Prologis (PLD) AI Stock Analysis

• Market Cap: $120.91B
• Dividend Yield: 3.16%
• Average Volume (3M): 3.15M
• Price to Earnings (P/E): 35.7
• Beta (1Y): 0.84
• Revenue Growth: 10.75%
• EPS Growth: 4.29%
• Country: US
• Employees: 2,703
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 1.49
• Shares Outstanding: 928,867,000
• 10 Day Avg. Volume: 3,722,582
• 30 Day Avg. Volume: 3,148,360
• 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: 1.26
• Enterprise Value/Revenue: 17.39
• Enterprise Value/Gross Profit: 25.70
• Enterprise Value/Ebitda: 21.13
• 1Y Price Target: $138.64
• Price Target Upside: 9.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $147.00 ▲(15.61% Upside)

The score is driven primarily by strong financial performance (profitability and cash flow) and a constructive earnings outlook (record leasing, solid occupancy guidance, and data center progress). Technicals support the trend, while the main drag is valuation due to the elevated P/E despite a moderate dividend yield.

Positive Factors

Strong cash generation

Consistently strong operating and free cash flow ratios indicate durable internal funding for dividends, development starts and debt servicing. Reliable cash conversion supports capital allocation flexibility and resilience through cycles, underpinning long-term shareholder returns.

Record leasing and high occupancy

Very large leasing volumes and sustained ~95% occupancy reduce vacancy risk and stabilize rental income. This scale of demand reinforces Prologis' market position in core logistics hubs, supporting durable cash flow, pricing leverage on renewals and disciplined development absorption.

Expansion into data centers and energy

Growing digital infrastructure and onsite energy businesses diversify revenue beyond traditional leasing, tapping secular cloud and sustainability trends. Large-scale, long-duration projects create new high-return pipelines and reduce reliance on cyclical industrial leasing alone.

Negative Factors

Rising leverage

Moderate but increasing leverage raises refinancing and interest-rate exposure as the company scales development and data center investments. Higher debt can constrain flexibility for opportunistic buys or increase financing costs, pressuring FFO and capex pacing over the medium term.

Decline in strategic capital/promote income

Reduced promote and strategic-capital income lowers capital-light fee streams that historically boosted FFO/AFFO. A weaker contribution from development realization makes reported earnings more tied to leasing rents and raises variability in distributable cash over multi-quarter horizons.

Elevated bad debt and market rent softness

Rising tenant credit losses and continued, albeit slowing, market rent declines signal borrower and leasing stress in some markets. These structural pressures can erode net margins, slow same-store NOI growth and increase provisioning, weighing on durable FFO conversion and dividend coverage.

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

Strong profitability (TTM gross margin >67%, net margin ~37%) and very solid cash generation (FCF to net income ~1.0; operating cash flow to net income 2.41). Balance sheet is healthy with moderate leverage (debt-to-equity 0.67), though rising debt and slight margin pressure are key watch items.

Income Statement

Prologis demonstrates strong profitability with a consistent gross profit margin above 67% and a net profit margin around 37% in the TTM. Revenue growth has been positive, albeit modest at 2.07% in the TTM. The EBIT and EBITDA margins are robust, indicating efficient operations. However, the slight decline in margins compared to previous years suggests some pressure on profitability.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.67 in the TTM, indicating moderate leverage. The return on equity is stable around 6%, reflecting decent profitability relative to shareholder equity. The equity ratio is strong, suggesting a solid capital structure. However, the increasing debt levels over the years could pose a risk if not managed carefully.

Cash Flow

Prologis shows strong cash flow metrics with a free cash flow to net income ratio of 1.0, indicating effective cash generation from operations. The operating cash flow to net income ratio is also robust at 2.41 in the TTM. Free cash flow growth is positive, reflecting improved cash management. The consistent cash flow performance supports the company's financial stability.

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	35.30B	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: Neutral
• Last Price: 127.15
• 50DMA: Negative
• 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 Neutral. The current price of 127.15 is below the 20-day moving average (MA) of 129.36, below the 50-day MA of 127.50, and above the 200-day MA of 113.20, indicating a neutral trend. The MACD of 0.57 indicates Positive momentum. The RSI at 44.38 is Neutral, neither overbought nor oversold. The STOCH value of 25.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PLD.

Prologis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EGP	78 Outperform	$9.66B	38.00	7.83%	3.15%	11.10%	-1.65%
PLD	75 Outperform	$120.91B	35.74	―	3.16%	10.75%	4.29%
STAG	75 Outperform	$6.84B	28.30	7.17%	4.02%	9.62%	31.08%
TRNO	74 Outperform	$6.46B	19.93	8.38%	3.38%	21.13%	74.37%
REXR	74 Outperform	$9.30B	28.14	4.03%	4.30%	10.27%	15.25%
FR	71 Outperform	$7.84B	32.12	8.97%	2.98%	9.66%	-23.17%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Prologis Corporate Events

Prologis Posts Higher 2025 Revenue Amid Earnings Decline

On January 21, 2026, Prologis reported its fourth-quarter and full-year 2025 results, showing total 2025 revenues of $8.79 billion, up from $8.20 billion in 2024, driven primarily by higher rental income, while strategic capital revenues declined year over year. Net earnings attributable to common stockholders fell to $3.32 billion in 2025 from $3.73 billion a year earlier, and both core funds from operations and adjusted funds from operations decreased modestly, even as adjusted EBITDA rose, highlighting resilient operating performance but a moderation in capital-light fee and development-related income. The company generated $6.7 billion in annual net operating income from its operating portfolio, created an estimated $568 million in value from development stabilizations and paid $3.87 billion in dividends and distributions for 2025, underscoring its continued emphasis on large-scale development, strategic capital management and shareholder returns despite softer promote income and lower realized development gains compared with 2024.

The most recent analyst rating on (PLD) stock is a Buy with a $142.00 price target. To see the full list of analyst forecasts on Prologis stock, see the PLD Stock Forecast page.

Prologis Reports Q4 and Full-Year 2025 Financial Results

On January 21, 2026, Prologis reported its fourth-quarter and full-year 2025 results, highlighting steady revenue growth but some pressure on profitability metrics. Total revenues rose to $2.25 billion in the fourth quarter and $8.79 billion for 2025, up from the prior year, driven mainly by higher rental and other revenues, although strategic capital revenues declined. Net earnings attributable to common stockholders increased year-on-year to $1.40 billion for the quarter but fell to $3.32 billion for the full year, while Core FFO and AFFO for both the quarter and full year edged down compared with 2024, reflecting lower strategic capital contributions and reduced development value creation. The company ended 2025 with $230 billion in gross assets under management, $6.7 billion in annualized net operating income on a Prologis share basis, and a sizable $42.6 billion land build-out pipeline, underscoring its scale and ongoing development capacity. Prologis also maintained substantial shareholder returns, paying $3.87 billion in dividends and distributions in 2025, while its balance sheet showed higher debt alongside growing real estate investments, signaling continued capital deployment to support its global logistics platform.

The most recent analyst rating on (PLD) stock is a Buy with a $142.00 price target. To see the full list of analyst forecasts on Prologis stock, see the PLD Stock Forecast page.

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.

The most recent analyst rating on (PLD) stock is a Buy with a $138.00 price target. To see the full list of analyst forecasts on Prologis stock, see the PLD Stock Forecast page.

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.

The most recent analyst rating on (PLD) stock is a Buy with a $138.00 price target. To see the full list of analyst forecasts on Prologis stock, see the PLD Stock Forecast page.

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.

The most recent analyst rating on (PLD) stock is a Buy with a $144.00 price target. To see the full list of analyst forecasts on Prologis stock, see the PLD Stock Forecast page.

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.

The most recent analyst rating on (PLD) stock is a Buy with a $144.00 price target. To see the full list of analyst forecasts on Prologis stock, see the PLD Stock Forecast page.

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.

The most recent analyst rating on (PLD) stock is a Buy with a $135.00 price target. To see the full list of analyst forecasts on Prologis stock, see the PLD Stock Forecast page.

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.

The most recent analyst rating on (PLD) stock is a Buy with a $135.00 price target. To see the full list of analyst forecasts on Prologis stock, see the PLD Stock Forecast page.