Prologis (PLD)
NYSE:PLD
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Prologis
(NYSE:PLD)
Select Model
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Rating:68Neutral
Price Target:
$140.00
â–²(1.43% Upside)
Action:DowngradedDate:04/01/26
The score is driven primarily by solid fundamentals and a constructive earnings outlook (strong leasing, high occupancy, and embedded NOI), but is held back by weak technical momentum and a high P/E. Financial quality flags from 2025 (margin compression, higher leverage, and weaker cash-flow coverage) further moderate the rating.
Positive Factors
High occupancy and strong leasing
Sustained leasing volumes and ~95% occupancy indicate durable, recurring rental cash flows and strong tenant demand across markets. High retention and market outperformance support pricing power, lower downtime between leases, and predictable revenue for multiple quarters to years.
Negative Factors
Rising leverage
An upward leverage trend reduces balance‑sheet cushion typical for REITs, increasing interest‑cost sensitivity and limiting flexibility for opportunistic acquisitions or buybacks. If cash flow growth slows, elevated leverage raises refinancing and covenant risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High occupancy and strong leasing
Sustained leasing volumes and ~95% occupancy indicate durable, recurring rental cash flows and strong tenant demand across markets. High retention and market outperformance support pricing power, lower downtime between leases, and predictable revenue for multiple quarters to years.
Read all positive factors
Prologis (PLD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$131.30B
Dividend Yield3.16%
Average Volume (3M)3.41M
Price to Earnings (P/E)35.1
Beta (1Y)0.84
Revenue Growth10.75%
EPS Growth4.29%
CountryUS
Employees2,703
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)1.49
Shares Outstanding929,559,000
10 Day Avg. Volume2,955,859
30 Day Avg. Volume3,406,312
Financial Highlights & Ratios
PEG Ratio-3.08
Price to Book (P/B)2.25
Price to Sales (P/S)13.63
P/FCF Ratio23.92
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue18.36
Enterprise Value/Gross Profit30.81
Enterprise Value/Ebitda22.42
Forecast
1Y Price Target
$141.86Price Target Upside2.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)3.35
Revenue Forecast (FY)$8.69B
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...
How the Company Makes Money
Prologis primarily makes money by owning and operating industrial logistics real estate and earning rental income from leasing warehouse and distribution space to customers (typically under multi-year lease agreements). Its core revenue stream is ...
Prologis Key Performance Indicators (KPIs)
Any
Buildings
Counts the total number of properties owned, reflecting the scale of the company's real estate portfolio and its capacity to generate rental revenue.
Counts the total number of properties owned, reflecting the scale of the company's real estate portfolio and its capacity to generate rental revenue.
Data provided by:
The Fly
The FlyPrologis Earnings Call Summary
Earnings Call Date:Jan 21, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operational and financial achievements: robust leasing (57M sq ft in Q4), high occupancy (≈95–96%), significant rent momentum and embedded NOI (~$800M at 18% mark-to-market), a growing data center power pipeline (5.7 GW) and energy milestone (1.1 GW installed). Management also provided constructive 2026 guidance and reported progress in strategic capital (CREIT IPO, Agility Fund). Headwinds discussed were largely timing and normalization issues—seasonal Q1 occupancy dip, normalization of rent-change contribution, drag from recent acquisition, and data center power procurement timelines—all of which management believes are manageable and part of a multi-year growth setup. On balance, highlights substantially outweigh the lowlights, reflecting operational strength and strategic optionality.Positive Updates
Strong Leasing Activity and High Occupancy
Signed 57 million square feet of leases in Q4; average owned & managed occupancy 95.3% for the quarter, 95.0% for the full year, and period-end 95.8%; retention rate of 78% and U.S. outperformance expanded to ~300 basis points versus the market.
Negative Updates
Seasonal and Near-Term Occupancy Drag
Guidance includes an expectation for a seasonal drop in occupancy in Q1 2026 before rebuilding over the year; management forecasted only a modest average occupancy increase (guide centered near 95%), indicating near-term drag.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Leasing Activity and High Occupancy
Signed 57 million square feet of leases in Q4; average owned & managed occupancy 95.3% for the quarter, 95.0% for the full year, and period-end 95.8%; retention rate of 78% and U.S. outperformance expanded to ~300 basis points versus the market.
Read all positive updates
Company Guidance
Prologis gave initial 2026 guidance calling for average occupancy of 94.75%–95.75% (with a seasonal Q1 dip), net effective same‑store growth of 4.25%–5.25% (cash 5.75%–6.75%), G&A of $500M–$520M, strategic capital revenue of $650M–$670M, owned & managed development starts of $4.0B–$5.0B (with ~40% of that activity expected to be data centers), acquisitions of $1.0B–$1.5B, combined contributions and dispositions of $3.25B–$4.25B, GAAP EPS of $3.70–$4.00, and core FFO of $6.00–$6.20 per share (or $6.05–$6.25 excluding net promote expense).Prologis Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
72
Positive
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.79B | 8.20B | 8.02B | 5.97B | 4.76B |
| Gross Profit | 5.24B | 6.14B | 6.01B | 4.46B | 3.51B |
| EBITDA | 7.20B | 7.53B | 6.57B | 5.80B | 5.15B |
| Net Income | 3.41B | 3.73B | 3.06B | 3.36B | 2.94B |
Balance Sheet | |||||
| Total Assets | 98.72B | 95.33B | 93.02B | 87.90B | 58.49B |
| Cash, Cash Equivalents and Short-Term Investments | 1.15B | 1.32B | 530.39M | 278.48M | 556.12M |
| Total Debt | 35.04B | 31.49B | 29.60B | 24.51B | 18.16B |
| Total Liabilities | 40.97B | 36.71B | 35.20B | 30.03B | 20.74B |
| Stockholders Equity | 53.19B | 53.95B | 53.18B | 53.24B | 33.43B |
Cash Flow | |||||
| Free Cash Flow | 5.01B | 4.91B | 5.37B | 3.58B | 2.50B |
| Operating Cash Flow | 5.01B | 4.91B | 5.37B | 4.13B | 3.00B |
| Investing Cash Flow | -3.63B | -3.10B | -6.42B | -4.50B | -1.99B |
| Financing Cash Flow | -1.56B | -999.96M | 1.32B | 115.79M | -1.01B |
Prologis Technical Analysis
Positive
138.02
Price Trends
134.48
Positive
130.54
Positive
120.80
Positive
Market Momentum
0.33
Negative
63.12
Neutral
83.71
Negative
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 138.02 is above the 20-day moving average (MA) of 131.84, above the 50-day MA of 134.48, and above the 200-day MA of 120.80, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 63.12 is Neutral, neither overbought nor oversold. The STOCH value of 83.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLD.
Prologis Risk Analysis
Prologis disclosed 28 risk factors in its most recent earnings report. Prologis reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Prologis Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $6.94B | 14.93 | 10.09% | 3.38% | 21.13% | 74.37% | |
74 Outperform | $10.28B | 36.86 | 7.48% | 3.15% | 11.10% | -1.65% | |
71 Outperform | $7.25B | 25.24 | 7.85% | 4.02% | 9.62% | 31.08% | |
71 Outperform | $8.26B | 24.05 | 9.32% | 2.98% | 9.66% | -23.17% | |
68 Neutral | $131.30B | 35.12 | 6.28% | 3.16% | 10.75% | 4.29% | |
66 Neutral | $7.95B | 42.45 | 2.44% | 4.30% | 10.27% | 15.25% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
PLD
Prologis
138.02
45.02
48.41%
EGP
Eastgroup Properties
192.73
42.95
28.68%
STAG
Stag Industrial
37.90
7.74
25.68%
TRNO
Terreno Realty
65.29
12.55
23.81%
FR
First Industrial Realty
60.47
16.37
37.11%
REXR
Rexford Industrial Realty
34.28
3.26
10.52%
Prologis Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Prologis Expands Global Credit Facilities to Enhance Liquidity
Positive
Mar 31, 2026
On March 26, 2026, Prologis, L.P. and its affiliates entered into an Amended and Restated Global Senior Credit Agreement providing a revolving, multicurrency credit facility of up to the U.S. Dollar equivalent of approximately $3 billion, with an ...
Business Operations and StrategyPrivate Placements and Financing
Prologis Expands Global Credit Facility to Enhance Liquidity
Positive
Mar 31, 2026
On March 26, 2026, Prologis, L.P. and affiliated borrowers entered into an Amended and Restated Global Senior Credit Agreement providing a revolving, multi-currency credit facility of approximately $3 billion, with an accordion feature of up to an...
Business Operations and StrategyDividendsFinancial Disclosures
Prologis Posts Higher 2025 Revenue Amid Earnings Decline
Negative
Jan 21, 2026
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 ...
Business Operations and StrategyDividendsFinancial Disclosures
Prologis Reports Q4 and Full-Year 2025 Financial Results
Neutral
Jan 21, 2026
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 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.