Stock Profile: Prologis

Prologis (PLD) is the global leader in logistics real estate, focusing on high-barrier, high-growth markets. Founded in 1997, it has grown into one of the largest Real Estate Investment Trusts (REIT) and the largest global owner of logistics real estate, such as properties for e-commerce facilities, warehouses, and distribution centers, across 20 countries.

Prologis provides comprehensive real estate services, including leasing, property management, development, acquisitions, and dispositions. Its work includes build-to-suit development and redevelopment of properties into industrial properties and data centers.

Prologis has incorporated ESG principles into its operations and growth, including its robust program to add sustainable attributes to its facilities — such as its growing solar and energy storage capabilities. As of 2024, the company was ranked second in the U.S. for on-site solar capacity.

Current Snapshot: Prologis Logistics Are ‘Moving the World’

Prologis’s outlook is tied largely to the overall economy, as its portfolio includes warehouses and distribution centers for e-commerce companies. The company estimates that relative to brick-and-mortar sales, on a per-dollar basis, e-commerce uses three times more space due to higher product variety, greater inventory, shipping in parcels vs, pallets, and use of reverse logistics (e.g. returns). E-commerce continues to grow, with an expected 21% of retail purchases taking place online in 2025. The share of online retail purchases is rising at an average of 0.32% every year since 2021, indicating the need for logistics real estate to continue to grow.

The U.S. represents 86% of net operating income, so rerouting supply chains due to tariffs and changing trade negotiations may shift warehousing location needs in the short and long term, as the company explained on an episode of its corporate podcast this spring. Based on its concentration of properties on the U.S. West Coast, Prologis has significant exposure to Asian import markets. Yet, Prologis does have a large and varied customer base: Prologis has over 6,000 customers, and the top 10 customers comprise 15% of the total portfolio.

Social and Environmental Impact Review

Prologis has developed and reported on its social and environmental impact goals and progress in recent years. Below are some featured highlights on their progress.

Social Impact: Prologis founded the Community Workforce Initiative (CWI) in 2018. CWI is a talent-development program that advances the skills and capabilities of logistics talent, with an emphasis on revitalizing career pathways and creating economic opportunities in the communities where the company operates.

Environmental Impact: The company has made notable progress in three main sustainability areas.

Emissions monitoring and reduction. In 2022, Prologis committed to achieving net-zero greenhouse gas emissions across its value chain (Scopes 1, 2 and 3) by 2040.

In 2023, Prologis reduced Scope 1 emissions by 25%, Scope 2 emissions by 99%, and Scope 3 emissions by 29% from their 2019 baseline.

In 2024, Prologis installed or was scheduled to install LED lighting across its eligible new developments, redevelopments, and most of its eligible logistics facilities. Through the use of purchased renewable energy credits (RECs), Prologis covers 100% of its annual office electricity. The company also has a goal to electrify 100% of its vehicle fleet by year-end 2030.

Prologis is also poised to be a leader in zero-carbon initiatives in its industry: Prologis’s Eindhoven DC4 warehouse in the Netherlands became the world’s first industrial building to receive a Zero Carbon Certification from the International Living Future Institute (ILFI).

Renewable energy. In 2023, Prologis achieved more than 500 MW of solar and storage capacity, halfway to their goal of 1 GW by 2025. Prologis is the No. 2 company in the U.S. for solar and storage capacity, according to Solar Energy Industries Association (SEIA).

Natural resources and water. Prologis has recognized that more than half of the properties in its portfolio are in areas of high or extremely high water stress. Because of this, they’ve installed smart pump kits, high efficiency fixtures and native plants.

The company has also made location-specific modifications to its resource and water use. For example:

• In California, Prologis has removed all ornamental and nonfunctional turf grasses from most properties, replacing them with drought-tolerant vegetation. This has reduced water usage at these properties by an estimated 50%.
• In the UK, Prologis RFI DIRFT includes a Prologis-funded 193-acre nature reserve with extensive wetland habitat that supports a wide range of birds, including short-eared owls, little ringed plovers, curlews and wigeons; great crested newts; a population of bats; and a rare breed of sheep.

Through its range of initiatives and innovations, Prologis demonstrates a solid commitment to social responsibility and sustainability. By investing in community workforce development and setting measurable goals for decarbonization and clean energy, the company is not only strengthening its operations, but contributing to positive change within the communities it serves.

Learn more about Prologis.