Prologis (PLD) Q1 2025 earnings summary

Executive summary

• Strong Q1 execution: signed leases for 58M sq ft, near a record, and exceeded expectations for earnings, occupancy and rents; tariff uncertainty kept most FY25 guidance steady.

• Leasing and development remained active, while customer decisions slowed amid policy uncertainty; management cited limited new supply and high construction costs as support for long-term rent growth.

• Disciplined capital deployment and strategic capital activity supported growth amid near-term uncertainty.

Financial highlights

• Q1 revenue was $2.14B, up from $1.96B year over year; net earnings attributable to common stockholders were $591.5M, or $0.64 per diluted share, versus $584.3M, or $0.63.

• Core FFO per share was $1.42 including Net Promotes and $1.43 excluding them; Core FFO attributable to common stockholders/unitholders was $1.36B, up from $1.22B.

• AFFO was $1.08B versus $1.03B, and Adjusted EBITDA was $1.77B versus $1.60B year over year.

• Same-store cash growth was 6.2%; Q1 new and renewed lease rent changes were 53.7% net effective and 32.1% cash.

• Captured $105M of incremental NOI; a 25% net effective lease mark-to-market represented a further $1.1B of potential incremental NOI.

Outlook and guidance

• 2025 Core FFO guidance was $5.65–$5.81/share, or $5.70–$5.86 excluding Net Promote Income (Expense); severe stress testing placed earnings at the bottom of, but within, the range.

• Development starts guidance fell to $1.5B–$2B at share; combined contribution and disposition guidance was cut to $400M–$1B, and development gain guidance to $100M–$250M.

• G&A guidance increased to $450M–$470M, partly due to lower capitalization from reduced development activity; other prior guidance areas remained unchanged.

• Average occupancy guidance was 94.5%–95.5%; same-store cash NOI growth guidance was 4%–5%, and net effective growth was 3.5%–4.5%.

• Stress case assumed market occupancy down 170 bps, market rents down 18% immediately and annualized bad debt near 75 bps; this was a stress test, not a forecast.