Prologis

Expanded power access to 5.7 gigawatts during Q4. Stabilized 72 megawatts of projects and sold state-of-the-art turnkey facility at compelling economics. Demand exceptional with every megawatt in pipeline in some stage of discussion including 1.2 gigawatts currently in LOI or pending lease execution. 2026 development starts guidance of $4 billion to $5 billion includes approximately 40% in data center. Exploring capitalization strategies with productive dialogues with world's larger investors. Capital not the constraint with balance sheet comfortably carrying program.

Q4 net absorption 59 million square feet in the US a strong finish with higher absorption exceeding completions for the first time since 2022 resulting in decline in US vacancy to 7.4%. Market rents declined at their slowest rates with many markets posting positive growth. Demand strongest in large space formats but encouraging that occupancy increased across all size categories. E-commerce approximately 20% of new leasing making 2025 its best year since 2021. International markets continue to outperform with Japan occupancy above 97% and outperformance of nearly 600 basis points.

Core FFO excluding net promote expense guided to $6.05 and $6.25 per share. Average occupancy 94.75% to 95.75% with seasonal Q1 drop before rebuilding. Net effective same-store 4.25% to 5.25% and cash 5.75% to 6.75%. Development starts $4 billion to $5 billion on owned and managed basis. Acquisitions $1 billion to $1.5 billion. Combined contribution and disposition $3.25 and $4.25 billion. Strategic capital revenue $650 to $670 million. G&A $500 million to $520 million. GAAP earnings $3.7 to $4 per share.

Tone shift in Southern California with new direction in customer demand giving confidence in cyclical recovery call. Back half of year saw gross absorption and net absorption move in improved direction in both Q3 and Q4. Customers engaging earlier in renewals with broader discussion of new lease requirements across all submarkets from wider range of customers. Inland Empire clearly outperforming Los Angeles with great improving absorption. Class A over Class B outperforming which is positive for portfolio. Couple of pockets with scarcity and healthy customer demand leading to firming and improving pricing in big box Inland Empire. Market vacancies still elevated but cycle progressing and short term weakness dissipating.