Prologis' U.S. Logistics Fund: 20 Years of High-Performing Logistics Assets
Rhea-AI Summary
Prologis, Inc. (NYSE: PLD) is celebrating the 20th anniversary of its U.S. Logistics Fund (USLF), a private flagship investment fund with $24 billion in assets under management. Since its inception in 2004, USLF has consistently delivered high returns and played a important role in the growth of logistics investments across the United States.
Key highlights of USLF's performance include:
- Strong outperformance with low leverage
- Average operating occupancy of 96.8% over the past 10 years
- Attracted 127 institutional investors from 15 countries
- Funded $2.9 billion in redemption requests
- Expanded from 4.5 MSF in 8 markets to over 125 MSF in 28 markets
USLF remains positioned for future growth, focusing on high-value logistics centers in key U.S. hubs and investing in innovative technologies to enhance its portfolio.
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- USLF has consistently delivered outsized returns over 20 years
- Average operating occupancy of 96.8% in the past 10 years, outperforming the market by 160 bps
- Attracted 127 institutional investors from 15 countries
- Funded 100% of redemption requests totaling over $2.9 billion
- Expanded from 4.5 MSF in 8 markets to over 125 MSF in 28 markets
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- None.
News Market Reaction
On the day this news was published, PLD declined 1.32%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
"We have been privileged to serve and partner with our USLF investors over the past two decades," said Hamid R. Moghadam, chief executive officer and co-founder of Prologis. "USLF not only offers the highest-quality logistics real estate portfolio in
Some of the key performance highlights over the past two decades:
- Strong Record of Outperformance: Since its inception, USLF has consistently delivered outsized returns, positioning it as a leading performer in logistics real estate. This performance is particularly noteworthy given the fund's low leverage over its 20-year history, minimizing reliance on borrowed capital. USLF's best-in-class debt ratings have also enabled the fund to secure favorable financing terms, further enhancing returns across various market cycles.
- Consistent High Occupancy: In the past 10 years, the average operating occupancy of the fund was
96.8% , outperforming the market by 160 bps, driven by the strength of its assets and locations as well as Prologis' customer-centric approach. - Strong Investor Confidence: USLF has attracted capital from a diverse range of 127 institutional investors from 15 countries, demonstrating high trust in its growth potential and long-term value. Since 2004, USLF has provided market-leading liquidity to its investors by funding
100% of redemption requests totaling more than$2.9 billion - Continued Growth and Strategic Expansion: USLF's tight, focused investment strategy has been key to its success, selectively expanding from 4.5 MSF in 2004 in eight markets to more than 125 MSF in 28 markets today. With assets in some of the most sought-after urban infill locations in key
U.S. logistics hubs, includingSouthern California ,New Jersey ,Chicago andAtlanta , USLF remains concentrated on high-value logistics centers. The rise of e-commerce has further driven the growth of the fund.
Looking ahead to its third decade, USLF remains positioned for future growth and success as Prologis continues to innovate to deliver value to investors in a rapidly changing industry. With significant investments in proprietary research, data analytics, renewable energy, mobility and other value-enhancing capital improvements to its buildings, Prologis is providing fund investors with access to a best-in-class and future-proofed logistics real estate portfolio.
"We take a customer-centric approach to every part of our business, including our private investment funds. With USLF, we have curated a portfolio of modern logistics properties that is unrivaled in the industry," said Karsten Kallevig, global head of Strategic Capital. "While we are proud of USLF's accomplishments over the years, we are even more excited about what the future holds for our partnership with our investors."
About Prologis Strategic Capital
Prologis' Strategic Capital business is an integral line of business for the company, with
Prologis Strategic Capital offers institutional investors a unique opportunity to invest with the company. Benefitting from the scale and scope of the Prologis platform, each of the company's 10 funds focus on delivering industry-leading, risk-adjusted returns along with a superior investor experience. Prologis' investment vehicles have specific geographic and risk profiles, targeting logistics real estate in high-consumption and high-barrier-to-entry markets.
Prologis is a material investor in all its Strategic Capital funds, with co-investment levels ranging from 15 percent to 55 percent. As a general partner, the company provides investors security through its durable A-rated balance sheet, best-in-class global portfolio and customer-centric focus.
* Data as of June 30, 2024. AUM is the fair value of real estate properties and development projects in the Strategic Capital business and includes our estimate of the gross value of real estate that could be acquired using existing equity commitments from Prologis and our partners assuming target leverage levels are used. Assets Under Management: Representing
ABOUT PROLOGIS
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At June 30, 2024, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (115 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment.
FORWARD-LOOKING STATEMENTS
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects" "anticipates," "intends," "plans," "believes," "seeks," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to rent and occupancy growth, acquisition and development activity, contribution and disposition activity, general conditions in the geographic areas where we operate, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties, including the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; (x) risks related to global pandemics; and (xi) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.
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SOURCE Prologis, Inc.
FAQ
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