Annual Report 2019 Shareholders Letter Leadership Financial Highlights Prologis Vernon Business Center, Los Angeles, California Creating Value Beyond the Real Estate Prologis performed exceptionally well in 2019. We exceeded our cumulative earnings growth expectations, completed two complementary acquisitions and concluded our three-year strategic plan. Our global team created opportunities to spend more one-on-one time with our customers, and continued our strong track record of technology and innovation while maintaining our leadership position in ESG. 1 HeadlineSubheadBody Annual Report 2019 Shareholders Letter Leadership Financial Highlights Prologis’ commitment to value-add solutions gives our Customer Experience teams a competitive edge The Prologis 3Cs In 2019, we launched the 3Cs, an evolution of our Five Drivers, to guide our focus and drive success across the organization: — Customer Centricity: We build lifelong partnerships with our customers. We listen, learn and use the power of our scale to solve our customers’ pain points. — Change Through Innovation and Operational Excellence: Our teams experiment and evolve to uncover and commercialize creative solutions. We believe the best ideas can come from anywhere. — Culture and Talent: The Prologis culture prioritizes speed and experimentation. We support a workforce of lifelong learners in an atmosphere of responsiveness, reliability and respect. 2 Annual Report 2019 Shareholders Letter Leadership Financial Highlights LED lighting installation at Prologis Park Lehigh Valley West, Lehigh, Pennsylvania Another Strong Year for ESG Environmental stewardship, social responsibility and corporate governance (ESG) are embedded in the Prologis DNA. — Prologis ESG focuses on metrics that connect tightly to our business strategies. — Our initiatives boost operational efficiencies, build long-term relationships with employees, customers, communities and investors, and ensure resilience across our global platform. — Our ongoing ESG leadership has been recognized by Corporate Knights’ Global 100 Most Sustainable Corporations in the World, the Dow Jones Sustainability World Index and the Global Real Estate Sustainability Benchmark (GRESB), among others. 3 Annual Report 2019 Shareholders Letter Leadership Financial Highlights Chairman and Chief Executive Officer, Hamid R. Moghadam Dear Fellow Shareholders, We entered the decade on the heels of an exceptionally strong 2019, I would also like to note that 2019 was a record year for capital during which we set several high-water marks for performance. deployment. Development stabilizations were $2.5 billion with an In addition to completing our three-year strategic plan and surpassing our cumulative earnings growth expectations, we took our commitment estimated weighted average margin of 36.9 percent and estimated value creation of $911 million. to customers to a new level, completed the acquisitions of two Furthermore, we started $2.9 respected peers in our space, made tangible strides in innovation and billion of new developments, technology as well as operational excellence, and were recognized adding 37 million square feet widely for our ESG initiatives. None of this would have been possible without the dedication of our talented and diverse teams across the globe. Every day, they make it their mission to ensure that Prologis continues to be a leader. (owned and managed) to our portfolio. Build-to-suits (BTS) were also strong, totaling about 43 percent of our total development activity for the We set several high-water marks for performance across our global portfolio. 2019 Performance Our performance surpassed expectations materially: — Core FFO per diluted share grew 10 percent to $3.31 for the year. year—specifically, 32 starts totaling 11 million square feet. While our build-to-suit business continued to thrive in the past year, our customers told us they wanted a more streamlined process—and we listened. The result is our Customer Led Development (CLD) program, — Our dividend increased 10 percent to $2.12 per common share. which merges our BTS program with the unique advantages of our scale — Our balance sheet remains one of the best in the business, with liquidity of approximately $4.8 billion and capacity to raise capital through fund sell-downs of an additional $7.5 billion. — The portfolio delivered double-digit net effective rent change of 29.2 percent. — We continued our industry-leading performance against key benchmarks, outperforming the RMS and RMP REIT indices by approximately 3,000 basis points in the year. to meet our customers’ needs. Our Global Customer Solutions team helped to drive this initiative, and I am proud of how they delivered for our customers. Prologis Research, the industry’s only in-house research team, continued to leverage proprietary data and analytics to ensure efficient distribution solutions for our customers, as well as analytics that help our field teams with operational strategies. They play a critical role in ensuring we stay on top of current opportunities and tomorrow’s trends. 4 Annual Report 2019 Shareholders Letter Leadership Financial Highlights 2019 Milestones Our scale and operating expertise make it possible for us to acquire assets that allow us to deliver best-in-class service to our customers. Last year, we completed agreements to acquire Industrial Property Trust Inc. and Liberty Property Trust, and as of this letter, those transactions are now complete, bringing our portfolio to nearly a billion square feet. These portfolios are highly complementary to our own, and they increase synergies and our presence in key markets. It is also important to note that our G&A per assets under management is a fraction of other companies’. We have built an enterprise that is capable of executing on major transactions while delivering sector- leading results. Our Strategic Capital business had a record- breaking year, with its largest third-party equity raise in Prologis history, at $6.2 billion. Furthermore in 2019, we formed the $1.7 billion open-ended Prologis China Core Logistics Here are some highlights: 1. Customer Centricity: listen, learn and solve customer pain points. Examples in action: CARE Program: What began as an experiment in two U.S. markets (Chicago and Indianapolis) was such a resounding success that it has since been launched globally. CARE—Customer Our global team found new opportunities to spend more time with our customers. Appreciation Retention and Engagement—is about getting in front of our customers, person-to-person. Each week, our teams in the field dedicate specific hours to spend with customers—to connect, listen and learn. Knowing our customers better helps us be an even better partner. Prologis Essentials: Essentials encompasses everything from LED lighting installations, retrofits to racking systems, forklift sourcing and our SolarSmart rooftop renewable energy program. Net Promoter Score: Last year, we introduced Net Promoter Score Fund. Strategic Capital has been instrumental in growing our third-party (NPS) as part of our Americas Customer Experience survey to measure AUM to more than $40 billion and delivering record promotes from our our customers’ experience on our platform. Prologis’ global NPS score co-investment ventures across the globe. Strategic Capital’s consistent at year-end was 52, which exceeds the business-to-business industry revenues and ability to raise third-party capital help to ensure that our benchmark and puts us on par with some of the most admired business- balance sheet remains the strongest in our industry, with 90 percent to-consumer companies. This score is a baseline from which to build, of fees coming from long-term or perpetual vehicles. We have one of and a proof point that highlights the dedication and enthusiasm of our the best logistics investment track records in the world, and our proven customer-facing teams. ability to source capital on a global basis ensures we are well-positioned to continue growing the business as well as the scale and quality of our portfolio. Looking Ahead to 2020—Creating Value Beyond the Real Estate The Prologis 3Cs 2. Change Through Innovation and Operational Excellence: experiment and evolve in pursuit of creative solutions. Examples in action: Prologis Ventures: Our venture capital arm and an innovation leader since its inception, Prologis Ventures identifies and advances technologies and business models to help us stay ahead of real estate Last year, we debuted our 3Cs, an evolution and simplification of our technology trends and disrupt ourselves from within, while driving new previous Five Drivers, to restate our focus going forward: sources of revenue and deepening customer relationships. — Customer Centricity — Change Through Innovation and Operational Excellence — Culture and Talent Prologis Ventures identifies and advances technologies and business models to drive new sources of revenue and deepen customer relationships. Prologis Labs: Our dedicated innovation incubator in Northern California celebrated its first anniversary in November. The team worked with some of our largest customers to structure and run experiments with the goal of solving customer pain points. Kaizen: To further bolster our efforts in continuous improvement and operational excellence, we launched three Kaizen events in 2019 and more are planned for 2020. Kaizen workshops have helped us create efficiencies in our leasing and forecasting processes. 5 Annual Report 2019 Shareholders Letter Leadership Financial Highlights 3. Culture and Talent: embrace change, build a company of lifelong learners and draw strength from inclusion and diversity. As we continue to shift to becoming an even more customer-centric organization that is focused on change through innovation, the transition Ahead of the publication of our ESG Impact Report, I am pleased and humbled to share a handful of our ESG recognitions: — Top real estate company on the 2020 Global 100 Most Sustainable Corporations in the World list, as well as #6 among U.S. companies and #26 overall. cannot happen without the right culture and team in place. Our culture — Dow Jones Sustainability World Index, which is reserved for the top prioritizes speed and experimentation to create a community of lifelong 10 percent of companies. learners that emphasizes responsiveness, reliability and respect. — GRESB leader in the Americas and Asia, and top 10 percent for At the board of directors level, I am pleased that Ms. Avid Modjtabai, ESG in the world. a 27-year Wells Fargo veteran and named one of the “Most Powerful Women in Banking” by American Banker, joined the Prologis board as a new independent director in February 2020. Ms. Modjtabai’s extensive finance and technology expertise, along with her focus on customer experience, will be a significant benefit to our board. Another Strong Year for ESG Environmental stewardship, social responsibility and corporate governance (ESG) are embedded in the Prologis DNA. Before I touch on some of our broader ESG accomplishments in 2019, I would like to showcase one of our programs, the Prologis Community Workforce Initiative (CWI), which has made remarkable strides since its inception in 2018. CWI partners with non-governmental organizations and municipalities to train people for careers in logistics and, in turn, provide our customers with a steady pipeline of skilled and ready labor, helping to solve one of their biggest pain points. This program has opened up opportunities for individuals of all ages and backgrounds, including those in underserved communities. We have developed partnerships with community-based organizations in major logistics markets such as Los Angeles; Tracy, California; Chicago; Miami; New Jersey; Oakland; and Mexico City. — Investor’s Business Daily #3 ranking on “50 Best ESG Companies” list. — Logix Award for carbon neutral development for our facility in Muggensturm, Germany. — First issuer of green bonds in the logistics space as well as the first sustainability-linked bank facilities across U.S. REITs. In Closing... With a new three-year plan in place, significant embedded rent upside, a well-located land bank and substantial balance sheet capacity, I am confident in Prologis’ ability to navigate potential turmoil in the global economy. We have built a resilient business, and in these difficult times our focus is on the well-being of our employees, customers and the communities in which we operate. My sincere gratitude goes out to the people of Prologis who turn ideas into reality every day and have demonstrated, over and over, the power of seeking collective successes over individual kudos. We are an organization founded on collaboration, humility and good old-fashioned hard work. I look forward to seeing what our teams will accomplish throughout the rest of this year. The Prologis Community Workforce Initiative has made remarkable strides since its inception, and we are excited to take it to the next level. Sincerely, Hamid R. Moghadam Chairman and CEO As we take CWI to the next level, we look forward to scaling the program to additional markets throughout the U.S. We are developing an online curriculum with Prologis-branded industry certifications and look forward to expanding the program to Mexico and the UK this year. Our goal is to train 25,000 individuals over the next five years. 6 Annual Report 2019 Shareholders Letter Leadership Financial Highlights Senior Leaders Thomas S. Olinger Chief Financial Officer Click to read bio Hamid R. Moghadam Eugene F. Reilly Gary E. Anderson Chairman of the Board of Chief Investment Officer Chief Operating Officer Directors and Chief Executive Click to read bio Click to read bio Officer Click to read bio Edward S. Nekritz Colleen McKeown Michael S. Curless Chief Legal Officer and General Chief Human Resources Officer Chief Customer Officer Counsel Click to read bio Click to read bio Click to read bio Board of Directors Hamid R. Moghadam Cristina G. Bita George L. Fotiades Lydia H. Kennard Chairman of the Board of Vice President of Finance, President and Chief Executive Principal, Airport Property Directors and Chief Executive Google Officer, Cantel Medical Corp. Ventures, LLC; Founder and Officer Click to read bio Click to read bio Click to read bio Chief Executive Officer, KDG Construction Consulting Click to read bio J. Michael Losh Irving F. Lyons III Avid Modjtabai David P. O’Connor Former CFO, General Motors; Principal, Lyons Asset Senior Executive Vice President, Managing Partner, High Rise Former Chairman, GMAC Click to read bio Management Click to read bio Payments, Virtual Solutions and Capital Partners, LLC Innovation, Wells Fargo Click to read bio Click to read bio Oliver Piani Jeffrey L. Skelton Carl B. Webb William D. Zollars Chief Executive Officer and Former Managing Partner, Senior Partner, Ford Former Chairman, President and Founder of OP Conseils; Senior Resultant Capital Partners Consultant, Ardian Click to read bio Click to read bio Management, LP Click to read bio Chief Executive Officer, YRC Worldwide Inc. Click to read bio 7 Annual Report 2019 Shareholders Letter Leadership Financial Highlights Prologis Park Grande, Mexico City Financial Highlights ASSETS UNDER MANAGEMENT (in billions) ASSETS UNDER MANAGEMENT (in billions) ASSETS UNDER MANAGEMENT (in billions) REVENUE SUMMARY (in billions) REVENUE SUMMARY (in billions) REVENUE SUMMARY (in billions) DEVELOPMENT VALUE CREATION1 (in millions) DEVELOPMENT VALUE CREATION1 (in millions) DEVELOPMENT VALUE CREATION1 (in millions) ‘19 ‘18 ‘17 ‘19 ‘18 ‘17 ‘18 ‘17 ‘16 ‘19 ‘19 $118.4 $118.4 $118.4 ‘18 ‘18 $86.7 $86.7 ‘17 ‘17 $78.7 $78.7 $86.7 $78.7 $3.3 $3.3 $3.3 $2.8 $2.8 $2.8 $2.6 $2.6 $2.6 $911 $911 $911 $661 $661 $661 $583 $583 $583 CORE FFO (per diluted share) CORE FFO (per diluted share) CORE FFO (per diluted share) DIVIDENDS PER COMMON SHARE DIVIDENDS PER COMMON SHARE DIVIDENDS PER COMMON SHARE DEBT-TO-EBITDA DEBT-TO-EBITDA DEBT-TO-EBITDA ‘19 ‘19 $3.31 $3.31 ‘18 ‘18 $3.03 $3.03 ‘17 $2.81 ‘17 $2.81 $3.31 $3.03 $2.81 $2.12 $2.12 $2.12 $1.92 $1.92 $1.92 $1.76 $1.76 $1.76 3.96x 3.96x 3.96x 4.20x 4.20x 4.20x 4.55x 4.55x 4.55x DEBT-TO-EBITDA DEBT-TO-EBITDA DEBT-TO-EBITDA ‘18 ‘18 4.20x 4.20x ‘17 ‘17 4.55x 4.55x ‘16 ‘16 4.72x 4.72x 4.20x 4.55x 4.72x Please see Prologis’ Annual Report on Form 10-K for the year ended December 31, 2019, and our Q4’19 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. 1. Prologis’ share of estimated value creation from development stabilizations 8