Attractive Relative Valuation of Prologis
INVESTOR RELATIONS
PROLOGIS
Significant lease mark-to-market drives long-term organic
earnings growth...
QUARTERLY LEASE MARK-TO-MARKET (LMTM),
NET EFFECTIVE, PROLOGIS SHARE
ILLUSTRATIVE NOI* GROWTH AS LEASES ROLL¹,2
In billions
100%
80%
60%
40%
20%
0%
Ⅲ
2020
2021
2022
2023
$2.7B
(68%
LMTM)
•
If all leases were to reset to
market today, rents would
be 68% higher
• As leases continue to roll to
market, our portfolio would
be expected to see +8-10%³
net effective same-store
NOI* for several years¹,
assuming no further market
rent growth
•
Visibility into strong
earnings growth potential
LMTM* represents nearly $3
per share of incremental
earnings and FFO*
$5.2B
$5.2B
In-Place NOI*
In-Place NOI* Plus
Incremental NOI from
LMTM
* This is a non-GAAP financial measure. Please see Notes and Definitions included in this presentation and in our Q1 2023 Supplemental for further explanation.
1. PLD weighted average lease term remaining of ~4 years.
2. Annualized Q1 2023 Prologis Share of NOI of the Operating Portfolio.
3. Illustrative. Occupancy, expense and fair-value lease adjustment changes not considered. Calculated by taking the average churn of PLD's Operating Portfolio by actual and projected Lease Mark-to-Market assuming
no further market rent growth.
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