Prologis Q4 earnings: First look

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.

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