Logistics warehouse operator Prologis signed a record number of new leases in 2025 as more customers go long on real estate following a prolonged downturn and trade war scare.
Prologis (NYSE: PLD) reported fourth-quarter consolidated revenue of $2.09 billion on Wednesday, up 8% year over year and in line with analysts’ expectations. Core funds from operations (FFO) of $1.44 per share also matched the consensus estimate.
“2025 was a record year for lease signings, setting the business up with strong momentum for 2026,” said Prologis CEO Dan Letter in a news release. “Customers are making long-term decisions with greater conviction, and we are meeting that demand with a platform that brings logistics, digital infrastructure and energy together at a global scale.”
The San Francisco-based real estate investment trust inked deals representing 228 million square feet of space last year, a nearly 20% y/y increase, even as on-again, off-again tariffs crimped customer demand. The industry was also dealing with a post-Covid hangover as new property deliveries were met with sagging demand.
New leases commenced in the fourth quarter were down 6% y/y to 43.8 million square feet. Average occupancy fell 30 basis points y/y to 95.3%. However, that was the highest occupancy rate of the year and a sign that the market has likely bottomed. (Occupancy was 95.8% to close the quarter.)
The company’s 2026 guidance calls for core FFO of $6.00 to $6.20 per share, which brackets the consensus estimate of $6.13. The guide assumes average occupancy in a range of 94.75% to 95.75% and development starts between $2.25 billion and $2.75 billion.
Shares of PLD were up 1.6% in premarket trading on Wednesday.
Prologis will host a call at noon EST on Wednesday to discuss fourth-quarter results.
