Profile: Prologis Inc (PLD)
31 Jul 2015
Prologis, Inc., incorporated on November 24, 1997, is engaged in industrial logistics real estate, focused on markets across the Americas, Europe and Asia. The Company leases modern distribution facilities to more than 4,700 customers, including third-party logistics providers, transportation companies, retailers and manufacturers. The Company's business consists of two operating segments: Real Estate Operations and Strategic Capital. The Company's customer base represents a spectrum of international, national, regional and local distribution users. As of December 31, 2014, 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 590 million square feet (55 million square meters) in 21 countries.
Real Estate Operations
The Company's Real Estate Operations segment consists of Rental Operations and Capital Deployment. Rental operations represent the main source of the Company's revenues, earnings and funds from operations (FFO). The Company collects rents from its customers through operating leases, including reimbursements for the majority of its operating costs. The Company's rental income is diversified due to its global presence and broad customer base. Capital deployment includes the development, re-development and acquisition of industrial properties that lead to rental operations and is therefore included with rental operations for segment reporting. The Company deploys capital primarily in global and regional markets to meet its customers' needs. The Company capitalizes on: its land bank; the development capabilities of its local teams; its global customer relationships, and demand for distribution facilities. The Company develops properties for long-term hold, for contribution to its co-investment ventures and, occasionally, for sale to third parties.
The Company invests with partners and investors through private and public ventures which may be consolidated or unconsolidated. The Company tailors industrial portfolios to investors' specific needs, with a focus on long-term ventures and open-ended funds. It also access alternative sources of equity through publicly traded vehicles, such as Nippon Prologis REIT, Inc. (NPR) and FIBRA Prologis. These private and public vehicles provide capital for distinct geographies across its global platform. The Company holds an ownership interest in these ventures, aligning its interests with those of its partners. The Company generates strategic capital revenues from its unconsolidated ventures through asset management and property management services and earns additional revenues from leasing, acquisition, construction, development and disposition services provided. In Strategic Capital, the company's partners and investors are its customers. At December 31, 2014, in its private ventures, the Company partnered with more than 100 investors, several of which invest in multiple ventures.
PIER 1 BAY 1
SAN FRANCISCO CA 94111