SAN
FRANCISCO, Sept. 30, 2024 /PRNewswire/ -- Prologis,
Inc. (NYSE: PLD), the global leader in logistics real estate, is
marking the 20th anniversary of its U.S. Logistics Fund
(USLF), one of its private flagship investment funds, with an
assets under management (AUM) of $24
billion. Since its launch in 2004, USLF has delivered
consistent, high returns while playing a key role in driving the
growth and modernization of logistics investments across the United
States. Prologis is a co-investor in its Strategic Capital
funds, including USLF, which strongly aligns its interests with the
USLF investors.
"We have been privileged to serve and partner with our USLF
investors over the past two decades," said Hamid R. Moghadam, chief executive officer and
co-founder of Prologis. "USLF not only offers the highest-quality
logistics real estate portfolio in the
United States, but it is also actively investing in
value-creation opportunities which will enhance the long-term value
of our assets while driving customer preference and
stickiness."
Some of the key performance highlights over the past two
decades:
- Strong Record of Outperformance: Since its
inception, USLF has consistently delivered outsized returns,
positioning it as a leading performer in logistics real estate.
This performance is particularly noteworthy given the fund's low
leverage over its 20-year history, minimizing reliance on borrowed
capital. USLF's best-in-class debt ratings have also enabled the
fund to secure favorable financing terms, further enhancing returns
across various market cycles.
- Consistent High Occupancy: In the past 10 years, the
average operating occupancy of the fund was 96.8%, outperforming
the market by 160 bps, driven by the strength of its assets and
locations as well as Prologis' customer-centric approach.
- Strong Investor Confidence: USLF has attracted capital
from a diverse range of 127 institutional investors from 15
countries, demonstrating high trust in its growth potential and
long-term value. Since 2004, USLF has provided market-leading
liquidity to its investors by funding 100% of redemption requests
totaling more than $2.9 billion.
- Continued Growth and Strategic Expansion: USLF's tight,
focused investment strategy has been key to its success,
selectively expanding from 4.5 MSF in 2004 in eight markets to more
than 125 MSF in 28 markets today. With assets in some of the most
sought-after urban infill locations in key U.S. logistics hubs,
including Southern California,
New Jersey, Chicago and Atlanta, USLF remains concentrated on
high-value logistics centers. The rise of e-commerce has further
driven the growth of the fund.
Looking ahead to its third decade, USLF remains positioned for
future growth and success as Prologis continues to innovate to
deliver value to investors in a rapidly changing industry. With
significant investments in proprietary research, data analytics,
renewable energy, mobility and other value-enhancing capital
improvements to its buildings, Prologis is providing fund investors
with access to a best-in-class and future-proofed logistics real
estate portfolio.
"We take a customer-centric approach to every part of our
business, including our private investment funds. With USLF, we
have curated a portfolio of modern logistics properties that is
unrivaled in the industry," said Karsten
Kallevig, global head of Strategic Capital. "While we are
proud of USLF's accomplishments over the years, we are even more
excited about what the future holds for our partnership with our
investors."
About Prologis Strategic Capital
Prologis'
Strategic Capital business is an integral line of business for the
company, with $87.0 billion* in
assets under management. Its Strategic Capital business
consistently delivers strong and sustained revenue
growth.
Prologis Strategic Capital offers institutional investors a
unique opportunity to invest with the company. Benefitting from the
scale and scope of the Prologis platform, each of the company's 10
funds focus on delivering industry-leading, risk-adjusted returns
along with a superior investor experience. Prologis' investment
vehicles have specific geographic and risk profiles, targeting
logistics real estate in high-consumption and high-barrier-to-entry
markets.
Prologis is a material investor in all its Strategic Capital
funds, with co-investment levels ranging from 15 percent to 55
percent. As a general partner, the company provides investors
security through its durable A-rated balance sheet, best-in-class
global portfolio and customer-centric focus.
* Data as of June 30,
2024. AUM is the fair value of real estate properties and
development projects in the Strategic Capital business and includes
our estimate of the gross value of real estate that could be
acquired using existing equity commitments from Prologis and our
partners assuming target leverage levels are used. Assets Under
Management: Representing 44% of Prologis' total AUM.
ABOUT PROLOGIS
Prologis, Inc. is the global leader in
logistics real estate with a focus on high-barrier, high-growth
markets. At June 30, 2024, the
company owned or had investments in, on a wholly owned basis or
through co-investment ventures, properties and development projects
expected to total approximately 1.2 billion square feet (115
million square meters) in 19 countries. Prologis leases modern
logistics facilities to a diverse base of approximately 6,700
customers principally across two major categories:
business-to-business and retail/online fulfillment.
FORWARD-LOOKING STATEMENTS
The statements in this document that are not historical facts are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements are based on current expectations, estimates and
projections about the industry and markets in which we operate as
well as management's beliefs and assumptions. Such statements
involve uncertainties that could significantly impact our financial
results. Words such as "expects" "anticipates," "intends," "plans,"
"believes," "seeks," and "estimates" including variations of such
words and similar expressions are intended to identify such
forward-looking statements, which generally are not historical in
nature. All statements that address operating performance, events
or developments that we expect or anticipate will occur in the
future—including statements relating to rent and occupancy growth,
acquisition and development activity, contribution and disposition
activity, general conditions in the geographic areas where we
operate, our debt, capital structure and financial position, our
ability to earn revenues from co-investment ventures, form new
co-investment ventures and the availability of capital in existing
or new co-investment ventures—are forward-looking statements. These
statements are not guarantees of future performance and involve
certain risks, uncertainties and assumptions that are difficult to
predict. Although we believe the expectations reflected in any
forward-looking statements are based on reasonable assumptions, we
can give no assurance that our expectations will be attained and,
therefore, actual outcomes and results may differ materially from
what is expressed or forecasted in such forward-looking statements.
Some of the factors that may affect outcomes and results include,
but are not limited to: (i) international, national, regional and
local economic and political climates and conditions; (ii) changes
in global financial markets, interest rates and foreign currency
exchange rates; (iii) increased or unanticipated competition for
our properties; (iv) risks associated with acquisitions,
dispositions and development of properties, including the
integration of the operations of significant real estate
portfolios; (v) maintenance of Real Estate Investment Trust status,
tax structuring and changes in income tax laws and rates; (vi)
availability of financing and capital, the levels of debt that we
maintain and our credit ratings; (vii) risks related to our
investments in our co-investment ventures, including our ability to
establish new co-investment ventures; (viii) risks of doing
business internationally, including currency risks; (ix)
environmental uncertainties, including risks of natural disasters;
(x) risks related to global pandemics; and (xi) those additional
factors discussed in reports filed with the Securities and Exchange
Commission by us under the heading "Risk Factors." We undertake no
duty to update any forward-looking statements appearing in this
document except as may be required by law.
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SOURCE Prologis, Inc.
