Company: PLDGP
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001193125-25-067058
Chunk: 56

Company: Prologis, Inc.
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 56
---
 required to generate substantial growth and value. FIBRA’s TSR had to be at least 9% since its IPO to achieve the minimum performance required by the hurdles. When the promote hurdle was measured in 2024, its TSR was 15.6% since its IPO, 660 bps more than the minimum required to achieve the hurdle. The FIBRA Promote has a high-water mark, meaning that the Promote only applies to new net gains above the highest value previously achieved by the vehicle. |

| (1) | The “total value created when we achieved Promote hurdles” is calculated by determining our ownership share of the growth in net asset value (adjusting for dividends) of the applicable vehicles during the incentive period, gross of any Promote accrual for the applicable vehicles, adding in management fees paid by such vehicles to Prologis during the same period. The “total value created when we achieved Promote hurdles” excludes equity transactions that, while impacting net asset value, did not create value for the vehicle, such as capital contributions, returns of capital, etc. It also excludes Prologis’ ownership share of management fees paid to Prologis by the vehicles. The Promotes relevant to this calculation were the Promotes related to the PPP awards paid in 2024. This graphic is for illustrative purposes and is not spatially proportionate. |

| COMPENSATION DISCUSSION AND ANALYSIS |

Strategic Capital Creates Long-Term Value; PPP Should Be Analyzed Over the Long Term PPP awards are highly variable:They are paid when Strategic Capital outperformance generates Promotes for the company. Award timing and value fluctuate based on Promote calculation opportunities, vehicle size and performance period cadence. Three-year averaging provides a clearer view:Averaging PPP awards over three years smooths variability, offering a more accurate picture of PPP’s scale and the long-term value Promotes deliver to stockholders. PPP supports Strategic Capital growth:The chart below highlights Strategic Capital AUM growth, demonstrating PPP’s role in expanding our Strategic Capital business. This growth has been a key driver of our 12.6% annualized 10-yearTSR, reinforcing PPP’s alignment with long-term stockholder value creation. Promote earnings (and therefore PPP awards) were lower in 2024 because there were no major Promote earning opportunities.

| l |     | Only two Promote calculation opportunities resulted in PPP awards to NEOs in 2024. Demonstrating the variability of Promotes, these opportunities offered Prom