Prologis, Inc.

Strong operating momentum + rent recovery (good) - Occupancy: 95.6% at Q3-end, up 10 bps QoQ (avg 95.1%, up 10 bps). - Rent growth: Rollover 38% net effective (23% cash), adding $85m incremental NOI; lease mark-to-market 16% (≈ $780m embedded NOI at spot rents). - Same-store NOI growth: 5.7% net effective and 5.9% cash (indicating the rent recovery is translating into earnings). - Market backdrop: U.S. net absorption 63m sq ft in Q3; management views this as consistent with ~230–240m sq ft normalized annual absorption, and vacancy down to 7.1% with rents up 50 bps (3rd straight quarter of positive rent growth).

Guidance raised/updated for 4Q and full-year fundamentals (good) - Occupancy guidance: narrowed to 95.25%–95.50%. - Same-store NOI outlook: 5.5%–6.0% net effective and 7.0%–7.5% cash. - Core FFO: expected $6.25–$6.29 per share (with and without promotes). - Net earnings: $4.05–$4.15 per share. - Strategic capital revenue (ex-promotes): $650m–$660m (revised lower, reflecting more cautious view on asset management fees / timing of transaction-based fees). - G&A: $515m–$525m.

Capital deployment remains active despite rate volatility (opportunity + risk) - Development starts: increased guidance to $6.0–$6.75b (notably expecting a strong 4Q of build-to-suit starts); build-to-suits expected 55%–65% of total starts. - Acquisitions guidance: raised to $2.1–$2.3b; Q3 acquisitions $950m at an estimated 20% discount to replacement cost. - Dispositions/contributions guidance lowered (negative): total $3.5b–$4.75b, with management explicitly more cautious due to potential turbulence/bid-ask spread after the interest-rate move. - Development hurdle economics: weighted avg stabilized cap rate on active development projects 5.7%, up ~20 bps QoQ—management says it reflects underwriting for terminal value under today’s cost-of-capital assumptions and risk buffers (not a single clean signal of cap-rate direction).