Prologis Reports First Quarter 2025 Results

Prologis, Inc. (NYSE: PLD) announced financial and operational results for Q1 2025.

Highlights

- Net earnings per diluted share remained steady at $0.63.
- Core FFO per diluted share rose 10.9% year-over-year to $1.42.
- Core FFO excluding Net Promote Income increased 9.2% to $1.43.
- Total revenues rose to $2.14 billion from $1.96 billion in Q1 2024.
- Rental and other revenues totaled $1.99 billion, up from $1.83 billion.
- Adjusted EBITDA increased to $1.77 billion from $1.60 billion a year earlier.

Operational Performance (Prologis Share)

- Average occupancy: 94.8%
- Net effective rent change: 53.7%
- Cash rent change: 32.1%
- Cash same store NOI: 6.2%
- Retention: 72.9%
- Leases commenced: 65.1 million square feet

Deployment Activity

- Acquisitions: $811 million at a 4.2% cap rate
- Development stabilizations: $925 million (6.9% yield, $240 million value creation)
- Development starts: $646 million (6.6% yield, $115 million value creation)
- Dispositions and contributions: $118 million (4.0% cap rate)

Balance Sheet and Liquidity

- Liquidity: ~$6.5 billion
- Debt-to-EBITDA: 4.9x
- Total assets: $96.0 billion
- Total equity: $58.1 billion
- Debt as % of total market capitalization: 25.7%
- Weighted average debt interest rate: 3.2%

2025 Guidance (Unchanged)

- Net earnings per diluted share: $3.45 to $3.70
- Core FFO per diluted share: $5.65 to $5.81
- Core FFO excluding Net Promote: $5.70 to $5.86
- Average occupancy: 94.5% to 95.5%
- Cash same store NOI growth: 4% to 5%

Capital Deployment Adjustments (from previous guidance)

- Development stabilizations lowered to $1.9 to $2.3 billion
- Development starts lowered to $1.5 to $2.0 billion
- Contributions reduced to $150 to $500 million
- Dispositions lowered to $250 to $500 million

CEO Commentary

CEO Hamid Moghadam acknowledged near-term policy uncertainty affecting customer behavior but emphasized confidence in long-term fundamentals supported by high construction costs and constrained new supply.