How Does Prologis Make its Money?
Prologis is the world’s largest owner and developer of logistics real estate, with approximately 1.2 billion square feet of industrial warehouse space across 20 countries. As a Real Estate Investment Trust (REIT), the company owns, develops, and manages warehouses and distribution centers used by companies like Amazon, FedEx, and DHL. Prologis benefits from the structural shift toward e-commerce and supply chain nearshoring, as businesses require more warehouse space to fulfill online orders and reduce delivery times.
Prologis (PLD) Business Model
Prologis operates in the real estate sector. Below is a summary of Prologis’ revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Prologis’ 2024 fiscal year filings with the SEC.
Prologis Competitors
Prologis’s key competitors and comparable public companies in the real estate sector include Amazon, FedEx, and Costco. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Prologis stacks up by comparing their revenue breakdown, margins, and growth metrics.
Prologis Competitors
Prologis’s key competitors and comparable public companies in the real estate sector include Amazon, FedEx, and Costco. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Prologis stacks up by comparing their revenue breakdown, margins, and growth metrics.
Prologis Competitors
Prologis’s key competitors and comparable public companies in the real estate sector include Amazon, FedEx, and Costco. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Prologis stacks up by comparing their revenue breakdown, margins, and growth metrics.
Prologis Competitors
Prologis’s key competitors and comparable public companies in the real estate sector include Amazon, FedEx, and Costco. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Prologis stacks up by comparing their revenue breakdown, margins, and growth metrics.
Prologis Competitors
Prologis’s key competitors and comparable public companies in the real estate sector include Amazon, FedEx, and Costco. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Prologis stacks up by comparing their revenue breakdown, margins, and growth metrics.
Prologis Competitors
Prologis’s key competitors and comparable public companies in the real estate sector include Amazon, FedEx, and Costco. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Prologis stacks up by comparing their revenue breakdown, margins, and growth metrics.
Prologis Competitors
Prologis’s key competitors and comparable public companies in the real estate sector include Amazon, FedEx, and Costco. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Prologis stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Rental Revenue | $6,200 | $5,800 | +6.9% |
| Strategic Capital Revenue | $500 | $600 | -16.7% |
| Development Revenue & Other | $1,200 | $1,300 | -7.7% |
| Total Revenue | $7,900 | $7,700 | +2.6% |
Rental Revenue — 78% of Revenue
Strategic Capital Revenue — 6% of Revenue
Development Revenue & Other — 15% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $7,900 | $7,700 |
| Cost of Revenue | $2,100 | $2,000 |
| Gross Profit | $5,800 | $5,700 |
| Operating Expenses | $2,300 | $2,200 |
| Operating Income | $3,500 | $3,500 |
| Net Income | $3,000 | $3,200 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 73.4%
- Operating Margin: 44.3%
- Revenue Growth: 2.6%
Is Prologis Profitable?
Yes, Prologis is profitable. The company reported net income of $3,000 on total revenue of $7,900. With an operating margin of 44.3%, Prologis demonstrates solid profitability for the real estate sector. The gross margin of 73.4% reflects Prologis’ pricing power and cost structure.
What to Watch
- Mark-to-market rent growth as below-market leases roll to current rates
- Impact of e-commerce penetration growth on warehouse demand
- Data center development pivot as Prologis converts logistics land for AI infrastructure
- Rising interest rates and their impact on property valuations and development costs
Prologis (PLD) Financial Summary
Prologis (PLD) is a real estate company that generated $7,900 in total revenue in fiscal year 2024. Revenue grew 2.6% year-over-year. The company earned $3,000 in net income, making it profitable. For a deeper look at Prologis’ revenue breakdown, business segments, and financial performance, review the detailed analysis above.