NOTE 7. DEBT

 

All debt is incurred by the OP or its consolidated subsidiaries. The following table summarizes our debt at December 31 (dollars in thousands):

 

 

 

2025

 

 

2024

 

 

 

Weighted Average

 

Amount

 

 

Weighted Average

 

Amount

 

 

 

Interest Rate (1)

 

Term (Years) (2)

 

Outstanding (3)

 

 

Interest Rate (1)

 

Term (Years) (2)

 

Outstanding (3)

 

Credit facilities and
     commercial paper

 

0.9%

 

 

1.6

 

 

 

$

44,679

 

 

4.1%

 

 

1.8

 

 

 

$

224,966

 

Senior notes (4)

 

3.2%

 

 

8.8

 

 

 

 

32,887,971

 

 

3.2%

 

 

9.8

 

 

 

 

28,322,163

 

Term loans and
     unsecured other

 

1.9%

 

 

3.9

 

 

 

 

1,908,723

 

 

2.0%

 

 

4.4

 

 

 

 

2,013,317

 

Secured mortgage (5)

 

4.5%

 

 

3.7

 

 

 

 

195,700

 

 

4.3%

 

 

3.2

 

 

 

 

318,817

 

Total

 

3.2%

 

 

8.5

 

 

 

$

35,037,073

 

 

3.1%

 

 

9.4

 

 

 

$

30,879,263

 

 

(1)
The weighted average interest rates presented represent the effective interest rates (including amortization of debt issuance costs and noncash premiums or discounts) at the end of the period for the debt outstanding and include the impact of designated interest rate contracts, which effectively fix the interest rate on certain variable rate debt.

 

(2)
The weighted average term represents the remaining maturity in years, based on debt agreements in place, at period end.

 

(3)
We borrow in the functional currencies of the countries where we invest. Included in the outstanding balances at December 31 were borrowings denominated in the following currencies:

 

 

 

 

2025

 

 

2024

 

 

 

 

Weighted Average Interest Rate

 

Amount Outstanding

 

 

% of Total

 

 

Weighted Average Interest Rate

 

Amount Outstanding

 

 

% of Total

 

 

British pound sterling

 

3.0%

 

$

1,843,931

 

 

 

5.3

%

 

3.1%

 

$

1,714,653

 

 

 

5.6

%

 

Canadian dollar

 

4.4%

 

 

2,004,638

 

 

 

5.7

%

 

4.7%

 

 

1,262,508

 

 

 

4.1

%

 

Euro

 

2.2%

 

 

12,302,104

 

 

 

35.1

%

 

2.1%

 

 

9,900,602

 

 

 

32.1

%

 

Japanese yen

 

1.2%

 

 

2,930,594

 

 

 

8.4

%

 

1.1%

 

 

2,910,755

 

 

 

9.4

%

 

U.S. dollar

 

4.1%

 

 

15,385,826

 

 

 

43.9

%

 

4.1%

 

 

14,457,872

 

 

 

46.8

%

 

Other

 

3.8%

 

 

569,980

 

 

 

1.6

%

 

3.6%

 

 

632,873

 

 

 

2.0

%

 

Total

 

3.2%

 

$

35,037,073

 

 

 

100.0

%

 

3.1%

 

$

30,879,263

 

 

 

100.0

%

(4)
Senior notes are due from June 2026 to June 2061 with effective interest rates ranging from 0.3% to 5.7% at December 31, 2025.

 

(5)
Secured mortgage debt is due from February 2026 to September 2033 with effective interest rates ranging from 3.3% to 6.7% at December 31, 2025. The debt was principally secured by 14 operating properties and 1 land parcel with an aggregate undepreciated cost of $477.1 million at December 31, 2025.

 

Credit Facilities

 

In May 2025, we amended and restated one of our global senior credit facilities (the "2022 Global Facility") as the 2025 Global Facility. Each of the global senior credit facilities, the 2023 Global Facility and the 2025 Global Facility, have a borrowing capacity of $3.0 billion (subject to currency fluctuations). We may draw on both facilities in British pounds sterling, Canadian dollars, euro, Japanese yen, Mexican pesos and U.S. dollars on a revolving basis. The 2023 Global Facility is scheduled to mature in June 2027 and the 2025

Global Facility in June 2029; however, we can extend the maturity date for each facility by six months on two occasions, subject to the payment of extension fees. We also have the ability to increase each credit facility to $4.0 billion, subject to currency fluctuations and obtaining additional lender commitments.

We also have a Japanese yen revolver (the "Yen Credit Facility") with a borrowing capacity of ¥58.5 billion ($373.4 million at December 31, 2025). We have the ability to increase the borrowing capacity of the Yen Credit Facility to ¥75.0 billion ($478.7 million at December 31, 2025), subject to obtaining additional lender commitments. The Yen Credit Facility is scheduled to mature in August 2027; however, we may extend the maturity date for one year, subject to the payment of extension fees.

We refer to the 2023 Global Facility, the 2025 Global Facility and the Yen Credit Facility, collectively, as our “Credit Facilities.” Pricing for the Credit Facilities, including the spread over the applicable benchmark and the rates applicable to facility fees and letter of credit fees, varies based on the public debt ratings of the OP.

 

Our Credit Facilities are utilized to support our cash needs for general corporate purposes on a short-term basis. The maturities of the borrowings under the Credit Facilities generally range from overnight to three months.

 

The following table summarizes information about our Credit Facility activity and available liquidity (dollars in millions):

 

 

 

2025

 

 

2024

 

 

2023

 

Credit Facility activity for the years ended December 31:

 

 

 

 

 

 

 

 

 

Weighted average daily interest rate

 

 

6.8

%

 

 

4.4

%

 

 

4.3

%

Weighted average daily borrowings

 

$

263

 

 

$

519

 

 

$

411

 

Maximum borrowings outstanding at any month-end

 

$

532

 

 

$

1,031

 

 

$

1,587

 

 

 

 

 

 

 

 

 

 

 

Available liquidity at December 31:

 

 

 

 

 

 

 

 

 

Aggregate lender commitments

 

 

 

 

 

 

 

 

 

Credit Facilities

 

$

6,503

 

 

$

6,313

 

 

$

6,477

 

Less:

 

 

 

 

 

 

 

 

 

Credit facility borrowings outstanding

 

 

45

 

 

 

225

 

 

 

979

 

Commercial paper borrowings outstanding (1)

 

 

-

 

 

 

-

 

 

 

-

 

Outstanding letters of credit

 

 

27

 

 

 

25

 

 

 

24

 

Current availability

 

$

6,431

 

 

$

6,063

 

 

$

5,474

 

Cash and cash equivalents

 

 

1,146

 

 

 

1,319

 

 

 

530

 

Total liquidity

 

$

7,577

 

 

$

7,382

 

 

$

6,004

 

 

(1)
We are required to maintain available commitments under our Credit Facilities in an amount at least equal to the commercial paper borrowings outstanding.

 

Commercial Paper

 

We have commercial paper programs under which we may issue, repay and re-issue short-term unsecured commercial paper notes. Under our existing U.S. dollar-denominated program, the aggregate principal amount of notes outstanding at any time cannot exceed $1.0 billion. In June 2025, we established an additional multicurrency program under which we may issue notes denominated in British pound sterling, euros or U.S. dollars. The aggregate principal amount of notes outstanding under this program cannot exceed 1.0 billion (or its equivalent in other currencies) ($1.2 billion at December 31, 2025). The net proceeds from both programs are expected to be used for general corporate purposes. The maturities of the notes generally range from overnight to three months. Under customary terms in the commercial paper market, the notes are issued either at a discount to par or at par with fixed or floating interest rates. At any point in time, we are required to maintain available commitments under our Credit Facilities in an amount at least equal to the amount of notes outstanding under both programs.

 

 

Senior Notes

 

The senior notes are unsecured and our obligations are effectively subordinated in certain respects to any of our debt that is secured by a lien on real property, to the extent of the value of such real property. The senior notes require interest payments be made quarterly, semi-annually or annually. The majority of the senior notes are redeemable at any time at our option, subject to certain prepayment penalties. Such repurchase and other terms are governed by the provisions of indenture agreements, various note purchase agreements or trust deeds. The following table summarizes the issuances of senior notes during 2025 (principal in thousands):

 

 

 

Aggregate Principal

 

 

Issuance Date Weighted Average

 

 

Issuance Date

 

Borrowing Currency

 

 

USD (1)

 

 

Interest Rate

 

Term (Years)

 

Maturity Dates

February

 

C$

 

750,000

 

 

$

520,428

 

 

4.2%

 

 

8.0

 

 

 

February 2033

May

 

$

 

1,250,000

 

 

$

1,250,000

 

 

5.1%

 

 

8.3

 

 

 

January 2031 – May 2035

September

 

 

1,000,000

 

 

$

1,178,100

 

 

3.6%

 

 

9.5

 

 

 

September 2032 – 2037

October

 

C$

 

700,000

 

 

$

500,614

 

 

3.6%

 

 

6.3

 

 

 

February 2032

Total

 

 

 

 

 

$

3,449,142

 

 

4.2%

 

 

8.4

 

 

 

 

 

(1)
The exchange rate used to calculate into U.S. dollars was the spot rate at the settlement date.

 

Term Loans

 

The following table summarizes our outstanding term loans at December 31 (dollars and borrowing currency in thousands):

 

Term Loan

Borrowing Currency

 

Issuance Date

 

Lender Commitment at 2025

 

 

Amount Outstanding at 2025

 

 

Amount Outstanding at 2024

 

 

Interest Rate

 

Maturity Date

 

 

 

 

 

Borrowing Currency

 

USD

 

 

USD

 

 

USD

 

 

 

 

 

March 2017 Yen
     Term Loan
 (1)

JPY

 

March 2017

¥

 

12,000,000

 

$

76,593

 

 

$

76,593

 

 

$

76,455

 

 

0.9% and 1.0%

 

March 2027 – 2028

October 2017 Yen
     Term Loan

JPY

 

October 2017

¥

 

10,000,000

 

$

63,827

 

 

 

63,827

 

 

 

63,713

 

 

0.9%

 

October 2032

December 2018 Yen
     Term Loan
 (1)

JPY

 

December 2018

¥

 

20,000,000

 

$

127,654

 

 

 

127,654

 

 

 

127,426

 

 

1.2% and TIBOR + 0.7%

 

December 2031 – June 2033

January 2019 Yen
     Term Loan
(1)

JPY

 

January 2019

¥

 

15,000,000

 

$

95,741

 

 

 

95,741

 

 

 

95,569

 

 

TIBOR + 0.5% to 0.6%

 

January 2028 – 2030

March 2019 Yen
     Term Loan

JPY

 

March 2019

¥

 

85,000,000

 

$

542,534

 

 

 

542,534

 

 

 

541,558

 

 

TIBOR + 0.4%

 

March 2026

June 2022 Yen
     Term Loan
(1)

JPY

 

June 2022

¥

 

25,000,000

 

$

159,569

 

 

 

159,569

 

 

 

159,281

 

 

1.1% and 1.2%

 

June 2032 – 2034

2022 Canadian
     Term Loan
(2)

CAD

 

August 2022

C$

 

200,000

 

$

146,072

 

 

 

146,072

 

 

 

208,503

 

 

CORRA

 

August 2026

December 2022 Yen
     Term Loan

JPY

 

December 2022

¥

 

15,000,000

 

$

95,741

 

 

 

95,741

 

 

 

95,569

 

 

1.4%

 

December 2033

2023 Yen
     Term Loan

JPY

 

April 2023

¥

 

10,000,000

 

$

63,827

 

 

 

63,827

 

 

 

63,713

 

 

1.5%

 

April 2031

2023 Chinese
     Term Loan
(1)

CNH

 

September 2023

CN¥

 

1,000,000

 

$

142,272

 

 

 

142,272

 

 

 

239,274

 

 

3.6%

 

September 2026

2024 Yen
     Term Loan

JPY

 

April 2024

¥

 

20,000,000

 

$

127,655

 

 

 

127,655

 

 

 

127,425

 

 

1.5%

 

April 2034

2024 Euro
     Term Loan
(1)

EUR

 

November 2024

 

202,500

 

$

237,938

 

 

 

237,938

 

 

 

210,377

 

 

3.0% and Euribor + 0.7%

 

November 2034

Subtotal

 

 

 

 

 

 

 

 

 

 

1,879,423

 

 

 

2,008,863

 

 

 

 

 

Debt issuance costs, net

 

 

 

 

 

 

 

 

 

(1,797

)

 

 

(3,117

)

 

 

 

 

Total term loans

 

 

 

 

 

 

 

 

 

$

1,877,626

 

 

$

2,005,746

 

 

 

 

 

 

(1)
This term loan includes more than one lender commitment each bearing a different interest rate and maturity date.

 

(2)
In July 2025, we extended the maturity of a Canadian dollar term loan ("2022 Canadian Term Loan") by one year until August 2026. We may extend the maturity for one additional year, subject to the payment of an extension fee.

 

Long-Term Debt Maturities

 

Scheduled principal payments due on our debt for each year through the period ended December 31, 2030, and thereafter were as follows at December 31, 2025 (in thousands):

 

 

Unsecured

 

 

 

 

 

 

 

 

Credit Facilities and

 

 

Senior

 

 

Term Loans

 

 

Secured

 

 

 

 

Maturity

 

Commercial Paper

 

 

Notes

 

 

and Other

 

 

Mortgage

 

 

Total

 

2026 (1) (2)

 

$

-

 

 

$

987,380

 

 

$

830,891

 

 

$

96,259

 

 

$

1,914,530

 

2027 (3)

 

 

44,679

 

 

 

1,984,652

 

 

 

53,740

 

 

 

4,156

 

 

 

2,087,227

 

2028

 

 

-

 

 

 

2,594,128

 

 

 

110,919

 

 

 

3,041

 

 

 

2,708,088

 

2029

 

 

-

 

 

 

3,427,001

 

 

 

-

 

 

 

3,191

 

 

 

3,430,192

 

2030

 

 

-

 

 

 

2,847,961

 

 

 

31,914

 

 

 

3,345

 

 

 

2,883,220

 

Thereafter

 

 

-

 

 

 

21,592,195

 

 

 

883,056

 

 

 

79,538

 

 

 

22,554,789

 

Subtotal

 

 

44,679

 

 

 

33,433,317

 

 

 

1,910,520

 

 

 

189,530

 

 

 

35,578,046

 

Unamortized premiums
     (discounts), net

 

 

-

 

 

 

(410,322

)

 

 

-

 

 

 

6,368

 

 

 

(403,954

)

Unamortized debt issuance
     costs, net

 

 

-

 

 

 

(135,024

)

 

 

(1,797

)

 

 

(198

)

 

 

(137,019

)

Total

 

$

44,679

 

 

$

32,887,971

 

 

$

1,908,723

 

 

$

195,700

 

 

$

35,037,073

 

 

(1)
We expect to repay the amounts maturing in the next twelve months with cash generated from operations, proceeds from dispositions of real estate properties, or as necessary, with additional borrowings, including drawing on our available Credit Facilities.

 

(2)
Included in the 2026 maturities was the 2022 Canadian Term Loan ($146.1 million at December 31, 2025), which can be extended until 2027, subject to the payment of extension fees.

 

(3)
Included in the 2027 maturities were the amounts borrowed on the Yen Credit Facility ($44.7 million at December 31, 2025), which can be extended until 2028.

 

Interest Expense

 

The following table summarizes the components of interest expense for the years ended December 31 (in thousands):

 

 

 

2025

 

 

2024

 

 

2023

 

Gross interest expense

 

$

1,023,805

 

 

$

892,612

 

 

$

683,363

 

Amortization of debt discounts (premiums), net

 

 

55,562

 

 

 

52,249

 

 

 

51,980

 

Amortization of debt issuance costs, net

 

 

30,085

 

 

 

26,636

 

 

 

22,609

 

Interest expense before capitalization

 

$

1,109,452

 

 

$

971,497

 

 

$

757,952

 

Capitalized amounts

 

 

(107,108

)

 

 

(107,565

)

 

 

(116,620

)

Net interest expense

 

$

1,002,344

 

 

$

863,932

 

 

$

641,332

 

Total cash paid for interest, net of amounts capitalized

 

$

842,257

 

 

$

710,754

 

 

$

457,021

 

 

Financial Debt Covenants

 

Our Credit Facilities, senior notes and term loans outstanding at December 31, 2025 were subject to certain financial covenants under their related documents. At December 31, 2025, we were in compliance with all of our financial debt covenants.

 

Guarantee of Finance Subsidiary Debt

 

We have finance subsidiaries as part of our operations in Europe (Prologis Euro Finance LLC), Japan (Prologis Yen Finance LLC) and the U.K. (Prologis Sterling Finance LLC) in order to mitigate our foreign currency risk by borrowing in the currencies in which we invest. These entities are 100% indirectly owned by the OP and all unsecured debt issued or to be issued by each entity is or will be fully and unconditionally guaranteed by the OP. There are no restrictions or limits on the OP’s ability to obtain funds from its subsidiaries by dividend or loan. In reliance on Rule 13-01 of Regulation S-X, the separate financial statements of Prologis Euro Finance LLC, Prologis Yen Finance LLC and Prologis Sterling Finance LLC are not provided.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 14, 2025
2023Feb 13, 2024
2022Feb 14, 2023
2021Feb 9, 2022
2020Feb 11, 2021
2019Feb 11, 2020
2018Feb 13, 2019
2017Feb 15, 2018
2016Feb 15, 2017
2015Feb 19, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.