Prologis, the global leader in logistics real estate, is marking the 20th anniversary of its U.S. Logistics Fund (USLF), one of its private flagship investment funds, with an assets under management (AUM) of $24 billion. Since its launch in 2004, USLF has delivered consistent, high returns while playing a key role in driving the growth and modernization of logistics investments across the United States. Prologis is a co-investor in its Strategic Capital funds, including USLF, which strongly aligns its interests with the USLF investors.
“We have been privileged to serve and partner with our USLF investors over the past two decades,” said Hamid R. Moghadam, chief executive officer and co-founder of Prologis. “USLF not only offers the highest-quality logistics real estate portfolio in the United States, but it is also actively investing in value-creation opportunities which will enhance the long-term value of our assets while driving customer preference and stickiness.”
Some of the key performance highlights over the past two decades:
- Strong Record of Outperformance: Since its inception, USLF has consistently delivered outsized returns, positioning it as a leading performer in logistics real estate. This performance is particularly noteworthy given the fund’s low leverage over its 20-year history, minimizing reliance on borrowed capital. USLF’s best-in-class debt ratings have also enabled the fund to secure favorable financing terms, further enhancing returns across various market cycles.
- Consistent High Occupancy: In the past 10 years, the average operating occupancy of the fund was 96.8%, outperforming the market by 160 bps, driven by the strength of its assets and locations as well as Prologis’ customer-centric approach.
- Strong Investor Confidence: USLF has attracted capital from a diverse range of 127 institutional investors from 15 countries, demonstrating high trust in its growth potential and long-term value. Since 2004, USLF has provided market-leading liquidity to its investors by funding 100% of redemption requests totaling more than $2.9 billion.
- Continued Growth and Strategic Expansion: USLF’s tight, focused investment strategy has been key to its success, selectively expanding from 4.5 MSF in 2004 in eight markets to more than 125 MSF in 28 markets today. With assets in some of the most sought-after urban infill locations in key U.S. logistics hubs, including Southern California, New Jersey, Chicago and Atlanta, USLF remains concentrated on high-value logistics centers. The rise of e-commerce has further driven the growth of the fund.
Looking ahead to its third decade, USLF remains positioned for future growth and success as Prologis continues to innovate to deliver value to investors in a rapidly changing industry. With significant investments in proprietary research, data analytics, renewable energy, mobility and other value-enhancing capital improvements to its buildings, Prologis is providing fund investors with access to a best-in-class and future-proofed logistics real estate portfolio.
“We take a customer-centric approach to every part of our business, including our private investment funds. With USLF, we have curated a portfolio of modern logistics properties that is unrivaled in the industry,” said Karsten Kallevig, global head of Strategic Capital. “While we are proud of USLF’s accomplishments over the years, we are even more excited about what the future holds for our partnership with our investors.”
About Prologis Strategic Capital
Prologis’ Strategic Capital business is an integral line of business for the company, with $87.0 billion* in assets under management. Its Strategic Capital business consistently delivers strong and sustained revenue growth.
Prologis Strategic Capital offers institutional investors a unique opportunity to invest with the company. Benefitting from the scale and scope of the Prologis platform, each of the company’s 10 funds focus on delivering industry-leading, risk-adjusted returns along with a superior investor experience. Prologis’ investment vehicles have specific geographic and risk profiles, targeting logistics real estate in high-consumption and high-barrier-to-entry markets.
Prologis is a material investor in all its Strategic Capital funds, with co-investment levels ranging from 15 percent to 55 percent. As a general partner, the company provides investors security through its durable A-rated balance sheet, best-in-class global portfolio and customer-centric focus.
* Data as of June 30, 2024. AUM is the fair value of real estate properties and development projects in the Strategic Capital business and includes our estimate of the gross value of real estate that could be acquired using existing equity commitments from Prologis and our partners assuming target leverage levels are used. Assets Under Management: Representing 44% of Prologis’ total AUM.
ABOUT PROLOGIS
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. At June 30, 2024, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 1.2 billion square feet (115 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 6,700 customers principally across two major categories: business-to-business and retail/online fulfillment.