Financial
Highlights

Prologis LAX Cargo Center, Los Angeles, California.

At a Glance

Financial and operating results in 2016 exceeded expectations and reflected outstanding execution by the team and favorable market conditions. Core FFO grew 15% year-over-year, occupancy reached a record 97.1% and rent change on lease rollover was 17%. We enter 2017 with a simplified business, record occupancy levels and an “A-” rated balance sheet. We are positioned better than ever to navigate a broad spectrum of economic scenarios.

Assets Under Management

(in billions)

16

$66.0

15

$59.5

14

$52.8

Revenue Summary

(in millions)

16

$2,533

15

$2,197

14

$1,761

Value Creation

(in millions)

16

$365

15

$699

14

$273

Adjusted EBITDA

(in millions)

16

$2,223

15

$1,936

14

$1,630

Core FFO

(per diluted share)

16

$2.57

15

$2.23

14

$1.88

Dividends per Common Share

(unit)

16

$1.68

15

$1.52

14

$1.32

Loan-to-Value1

16

34.6%

15

38.4%

14

36.5%

Debt-to-EBITDA

16

4.72x

15

6.01x

14

6.13x

Fixed Charge Coverage2

16

5.75x

15

4.43x

14

3.49x

Please see Prologis" Annual Report on Form 10-K for the year ended December 31, 2016, and our 4Q16 earnings supplemental for additional detail regarding the financial information presented in this annual report and definitions and reconciliations of non-GAAP measurements, such as Core FFO, GAAP same store NOI and adjusted EBITDA. Regarding securities ratings presented, such ratings are not recommendations to buy, sell or hold securities and are subject to revision or withdrawal at any time by the rating organizations.

1LTV is defined as the mortgage value of a property divided by the appraised value of the property.

2This figure essentially represents how many times our interest payments (Fixed Charges) could be paid (or "covered") from our cash flow. Fixed Charge Coverage is defined as Adjusted EBITDA divided by total fixed charges. Fixed charges consist of net interest expense adjusted for amortization of finance costs and debt discount (premium), capitalized interest and preferred stock dividends.