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Prologis

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Prologis, Inc.
Company typePublic
IndustryReal estate
PredecessorAMB Property Corporation
Founded1983; 42 years ago (1983)
Founders
HeadquartersPier 1,
San Francisco, California
,
United States
Area served
Key people
ProductsIndustrial real estate
RevenueIncrease US$8.20 billion (2024)[2]
Increase US$4.42 billion (2024)[2]
Increase US$3.73 billion (2024)[2]
AUMDecrease $198 billion (2024)[2]
Total assetsIncrease US$95.33 billion (2024)[2]
Total equityIncrease US$58.62 billion (2024)[2]
Number of employees
2,574 (2023)[3]
Websiteprologis.com
Footnotes / references
[4][3][5]

Prologis, Inc. is a real estate investment trust headquartered in San Francisco, California that invests in logistics facilities.[5] The company was formed through the merger of AMB Property Corporation and Prologis in June 2011, which made Prologis the largest industrial real estate company in the world.[6][7] As of 2025, the company operates more than 15,000 land acres and over 6,000 buildings[8] comprising about 1.3 billion square feet in 20 countries[9][10] across North America, Latin America, Europe, and Asia.[11] According to The Economist, its business strategy is focused on warehouses that are located close to huge urban areas where land is scarce.[12] It serves about 6,600 tenants.[13] Prologis began to expand its non-real estate business, Essentials, in 2018, offering customers solar power, racking systems, forklifts, generators,[14] EV charging infrastructure,[15] and other logistics tech equipment for purchase.

History

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AMB, the earliest predecessor of Prologis, was formed in 1984. In its present form, Prologis was created in 2011 through the merger of AMB and ProLogis, both multinational real estate companies based in the United States.[16]

1983 founding and early history

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In 1983, Hamid Moghadam and Doug Abbey founded Abbey, Moghadam and Company,[17] an investment manager serving institutions.[18] T. Robert Burke joined the company in 1984, establishing AMB Property Corporation, investors in office, industrial and community shopping centers on behalf of large institutional investors.[17] During the savings and loan crisis, the company avoided significant financial repercussions by investing in industrial parks and shopping centers, and began to exit the office market in 1987.[17] AMB launched its first private equity fund in 1989, which focused on industrial and retail properties.[18]

Security Capital Industrial Trust (SCI), a legacy company of Prologis,[19] was formed in 1991, becoming a public company via an IPO in 1994.[18] In late 1997,[18] AMB became a public company via an initial public offering, with more than US$2.8 billion under management.[17] In 1999, the company sold its retail portfolio to focus solely on the industrial sector, then made its first overseas investment in 2002, developing a facility for Procter & Gamble.[18] That year, AMB initiated an international expansion program focused on buying and developing distribution facilities near global trade hubs, particularly in growth markets such as Latin America, Asia,[11] and Europe.[17] AMB added an internal development division in 2004 and, by 2011, was expanding its operations in China and Brazil.[18]

1997 incorporation and international expansion

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Prologis, Inc. was incorporated on November 24, 1997. SCI officially changed its name to ProLogis in July 1998, then active in 84 markets in 12 countries, with a market capitalization of nearly $5 billion.[20] In November 1998, Prologis Trust acquired Meridian Industrial Trust for $862.5 million in stock, and was the largest owner of industrial and warehouse properties in the US.[21] ProLogis formed its first property funds in 1999 and entered the Japanese market in 2001. In 2003, ProLogis was added to the S&P 500 Index and entered the Chinese market, forming its first joint venture in China with Suzhou Logistics Center Co. Ltd.[17] In 2004, the company acquired Keystone Industrial Trust for $1.6 billion.[22]

In 2005, Prologis was headquartered in Aurora, Colorado, and acquired Catellus Development Corporation for $3.6 billion,[16] later selling a portfolio of those assets with rights to the Catellus name to TPG Capital, in 2011, for $505 million.[23]

In 2006, ProLogis became a Fortune 1000 company and the ProLogis European Properties Fund became a public company.[17] Following aggressive expansion[16] and heavy borrowing,[18] ProLogis' CEO Jeffrey Schwartz was replaced by Walter Rakowich in 2008,[24] who implemented cost-cutting efforts, raising capital and selling assets.[16] In December 2008, ProLogis sold a portfolio of assets to the Government of Singapore Investment Corporation,[16] with which it formed Global Logistic Properties.[25]

The company sold its China operations and some of its Japanese interests to GIC Private Limited for $1.3 billion in 2009.[17] That August, ProLogis secured financing from Deutsche Pfandbriefbank and an unidentified German bank for two of its funds.[26] The Blackstone Group acquired a portfolio of assets from the company in late 2010 for $1 billion.[16]

2011 merger to present

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In March 2011, before the merger with ProLogis, AMB Property formed a €470 million joint venture with Allianz Real Estate.[27] Agreed to in January 2011, AMB Property Corporation contracted to buy the larger ProLogis for $8.7 billion, with the new entity named Prologis.[27][24][28][29] Prologis would then be based in San Francisco, AMB's hometown, and maintain an office in Denver, Colorado, where ProLogis was based.[16]

Completed in June 2011,[18] the merger was one of the biggest real estate deals since the Great Recession, and created the largest industrial real estate company in the world.[24][16] With a total market value estimated at $24 billion,[28] the new Prologis had around $46 billion in assets under management and logistics and distribution facilities in North America, Europe, Asia and South America.[24][16] AMB CEO Hamid R. Moghadam and ProLogis CEO Walter Rakowich were appointed as the new company's co-chiefs, with Moghadam becoming the sole CEO in 2013.[16]

In February 2012, the company sold a 3.5 million square foot portfolio in the United Kingdom to The Blackstone Group for $335 million.[30]

On February 14, 2013, Nippon Prologis REIT, Inc. (NPR), a Japanese real estate investment trust formed by Prologis, completed an IPO on the Tokyo Stock Exchange.[31] In March 2013, Prologis formed the Prologis European Logistics Partners Sarl joint venture with Norges Bank Investment Management for US$3.1 billion.[32] In August 2013, in partnership with The Blackstone Group the company acquired a 17 million square foot portfolio for $960 million from Lehman Brothers.[33][34] In 2013, Prologis announced plans for further expansion in Japan, its second largest market, after the United States.[29]

In 2014, the company completed the spin-off of FIBRA Prologis, its Mexican affiliate (also known as Prologis Property Mexico SA), raising about 7 billion pesos (US$541 million)[35] and sold a 59-property portfolio to TPG for $375 million.[36]

Prologis had reduced its number of managed funds from 23 to 11 by the spring of 2015, and was managing $29 billion in real-estate assets through joint ventures and a series of funds backed by institutional investors."[37] That quarter, the company sold a Silicon Valley industrial park to Facebook, Inc.[7] With corporate headquarters remaining in San Francisco, that April, Prologis announced a plan to move offices from east Denver, Colorado, to a new building in downtown Denver[38] in 2017.[39] That June, Prologis partnered with Norges Bank Investment Management to buy KTR Capital Partners for $5.9 billion, expanding its real estate portfolio in the U.S. through the Prologis U.S. Logistics Venture.[40][41] In October 2015, it acquired Morris Realty Associates' portfolio of logistics and retail properties in the U.S. for $820 million, selling off the retail assets to an affiliate of The Blackstone Group for $374 million.[42]

Prologis formed Prologis Ventures, its venture capital arm, in March 2016, making 20 investments by late 2019.[43] and invested over $250 million in about 50 early- and growth-stage companies by 2024.[44]

By late 2016, Prologis had built large multistory warehouses in Japan, Singapore and China.[45] The company began construction on a three-floor warehouse in Seattle, Washington, in November 2016, which was the first multi-story warehouse in the country.[46] The following month, Prologis also outlined plans to build a three-story warehouse in San Francisco.[45] That December, Prologis received two 2016 Eurobuild CEE Awards.[47]

Acquisitions include DCT Industrial Trust for $8.5 billion in August 2018,[48] Liberty Property Trust for $13 billion in January 2020,[49] and, the following month, Industrial Property Trust for $4 billion.[50] In April 2021, the company acquired Hilltop Mall in Richmond, California for $117 million,[51] then, in June 2022, the land below California's Great America in Santa Clara, California from Cedar Fair, which leased the land back with plans to close the amusement park by 2033.[52][53] Prologis acquired competitor Duke Realty in October 2022, for $23 billion, completing the largest commercial real estate transaction in the U.S. since the onset of the COVID-19 pandemic. The following June, it acquired a further 14 million square feet of industrial property from The Blackstone Group for $3.1 billion.[54]

Prologis had become the first logistics REIT with an approved science-based carbon-emissions target in 2018; in June 2022, the Science Based Targets initiative validated a commitment by Prologis to reach net-zero emissions by 2040.[55] In 2020, Prologis completed construction of the world's first industrial building to receive Zero Carbon Certification from the International Living Future Institute (ILFI) in Eindhoven, Netherlands.[56] In 2024, Prologis built North America’s largest heavy-duty truck charging hub, powered by a microgrid. The Denker Avenue hub is located in Torrance, California.[57] That November, Prologis was ranked second in the nation for on-site solar generation by the Solar Energy Industries Association (SEIA) Solar Means Business Report.[58]

In 2024, Prologis ranked 39th among the Drucker Institute and The Wall Street Journal's annual Management Top 250 companies for employee engagement and development.[59] The company was also named among the Corporate Knights Global 100,[60] Fast Company's Most Innovative Companies in logistics in 2024,[61] the World's Most Sustainable Companies by Time,[62] and continues to be counted among the Fortune 500 and Fortune's annual Most Admired Companies list.[63]

Market research

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Since 2016, the company has published white papers and its own market research, including the quarterly Industrial Business Indicator and the annual Prologis Logistics Rent Index.[64][65]

In partnership with Oxford Economic Papers, the company determined that, in 2022, $2.7 trillion of goods either produced or sold worldwide passed through Prologis facilities, representing 2.8% of the global GDP with an economic impact of $300 billion.[66][67]

References

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  1. ^ a b c d "Prologis Inc". The Wall Street Journal. Retrieved February 6, 2023.
  2. ^ a b c d e f "Prologis 4Q 2024 Supplemental" (PDF). prologis.com. p. 2, 6, 7, 30. Retrieved January 11, 2025.
  3. ^ a b "Prologis Financials 2023". macrotrends.net. May 16, 2024.
  4. ^ "Prologis, Inc. 2022 Proxy Statement (Form DEF 14A)". SEC.gov. U.S. Securities and Exchange Commission. 25 March 2022.
  5. ^ a b "Prologis, Inc. 2021 Form 10-K Annual Report". SEC.gov. U.S. Securities and Exchange Commission. 9 February 2022.
  6. ^ Morris, Keiko (May 30, 2017). "Industrial Park's Owner Bringing in Restaurants, Retail as Amenities for Workers". The Wall Street Journal.[1]
  7. ^ a b Whelan, Robbie (April 19, 2016). "Prologis Warehouse Rents Jump as Space Remains Tight". The Wall Street Journal.
  8. ^ "American Tower finalizes $2.5bn India exit". Data Centre Dynamics. Retrieved 2025-04-04.
  9. ^ "Prologis CEO Hamid Moghadam announces retirement". Freightways. Retrieved 2025-04-04.
  10. ^ "Why Prologis is Investing in Germany's Logistics Market". Supply Chain Digital Magazine. Retrieved 2025-04-04.
  11. ^ a b "Think Prologis Can't Get Any Bigger? Think Again". nasdaq.com. April 22, 2022. Retrieved October 27, 2022.
  12. ^ Ryder, Brett (30 May 2020), "The e-commerce boom makes warehouses hot property", The Economist, retrieved 14 August 2020
  13. ^ "Prologis, Inc. REIT Profile"; REIT Notes; accessed February 6, 2022.
  14. ^ "Warehouse Giant Prologis to Offer More Peripheral Services, CFO Says" by Kristin Broughton; Wall Street Journal; January 26, 2022. Accessed October 27, 2022
  15. ^ Why Warehouse Giant Prologis Is Betting Big on Electric Vehicle Infrastructure by Rey Mashayekhi. Commercial Observer. November 18, 2022.
  16. ^ a b c d e f g h i j Troianovski, Anton (January 31, 2011). "Warehouse Giants AMB Property, ProLogis to Merge". The Wall Street Journal.
  17. ^ a b c d e f g h "History". Prologis.
  18. ^ a b c d e f g h Robaton, Anna (May 2012). "Prologis Together". National Association of Real Estate Investment Trusts.
  19. ^ Grant, Peter (January 3, 2017). "Cold Snap: Developers Pour Money Into Cold Storage in China". The Wall Street Journal.
  20. ^ Moore, Paula (June 22, 1998). "Security Capital tries for name recognition". American City Business Journals.
  21. ^ "Prologis To Acquire Meridian, A Rival Landlord". The New York Times. November 18, 1998.
  22. ^ Chapman, Parke (May 4, 2004). "ProLogis to Buy Keystone for $1.6B". National Real Estate Investor.
  23. ^ Finkelstein, Alex (January 5, 2011). "ProLogis--TPG $505 Million Deal Closing in First Quarter". World Property Channel.
  24. ^ a b c d Slatin, Peter (June 20, 2011). "Prologis Becomes World's Biggest Industrial Property Company--Now What?". Forbes.
  25. ^ "AMB-Prologis Merger Complete - Firm to Expand in China". Mingtiandi. 2011-06-06. Retrieved 2020-12-20.
  26. ^ "ProLogis, a Warehouse Firm, Raises 280 Million Euros". The New York Times. August 11, 2009.
  27. ^ a b Foster, Karen (March 3, 2011). "Allianz, AMB form European logistics joint venture". Reuters.
  28. ^ a b "ProLogis and AMB Property to Merge". The New York Times. January 31, 2011.
  29. ^ a b Chu, Kathleen; Kuwako, Katsuyo (November 26, 2013). "Prologis to Boost Japan Rents, Buy Warehouses on Abenomics Bonus". Bloomberg News.
  30. ^ Torres, Blanca (February 8, 2012). "Prologis sells 3.5-million-square-foot portfolio in the U.K. to Blackstone". American City Business Journals.
  31. ^ Chu, Kathleen; Kuwako, Katsuyo (February 14, 2013). "Nippon Prologis Jumps in Debut After $1 Billion IPO: Tokyo Mover". Bloomberg News.
  32. ^ "Prologis and Norges Bank Investment Management close EUR2.4bn JV in Europe". Property Funds World. March 20, 2013.
  33. ^ Brandt, Nadja; Yu, Hui-yong (May 23, 2013). "Blackstone, Prologis Said to Buy Portfolio of Warehouses". Bloomberg News.
  34. ^ "Lehman sells industrial properties to Blackstone, Prologis". American City Business Journals. August 7, 2013.
  35. ^ Levin, Jonathan (June 4, 2014). "Prologis Property REIT Unchanged in First Mexico IPO of 2014". Bloomberg News.
  36. ^ Carlisle, Candace (June 18, 2014). "Prologis sells 59 properties throughout U.S. to TPG". American City Business Journals.
  37. ^ Raice, Shayndi; Whelan, Robbie (April 19, 2015). "Prologis to Buy KTR Capital for $5.9 Billion". The Wall Street Journal.
  38. ^ Raabe, Steve (April 14, 2015). "Prologis to move Denver ops HQ to Z Block project in lower downtown". The Denver Post.
  39. ^ Rolett, Burl (May 6, 2016). "Prologis sells building near current HQ". Business Den.
  40. ^ Bhaktavatsalam, Vidya (April 19, 2015). "Prologis, Norway Buy KTR Real Estate for $5.9 Billion". Bloomberg News.
  41. ^ "Prologis Completes $5.9 Billion KTR Acquisition" (Press release). PR Newswire. June 1, 2015.
  42. ^ "Prologis Completes Acquisition of Industrial Portfolio in Northern New Jersey" (Press release). PR Newswire. October 13, 2015.
  43. ^ Alder, Alan (14 November 2019), Tech focus keeps Prologis Ventures atop logistics real estate trends (with video), Freight Waves, retrieved 14 August 2020
  44. ^ "Building the future of commerce". Fast Company. Retrieved 2025-04-04.
  45. ^ a b Dineen, J.K. (December 20, 2016). "Prologis plan for Bayview offers blue-collar salvation". San Francisco Chronicle.
  46. ^ E. Phillips, Erica (November 1, 2016). "Prologis to Build First Multistory Warehouse in the U.S.". The Wall Street Journal.
  47. ^ "Prologis receives two 2016 Eurobuild CEE Awards". Budapest Business Journal. December 12, 2016.
  48. ^ "Prologis Completes $8.5 Billion Acquisition of DCT Industrial Trust" (Press release). PR Newswire. August 22, 2018.
  49. ^ "Prologis Completes $13 Billion Acquisition of Liberty Property Trust" (Press release). PR Newswire. February 4, 2020.
  50. ^ "Prologis Completes $4 Billion Acquisition of Industrial Property Trust" (Press release). PR Newswire. January 8, 2020.
  51. ^ Andersen, Ted (April 22, 2021). "Why a S.F. developer just bought Richmond's former Hilltop Mall". American City Business Journals.
  52. ^ "Developer buys land leased to Great America in Santa Clara; park remains open for now". CBS News. June 28, 2022. Retrieved November 2, 2022.
  53. ^ "Developer buys land leased to Great America in Santa Clara; park remains open for now". CBS News. June 28, 2022.
  54. ^ "Prologis Buying $3.1 Billion Industrial Property Portfolio From Blackstone". The Wall Street Journal. June 26, 2023. Retrieved 12 January 2024.
  55. ^ "Prologis Commits to Net Zero Emissions by 2040". ESG News. Retrieved 2025-04-04.
  56. ^ "Prologis Eindhoven shed wins benchmark zero carbon certification". IPE Real Assets. Retrieved 2025-04-04.
  57. ^ "Prologis and Performance Team roll out largest electric charging depot in Southern California". Logistics Management. Retrieved 2025-04-04.
  58. ^ "Solar Means Business 2024". SEIA. Retrieved 2025-04-04.
  59. ^ "The Little-Known Company That Gives Its Employees a Real Voice". The Wall Street Journal. Retrieved 2025-04-04.
  60. ^ "The Global 100 list: How the world's most sustainable corporations are driving the green transition". Corporate Knights. Retrieved 2025-04-04.
  61. ^ "Building the future of commerce". Fast Company. Retrieved 2025-04-04.
  62. ^ "World's Most Sustainable Companies of 2024". Time. Retrieved 2025-04-04.
  63. ^ "Prologis". Fortune. Retrieved 2025-04-04.
  64. ^ "A Clear Perspective on Logistics Real Estate". Prologis.
  65. ^ E. Phillips, Erica (March 30, 2016). "Warehouse Rental Rates Jump as Industrial Capacity is Squeezed". The Wall Street Journal.
  66. ^ "Oxford Economics: Prologis Properties Facilitate Goods Equal to Nearly 3% of the World's GDP and House 1.1 Million Jobs". Wall Street Journal. December 14, 2022.
  67. ^ "Economic Impact of Our Logistics Real Estate". Prologis. September 2017.
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