Prologis Announces Q3 2025 Financial Results for PLD

Prologis, Inc. (NYSE: PLD) released its financial results for the third quarter of 2025, highlighting notable achievements and market dynamics. During this quarter, the company reported a record 62 million square feet in lease signings, reflecting the demand and stability within the logistics sector.

Financial Highlights for Q3 2025

The financial performance for the third quarter reveals a nuanced picture:

• Net Earnings per Share: Decreased to $0.82, down 24.1% from the previous year.
• Core Funds from Operations (Core FFO): Increased by 4.2% to $1.49 per diluted share.
• Core FFO (excluding Net Promote Income): Reached $1.50, marking a 3.4% rise.

Management Insights

Hamid R. Moghadam, co-founder and CEO, emphasized the strength of their leasing performance and outlined optimism for future occupancy and rent growth. Dan Letter, President of Prologis, noted the company’s shift towards data centers, citing the investment in additional power capacity to meet growing demands for digital infrastructure. Currently, Prologis has secured 5.2 gigawatts of utility-fed capacity.

Operational Performance Metrics

For Q3 2025, notable operational metrics included:

• Average Occupancy: 94.8% across owned and managed properties.
• Period End Occupancy: 95.3%.
• Leases Commenced: 65.6 million square feet.
• Retention Rate: 77.2%.
• Net Effective Rent Change: Increased by 49.4%.

Development and Deployment Activity

Prologis undertook significant development initiatives in Q3 2025, including:

• Acquisitions: Totaling $48 million with a weighted average stabilized cap rate of 6.2%.
• Development Stabilizations: Valued at $604 million with an estimated yield of 6.7%.
• Development Starts: Totaled $446 million with an estimated yield of 6.3%.

Balance Sheet and Liquidity

The balance sheet remained robust during the quarter:

• Total Liquidity: Approximately $7.5 billion.
• Debt Level: $35.3 billion with a debt-to-EBITDA ratio of 5.0x.
• Interest Rate: Averaged 3.2% for total debt.

Future Guidance

Prologis has provided guidance for 2025, indicating:

• Net Earnings per Share: Expected to be between $3.40 to $3.50.
• Core FFO: Projected at $5.78 to $5.81.
• Average Occupancy: Forecasted between 94.75% and 95.25%.

Prologis continues to navigate a dynamic market environment, demonstrating resilience and a proactive approach to capitalize on growth opportunities within logistics and data centers.