Dear Fellow Shareholders,
This past year was filled with remarkable milestones, including the celebration of our 40th year in business. Over those four decades, we built a company that not only is the global leader in our sector but is also breaking new ground with our Essentials platform of solutions.
In 2023, we are proud to have achieved our fourth consecutive year of double-digit Core Funds from Operations (FFO) and dividend growth, delivering significant value to our shareholders. In fact, since the merger in 2011, our earnings growth rate has a 12-year history of 10.3% Compound Annual Growth Rate (CAGR). We delivered these results in a market that, in many ways, was quite turbulent. Our strong balance sheet and disciplined approach to capital investment give us the ability to navigate all environments to the benefit of our customers and shareholders.
This year also marked the full integration of Duke Realty, a milestone that continues our track record in integrating new organizations and cultures. That deal, along with the $3 billion acquisition of property in mid-2023, considerably extended our presence in key U.S. markets. Finally, we hit 500 megawatts of solar energy, which puts us well on a path to achieving our goal of one gigawatt of solar supported by storage by 2025.
Delivering Differentiated Solutions & Adapting for Growth
At our Investor Forum in December, the executive team shared insights on how our strategy and differentiators fuel our continued growth. We outlined how we are building a leading energy company within the world’s highest quality logistics real estate platform and how our Essentials platform provides customers with a suite of solutions that helps their businesses run more efficiently and sustainably. We shared how customer centricity, a data-driven mindset and an organization-wide dedication to innovation create a future of long-term, sustainable growth.
The Prologis internal research group and proprietary metrics help anticipate changing economic conditions, allowing us to better serve our customers and make savvy investment decisions. Our unparalleled land bank provides us with $40 billion in build out potential in the world’s most desirable markets. Further differentiating Prologis in the market, our Strategic Capital business provides significant capital, enhances returns and diversifies risk.
Looking Ahead: Building for an Even Brighter Future
As part of our succession planning, Carter Andrus, Joseph Ghazal and Susan Uthayakumar joined our Executive Committee as chief operating officer, chief investment officer and chief energy and sustainability officer, respectively. We also welcomed Eddie Huang as president of Prologis China. I am personally grateful for the many years of leadership and dedication Gary Anderson and Gene Reilly gave our company and wish them well in their retirement.
Prologis is fortunate to attract and retain great talent. We also take our role as an industry leader seriously, which is why, in 2023, we announced a new partnership with Morehouse College, one of the nation's Historically Black Colleges and Universities. A $3 million donation from the Prologis Foundation helped establish the Morehouse Real Estate Institute, which will help nurture a diverse and inclusive talent pipeline, strengthening the talent pool for the entire commercial real estate industry.
From operations to development to Strategic Capital to Essentials, we have built a business with unrivalled scale, significant growth potential and truly the most talented and experienced team in the industry. Thank you for your continued confidence and investment.
Warm Regards,
