The Industrial REIT Coalition Unveils New Standard Methodology for Key Metrics

Industrial REITs Standardize Key Property Metrics

On April 1, 2025, Prologis, Inc. (NYSE: PLD) made a significant announcement regarding a collaborative effort among major industrial real estate investment trusts (REITs). The coalition includes notable firms such as EastGroup Properties, First Industrial Realty Trust, and STAG Industrial. Together, they aim to standardize key non-GAAP metrics to enhance comparability across the industrial sector.

This initiative builds upon a harmonization effort that began in 2018. The Industrial REIT Group has reaffirmed its commitment to maintaining uniformity in how critical metrics such as property stabilization, occupancy rates, rent changes, and customer retention are calculated. One of the key aspects of this initiative is the continued inclusion of only those properties that have been stabilized during both the current and previous reporting periods in the annual same-store portfolio. Additionally, the group has agreed to a consistent approach in excluding value-added and redevelopment properties from this portfolio, ensuring clarity and consistency in reporting.

Each member of the Industrial REIT Group agrees to align their non-GAAP metrics with these methodologies when disclosing relevant data. Prologis has incorporated these practices into its 2025 guidance, which indicates that these changes are not anticipated to materially affect the non-GAAP metrics of Prologis prior to 2025.

While minor differences in calculation methods or terminology may persist among the different members of the coalition, the overarching goal is clear: to increase consistency and comparability across the industrial real estate sector. This step marks a significant advancement in how investors and analysts will evaluate the performance of industrial REITs, fostering greater transparency in reporting.

About Prologis

Prologis stands at the forefront of logistics infrastructure, defining the industry by creating intelligent solutions that facilitate global commerce. Their focus extends beyond mere structural offerings; they develop the ecosystems that connect the physical and digital realms, providing agile supply chains and sustainable energy solutions. Prologis’ extensive scale, innovative capabilities, and deep industry expertise position it as a leader not just in logistics, but in shaping the future of commerce.

For further information, visit Prologis.com.

Forward-Looking Statements

This announcement contains forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934, based on current expectations regarding the industry and market dynamics. These statements involve uncertainties and risks that could materially affect outcomes, including economic fluctuations, competition, changes in tax laws, and risks related to acquisitions and development activities. Despite the reasonable assumptions underlying these projections, actual results may differ.

As the industrial real estate sector continues to evolve, this coalition's effort towards standardization reflects a proactive approach to market demands, ultimately benefiting investors, stakeholders, and the industry at large.