Prologis is the global leader in logistics real estate. Our high-quality, well-located facilities in the world’s most vibrant centers of commerce ensure the efficient distribution of goods for the world’s top brands and businesses.
where we do business
Perspectives that fuel strategy
Our scale gives us unparalleled advantages—from superior insights on trends and pricing to the ability to build lasting trust with customers, many of whom sign leases with us in multiple markets. Working this way gives us a unique view into our customers’ business-critical needs, and because we’re where they want to be, customers can more easily move facilities and expand into new geographies.
One significant benefit of our scale is our ability to source and allocate capital globally. Our best-in-class balance sheet gives us access to the lowest-cost capital, which we deploy where and when we see potential for the greatest risk-adjusted returns. In 2017, we raised more than $6.8 billion in long-term debt at a weighted average interest rate of 1.9 percent, and we deployed $2.5 billion at an estimated stabilized capitalization rate of 5.4 percent. These transactions illustrate the advantages of a global platform.
A streamlined business
In 2017, we finalized our initiative to simplify our business. We realigned our portfolio, improved asset utilization, optimized our land bank, increased organizational efficiency and achieved an “A-” rated balance sheet.
A fund portfolio optimized for the future
We also simplified our Strategic Capital business by reducing the number of investment vehicles from 21 at the time of our merger1 to 8 today. In 2017, we raised $2.9 billion in new capital from investors while simultaneously combining our open-end funds to create two sector leaders—one in Europe and the other in the U.S.—each with more than $9 billion in assets. With this restructuring, we reached our primary goal of one venture and one fund in the U.S. and Europe.
STREAMLINED STRATEGIC CAPITAL
NUMBER OF FUNDS
|BY AVERAGE BASE RENT||PERCENT|
|City & Last TouchTM Distribution||35|
|Import Center & Super-Regional Distribution||20|
Transformation across the global supply chain
How goods flow from manufacturers to consumers is changing. Because we focus on the consumption end of the supply chain, we are uniquely positioned to help our customers respond to ever-increasing demand for better and faster delivery of goods. Over the next decade, enabled by new technologies, business processes and the proliferation of data, this transformation will reshape the supply chain. Modern distribution centers positioned to move products as quickly and as cost-effectively as possible are the best-in-class standard for logistics real estate.
Primed and ready for the future flow of goods
The future flow of goods depends on Prologis. Automation, autonomous vehicles and the Internet of Things, among other fast-evolving technologies, are poised to shake up our industry’s status quo. Daily dialogue with our 5,000 customers allows us to see the world through their eyes and affords us a unique view into tomorrow’s opportunities. Our next-generation innovations for supply chains and logistics, sustainability and construction, business intelligence and real estate technology will benefit our customers and shareholders over the long term.