Prologis 2022 Annual Report

INVESTING IN PEOPLE AND INNOVATION

Shareholder letter from Co-Founder, CEO and Chairman Hamid R. Moghadam

“When my partners and I started in this business more than four decades ago, the logistics industry was highly transactional, driven primarily by merchant builders who moved from one project to the next and landlords who had little interest in building enduring customer relationships. We had a different vision…”

Read the full letter

ADJUSTING TO A NEW NORMAL

Following a historic transformation of global commerce, we believe the current forces of demand shaping our business are somewhat decoupled from the broader economy. This is playing out in two ways:

DEMAND FOR ECOMMERCE SPACE

Ecommerce continues to drive significant and diverse growth in the demand for space.

DEMAND FROM INCREASING INVENTORY

Customers continue to expand their operations for a “just in case” approach to inventory.

Making Customer Centricity Real

Building from a foundational commitment to our customers with a real estate portfolio that spans the most vibrant centers of commerce, we continually aim higher and empower our customers to go further, tackling some of today’s most critical supply chain challenges across operations, energy, mobility, and workforce, with Prologis Essentials.

We are dedicated to redefining the future of logistics through groundbreaking innovation and forward thinking. We stay ahead of what’s next by investing in high-impact companies who are pioneering the future of the supply chain through Prologis Ventures and delivering industry-leading research and featuring leaders at the forefront of change with GROUNDBREAKERS, taking the supply chain to the next level.

A Committed Partner for Resilient Communities

We partner with local leaders and organizations to create job training programs; promote health and safety; and enhance recreational and transit infrastructure. These efforts, together with our employees’ community engagement activities, support a more stable business environment for our customers, and support social wellness in the communities we serve.

174

Months of Rent-Free Space

$2.4M+

In-kind Rent Donated

14,557

Hours Volunteered

Setting the Bar High for Net Zero

Our ambitious goal of achieving net zero emissions across our value chain by 2040 advances our dedication in creating value for our stakeholders and driving innovation across the business. Every day, our teams work tirelessly to improve the efficiency and resilience of the global supply chain.

Leading for the future

As we work alongside our customers, communities, shareholders, and employees, we are excited and energized by the limitless possibilities for innovation and growth.

2.8%

of the World's GDP passes through Prologis buildings

1.1M

People employed under a Prologis roof

14%

Annual growth since 2019

What our shareholders can expect for 2023

We will remain disciplined through uncertain times knowing we have the strong balance sheet to seize opportunities when they arise.

We’ll also continue to attract and retain the best talent, maintaining a focus on fostering a truly diverse and inclusive workforce.

Thank you for your continued interest and investment in our company. Every day, we work to break new ground, find new ways to support our customers and stay ahead of what’s next.

Financial highlights

ASSETS UNDER MANAGEMENT
(in billions)

DEVELOPMENT VALUE CREATION¹
(in millions)

CORE FFO
(per diluted share)

DIVIDENDS PER COMMON SHARE

NET INCOME
(in billions)

REVENUE SUMMARY
(in billions)

Please see Prologis’ Annual Report on Form 10-K for the year ended December 31, 2022, and our Q4’22 earnings supplemental for additional detail regarding the financial information presented in this annual report and definitions and reconciliations of non-GAAP measurements, such as Core FFO.

1. Prologis’ share of estimated value creation from development stabilizations