Companies /Real Estate

Prologis Inc

NYSE: PLD Reit - Industrial
$136.59
▼ $3.09 (−2.21%) today
Markets closed · 12:06am ET

Q2 2025 Earnings

Reported Jul 16, 2025, 8:05am ET · SEC source
$1.46
Beat +105.26%
EPS · est. $0.71
$2.2B
Beat +7.82%
Revenue · est. $2.0B
−6.3%
Trailing market
PLD vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−2%0+2%+4%Jul 16Jul 17report 8:05am ETearnings+0.9%−2.5%
−2%0+2%+4%Jul 16Jul 17earnings+0.9%−2.5%
PLD −2.5%S&P 500 +0.9%
−2%0+2%+4%Jul 16Jul 17report 8:05am ETearnings+1.1%−2.5%
−2%0+2%+4%Jul 16Jul 17earnings+1.1%−2.5%
PLD −2.5%NASDAQ +1.1%
−3%0Jul 15Jul 24report 8:05am ETearnings+1.8%−1.8%
−3%0Jul 15Jul 24earnings+1.8%−1.8%
PLD −1.8%S&P 500 +1.8%
−4%−2%0+2%Jul 15Jul 24report 8:05am ETearnings+1.4%−1.8%
−4%−2%0+2%Jul 15Jul 24earnings+1.4%−1.8%
PLD −1.8%NASDAQ +1.4%
+1.43%
Day of report
−3.39%
Next session
−0.15%
One week
−3.25%
30 days

S&P 500 over the same 30 days: +3.08%.

Did PLD Beat Earnings? Q2 2025 Results

Prologis delivered a decisive beat in the second quarter of 2025, with Core FFO per diluted share of $1.46 clearing the $0.71 consensus estimate by 105.26%, while revenue of $2.18 billion topped expectations by 7.82% and grew 8.8% year-over-year, driven by rental revenue climbing to $2.03 billion from $1.85 billion in the prior-year period. The standout operational driver was a sharp acceleration in development activity, with starts reaching $845.53 million on a Prologis Share basis in Q2, featuring 62.7% build-to-suit composition and a 21.4% estimated weighted average margin, reflecting the kind of demand-driven pipeline that underpins the company's role facilitating trillions in global trade flows. Management responded to the momentum by significantly raising full-year development starts guidance to $2.25 billion to $2.75 billion from a prior range of $1.50 billion to $2.00 billion, and narrowing Core FFO guidance to $5.75 to $5.80 per share, even as net earnings guidance was lowered to $3.00 to $3.15 due to reduced disposition gains and foreign currency headwinds.

Key Takeaways
  • Net effective rent change of 53.4% on Prologis Share basis
  • Cash rent change of 34.8% on Prologis Share basis
  • Same store cash NOI growth of 4.9% on Prologis Share basis
  • Same store net effective NOI growth of 4.8% on Prologis Share basis
  • 74.9% customer retention rate
  • Core FFO per share growth of 9.0% year-over-year
  • Rental revenue growth to $2.025B from $1.852B year-over-year

“Our teams performed exceptionally in our operations and deployment activity over the quarter. This success stems from strong execution, staying close to customers, and the long-term fundamentals of our business.”

Prologis CEO, on the earnings call

Forward Guidance & Outlook

Prologis raised and narrowed its 2025 Core FFO guidance to $5.75-$5.80 per diluted share (from $5.65-$5.81), while lowering net earnings guidance to $3.00-$3.15 per share (from $3.45-$3.70). Core FFO excluding Net Promote Income (Expense) was guided to $5.80-$5.85 (from $5.70-$5.86). Operating guidance was tightened: average occupancy to 94.75%-95.25%, cash same store NOI growth to 4.25%-4.75%, and net effective same store NOI growth to 3.75%-4.25%. Development starts guidance was significantly raised to $2,250M-$2,750M on a Prologis Share basis (from $1,500M-$2,000M). Acquisition guidance was raised to $1,000M-$1,250M (from $750M-$1,250M). Contributions guidance was raised to $500M-$1,000M (from $150M-$500M). Dispositions guidance was raised to $500M-$750M (from $250M-$500M). Strategic capital revenue excluding promote revenue was raised to $570M-$590M (from $560M-$580M). Net Promote Income (Expense) remained at ($50M). The company has hedged the majority of its estimated 2025 Euro, Sterling, and Yen Core FFO. Forecasted earnings for 2025, 2026 and 2027 are 99%, 98%, and 98% respectively in USD or hedged.

PLD YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$700.0M$1.4B$2.1B$2.0B$2.2BRevenue$1.0B$912.7MOperating Income$861.4M$569.7MNet Income
$0$700.0M$1.4B$2.1BRevenueOperating IncomeNet Income

PLD Revenue by Segment

Rental Operations$2.0B
Rental Revenue
Strategic Capital$147.2M
Development Management and Other$11.4M

Figures from SEC filings and company reports. Not investment advice.