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SAN FRANCISCO, Dec. 7, 2025 /PRNewswire/ — Prologis, Inc. (NYSE: PLD) announced today that Prologis, L.P. will redeem all of its outstanding 3.00% Notes due June 2, 2026 (CUSIP 74340XBB6, ISIN XS1072516690), effectively removing the bonds from the New York Stock Exchange. The redemption price is expected to be 102.1% of principal, translating to roughly €1,021 per €1,000 of face value, based on current German government bond yields. Interest will cease on the redemption date of January 9, 2026.
Prologis, a global leader in logistics real estate, manages a portfolio of over 1,000 properties spanning more than 20 countries. The firm’s focus on scalable, technology‑enabled warehousing places it at the intersection of e‑commerce growth and the shift toward sustainable supply chains. By issuing lower‑cost debt and now redeeming these notes early, Prologis signals confidence in its cash‑flow generation and its ability to fund ongoing expansion without relying on higher‑interest financing.
The early redemption comes amid a tightening global credit environment. U.S. Treasury yields have risen to multi‑year highs, pressuring corporate issuers to reassess their funding structures. By retiring the 3.00% notes at a modest premium, Prologis locks in a cheaper cost of capital relative to prevailing market rates, which now exceed 4% for comparable maturities. This move also reduces the company’s weighted‑average cost of debt, potentially enhancing its credit rating and providing greater flexibility for future acquisitions or development projects.
From a technology perspective, Prologis has been investing heavily in data‑driven asset‑management platforms. Its proprietary “Prologis Labs” initiative integrates AI and IoT sensors across facilities to optimize space utilization, energy consumption, and tenant performance. The cash savings generated by the bond redemption can be redirected toward these digital‑infrastructure upgrades, reinforcing the company’s competitive edge as tenants demand more intelligent, automated logistics solutions.
Analysts view the redemption as a bullish signal. The premium of 2.1% over par is modest relative to the potential cost savings from eliminating a higher‑interest obligation. Moreover, Prologis’ strong balance sheet—characterized by a low net‑debt‑to‑EBITDA ratio and robust free cash flow—means the company can comfortably meet the redemption without strain. Investors may anticipate a modest upside in the stock as the reduced debt burden improves earnings‑per‑share forecasts.
Risk considerations remain. Global economic headwinds, fluctuating freight rates, and potential disruptions in cross‑border trade could affect occupancy levels and rental income. Additionally, the firm’s exposure to foreign‑currency movements, given its international asset base, may introduce earnings volatility.
Forward‑looking statements in this release are subject to risks and uncertainties, including but not limited to economic conditions, interest‑rate changes, competitive dynamics, acquisition outcomes, tax‑law amendments, financing availability, co‑investment‑venture performance, environmental events, and pandemic impacts. Actual results may differ materially from those expressed or implied herein.
Source: Prologis, Inc.
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