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Prologis (NYSE: PLD) | Company Profile, History, Competitors

 

Prologis (NYSE: PLD) owns and operates industrial assets in the US, Europe and Asia. Of all the industrial REITs, PLD has one of the highest exposure to global trade.  PLD has founded in 1983 and has 683 million square feet on four continents. PLD was founded in 1987.

PLD's investment strategy focuses on providing distribution and logistics to customers who dependent on the movement of goods through the global supply chain. PLD's properties are primarily located in two main segments: global markets and regional markets: Global markets feature large population centers with high per-capita consumption and located near major airports, seaports and ground transportation systems. PLD's stated goal is to hold only Class A product in global and regional markets.

PLD also actively deploys capital through development, re-development and acquisitions. 

Geographic Exposure

PLD has a diverse industrial portfolio with significant exposure to the California market.

 Rental Sqft by Market (12/31/17) % of Total Sqft
 Southern California12.9%
 Chicago 6.4%
 Mexico 6.4%
 France 5.8%
 NY Metro/NJ 5.7%
 Japan5.1%
 Dallas/Fort Worth 4.6%
 Poland4.4%

Tenants

PLD has a large tenant base with over 5,000 customers occupying  683 million square feet of logistic operating space.

For E-Commerce retailers, PLD's warehouses can offer an ability to handle large shipments, higher product count and process returns.

Top 10 tenant exposure as a % of ABR (12/31/17):

 Rental Income by Tenant (9/30/17) % of Total Rent
 Amazon.com3.0%
 DHL 1.5%
 Geodis 1.2%
 XPO Logistics 1.2%
Kuehne + Nagel 1.1%
 DSV Air and Sea1.0%
 Home Depot1.0%
 Fedex0.9%
 Wal-Mart 0.8%
 CEVA Logistics 0.7%

Risks

PLD is exposed to the returns from their development pipeline. In general, REITs are exposed to refinancing risk with higher interest rates.

Management*

Hamid Moghadam (CEO): Hamid Moghadam serves as CEO since 2012. Previously, he co-founded the company’s predecessor, AMB Property Corporation, in 1983 and merged it with Prologis in 2012. He received an MBA from Stanford Business School and a Bachelor’s of Science from Massachusetts Institute of Technology. 

Thomas Olinger (CFO): Thomas Olinger serves as CFO since 2010. Prior, he served as CFO of AMB Property Corporation. He also served as VP, Corporate Controller at Oracle and was an audit partner at Arthur Andersen. 

Michael Curless (CIO): Michael Curless serves as Chief Investment Officer since 2010. Prior, he was a principal at Lauth, a private construction company. Earlier in his career, he was  VP at Prologis and responsible for the Indianapolis and St. Louis market options. 

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $1,751 $1,761 $2,197 $2,533 $2,618 
 Rental Income $1,560 $1,527  $1,973  $2,220  $2,225 
 Net Income $315 $622  $863  $1,203  $1,642 
 FFO$820 $921 $1,324  $1,737  $1,743 
 FFO Per Share$1.69  $1.88 $2.23  $2.57  $2.81