Prologis Q4 Earnings: First Look

Logistics real estate investment trust Prologis beat fourth-quarter expectations on Tuesday, posting core funds from operations (FFO) of $1.50 per share. The result was 11 cents ahead of the consensus estimate and also included data center sales.

The average occupancy rate across the San Francisco-based company’s portfolio was 95.6 percent, down 150 basis points year-over-year but 30 bps lower than the third quarter in what is expected to be a shallow recession for the industry. Net effective rental change over total lease term was 66.3%, which was 150 bps lower sequentially (780 bps lower y/y).

Total leases initiated represented 46.5 million square feet of space, an increase of 6% y/y.

“Leasing activity has been strong since the election, and our ongoing conversations with customers support our expectation that the market is approaching a tipping point,” Prologis founder and CEO Hamid Moghadam said in a news release. “Meanwhile, our platform is uniquely positioned to take advantage of the opportunities created by favorable trends in our data center and energy businesses.”

Prologis’ (NYSE: PLD ) full-year 2025 guidance for core FFO is $5.65 to $5.81, compared to consensus estimates of $5.79, with average occupancy ranging from 94.5% to 95.5%.

Development is expected to start at $2.25 billion to $2.75 billion.

Prologis will host a call at noon EST on Tuesday to discuss fourth quarter results.

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