Prologis Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +13.16%.
Did PLD Beat Earnings? Q1 2025 Results
Prologis delivered a clean beat to open 2025, posting first-quarter revenue of $2.14 billion, up 9.4% year-over-year and ahead of the $1.99 billion consensus by 7.39%, while GAAP earnings per diluted share of $0.63 edged past the $0.63 estimate by 0.46%. The more telling number was Core FFO per diluted share, which climbed 10.9% to $1.42, driven by rental revenue growth to $1.99 billion from $1.83 billion a year ago as the company's global logistics portfolio continued to capture strong rent spreads, with net effective rent change on new and renewal leases reaching 53.7%. The quarter was not without nuance: average occupancy slipped to 94.8% from 96.9% a year ago, reflecting broader industrial market softening, and the company trimmed its development starts and contributions guidance meaningfully, signaling caution on near-term transaction activity amid trade policy uncertainty. Still, Prologis reaffirmed its Core FFO guidance of $5.65 to $5.81 per share for the full year, with management noting that constrained new supply and elevated construction costs underpin the long-term rent growth outlook.
- Net effective rent change of 53.7% on Prologis Share basis
- Cash rent change of 32.1% on Prologis Share basis
- Cash same store NOI growth of 6.2%
- 65.1 million square feet of leases commenced in Q1 2025 vs 48.1 million in Q1 2024
- Core FFO per diluted share increased 10.9% year-over-year to $1.42
- Development stabilizations generating 6.9% estimated weighted average yield and 26.0% margin
- Customer retention of 72.9%
“In the near term, policy uncertainty is making customers more cautious. But over the long term, limited new supply and high construction costs support continued rent growth. We're confident in the strength and resilience of our business.”
Prologis CEO, on the earnings call
Forward Guidance & Outlook
Prologis maintained most of its 2025 guidance, with net earnings per share of $3.45-$3.70 and Core FFO per share of $5.65-$5.81. Average occupancy guidance was maintained at 94.50%-95.50%, with cash same store NOI growth of 4.00%-5.00%. However, the company lowered several capital deployment targets: development stabilizations reduced to $1,900M-$2,300M (from $2,250M-$2,750M), development starts reduced to $1,500M-$2,000M (from $2,250M-$2,750M), and contributions significantly reduced to $150M-$500M (from $1,500M-$2,000M). Dispositions guidance was also lowered to $250M-$500M (from $1,000M-$1,500M). G&A expenses guidance was raised to $450M-$470M (from $440M-$460M). The company noted that policy uncertainty is making customers more cautious in the near term, but limited new supply and high construction costs support continued rent growth over the long term. The company has hedged the majority of its estimated 2025 Euro, Sterling, and Yen Core FFO.
PLD YoY Financials
PLD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.