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Why Is Prologis (PLD) Up 2.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Prologis (PLD - Free Report) . Shares have added about 2.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Prologis due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Prologis, Inc. before we dive into how investors and analysts have reacted as of late.
Prologis reported third-quarter 2025 core 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.
Results reflected 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, "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."
Quarter 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. Prologis’ 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.
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
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 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Prologis has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Prologis has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Prologis (PLD) Up 2.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Prologis (PLD - Free Report) . Shares have added about 2.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Prologis due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Prologis, Inc. before we dive into how investors and analysts have reacted as of late.
Prologis Q3 FFO Beats Estimates, Rental Revenues Rise Y/Y
Prologis reported third-quarter 2025 core 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.
Results reflected 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, "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."
Quarter 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. Prologis’ 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.
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
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 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Prologis has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Prologis has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.