Prologis (PLD) AI Stock Analysis

• Market Cap: $121.33B
• Dividend Yield: 3.16%
• Average Volume (3M): 3.67M
• Price to Earnings (P/E): 37.2
• Beta (1Y): 0.83
• 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: 4,020,322
• 30 Day Avg. Volume: 3,668,495
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $132.45
• Price Target Upside: 3.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $144.00 ▲(12.70% Upside)

Prologis scores well due to strong financial performance and a positive earnings call, highlighting strategic growth and robust leasing activity. Technical indicators suggest stability, while valuation metrics indicate potential overvaluation. Overall, the company is well-positioned in its sector, with a positive outlook despite some challenges.

Positive Factors

Record Leasing Activity

The record leasing activity indicates strong demand and improved customer sentiment, reinforcing Prologis' market leadership and growth potential in logistics real estate.

Data Center Expansion

Expanding data center capacity represents a significant investment opportunity, enhancing Prologis' diversification and long-term revenue streams in a growing sector.

Strong Cash Flow

Effective cash generation from operations supports financial stability, enabling Prologis to invest in growth opportunities and maintain a healthy balance sheet.

Negative Factors

Rising Debt Levels

Higher debt levels can strain cash flow and limit financial flexibility, impacting long-term stability and increasing financial risk if not managed properly.

Elevated Bad Debt Expense

Elevated bad debt expenses can erode profitability and indicate potential issues with tenant credit quality, affecting Prologis' financial performance.

Market Rent Declines

Declining market rents in some areas could pressure revenue growth and profitability, challenging Prologis' ability to maintain its pricing power.

Prologis Business Overview & Revenue Model

Company Description

Prologis, Inc. (NYSE: PLD) is a leading global logistics real estate investment trust (REIT) that focuses on the ownership, operation, and development of industrial properties, particularly in high-demand markets. The company specializes in logistics facilities such as warehouses and distribution centers, catering primarily to e-commerce, retail, and third-party logistics companies. Prologis operates in key markets across North America, Europe, and Asia, offering a diverse portfolio of properties designed to support the efficient movement of goods.

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 demonstrates strong profitability with consistent margins and effective cash generation. However, slight margin declines and rising debt levels warrant caution.

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: Positive
• Last Price: 127.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 127.77 is above the 20-day moving average (MA) of 127.72, above the 50-day MA of 125.09, and above the 200-day MA of 110.94, indicating a bullish trend. The MACD of 1.04 indicates Positive momentum. The RSI at 56.06 is Neutral, neither overbought nor oversold. The STOCH value of 13.21 is Positive, 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
EGP	78 Outperform	$9.66B	37.87	7.83%	3.15%	11.10%	-1.65%
PLD	76 Outperform	$121.33B	37.20	6.07%	3.16%	10.75%	4.29%
REXR	76 Outperform	$9.40B	27.97	4.03%	4.30%	10.27%	15.25%
STAG	75 Outperform	$6.93B	28.62	7.17%	4.02%	9.62%	31.08%
TRNO	75 Outperform	$6.23B	19.06	8.38%	3.35%	21.13%	74.37%
FR	74 Outperform	$7.89B	32.05	8.97%	2.95%	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.