Healthy customer demand supports sustained momentum.

San Francisco, October 15th / PRNewswire / -- Prologis, Inc. (New York Stock Exchange ticker: PLD) Announced its quarterly results for the period ending September 30, 2026, today.

• The diluted net profit per share is $0.86, compared to $0.82 in the same period last year.
• Core FFO *The diluted price per share is $1.60, compared to $1.49 in the same period last year.
• Excluding net contributing income (expenses), Core FFO is $1.61 per diluted share, compared to $1.50 in the same period last year.

Prologis CEO Daniel S. Letter stated: "This quarter, we have performed well as planned, signing leases for 60 million square feet and announcing transactions worth nearly $2.3 billion. Customers are streamlining their inventories, and the excess capacity in their networks has been largely absorbed. We see healthy demand driven by e-commerce, advanced manufacturing, and the construction of data center supply chains."

Letter added, "Regarding SEGRO, shareholder approval is an important milestone in pushing the two companies towards merger. We look forward to completing this transaction and expanding our platform scale in Europe to enhance our ability to serve customers."

Prologis Chief Financial Officer Timothy D. Arndt stated: "Our financial results reflect another quarter of solid operational performance and prudent capital allocation. Coupled with the strength of our balance sheet, this enables us to continue investing in growth even in an environment of higher interest rates, with both capability and flexibility."

Operational Performance

Deployment Event

Balance sheet strength and liquidity

This quarter, the company:

• Completed debt financing totaling $1.3 billion together with the jointly invested joint venture, with a weighted average interest rate of 4.0% and a weighted average term of 4.5 years.

As of the end of the quarter:

• The total available liquidity is approximately 8.8 billion US dollars.
• Debt/after adjustment, EBITDA is 4.5 times, and debt accounts for 23.9% of the total market value.
• The weighted average interest rate of the company's total debt is 3.3%, with a weighted average term of 7.6 years.
• The projected returns for 2026, 2027, and 2028 are 99%, 98%, and 97% respectively, denominated in US dollars or hedged through derivative contracts. Prologis 96% of the equity is also denominated in US dollars.

2026 Guidelines

The net profit guidance for Prologis is shown in the table below. At the same time, guidance for Core FFO is also provided. The adjustment tables for these indicators can be found in the supplementary information.

The aforementioned profit guidance includes revenues that may be recognized in real estate transactions, but does not include future or potential foreign exchange or derivative gains or losses, as the company's guidance assumes that foreign exchange rates remain constant. When adjusting net profit to Core FFO, Prologis will make several adjustments, including but not limited to real estate depreciation and amortization expenses, revenues (losses) recognized from real estate transactions, gains or losses from early repayment of debt, impairment expenses, deferred tax items, and unrealized gains or losses arising from foreign exchange or derivative activities. The differences between the company's Core FFO * and the net profit guidance are mainly related to these items. For definitions of other non-GAAP indicators used in Core FFO * and Prologis, as well as the adjustments between these indicators and the closest GAAP indicators, please refer to the company's investor relations website https:// ir.prologis.com and the U.S. Securities and Exchange Commission website www.sec.gov for quarterly supplementary information.

Disclosure requirements for UK takeover codes related to offers from SEGRO and plc

The Prologis earnings per share guidance ("profit forecast") listed above constitutes the profit forecast referred to in Article 28 of the UK Code on Takeovers and Mergers. The UK Takeover Commission has approved Prologis to be exempt from the requirement to attach reports from the accounting firm and financial advisor to this profit forecast as stipulated by the code. SEGRO and plc have agreed that Prologis shall be granted this exemption, on the conditions that: (i) the presentation of this profit forecast is consistent with Prologis's regular quarterly guidance; and (ii) the ii) the Board of Directors makes the confirmation regarding this profit forecast as described below. The UK Takeover Commission has also approved this exemption on the same premises.

The Board of Directors has reviewed this profit forecast and confirmed that it is valid. The forecast has been prepared in accordance with the assumptions and factors listed in the 'Forward-looking Statements' disclaimer below, and the accounting basis used in preparing this profit forecast is consistent with the accounting policies of Prologis.

This profit forecast, as well as certain other statements in this announcement, constitute the “forward-looking statements” referred to in the disclaimer regarding “forward-looking statements” below. Investors should view this profit forecast and other statements in the context of that disclaimer.

Details of the teleconference on October 15, 2026

The teleconference will be held on Thursday, October 15, 2026, at 9:00 a.m. Pacific Time / 12:00 p.m. Eastern Time. To listen to the live teleconference, please call +1 (877) 897-2615 (free for the United States and Canada) or +1 (201) 689-8514 (for other countries/regions). The webcast can be watched in the Investor Relations section at www.prologis.com.

Phone replays will be available from October 15th to October 29th. To request a replay, please call +1 (877) 660-6853 (for the United States and Canada) or +1 (201) 612-7415 (for other countries/regions), and enter the access code 13757425. Web replays will be posted in the “Events & Presentations” section under the www.prologis.com Investor Relations page.

About Prologis

The world relies on logistics to function. At Prologis, we not only lead the industry but also define it. We build intelligent infrastructure that supports global commerce, seamlessly connecting the digital world with the physical one. From flexible supply chains to clean energy solutions, our ecosystem helps customers operate more efficiently, intelligently, and achieve sustainable growth. With unparalleled scale, innovation, and professional capabilities, Prologis is not only shaping the future of logistics but also building the next step forward. For more information, please visit Prologis.com.

Forward-looking Statements

Statements in this document that are not historical facts are considered forward-looking statements as defined by Section 27A of the Revised Securities Act of 1933 and Section 21E of the Revised Securities Exchange Act of 1934. These forward-looking statements are based on our current expectations, estimates, and projections regarding the industry and market in which we operate, as well as the beliefs and assumptions of our management. Such statements involve uncertainties that may have a material impact on financial results. Words such as "expected," "anticipated," "intended," "planned," "believed," "seeking," "estimated," and their variations, and similar expressions are used to identify these forward-looking statements, which are generally not of a historical nature. All statements regarding our expected or anticipated future operating performance, events, or developments—including mergers with SEGRO plc ("SEGRO"), growth in rent and occupancy rates, acquisition and development activities (including data center development and related power procurement), financing and disposition activities, the general conditions in the regions where we operate, expectations for new business lines, our debt, capital structure, and financial condition, our ability to generate income from joint ventures, our ability to establish new joint ventures, and the availability of capital in existing or new joint ventures—are forward-looking statements. These statements do not guarantee future performance and involve various risks, uncertainties, and assumptions that are difficult to predict. Although we believe that the expectations reflected in any forward-looking statements are based on reasonable assumptions, we cannot guarantee that these expectations will be realized, and therefore, actual results may differ significantly from those expressed or predicted in such forward-looking statements.Factors that may affect the results include, but are not limited to: (i) international, national, regional, and local economic and political environments and conditions; (ii) changes in global financial markets, interest rates, and foreign exchange rates; (iii) increased or unexpected competition in our property sector; (iv) risks associated with acquisitions, dispositions, and property development, including specific risks related to data center development and integration with large real estate portfolios; (v) changes in tax laws and tax rates that affect the qualification of real estate investment trusts; (vi) availability of financing and capital, the level of debt we maintain, and our credit ratings; (vii) risks related to our investments in joint ventures, including the ability to establish new joint ventures; (viii) risks associated with international operations, including exchange rate risks; (ix) environmental uncertainties, including the risk of natural disasters; (x) whether the mergers with Prologis and SEGRO can be completed according to the proposed terms or schedule, or whether they cannot be completed at all, including risks and uncertainties related to meeting merger conditions and failing to achieve expected benefits or synergies; and (xi) other factors discussed under the "Risk Factors" heading in our reports submitted to the U.S. Securities and Exchange Commission. Except as required by law, we have no obligation to update any forward-looking statements in this document.

After adjustment, EBITDAWe will consider the adjusted EBITDA (“Adjusted EBITDA”) belonging to common shareholders/shareholders as a non-GAAP financial indicator to measure operational performance. The most directly comparable GAAP indicator is net profit.

We believe that Adjusted EBITDA is relevant and practical by providing a perspective on operational performance before financing decisions, income tax, and the impact of certain non-cash or non-recurring expenses.

We calculate Adjusted EBITDA by starting with the consolidated net profit attributable to common shareholders and excluding the following influences:

• Gains or losses arising from the disposition of real estate investments (excluding developed properties and land);
• Depreciation and amortization expenses;
• Impairment expense;
• Interest fees;
• Current and deferred income tax;
• Preferred stock dividends;
• No gains or losses were realized from foreign currencies and derivatives;
• Stock compensation amortization expense;
• Gains arising from the revaluation of equity investments when controlling interests are acquired;
• Gains or losses (including cash expenditures) arising from the early settlement of debts and derivative contracts; as well as
• Third-party costs related to the successful establishment of a new joint venture.

We will also make adjustments to reflect the NOI of acquired properties or stable operating properties for the entire quarter, and exclude the NOI of disposed properties during this quarter, assuming all transactions occurred at the beginning of the quarter. For properties in which we have invested, we will make adjustments to reflect the NOI for the entire quarter under the new shareholding ratio.

We calculate Adjusted EBITDA based on the proportional ownership shares of unmerged entities and merged joint ventures. For unmerged entities, we apply the adjustment items to each entity individually according to the average shareholding ratio for the period to reflect our Adjusted EBITDA stake. For merged joint ventures in which we do not hold 100% of the equity, we exclude the minority shareholders' equity shares from the relevant adjustments based on the average shareholding ratio for the applicable period.

Although we consider Adjusted EBITDA to be an important supplementary indicator, it should not be used alone as it excludes an important component of the net profit calculated according to GAAP. Therefore, it has limitations as an analytical tool. We do not use Adjusted EBITDA as a substitute for GAAP net profit, nor as a substitute for GAAP operating cash flow, or as an indicator of our ability to meet cash needs. Our calculation of Adjusted EBITDA may not be comparable to that of other companies in the real estate industry and other sectors. To compensate for these limitations, we provide investors with financial statements prepared according to GAAP, as well as detailed discussions regarding Adjusted EBITDA and a reconciliation table from the consolidated net profit attributable to common shareholders to Adjusted EBITDA.

Report by business lineIt is a non-GAAP financial indicator. Core FFO and development earnings come from our three business lines: (i) real estate operations; ( ii ) strategic capital; and ( iii ) development. The real estate operations business line represents the total Core FFO of Prologis, minus the amount allocated to the strategic capital business line. The amount allocated to the strategic capital business line, Core FFO, represents the third-party asset management fees and transaction fees we receive from consolidated and unconsolidated joint ventures, minus the costs directly related to the strategic capital team as well as net facilitation income (fees). Realized development earnings include the proceeds from the disposal of developed properties and land, after deducting taxes. To calculate the amount per share, the earnings generated by each business line are divided by the weighted average diluted number of common shares used for the calculation of Core FFO per share. Management believes that evaluating performance by business line is a useful supplementary indicator, as it helps investors compare the operational performance of each Prologis business with that of comparable businesses in other companies. The method of calculating FFO by business line may differ from that of other real estate companies, as the latter may adopt different approaches.

Development PortfolioIncluding industrial and non-industrial properties that are under development, data centers, storage yards, and parking lots, as well as properties that have been developed but have not yet reached a stable state. As of September 30, 2026, the total estimated investment in storage yards, parking lots, data centers, and non-industrial assets ( TEI ) was $2.9 billion under the own and managed scope, and $2.8 billion under the Prologis scope. The company does not disclose the area of storage yards and parking lots.

Anticipated value creationRefers to the value that a company expects to create through development and leasing activities. The company estimates the stable NOI that the property will generate and applies a stable capitalization rate applicable to that property to calculate the expected value creation. The expected value creation is equal to the portion of the estimated value that exceeds TEI, including settlement costs and taxes (if any), but does not include any fees or proceeds that the company may obtain.

Estimated weighted average profit marginCalculated based on the developed properties, it is the estimated value created minus the settlement costs and taxes (if any) for the properties that are expected to be sold or contributed, then divided by TEI.

Expected weighted average stable yield rateCalculated based on the properties within the development portfolio, to stabilize NOI divided by TEI. The yield rate according to the proportion occupied by Prologis is as follows:

FFO, after revision according to Prologis, it belongs to the common stock shareholders/shareholders of FFO ("FFO, as modified by Prologis"); it belongs to the common stock shareholders/shareholders of Core FFO ("Core FFO"); it belongs to the common stock shareholders/shareholders of AFFO ("AFFO") (collectively referred to as "FFO"). FFO is a non-GAAP financial indicator, commonly used in the real estate industry, and the most directly comparable GAAP indicator is net profit.

The National Real Estate Investment Trust Association of the United States (NAREIT) defines FFO as the income calculated in accordance with GAAP, excluding depreciation as well as the net income and losses from the sale of depreciated properties (after deducting relevant taxes), and impairment charges. We have also excluded the income arising from the revaluation of equity investments at the time of obtaining controlling interests, as well as part of the income recognized from the sale of investments, as these are similar to the income generated from the sale of depreciated properties. This indicator also excludes similar adjustments made by our unconsolidated entities and third parties holding interests in consolidated joint ventures.

Our FFO indicators

Our FFO indicator is defined with NAREIT as the starting point, and several adjustments are made to calculate the revised FFO and Core FFO after Prologis. The specific definitions are as follows, in order to reflect the performance of our business and the implementation of our management strategies. Although these adjustments may fluctuate significantly from period to period and have positive or negative impacts in the short term, excluding the influence of these items helps us understand the core operational performance of the property from a long-term perspective.

We use the FFO revised with Prologis to enable management, analysts, and investors to compare our performance with that of other REIT companies that do not have similar businesses or operate in jurisdictions outside the United States. We utilize Core FFO and AFFO to: (i) assess our operational performance relative to other real estate companies; (ii) compare our performance and property results with expected and prior results; (iii) evaluate management's performance; (iv) prepare budgets and forecast future results to aid in resource allocation; (v) provide guidance to financial markets to help them understand our expected operational performance; and (vi) assess how a potential investment will affect our future results.

We calculate the FFO indicator based on the proportional ownership shares of unconsolidated entities and consolidated joint ventures. For unconsolidated entities, we apply adjustments individually according to the average shareholding ratio over the period to reflect our share of the FFO indicator. For consolidated joint ventures in which we do not hold 100% of the equity, we exclude the minority shareholders' equity shares from the relevant adjustments based on the average shareholding ratio during the applicable period.

Prologis Revised FFO

To obtain the revised FFO from Prologis, based on FFO defined in NAREIT, we eliminated:

• Deferred income tax gains and deferred income tax expenses recognized by the subsidiary;
• Current income tax expenses related to acquired tax liabilities recorded as deferred tax liabilities in the acquisition, provided that such expenses are offset by the deferred tax gains excluded in our definition of FFO; and
• Foreign exchange gains and losses arising from the following factors: (a) debt transactions between us and overseas entities; (b) third-party debts used to hedge our investments in overseas entities; (c) derivative financial instruments related to such debt transactions; and (d) mark-to-market adjustments related to derivatives and other financial instruments.

Core FFO

To obtain Core FFO, based on the revised FFO from Prologis, we eliminated the following items:

• Gains or losses arising from the disposal of land and developed properties acquired for the purpose of investment or sale;
• Income tax expenses related to the purchase and sale of real estate investments;
• Impairment expenses recognized for real estate investments due to changes in the intention to contribute capital or to sell these properties;
• Gains or losses arising from the early repayment of debts, as well as the redemption and repurchase of preferred stocks; and
• Third-party costs related to the successful establishment of a new joint venture.

AFFO

To obtain AFFO, we have added the realized proceeds from the disposal of land and developed properties (after deducting current taxes, turnover costs, and property improvements) on top of Core FFO, and excluded the following items that we directly record in Core FFO.

• Straight-line rent;
• Amortization of intangible assets that exceeds or is lower than the market lease rate;
• Manage contract amortization;
• Amortization of debt premiums and discounts, as well as financing costs, less the amount capitalized; and
• Stock compensation amortization expense.

Usage limitations of the FFO indicator

Although we consider the revised FFO indicator to be an important supplementary indicator, neither the NAREIT indicator nor our FFO indicator should be used alone, as they exclude important components of the net profit calculated according to GAAP. Therefore, they have limitations as analytical tools. Some of these limitations arise from the exclusion of income tax expenses that may be payable, as well as depreciation and amortization expenses that reflect the costs required to maintain operational performance. In addition, our FFO indicator does not reflect changes in asset values due to market conditions or fluctuations in foreign exchange rates, nor does it account for costs or benefits resulting from the settlement of deferred income tax or debt repayment. We do not use the NAREIT indicator or our FFO indicator as a substitute for GAAP net profit, nor as a substitute for GAAP cash flow from operating activities, nor as an indicator of our ability to meet cash needs.

When making decisions, we only use these FFO indicators in conjunction with the net profit calculated according to GAAP. Investors should read this information in conjunction with the complete consolidated financial statements prepared according to GAAP. To help investors compensate for these limitations, we have provided a reconciliation table from the consolidated net profit attributable to common shareholders to the revised FFO indicator.

GuideThe following is the adjustment between the net profit per share for our annual guidance and Core FFO per share.

Market value is equal to market equity minus the liquidation preference of preferred stocks/shares, plus our total debt.

Net contribution income (expenses) refers to the contribution income obtained from third-party investors during the period, after deducting related cash and equity compensation expenses, as well as tax amounts and gains and losses from foreign exchange derivatives (if applicable).

The operating portfolio refers to the industrial properties that have reached a stable state and are within the owned and managed portfolio. Assets to be sold, non-strategic assets, and non-industrial assets are not included in this portfolio. The NOI of the operating portfolio does not include net termination fees and adjustments. The NOI accounted for by Prologis includes properties contributed to or acquired in joint ventures, calculated based on the actual shareholding ratio before and after the change in ownership. The U.S. markets that are not listed separately include Austin, Charlotte, Columbus, Denver, Louisville, Portland, Raleigh-Durham, Reno, San Antonio, Savannah, and Tampa. The European countries that are not listed separately include Belgium, Czech Republic, Hungary, Italy, Poland, Slovakia, Spain, and Sweden.

Own and managed properties refer to the properties held by the company through consolidation, as well as the properties held by unconsolidated joint investment ventures managed by the company.

Prologis refers to the proportionate economic interest held by the company in each entity or property that is included in its own and managed portfolio, regardless of whether such entities or properties are consolidated or not.

Rent change (cash) refers to the percentage change in the starting rent in newly signed and renewed leases at the beginning of the current period, compared to the rent at the end of the previous lease period for the same space. This indicator does not include short-term rentals of less than one year, continued occupancy payments, rent-free periods, or trial rents that are 50% or less of the stable rent.

The change in rent (net effective) refers to the percentage change in net effective rent (average rent over the lease term) relative to the previous net effective rent for the same space in new and renewed leases commencing during the current period. This metric excludes short-term leases of less than one year and payments for continued occupancy.

Retention rate refers to the proportion of the area leased by existing tenants among all leases that began during the reporting period, relative to the total area of leases that expired during the same period. Tenant areas that are terminated in breach of contract before expiration or that are purchased out, as well as short-term leases of less than one year, are not included in the calculation.

Same storeOur same-store indicators are non-GAAP financial indicators, which are commonly used in the real estate industry and also meet the expectations of the financial community. They are calculated both on a net effective basis and on a cash basis. We use "same-store" analysis to evaluate the performance of our owned and managed properties, as the property samples used in this analysis remain consistent across periods, allowing us and investors to analyze the ongoing operations. We determine the same-store indicators based on the NOI of the properties, which is calculated by subtracting rental expenses from the rental income of the applicable properties. This applies to both consolidated and unconsolidated properties within the same-store sample, as detailed below, and is based on our ownership interests.

We define the same-store sample for the three-month period up to September 30, 2026, as properties that have existed since January 1, 2025, and were consistently held within our owned and managed portfolio during both the 2025 and 2026 three-month periods, including consolidated properties as well as properties held by unconsolidated joint ventures. NOI

We believe that the driving factors for the combined properties NOI are usually the same as those for the properties held by our joint ventures. Therefore, we evaluate the same-store indicators for our owned and managed portfolio based on our ownership in these properties (‘所占比例 of Prologis’) under Prologis.

Samples from the same property do not include properties to be sold to third parties, as well as development properties that have not yet reached a stable state at the beginning of the period (January 1, 2025), and properties acquired or disposed of to third parties during the various periods. In order to obtain an appropriate measure of period-to-period operating performance, we convert the local currency into US dollars using the exchange rate at the end of the reporting period to eliminate the impact of foreign exchange rate fluctuations, which applies to both periods.

As non-GAAP financial indicators, same-store indicators have certain limitations as analysis tools and may vary depending on the real estate company. Therefore, we provide a adjustment between 'rent income minus rent expenses' (‘property NOI’) compiled according to US GAAP and the same-store property NOI indicator, as detailed below:

StableDefined as the earlier of the following times: one year after completion of development, or after making capital contributions to the joint investment venture following completion of construction, or when the occupancy rate reaches 90%. Once stable, the property will be included in our portfolio.

Total estimated investment(TEI) refers to the total estimated cost of development or expansion, including land, development, and rental costs. TEI is based on current forecasts and may change.

Weighted Average Interest RateBased on the effective interest rate calculation, which includes relevant premiums and discounts as well as the amortization of financing costs.

Weighted Average Stable Capitalization Rate(" Cap " ) is calculated by dividing the stable NOI by the acquisition price.