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Prologis Q4 earnings: First look

Logistics REIT sees 95.6% occupancy in quarter

“Post-election leasing activity has been strong, and our ongoing conversations with customers support our expectation that the market is nearing an inflection point," said Hamid Moghadam, Prologis co-founder and CEO, in a news release. (Photo: Jim Allen/FreightWaves)

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

Average occupancy across the San Francisco-based company’s portfolio was 95.6%, 150 basis points lower year over year but just 30 bps lower than the third quarter in what is expected to be a shallow downturn for the industry. Net effective rent change over the entire lease term was 66.3%, which was 150 bps lower sequentially (780 bps lower y/y).

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

“Post-election leasing activity has been strong, and our ongoing conversations with customers support our expectation that the market is nearing an inflection point,” said Hamid Moghadam, Prologis co-founder and CEO, in a news release. “Meanwhile, our platform is uniquely positioned to seize the opportunities created by favorable trends in our data center and energy businesses.”


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

Development starts of $2.25 billion to $2.75 billion are expected.

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

Table: Prologis’ key performance indicators

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.