July 13, 2025 a 07:46 am
PLD: Dividend Analysis - Prologis, Inc.
Prologis, Inc. offers a compelling dividend profile characterized by consistent payments and a robust history of growth. With a significant market capitalization of $101.3 billion, it is a leader in its sector, providing reliable income to investors through a diversified real estate platform. The company’s impressive 29-year dividend history showcases its commitment to shareholder returns. However, analyzing the sustainability of its payout ratios is essential to forecast long-term dividend stability.
Overview 📊
The detailed dividend profile of Prologis highlights its commitment to providing superior investor value through consistently attractive yields. Having maintained, and in recent years, increased dividend payouts, it exemplifies a mature company with a stable cash flow and strong sector presence.
| Metric | Value |
|---|---|
| Sector | Real Estate |
| Dividend Yield | 4.66% |
| Current Dividend Per Share | $3.86 |
| Dividend History | 29 years |
| Last Cut or Suspension | None |
Dividend History 🗣️
Analyzing Prologis's extensive dividend history reveals a steadfast commitment to growing shareholder value, even amidst challenging economic environments. The absence of recent cuts exudes reliability and marks an increasingly rare achievement in the investment landscape.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | $2.02 |
| 2024 | $3.84 |
| 2023 | $3.48 |
| 2022 | $3.16 |
| 2021 | $2.52 |
Dividend Growth 📈
The growth trajectory observed in Prologis’s dividends over recent years is indicative of its strategic vision and financial health. Evaluating the pace and sustainability of this growth is crucial, given that it reflects both operational success and effective capital management.
| Time | Growth |
|---|---|
| 3 years | 15.07% |
| 5 years | 12.62% |
The average dividend growth is 12.62% over 5 years. This shows moderate but steady dividend growth, which is an encouraging sign for long-term value investors.
Payout Ratio 📉
The payout ratios offer insights into the sustainability of the current dividend levels. EPS-based and free cash flow-based ratios are critical for understanding a company's ability to maintain, grow, or adjust its payout policy.
| Key Figure | Ratio |
|---|---|
| EPS-based | 95.62% |
| Free Cash Flow-based | 74.37% |
With an EPS payout ratio of 95.62%, Prologis is aggressively returning profits to shareholders, albeit with limited retention for reinvestment. Meanwhile, a 74.37% FCF payout ratio indicates room for maintaining dividend payments without compromising operational cash flows.
Cashflow & Capital Efficiency 💼
The cash flow and capital efficiency metrics provide an understanding of the firm's operational efficacy and resource deployment. Prologis's ratios suggest effective management of shareholder capital and robust operational performance.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 3.92% | 4.25% | 5.02% |
| Earnings Yield | 3.69% | 2.42% | 3.81% |
| CAPEX to Operating Cash Flow | 13.34% | ||
| Stock-based Compensation to Revenue | 2.93% | 3.34% | 2.83% |
| Free Cash Flow / Operating Cash Flow Ratio | 86.66% | 100% | 100% |
Effective management of cash flows is evident from high FCF/OFCF ratios, corroborating sound financial stewardship and indicating sustainable dividend payouts without compromising the reinvention and capital expenditure strategies.
Balance Sheet & Leverage Analysis 📊
Evaluating Prologis's leverage ratios is essential to assess its financial elasticity and capability to navigate economic volatilities. Analyzing these metrics reveals its strong yet cautious approach to debt management.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 0.48 | 0.56 | 0.58 |
| Debt-to-Assets | 0.29 | 0.32 | 0.33 |
| Debt-to-Capital | 0.32 | 0.36 | 0.37 |
| Net Debt to EBITDA | 5.71 | 4.43 | 4.01 |
| Current Ratio | 0.13 | ||
| Quick Ratio | 0.27 | 0.55 | 0.92 |
| Financial Leverage | 1.65 | 1.75 | 1.77 |
Prologis's increasing leverage ratios beckon an emphasis on careful expansion strategies. However, its consistent solvency ratios and manageable interest coverage assure credibility in maintaining financial obligations.
Fundamental Strength & Profitability 📊
Prologis's core profitability metrics, including return on equity and asset utilization, portray a robust financial performance, indicating its strategic dexterity in generating shareholder returns.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 6.32% | 5.75% | 6.92% |
| Return on Assets | 3.83% | 3.29% | 3.91% |
| Net Margin | 56.33% | 38.13% | 45.50% |
| EBIT Margin | 66.67% | 50.89% | 60.38% |
| EBITDA Margin | 73.72% | 81.86% | 91.84% |
| Gross Margin | 74.74% | 74.94% | 74.92% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
The steady increase in core margins highlights efficient management practices and an adept focus on bolstering operational efficiencies, paving the way for enhanced profitability.
Price Development 📈
Dividend Scoring System ✅
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 3 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 32/40
Rating ⭐
Prologis, Inc. exhibits a robust dividend track record, underpinned by stability and moderate growth. Given its financial health and strategic potential, it is a commendable choice for long-term, yield-focused investors. However, close monitoring of payout ratios is recommended, ensuring sustainability amidst sector-specific dynamics.