We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Prologis Sustain Its Growth Momentum in Q3 Amid Market Pressures?
Read MoreHide Full Article
Key Takeaways
Prologis' Q3 revenues are estimated at $2.09B, implying a 10% year-over-year increase.
Average occupancy is projected at 94.8%, down 60 bps from the prior quarter.
FFO per share is forecast at $1.44, up 0.7% year over year after an upward revision.
Prologis (PLD - Free Report) is slated to report its third-quarter 2025 results on Oct. 15, before the opening bell. In anticipation of the announcement, industry analysts and investors are eager to assess the company's performance and prospects in the current economic climate.
In the last reported quarter, this leading industrial REIT reported a surprise of 3.55% in terms of core funds from operations (FFO) per share. The quarterly results reflected a rise in rental revenues and healthy leasing activity. However, high interest expenses were an undermining factor.
Over the trailing four quarters, Prologis beat the Zacks Consensus Estimate in terms of FFO per share on all occasions, with the average beat being 4.88%. This is depicted in the graph below:
Factors to Note Ahead of PLD’s Q3 Earnings Release
Prologis continues to benefit from its strategic portfolio location in some of the world’s busiest distribution markets. Its emphasis on targeted acquisitions and built-to-suit developments is expected to support its third-quarter results and position it to benefit from emerging opportunities despite broader market challenges.
Prologis’ scale and cost advantages are likely to have played a key role in supporting its growth strategy. Backed by a resilient balance sheet and efficient capital access, Prologis remains financially well-positioned. During the review period, the company is likely to have demonstrated strong liquidity and stability, reinforcing its leadership position.
However, high interest expenses are a concern for Prologis. We expect interest expenses to have remained elevated during the third quarter. Moreover, the excess supply led to higher competition, pressurizing occupancy.
Projections for PLD
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $2.09 billion, which indicates a 10% year-over-year increase.
Our estimate for average occupancy is 94.8%, which implies a 60 bps decrease from the prior quarter. The same-store net operating income is expected to rise 2.2% year over year. We expect interest expenses to be up 6.4% year over year in the third quarter.
Prologis’ activities during the to-be-reported quarter were somewhat adequate for gaining analysts’ confidence. The Zacks Consensus Estimate for third-quarter FFO per share has been revised a cent upward to $1.44 in the past two months. It implies a 0.7% increase year over year.
What Our Quantitative Model Predicts for PLD
Our proven model does not conclusively predict a surprise in terms of FFO per share for Prologis this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Prologis currently carries a Zacks Rank of 2 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector, Extra Space Storage Inc. (EXR - Free Report) and Vornado Realty Trust (VNO - Free Report) , you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.
Vornado Realty Trust is slated to report quarterly numbers on Nov. 3. VNO has an Earnings ESP of +2.90% and a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Can Prologis Sustain Its Growth Momentum in Q3 Amid Market Pressures?
Key Takeaways
Prologis (PLD - Free Report) is slated to report its third-quarter 2025 results on Oct. 15, before the opening bell. In anticipation of the announcement, industry analysts and investors are eager to assess the company's performance and prospects in the current economic climate.
In the last reported quarter, this leading industrial REIT reported a surprise of 3.55% in terms of core funds from operations (FFO) per share. The quarterly results reflected a rise in rental revenues and healthy leasing activity. However, high interest expenses were an undermining factor.
Over the trailing four quarters, Prologis beat the Zacks Consensus Estimate in terms of FFO per share on all occasions, with the average beat being 4.88%. This is depicted in the graph below:
Prologis, Inc. Price and EPS Surprise
Prologis, Inc. price-eps-surprise | Prologis, Inc. Quote
Factors to Note Ahead of PLD’s Q3 Earnings Release
Prologis continues to benefit from its strategic portfolio location in some of the world’s busiest distribution markets. Its emphasis on targeted acquisitions and built-to-suit developments is expected to support its third-quarter results and position it to benefit from emerging opportunities despite broader market challenges.
Prologis’ scale and cost advantages are likely to have played a key role in supporting its growth strategy. Backed by a resilient balance sheet and efficient capital access, Prologis remains financially well-positioned. During the review period, the company is likely to have demonstrated strong liquidity and stability, reinforcing its leadership position.
However, high interest expenses are a concern for Prologis. We expect interest expenses to have remained elevated during the third quarter. Moreover, the excess supply led to higher competition, pressurizing occupancy.
Projections for PLD
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $2.09 billion, which indicates a 10% year-over-year increase.
Our estimate for average occupancy is 94.8%, which implies a 60 bps decrease from the prior quarter. The same-store net operating income is expected to rise 2.2% year over year. We expect interest expenses to be up 6.4% year over year in the third quarter.
Prologis’ activities during the to-be-reported quarter were somewhat adequate for gaining analysts’ confidence. The Zacks Consensus Estimate for third-quarter FFO per share has been revised a cent upward to $1.44 in the past two months. It implies a 0.7% increase year over year.
What Our Quantitative Model Predicts for PLD
Our proven model does not conclusively predict a surprise in terms of FFO per share for Prologis this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Prologis currently carries a Zacks Rank of 2 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector, Extra Space Storage Inc. (EXR - Free Report) and Vornado Realty Trust (VNO - Free Report) , you may want to consider, as our model shows that these have the right combination of elements to report an FFO beat this quarter.
Extra Space Storage is slated to report quarterly numbers on Oct. 29. EXR has an Earnings ESP of +0.28% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Vornado Realty Trust is slated to report quarterly numbers on Nov. 3. VNO has an Earnings ESP of +2.90% and a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.