Logistics real estate investment trust Prologis announced that it is sticking with its initial 2025 outlook even as uncertainty around trade policy has some customers delaying leasing decisions. The company said favorable trends in the first quarter had it in position to raise guidance but “Liberation Day” tariffs announced April 2 forced it to pause that decision.
Looking forward, management told analysts on a Wednesday conference call that there are still many unknowns around near-term leasing demand but that longer-term fundamentals and the need for incremental warehousing space remain intact.
“Let’s be clear: The range of outcomes is wide. We see potential for a recession, inflation or possibly both. And let’s also not dismiss the potential for a quick resolution,” CFO Tim Arndt said on the call.
He said the company was “designed to weather any environment,” noting a diverse customer portfolio, built-in rent escalators and a strong balance sheet, but that “customers simply lack a steady backdrop upon which to plan their businesses.”
Prologis (NYSE: PLD) reported first-quarter core funds from operations (FFO) of $1.42 per share before the market opened on Wednesday, which was 4 cents above consensus and 14 cents higher year over year.
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