Company: PLDGP
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000950170-25-021272
Chunk: 331

Company: Prologis, Inc.
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 331
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 Segment (“RES”) NOI in 2024 compared to 2023, was impacted by the following activities (in millions): 

(1)Significant rent change due to higher rental rates on the rollover of leases during both periods continues to be a key driver of increasing rental income. See below for key metrics on rent change on rollover and occupancy.

(2)We calculate changes in NOI from development completions period over period by comparing the change in NOI generated on the pool of developments that completed on or after January 1, 2023 through December 31, 2024.

(3)The increase due to acquisitions is principally due to the additional NOI in 2024 from the $3.1 billion real estate portfolio acquired in the U.S. on June 29, 2023. Acquisition activity also includes the fair value lease 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
     
    $