Company: PLDGP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000950170-25-021272
Chunk: 162

Company: Prologis, Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 1
Chunk 162
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 amortization to rental revenues due to in-place leases that were primarily below market at the time of the acquisition.

(4)The change is primarily due to higher insurance costs from a greater number of weather-related events in 2023. Development management and other also includes the operating results of our renewable energy assets.

31

Below are key operating metrics of our consolidated operating portfolio:

(1)     Consolidated square feet of leases commenced and weighted average net effective rent change were calculated for leases with initial terms of one year or greater.

Development Activity

The following table summarizes consolidated development activity (dollars and square feet in millions):

    2024

    2023

    Starts:

    Number of new development buildings started during the period

    26

    55

    Square feet

    7

    13

    TEI
     
    $
    1,235

    $
    3,361

    Percentage of build-to-suits based on TEI

    28.6
    %

    54.0
    %

    Stabilizations:

    Number of development buildings stabilized during the period

    72

    61

    Square feet

    24

    22

    TEI
     
    $
    4,130

    $
    3,058

    Percentage of build-to-suits based on TEI

    32.7
    %

    44.0
    %

    Weighted average stabilized yield (1)

    6.2
    %

    6.3
    %

    Estimated value at completion
     
    $
    4,923

    $
    3,974

    Estimated weighted average margin (2)

    19.2
    %

    30.0
    %

    Estimated value creation
     
    $
    793

    $
    916

(1)We calculate the weighted average stabilized yield as estimated NOI assuming stabilized occupancy divided by TEI.

(2)Estimated weighted average margin is calculated on development properties as estimated value creation, less estimated closing costs and taxes, if any, on properties expected to be sold or contributed, divided by TEI. Development margins fluctuate depending on several factors including cost of capital, changes in capitalization rates that are used to estimate value at completion and location and type of development, such as build-to-suit development. 

At December 31, 2024, the consolidated development