' pricing power.

Prologis Business Overview & Revenue Model

Company Description

Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of December 31, 2020, 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 984 million square feet (91 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 5,500 customers principally across two major categories: business-to-business and retail/online fulfillment.

How the Company Makes Money

Prologis generates revenue primarily through rental income from its extensive portfolio of industrial properties. The company leases its facilities to a variety of tenants, including major e-commerce companies and logistics providers, on both short-term and long-term contracts. Additionally, Prologis earns revenue through property management services and development projects, where it builds new facilities for lease or sale. The company also engages in strategic partnerships and joint ventures to enhance its market position and expand its property offerings. Factors contributing to its earnings include the growing demand for logistics space driven by e-commerce growth, a favorable supply-demand balance in key markets, and its strong operational efficiency.

Prologis Financial Statement Overview

Summary

Prologis exhibits strong financial health with consistent revenue growth and high profitability margins. The balance sheet is stable with moderate leverage, though rising debt levels warrant attention. Cash flow generation is robust, supporting the company's operational and financial strategies.

Income Statement

Prologis demonstrates strong revenue growth with a TTM revenue increase of 2.1%. The company maintains high profitability with a gross profit margin of 75.3% and a net profit margin of 40.3%. EBIT and EBITDA margins are robust at 55.4% and 85.9%, respectively, indicating efficient operations. However, the net profit margin has slightly decreased from the previous year, suggesting potential cost pressures.

Balance Sheet

The balance sheet reflects a healthy debt-to-equity ratio of 0.66, indicating moderate leverage. Return on equity is stable at 6.5%, showing consistent profitability. The equity ratio stands at 54%, suggesting a solid equity base. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Prologis shows a positive free cash flow growth rate of 7.5% TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 2.41, indicating efficient cash conversion. The free cash flow to net income ratio remains at 1.0, suggesting all net income is converted into free cash flow. Despite these strengths, the reliance on operating cash flow for free cash flow generation could be a concern if operational performance declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.74B	8.20B	8.02B	5.97B	4.76B	4.44B
Gross Profit	5.91B	6.14B	6.01B	4.46B	3.51B	3.27B
EBITDA	7.19B	7.53B	6.57B	5.80B	5.15B	3.61B
Net Income	3.21B	3.73B	3.06B	3.36B	2.94B	1.48B
Balance Sheet
Total Assets	98.34B	95.33B	93.02B	87.90B	58.49B	56.07B
Cash, Cash Equivalents and Short-Term Investments	1.19B	1.32B	530.39M	278.48M	556.12M	598.09M
Total Debt	0.00	31.49B	29.60B	24.51B	18.16B	17.34B
Total Liabilities	41.13B	36.71B	35.20B	30.03B	20.74B	19.74B
Stockholders Equity	52.64B	53.95B	53.18B	53.24B	33.43B	31.97B
Cash Flow
Free Cash Flow	5.19B	4.91B	5.37B	3.58B	2.50B	1.69B
Operating Cash Flow	5.19B	4.91B	5.37B	4.13B	3.00B	2.94B
Investing Cash Flow	-3.34B	-3.10B	-6.42B	-4.50B	-1.99B	-3.07B
Financing Cash Flow	-1.44B	-999.96M	1.32B	115.79M	-1.01B	-372.16M

Prologis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 126.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLD, the sentiment is Positive. The current price of 126.67 is above the 20-day moving average (MA) of 126.09, above the 50-day MA of 122.98, and above the 200-day MA of 111.22, indicating a bullish trend. The MACD of 1.51 indicates Positive momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 46.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLD.

Prologis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLD	79 Outperform	$121.70B	37.26	6.07%	3.11%	10.75%	4.29%
EGP	78 Outperform	$9.60B	37.74	7.83%	3.22%	11.10%	-1.65%
REXR	76 Outperform	$9.48B	28.71	4.03%	4.29%	10.27%	15.25%
STAG	75 Outperform	$7.24B	29.97	7.17%	3.91%	9.62%	31.08%
TRNO	75 Outperform	$6.44B	19.85	8.38%	3.27%	21.13%	74.37%
FR	74 Outperform	$7.90B	32.36	8.97%	2.97%	9.66%	-23.17%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Prologis Corporate Events

Prologis Approves New Performance Stock Unit Agreement

On December 3, 2025, Prologis, Inc.’s Talent and Compensation Committee approved a new form of Performance Stock Unit Agreement under its 2020 Long-Term Incentive Plan, allowing for dividend equivalents on Target PSUs to be settled in cash based on performance criteria. Additionally, an amendment was approved for the Retirement Eligibility Waiver, affecting equity-based awards for certain executives from January 1, 2026, indicating changes in the company’s approach to executive compensation and retirement benefits.

Prologis Updates Performance Stock Unit Agreement

On December 3, 2025, Prologis, Inc.’s Talent and Compensation Committee approved a new form of Performance Stock Unit Agreement to be used under the company’s 2020 Long-Term Incentive Plan. This updated agreement allows for the accrual of dividend equivalents on Target PSUs during the performance period, which will be settled in cash if the performance criteria are met. Additionally, the committee approved an amendment to the Retirement Eligibility Waiver for certain executives, specifying that equity-based awards granted on or after January 1, 2026, will not be subject to the waiver terms.

Prologis Appoints New Chief Development Officer

On November 24, 2025, Prologis, Inc. announced that Damon Austin will assume the role of Chief Development Officer starting January 1, 2026. Mr. Austin has been with Prologis since 2015, holding various leadership roles, and his appointment is expected to further strengthen the company’s development strategies and operations.

Prologis Appoints New Chief Development Officer

On November 24, 2025, Prologis, Inc. announced that Damon Austin will assume the role of Chief Development Officer starting January 1, 2026. Mr. Austin has been with the company since 2015, holding various leadership positions, and his appointment is expected to influence the company’s strategic development initiatives.

Prologis Announces Pricing of C$700 Million Notes

Prologis, L.P., a leading entity in the logistics real estate sector, has announced the pricing of its offering of C$700 million in 3.600% Notes due 2032. The issuance is set to close on October 27, 2025, with net proceeds estimated at approximately C$693.6 million. The funds are intended for general corporate purposes, including debt repayment. The Notes, which are senior unsecured obligations, offer flexibility in redemption terms and are governed by an Indenture that restricts certain financial activities of the Operating Partnership and its subsidiaries.

Prologis Prices C$700 Million Notes Offering

Prologis, L.P. announced that it has priced an offering of C$700 million in 3.600% Notes due 2032, with the issuance expected to close on October 27, 2025. The net proceeds from this offering, estimated at approximately C$693.6 million, will be used for general corporate purposes, including the repayment of existing debts. The Notes, which are senior unsecured obligations, come with specific redemption terms and restrictions on additional indebtedness and asset disposition, potentially impacting the company’s financial strategy and stakeholder interests.

Prologis Reports Q3 2025 Financial Results Growth

On October 15, 2025, Prologis, Inc. announced its financial results for the third quarter of 2025, highlighting a total revenue increase to $2.214 billion from $2.036 billion in the same period the previous year. Despite a decrease in net earnings attributable to common stockholders from $1.004 billion to $763 million, the company reported a rise in Core FFO to $1.426 billion. The announcement reflects Prologis’ continued growth in logistics real estate, with significant investments and developments in high-demand markets, impacting stakeholders positively by enhancing its market position and operational scale.

Prologis Reports Q3 2025 Financial Results

On October 15, 2025, Prologis, Inc. announced its financial results for the third quarter of 2025, reporting total revenues of $2.214 billion, an increase from $2.036 billion in the same period of 2024. Despite a decrease in net earnings attributable to common stockholders from $1.004 billion in 2024 to $763 million in 2025, the company’s Core FFO increased to $1.426 billion from $1.367 billion. The announcement highlights the company’s continued growth in strategic capital revenues and development stabilizations, emphasizing its strong market position and impact on stakeholders.

Prologis Completes €1 Billion Notes Issuance

On September 22, 2025, Prologis Euro Finance LLC and Prologis, L.P. completed the issuance and sale of €1 billion in Notes, divided equally between 3.250% Notes due 2032 and 3.875% Notes due 2037. The net proceeds of approximately €989.2 million will be used by the Operating Partnership for general corporate purposes, including debt repayment. The Notes, which are senior unsecured obligations, are guaranteed by the Operating Partnership and come with specific redemption options and restrictions on incurring additional indebtedness.

Prologis Completes €1 Billion Notes Issuance

On September 22, 2025, Prologis Euro Finance LLC and Prologis, L.P. completed the issuance and sale of €1 billion in Notes, divided equally between 2032 and 2037 maturities, with interest rates of 3.250% and 3.875% respectively. The net proceeds, estimated at approximately €989.2 million, will be used by the Operating Partnership for general corporate purposes, including debt repayment. The issuance aims to strengthen Prologis’ financial position and flexibility, with the Notes being senior unsecured obligations guaranteed by the Operating Partnership.

Prologis Announces Upcoming Chief Accounting Officer Change

On September 18, 2025, Prologis, Inc. announced the retirement of Lori Palazzolo as Chief Accounting Officer, effective April 1, 2026. Trisha Burns, who has been with the company since 2010 and currently serves as Senior Vice President, Global Accounting and Financial Reporting, will take over the role. This transition is expected to ensure continuity in the company’s financial operations.

Prologis Announces Upcoming Change in Accounting Leadership

On September 18, 2025, Prologis, Inc. announced the retirement of Lori Palazzolo as Chief Accounting Officer, effective April 1, 2026. Trisha Burns, who has been with the company since 2010 and currently serves as Senior Vice President, Global Accounting and Financial Reporting, will assume the role on the same date. This transition is expected to ensure continuity in the company’s accounting leadership.