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.
Reflecting investors’ positive sentiments, shares of the company gained more than 4.5% during the initial hours of today’s trading session. The quarterly results reflect a rise in rental revenues and healthy leasing activity. However, high interest expenses are an undermining factor.
Prologis generated rental revenues of $2.05 billion, missing the Zacks Consensus Estimate of $2.10 billion. However, the figure increased from the $1.90 billion reported in the year-ago period. Total revenues were $2.21 billion, up from the year-ago quarter’s $2.04 billion.
Per Hamid R. Moghadam, co-founder and CEO of Prologis, "Our record leasing this quarter underscores the strength and resilience of our platform. With a solid pipeline, improving customer sentiment and limited new supply, the logistics market is setting up for the next inflection in rent and occupancy growth — one of the most compelling setups I've seen in 40 years."
PLD's Q3 in Detail
In the quarter, 65.6 million square feet of leases commenced in the company’s owned and managed portfolio. The retention level was 77.2% in the quarter.
The average occupancy level in Prologis’ owned and managed portfolio was 94.8% in the third quarter, down from the prior quarter’s 94.9% and the year-ago period’s 95.9%.
Prologis’ share of net effective rent change was 49.4% in the July-September quarter. In the reported quarter, the cash rent change was 29.4%. Cash same-store net operating income (NOI) grew 5.2% compared to 4.9% in the previous quarter.
The company’s share of building acquisitions amounted to $48 million, with a weighted average stabilized cap rate (excluding other real estate) of 6.2% in the third quarter. Development stabilization aggregated $604 million, with 23.4% being built to suit, while development starts totaled $446 million, with 63.9% being built to suit. PLD’s total dispositions and contributions were $71 million, with a weighted average stabilized cap rate (excluding land and other real estate) of 5.4%.
However, during the reported quarter, interest expenses jumped 12.2% on a year-over-year basis to $258.3 million.
PLD's Liquidity
Prologis exited the third quarter of 2025 with cash and cash equivalents of $1.19 billion, up from $1.07 billion at the end of the second quarter of 2025. Total liquidity amounted to $7.5 billion at the end of the quarter.
Debt, as a percentage of the total market capitalization, was 26.5% as of Sept. 30, 2025. The company's weighted average interest rate on its share of the total debt was 3.2%, with a weighted average term of 8.3 years.
Prologis and its co-investment ventures issued an aggregate of $2.3 billion of debt in the reported quarter at a weighted average interest rate of 4.2% and a weighted average term of 5.7 years.
2025 Guidance by PLD
Prologis increased its 2025 core FFO per share guidance to the range of $5.78-$5.81 from the $5.75-$5.80 range guided earlier. The Zacks Consensus Estimate for the same is currently pegged at $5.77.
The company’s average occupancy remains unchanged in the band of 94.75% and 95.25%. Meanwhile, cash same-store NOI (Prologis share) was revised within the range of 4.75% to 5.25% from the previous guidance of 4.25% to 4.75%.
The company has increased its outlook for capital deployment (Prologis share) on development starts to $2.75-$3.25 billion, from the prior range of $2.25-$2.75 billion. Dispositions are estimated at $750-$1000 million, up from the previous range of $500-$750 million. Spending on acquisitions is revised to $1.25-$1.50 billion from the previous range of $1-$1.25 billion.
We now look forward to the earnings releases of other REITs, such as Welltower (WELL - Free Report) and Vornado Realty Trust (VNO - Free Report) , which are slated to report on Oct. 27 and Nov. 3, respectively.
The Zacks Consensus Estimate for Welltower’s third-quarter 2025 FFO per share is pegged at $1.29, which implies a 16.2% year-over-year increase.
The Zacks Consensus Estimate for Vornado Realty Trust’s third-quarter 2025 FFO per share is pegged at 55 cents, which suggests a year-over-year increase of 5.8%.
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
Prologis Q3 FFO Beats Estimates, Rental Revenues Rise Y/Y
Key Takeaways
Prologis, Inc. (PLD - Free Report) reported third-quarter 2025 core funds from operations (FFO) per share of $1.49, beating the Zacks Consensus Estimate of $1.44. This compares favorably with the year-ago quarter’s figure of $1.43.
Reflecting investors’ positive sentiments, shares of the company gained more than 4.5% during the initial hours of today’s trading session. The quarterly results reflect a rise in rental revenues and healthy leasing activity. However, high interest expenses are an undermining factor.
Prologis generated rental revenues of $2.05 billion, missing the Zacks Consensus Estimate of $2.10 billion. However, the figure increased from the $1.90 billion reported in the year-ago period. Total revenues were $2.21 billion, up from the year-ago quarter’s $2.04 billion.
Per Hamid R. Moghadam, co-founder and CEO of Prologis, "Our record leasing this quarter underscores the strength and resilience of our platform. With a solid pipeline, improving customer sentiment and limited new supply, the logistics market is setting up for the next inflection in rent and occupancy growth — one of the most compelling setups I've seen in 40 years."
PLD's Q3 in Detail
In the quarter, 65.6 million square feet of leases commenced in the company’s owned and managed portfolio. The retention level was 77.2% in the quarter.
The average occupancy level in Prologis’ owned and managed portfolio was 94.8% in the third quarter, down from the prior quarter’s 94.9% and the year-ago period’s 95.9%.
Prologis’ share of net effective rent change was 49.4% in the July-September quarter. In the reported quarter, the cash rent change was 29.4%. Cash same-store net operating income (NOI) grew 5.2% compared to 4.9% in the previous quarter.
The company’s share of building acquisitions amounted to $48 million, with a weighted average stabilized cap rate (excluding other real estate) of 6.2% in the third quarter. Development stabilization aggregated $604 million, with 23.4% being built to suit, while development starts totaled $446 million, with 63.9% being built to suit. PLD’s total dispositions and contributions were $71 million, with a weighted average stabilized cap rate (excluding land and other real estate) of 5.4%.
However, during the reported quarter, interest expenses jumped 12.2% on a year-over-year basis to $258.3 million.
PLD's Liquidity
Prologis exited the third quarter of 2025 with cash and cash equivalents of $1.19 billion, up from $1.07 billion at the end of the second quarter of 2025. Total liquidity amounted to $7.5 billion at the end of the quarter.
Debt, as a percentage of the total market capitalization, was 26.5% as of Sept. 30, 2025. The company's weighted average interest rate on its share of the total debt was 3.2%, with a weighted average term of 8.3 years.
Prologis and its co-investment ventures issued an aggregate of $2.3 billion of debt in the reported quarter at a weighted average interest rate of 4.2% and a weighted average term of 5.7 years.
2025 Guidance by PLD
Prologis increased its 2025 core FFO per share guidance to the range of $5.78-$5.81 from the $5.75-$5.80 range guided earlier. The Zacks Consensus Estimate for the same is currently pegged at $5.77.
The company’s average occupancy remains unchanged in the band of 94.75% and 95.25%. Meanwhile, cash same-store NOI (Prologis share) was revised within the range of 4.75% to 5.25% from the previous guidance of 4.25% to 4.75%.
The company has increased its outlook for capital deployment (Prologis share) on development starts to $2.75-$3.25 billion, from the prior range of $2.25-$2.75 billion. Dispositions are estimated at $750-$1000 million, up from the previous range of $500-$750 million. Spending on acquisitions is revised to $1.25-$1.50 billion from the previous range of $1-$1.25 billion.
Prologis currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Prologis, Inc. Price, Consensus and EPS Surprise
Prologis, Inc. price-consensus-eps-surprise-chart | Prologis, Inc. Quote
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs, such as Welltower (WELL - Free Report) and Vornado Realty Trust (VNO - Free Report) , which are slated to report on Oct. 27 and Nov. 3, respectively.
The Zacks Consensus Estimate for Welltower’s third-quarter 2025 FFO per share is pegged at $1.29, which implies a 16.2% year-over-year increase.
The Zacks Consensus Estimate for Vornado Realty Trust’s third-quarter 2025 FFO per share is pegged at 55 cents, which suggests a year-over-year increase of 5.8%.
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.