Prologis, Inc.PLD

Prologis, Inc. Segments Disclosure

10-KFiled Feb 13, 20265 min read

NOTE 16. REPORTABLE SEGMENTS

 

Our current business strategy includes two reportable segments: Real Estate (Rental Operations and Development) and Strategic Capital. We generate revenues, earnings, net operating income and cash flows through our segments, as follows:

 

•
Real Estate Segment. This reportable segment represents the ownership and development of operating properties and is the largest component of our revenue and earnings. We collect rent from our customers through operating leases, including reimbursements for the majority of our property operating costs. The Real Estate Segment also includes development activities that lead to rental operations, including land held for development and properties currently under development, and other real estate investments, including renewable energy assets.

 

•
Strategic Capital Segment. This reportable segment represents the management of unconsolidated co-investment ventures. We generate strategic capital revenues primarily from our unconsolidated co-investment ventures through asset management and property management services and we earn additional revenues by providing leasing, acquisition, construction, development, financing and disposition services. Depending on the structure of the venture and the returns provided to our partners, we also earn revenues through promotes periodically during the life of a venture or upon liquidation.

 

Our management Executive Committee (“EC”) is our Chief Operating Decision Maker (“CODM”) and regularly reviews operating results and makes strategic and operating decisions with regards to assessing performance and allocating resources based on our two reportable segments. At December 31, 2025, the EC consisted of the Chief Executive Officer; Chief Operating Officer; Chief Financial Officer; President; Chief Human Resources Officer; Chief Legal Officer; Chief Energy and Sustainability Officer and Managing Director, Global Strategic Capital. The operating results reviewed by the EC include net operating income (“NOI”), the measure most consistent with U.S. GAAP.

 

NOI from the Real Estate Segment is calculated directly from the Consolidated Statements of Income as Rental Revenues and Development Management and Other Revenues less Rental Expenses and Other Expenses.

 

NOI from the Strategic Capital Segment is calculated directly from the Consolidated Statements of Income as Strategic Capital Revenues less Strategic Capital Expenses.

 

Our EC analyzes the NOI of each reportable segment on a quarterly basis comparing actuals to prior period actuals, along with forecasted future amounts and utilizes operating metrics to understand and evaluate the performance of our operations and to allocate resources.

 

Below we present: (i) each reportable segment’s revenues from external customers to Total Revenues; (ii) each reportable segment’s expenses to Total Expenses; (iii) each reportable segment’s net operating income from external customers, calculated as each reportable segment's revenues less segment expenses, to Operating Income and Earnings Before Income Taxes; and (iv) each reportable segment’s assets to Total Assets.

 

The applicable components of Total Revenues, Total Expenses, Operating Income, Earnings Before Income Taxes and Total Assets in the Consolidated Financial Statements are allocated to each reportable segment’s revenues, expenses, net operating income and assets.

 

Items that are not directly assignable to a reportable segment, are not allocated but reflected as non-segment items (general and administrative expenses and real estate adjustments for depreciation and gains and losses on contributions and sales) due to how our CODM utilizes segment information for planning and execution of our business strategy.

 

The following reportable segment net operating income and assets are presented in thousands:

 

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Revenues:

 

 

 

 

 

 

 

 

 

Real estate segment:

 

 

 

 

 

 

 

 

 

U.S.

 

$

7,802,692

 

 

$

7,216,817

 

 

$

6,558,051

 

Other Americas

 

 

192,653

 

 

 

137,893

 

 

 

110,305

 

Europe

 

 

136,930

 

 

 

115,103

 

 

 

95,915

 

Asia

 

 

65,499

 

 

 

59,890

 

 

 

58,966

 

Total real estate segment

 

 

8,197,774

 

 

 

7,529,703

 

 

 

6,823,237

 

Strategic capital segment:

 

 

 

 

 

 

 

 

 

U.S.

 

 

198,986

 

 

 

296,995

 

 

 

833,402

 

Other Americas

 

 

89,961

 

 

 

92,307

 

 

 

89,783

 

Europe

 

 

218,818

 

 

 

194,530

 

 

 

181,651

 

Asia

 

 

84,588

 

 

 

88,075

 

 

 

95,396

 

Total strategic capital segment

 

 

592,353

 

 

 

671,907

 

 

 

1,200,232

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

8,790,127

 

 

 

8,201,610

 

 

 

8,023,469

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Real estate segment:

 

 

 

 

 

 

 

 

 

U.S. (1)

 

 

(1,873,652

)

 

 

(1,714,071

)

 

 

(1,603,486

)

Other Americas

 

 

(38,556

)

 

 

(28,953

)

 

 

(25,383

)

Europe

 

 

(75,224

)

 

 

(46,759

)

 

 

(27,715

)

Asia

 

 

(22,734

)

 

 

(22,646

)

 

 

(21,563

)

Total real estate segment

 

 

(2,010,166

)

 

 

(1,812,429

)

 

 

(1,678,147

)

Strategic capital segment:

 

 

 

 

 

 

 

 

 

U.S. (1)

 

 

(131,960

)

 

 

(154,654

)

 

 

(204,066

)

Other Americas

 

 

(21,575

)

 

 

(21,833

)

 

 

(27,018

)

Europe

 

 

(72,689

)

 

 

(75,500

)

 

 

(103,025

)

Asia

 

 

(44,293

)

 

 

(39,869

)

 

 

(51,433

)

Total strategic capital segment

 

 

(270,517

)

 

 

(291,856

)

 

 

(385,542

)

 

 

 

 

 

 

 

 

 

 

Total expenses

 

 

(2,280,683

)

 

 

(2,104,285

)

 

 

(2,063,689

)

 

 

 

 

 

 

 

 

 

 

Segment net operating income:

 

 

 

 

 

 

 

 

 

Real estate segment:

 

 

 

 

 

 

 

 

 

U.S. (1)

 

 

5,929,040

 

 

 

5,502,746

 

 

 

4,954,565

 

Other Americas

 

 

154,097

 

 

 

108,940

 

 

 

84,922

 

Europe

 

 

61,706

 

 

 

68,344

 

 

 

68,200

 

Asia

 

 

42,765

 

 

 

37,244

 

 

 

37,403

 

Total real estate segment

 

 

6,187,608

 

 

 

5,717,274

 

 

 

5,145,090

 

Strategic capital segment:

 

 

 

 

 

 

 

 

 

U.S. (1)

 

 

67,026

 

 

 

142,341

 

 

 

629,336

 

Other Americas

 

 

68,386

 

 

 

70,474

 

 

 

62,765

 

Europe

 

 

146,129

 

 

 

119,030

 

 

 

78,626

 

Asia

 

 

40,295

 

 

 

48,206

 

 

 

43,963

 

Total strategic capital segment

 

 

321,836

 

 

 

380,051

 

 

 

814,690

 

 

 

 

 

 

 

 

 

 

 

Total segment net operating income

 

 

6,509,444

 

 

 

6,097,325

 

 

 

5,959,780

 

 

 

 

 

 

 

 

 

 

 

Non-segment items:

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

(469,114

)

 

 

(418,765

)

 

 

(390,406

)

Depreciation and amortization expenses

 

 

(2,626,028

)

 

 

(2,580,519

)

 

 

(2,484,891

)

Gains on dispositions of development properties and land, net

 

 

257,731

 

 

 

413,743

 

 

 

462,270

 

Gains on other dispositions of investments in real estate, net

 

 

685,831

 

 

 

904,136

 

 

 

161,039

 

Operating income

 

 

4,357,864

 

 

 

4,415,920

 

 

 

3,707,792

 

 

 

 

 

 

 

 

 

 

 

Earnings from unconsolidated entities, net

 

 

402,531

 

 

 

353,623

 

 

 

307,227

 

Interest expense

 

 

(1,002,344

)

 

 

(863,932

)

 

 

(641,332

)

Foreign currency, derivative and other gains (losses) and other
     income (expense), net

 

 

14,763

 

 

 

208,731

 

 

 

87,221

 

Gains (losses) on early extinguishment of debt, net

 

 

(3,498

)

 

 

536

 

 

 

3,275

 

Earnings before income taxes

 

$

3,769,316

 

 

$

4,114,878

 

 

$

3,464,183

 

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

Segment assets:

 

 

 

 

 

 

Real estate segment:

 

 

 

 

 

 

U.S.

 

$

77,986,597

 

 

$

76,857,293

 

Other Americas

 

 

3,215,779

 

 

 

2,814,141

 

Europe

 

 

3,218,384

 

 

 

2,554,514

 

Asia

 

 

1,100,273

 

 

 

719,810

 

Total real estate segment

 

 

85,521,033

 

 

 

82,945,758

 

Strategic capital segment: (2)

 

 

 

 

 

 

U.S.

 

 

6,893

 

 

 

10,499

 

Europe

 

 

25,280

 

 

 

25,280

 

Asia

 

 

307

 

 

 

167

 

Total strategic capital segment

 

 

32,480

 

 

 

35,946

 

Total segment assets

 

 

85,553,513

 

 

 

82,981,704

 

 

 

 

 

 

 

 

Non-segment items:

 

 

 

 

 

 

Investments in and advances to unconsolidated entities

 

 

11,093,936

 

 

 

10,079,448

 

Assets held for sale or contribution

 

 

203,344

 

 

 

248,511

 

Cash and cash equivalents

 

 

1,145,647

 

 

 

1,318,591

 

Other assets

 

 

727,816

 

 

 

700,655

 

Total non-segment items

 

 

13,170,743

 

 

 

12,347,205

 

Total assets

 

$

98,724,256

 

 

$

95,328,909

 

 

(1)
This includes compensation and personnel costs for employees who were located in the U.S. but also support other geographies.

 

(2)
Represents management contracts and goodwill recorded in connection with business combinations associated with the Strategic Capital Segment. Goodwill was $25.3 million at December 31, 2025, and 2024.

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 Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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