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.
Is Prologis' 9.1% Three-Month Stock Rally Built to Last?
Read MoreHide Full Article
Key Takeaways
PLD rallied 9.1% in three months, beating the industry's decline as investor confidence returned.
Prologis posted record Q3 leasing near 62M sq ft, 95.3% occupancy and a 49% net effective rent change.
PLD's data center push includes 5.2 GW of power, backed by $7.5B liquidity and low-cost, long-maturity debt.
Prologis (PLD - Free Report) shares have risen 9.1% over the past three months, outpacing the industry, which fell 2.9%, signaling a notable turnaround from earlier volatility this year.
Investor confidence has been boosted by stabilizing industrial fundamentals, stronger leasing activity and positive commentary from the company’s third-quarter results. The stock’s rebound reflects both solid execution and a healthier demand backdrop across logistics real estate.
Prologis’ scale provides operational efficiency, while a strong balance sheet underpins continued expansion. Additionally, its strategic entry into data centers positions the firm to capture growth in this rapidly expanding segment, enhancing its long-term growth prospects.
Image Source: Zacks Investment Research
Factors Behind PLD’s Stock Price Rise
The stock’s recent momentum is largely supported by Prologis’ strong third-quarter results. The company delivered record leasing activity of nearly 62 million square feet, highlighting improved customer decision-making and accelerating leasing velocity. Portfolio occupancy rose to 95.3%, while net effective rent change stayed exceptionally strong at 49%, signaling the durability of its long lease mark-to-market embedded in the portfolio. Lease mark-to-market stood at 19% at the end of September, setting the stage for solid rent growth as contracts reset in the coming years.
Demand conditions are improving, with management citing more optimistic customer sentiment and early signs of a broad-based recovery across regions. U.S. industrial net absorption reached about 47 million square feet, and vacancy has stabilized near 7.5%, suggesting a cyclical turning point for rents and occupancy.
Prologis’ expanding data center platform is fueling investor interest. With 5.2 gigawatts of power either secured or in advanced stages, Prologis now represents one of the largest owners of utility-fed power suitable for data centers. Strong demand is evident, as every megawatt over the next three years is already in customer discussions. Management is also evaluating new capitalization strategies to accelerate value creation.
As of Sept. 30, 2025, Prologis held $7.5 billion in liquidity with debt costing just 3.2% and more than eight years’ average remaining maturity, giving it the flexibility to invest through cycles and pursue build-to-suit projects and strategic growth initiatives.
Will This Trend Continue for PLD?
Supported by stabilizing supply, stronger demand and multiyear rent growth, Prologis’ stock has solid fundamental backing. The industrial REIT appears to be entering a constructive earnings phase. While broader macro conditions may influence near-term momentum, the underlying business fundamentals point to a positive medium-term outlook.
Moreover, the recent estimate revision trend indicates that analysts are bullish on this stock. Over the past two months, the Zacks Consensus Estimate for 2025 FFO per share has moved upward to $5.80. The same for 2026 has also been trending northward. The projections also suggest a 4.32% and 4.94% rise, respectively.
Despite the rally in the past three months, PLD shares have room for further appreciation, and including Prologis in a portfolio appears attractive, supported by strong operating fundamentals and a favorable long-term outlook. Also, solid dividend payouts are arguably the biggest enticements for REIT shareholders, and Prologis remains committed to that. In the last five years, Prologis has increased its dividend five times, and its five-year annualized dividend growth rate is 12.66%. Check Prologis’ dividend history here.
The Zacks Consensus Estimate for Digital Realty’s 2025 FFO per share is pegged at $7.35, which indicates year-over-year growth of 9.5%.
The Zacks Consensus Estimate for Terreno Realty’s full-year FFO per share stands at $2.80, which calls for an increase of 15.70% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents 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
Is Prologis' 9.1% Three-Month Stock Rally Built to Last?
Key Takeaways
Prologis (PLD - Free Report) shares have risen 9.1% over the past three months, outpacing the industry, which fell 2.9%, signaling a notable turnaround from earlier volatility this year.
Investor confidence has been boosted by stabilizing industrial fundamentals, stronger leasing activity and positive commentary from the company’s third-quarter results. The stock’s rebound reflects both solid execution and a healthier demand backdrop across logistics real estate.
Prologis’ scale provides operational efficiency, while a strong balance sheet underpins continued expansion. Additionally, its strategic entry into data centers positions the firm to capture growth in this rapidly expanding segment, enhancing its long-term growth prospects.
Image Source: Zacks Investment Research
Factors Behind PLD’s Stock Price Rise
The stock’s recent momentum is largely supported by Prologis’ strong third-quarter results. The company delivered record leasing activity of nearly 62 million square feet, highlighting improved customer decision-making and accelerating leasing velocity. Portfolio occupancy rose to 95.3%, while net effective rent change stayed exceptionally strong at 49%, signaling the durability of its long lease mark-to-market embedded in the portfolio. Lease mark-to-market stood at 19% at the end of September, setting the stage for solid rent growth as contracts reset in the coming years.
Demand conditions are improving, with management citing more optimistic customer sentiment and early signs of a broad-based recovery across regions. U.S. industrial net absorption reached about 47 million square feet, and vacancy has stabilized near 7.5%, suggesting a cyclical turning point for rents and occupancy.
Prologis’ expanding data center platform is fueling investor interest. With 5.2 gigawatts of power either secured or in advanced stages, Prologis now represents one of the largest owners of utility-fed power suitable for data centers. Strong demand is evident, as every megawatt over the next three years is already in customer discussions. Management is also evaluating new capitalization strategies to accelerate value creation.
As of Sept. 30, 2025, Prologis held $7.5 billion in liquidity with debt costing just 3.2% and more than eight years’ average remaining maturity, giving it the flexibility to invest through cycles and pursue build-to-suit projects and strategic growth initiatives.
Will This Trend Continue for PLD?
Supported by stabilizing supply, stronger demand and multiyear rent growth, Prologis’ stock has solid fundamental backing. The industrial REIT appears to be entering a constructive earnings phase. While broader macro conditions may influence near-term momentum, the underlying business fundamentals point to a positive medium-term outlook.
Moreover, the recent estimate revision trend indicates that analysts are bullish on this stock. Over the past two months, the Zacks Consensus Estimate for 2025 FFO per share has moved upward to $5.80. The same for 2026 has also been trending northward. The projections also suggest a 4.32% and 4.94% rise, respectively.
Despite the rally in the past three months, PLD shares have room for further appreciation, and including Prologis in a portfolio appears attractive, supported by strong operating fundamentals and a favorable long-term outlook. Also, solid dividend payouts are arguably the biggest enticements for REIT shareholders, and Prologis remains committed to that. In the last five years, Prologis has increased its dividend five times, and its five-year annualized dividend growth rate is 12.66%. Check Prologis’ dividend history here.
Currently, PLD has a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some other top-ranked stocks from the broader REIT sector are Digital Realty Trust (DLR - Free Report) and Terreno Realty (TRNO - Free Report) . Both Digital Realty and Terreno Realty carry a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Digital Realty’s 2025 FFO per share is pegged at $7.35, which indicates year-over-year growth of 9.5%.
The Zacks Consensus Estimate for Terreno Realty’s full-year FFO per share stands at $2.80, which calls for an increase of 15.70% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.