Prologis (PLD) Q1 2025 earnings summary

Executive summary

• Delivered a strong Q1 2025 with 58 million sq ft leased, high occupancy, and robust development activity, outperforming expectations on earnings, occupancy, and rents.

• Operates a global logistics real estate portfolio of 1.3 billion sq ft across 20 countries, with 86% of NOI from the U.S. and a diverse customer base.

• Strategic capital business and co-investment ventures provide durable, long-term cash flows and support growth.

• Management remains disciplined in capital deployment amid near-term economic and tariff policy uncertainty, but is confident in long-term rent growth due to limited new supply and high construction costs.

• Company is positioned to weather volatility with a diversified rent roll, contractual revenues, and a strong balance sheet.

Financial highlights

• Q1 2025 total revenues were $2.14B, up from $1.96B year-over-year; net earnings attributable to common stockholders were $592M, or $0.64 per diluted share.

• Core FFO attributable to common stockholders/unitholders was $1.36B, up from $1.22B; Core FFO per diluted share rose 10.9% year-over-year to $1.42.

• Adjusted EBITDA for Q1 2025 was $1.77B, up from $1.60B year-over-year.

• AFFO attributable to common stockholders/unitholders reached $1.08B, up from $1.03B.

• Dividends and distributions per share/unit were $1.01, up from $0.96 year-over-year.

Outlook and guidance

• 2025 net earnings guidance per diluted share: $3.45–$3.70; Core FFO guidance: $5.65–$5.81 per share, excluding Net Promote Income (Expense): $5.70–$5.86.

• Average occupancy expected at 94.5–95.5%; same store NOI (cash) growth of 4–5% and net effective growth of 3.5–4.5%.

• Development stabilizations forecasted at $2.25–$2.75B; acquisitions at $750M–$1.25B; development start guidance reduced to $1.5B–$2B.

• G&A guidance increased to $450M–$470M; FX risk largely hedged for 2025.

• Severe stress test modeled after past crises shows earnings would land at the bottom but within guidance range.