Prologis faces risks from fluctuating global and local economies, financial markets, interest rates, foreign currency exchange rates, increased competition, acquisition/development integration, maintaining REIT status, financing availability, co-investment venture risks, international business operations, natural disasters, and pandemics. Potential defaults on senior securities and adverse changes in credit ratings are also noted. Slower customer leasing decisions and limited speculative development are also mentioned as short-term risks.
Financial Upside
Prologis anticipates rent growth from lease rollovers and existing lease increases. Development projects offer potential value creation through contributions to co-investment ventures and increased NOI. Strategic capital ventures provide additional revenue streams and capital from third-party investors. A strong balance sheet with available liquidity positions Prologis to capitalize on investment opportunities. The company's scale allows for efficient growth and cost control.
