PLD changes
Pick any two versions below to diff them.
- Price
- $130.55
- Discount category
- Below intrinsic value
- Next earnings
- 2027-01-20
- Next earnings is estimate
- Yes
- Company name
- Prologis
- Sector
- Industrial REIT
- About
- Prologis owns, develops and manages logistics real estate, mainly warehouses and distribution centers. It also builds data centers and solar and energy storage projects on its sites. At September 30, 2026, it owned or had investments in properties and development projects of about 1.3 billion square feet in 20 countries, with 5,941 buildings and about 6,500 customers. The U.S., where it includes Mexico, gave 84% of its share of net operating income, Europe 9%, Other Americas 5% and Asia 2%. Its strategic capital business manages co-investment ventures for other investors, and gross assets under management were $238 billion. In August 2026, it agreed to buy SEGRO, a U.K. logistics real estate company. Prologis is a real estate investment trust, and its shares trade on the New York Stock Exchange. Daniel S. Letter is chief executive officer.
- Thesis
- The market doubts that Prologis can grow earnings per share fast enough while interest rates stay high and while it buys SEGRO. On August 4, 2026, Prologis agreed to buy SEGRO for about £14.0 billion, mostly with new Prologis shares, and SEGRO holders can get up to about £3.5 billion in cash. Rent growth on new leases has also slowed from its peak: the net effective rent change was 38.0% in Q3 2026, against 49.4% a year earlier. For the gap to close, three things must be true. Occupancy must stay near 95.5%, and cash same store NOI must keep growing near the 2026 guidance of 7.00% to 7.50%. The SEGRO deal must close in the first half of 2027 as planned, with integration costs and new debt under control and no large cut to Core FFO per share. The data center pipeline of 5.8 GW of secured or advanced-stage power must turn into leased projects with good margins. The Q4 2026 report, expected around January 20, 2027, with the first guidance for 2027, gives the next test. If these checks pass, the gap can close over the next one to two years.
- Risks
- The SEGRO deal still needs regulatory approvals and court sanction. A delay, higher integration costs or more debt for the cash part can lower Core FFO per share. Higher interest rates raise the cost of new debt and can raise the yields that buyers ask for warehouses, which lowers property values and the gains from development. Demand for warehouses depends on trade and consumer spending. New tariffs or a slower economy can lower leasing and rent growth. Data center projects need large amounts of power and capital. Delays in power supply or weak demand can lower the returns on these projects.
- Balance sheet
- Cash: $2.3B Debt: $36.8B Net debt: $34.6B Ratings: Moody's A2 (stable outlook), S&P A (stable outlook) Prologis funds itself mostly with unsecured bonds in several currencies. At September 30, 2026, consolidated debt was $36.83 billion and cash was $2.27 billion. Total available liquidity was about $8.8 billion. Debt was 4.5 times adjusted EBITDA and 23.9% of total market capitalization. The weighted average interest rate on its share of total debt was 3.3%, with a weighted average remaining term of 7.6 years, and 5.1% of the debt had a floating rate. Moody's rates it A2 and S&P rates it A, both with a stable outlook. The fixed charge coverage ratio was 6.2 times. For the cash part of the SEGRO deal, Prologis has a committed term loan of up to £3.575 billion that it can draw only at closing. In Q3 2026, it and its co-investment ventures closed $1.3 billion of new debt at a weighted average rate of 4.0%. As of 2026-09-30.
- Checkpoints
- Jan 20, 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: Occupancy near 95.5%, cash same store NOI growth near 7% and 2027 Core FFO guidance above the 2026 result pass; flat guidance or falling occupancy fail. Q2 2027 (estimate): SEGRO deal closes. Pending. Watch: Completion in the first half of 2027 on the agreed terms pass; a delay, a block by a regulator or new conditions fail.
- Recent events
- 2026-10-30: Prologis signed a new at-the-market equity distribution agreement that replaces its earlier program. 2026-10-15: Prologis reported Q3 2026 results. Core FFO was $1.60 per diluted share, up from $1.49, and net earnings were $0.86 per share. It signed 60 million square feet of leases. Period-end occupancy was 95.6%, and cash same store NOI grew 5.9%. The company narrowed its 2026 Core FFO guidance to $6.25 to $6.29 per share and lowered its net earnings guidance to $4.05 to $4.15 per share. 2026-09-28: SEGRO shareholders approved the purchase of SEGRO by Prologis. The deal still needs other approvals, including some from regulators. 2026-08-04: Prologis agreed to buy all of SEGRO through a U.K. scheme of arrangement. SEGRO shareholders get 0.0920 new Prologis shares for each SEGRO share, with a partial cash alternative of up to about £3.5 billion. At the prices of July 21, 2026, the deal valued SEGRO at about £14.0 billion. Prologis signed a term loan of up to £3.575 billion for the cash, and it will seek a second listing on the London Stock Exchange. It expects to complete the deal in the first half of 2027. 2026-07-16: Prologis reported Q2 2026 results and raised its 2026 guidance for the second time in the year. Core FFO was $1.63 per diluted share. It signed a record of more than 67 million square feet of leases, and its data center power pipeline grew to 5.8 GW.