While reporting its financial results for the fourth quarter on Wednesday, logistics real estate firm Prologis, Inc. (PLD) initiated net earnings and core funds from operations outlook for the full-year 2026.For fiscal 2026, the company now forecasts net earnings in a range of $3.70 to $4.00 per share, core funds from operation or core FFO in a range of $6.00 to $6.20 per share and core FFO, excluding net promote income, in a range of $6.05 to $6.25 per share.On average, six analysts polled expect the comp ...

Financial Performance - Prologis reported total revenues of $2.25 billion for Q4 2025, a slight increase from $2.20 billion in Q4 2024[5]. - Net earnings attributable to common stockholders for Q4 2025 were $1.40 billion, compared to $1.28 billion in Q4 2024, reflecting a year-over-year growth of 9.5%[11]. - Core FFO attributable to common stockholders for Q4 2025 was $1.38 billion, down from $1.44 billion in Q4 2024, indicating a decrease of 4.2%[5]. - The company reported a net earnings of $414,017,000 for the same period, with a core FFO of $730,309,000[33]. - Consolidated Property NOI for Q4 2025 was $1,588,885, an increase from $1,499,039 in Q4 2024, reflecting a growth of 5.9%[48]. - Rental revenues for Q4 2025 reached $2,092,107, up from $1,937,507 in Q4 2024, marking an increase of 8.0%[48]. Guidance and Projections - The company anticipates 2026 Core FFO guidance between $6.00 and $6.20 per share, with net earnings guidance of $3.70 to $4.00 per share[9]. - Prologis' development stabilizations for 2026 are projected to be between $2.25 billion and $2.75 billion, with development starts expected to range from $3.00 billion to $4.00 billion[9]. - Core FFO guidance for 2025 is projected between $6.00 and $6.20 per share, with net earnings attributable to common stockholders estimated at $3.70 to $4.00 per share[45]. Occupancy and Leasing - Prologis' average occupancy rate is projected to be between 94.75% and 95.75% for 2026[9]. - Average occupancy for the operating portfolio was 95.8% in Q4 2025, compared to 94.8% in Q4 2024[14]. - Total square feet of leases commenced in Q4 2025 was 43,764, a decrease from 65,603 in Q3 2025[15]. - The total square footage of the Operating Portfolio was 1,207,391,000 square feet, with an occupancy rate of 95.8%[20]. Assets and Liabilities - Total assets as of December 31, 2025, were $98.72 billion, with total liabilities of $40.97 billion[10]. - The company reported a gross AUM of $230 billion, with Prologis share AUM at $162 billion[4]. - The total value of assets under management reached $163,081,534,000, with G&A as a percentage of assets under management at 0.37%[45]. Development and Investment - The company owned or had investments in properties totaling approximately 1.3 billion square feet across 20 countries as of December 31, 2025[3]. - Total development stabilizations for the year reached 12,519,000 square feet, generating an annualized estimated NOI of $151,803,000[23]. - The company has signed leases totaling 67 million square feet expiring in 2026, representing 4.7% of total net effective rent[21]. - Total development starts reached 5,203 square feet with a total estimated investment (TEI) of $1,110,619, representing a 49.6% increase[24]. Debt and Financial Ratios - Debt as a percentage of gross market capitalization was 24.6%, down from 26.5% in the previous quarter, indicating improved leverage[35]. - The fixed charge coverage ratio was reported at 5.9x, reflecting the company's ability to cover fixed charges comfortably[35]. - The weighted average interest rate on debt was 3.3%, with a remaining maturity of 8.2 years, indicating a stable debt profile[35]. - The debt to Adjusted EBITDA ratio increased to 5.3x from 5.0x in the previous quarter[43]. Cash Flow and Expenses - Total current income tax expense for the twelve months ended December 31, 2025, was $204,017,000, compared to $166,943,000 in 2024, reflecting an increase of about 22.2%[46]. - Gross interest expense for the twelve months ended December 31, 2025, was $1,023,805,000, up from $892,612,000 in 2024, indicating a rise of approximately 14.7%[46]. - Capitalized G&A expenses for the twelve months ended December 31, 2025, totaled $175,068,000, compared to $188,800,000 in 2024, showing a decrease of about 7.3%[45]. Customer and Market Insights - The top customer, Amazon, occupies 169,160 square feet, contributing 11.3% to the net effective rent[21]. - The weighted average term of leases remaining based on net effective rent is 3.9 years for the top customers[21]. - The U.S. accounted for 84.6% of the total NOI, with $1,715,249,000, while total NOI outside the U.S. was $740,377,000[19].

Market Overview - The U.S. stock market experienced significant declines, with over 70.7% of U.S. issues falling on Tuesday, while only 26.4% advanced [2] - The Nasdaq Composite and S&P 500 dropped by 2.39% and 2.06% respectively, with the Dow and Russell 2000 also showing losses of 1.76% and 1.20% [3] Earnings Reports - Major earnings reports expected today include Johnson & Johnson, Charles Schwab, and Prologis, with a focus on regional banks reporting in both premarket and aftermarket sessions [5] - The S&P Regional Bank ETF ($KRE) is anticipated to be particularly responsive to these reports, having risen over 14% since its lows in November 2025 [6]

Key Takeaways Prologis is set to report Q4 2025 on Jan. 21, after a 3.47% core FFO per-share surprise last quarter.PLD beat FFO estimates in each of the past four quarters, with an average upside of 4.66%.FFO per share is forecast at $1.44, down 4% year over year after a downward revision.Prologis (PLD) is slated to report its fourth-quarter 2025 results on Jan. 21, before the opening bell. In anticipation of the announcement, industry analysts and investors are eager to assess the company's performance and ...

The upcoming report from Prologis (PLD) is expected to reveal quarterly earnings of $1.44 per share, indicating a decline of 4% compared to the year-ago period. Analysts forecast revenues of $2.1 billion, representing an increase of 8.6% year over year.The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a company ...

Prologis, Inc. ( PLD ) has outperformed many REITs in large part due to the resilience of the logistics growth story. Now, management appears to be targeting a new frontier in data centers. I still have great confidence in the company’s growth trajectory, as warehousesJulian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways. Julian ...

Prologis ( PLD ) has outperformed many REITs in large part due to the resilience of the logistics growth story. Now, management appears to be targeting a new frontier in data centers. I still have great confidence in the company’s growth trajectory, as warehouses mayJulian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways. Julian is ...

Core Insights - The comparison between Realty Income (O) and Prologis (PLD) is not merely about income versus growth, as both are high-quality REITs tailored for different investor needs [1][2][3] Realty Income Overview - Realty Income's strength lies in its durable business model, owning over 15,500 properties leased to more than 1,600 tenants across 92 industries, with a portfolio occupancy rate close to 99% [4] - The company has invested approximately $1.4 billion in Q3 2025, raising its full-year investment guidance to around $6 billion, with a significant focus on Europe and strategic partnerships [5] - Realty Income declared its 133rd monthly dividend increase in 2025, showcasing its reliability as an income generator supported by long lease terms and high-quality tenants [6] - However, growth is measured, with same-store revenue gains being steady but limited, and the net lease structure capping upside potential in stronger economies [7] Prologis Overview - Prologis is positioned at the center of global logistics, with nearly 62 million square feet of leases signed in Q3 2025, leading to a portfolio occupancy of about 95.3% and strong rent growth [8] - The company increased its full-year development starts outlook to as much as $3.25 billion, with over half of development tied to build-to-suit projects for large global customers [9][10] - Prologis is expanding beyond traditional warehouses, securing 5.2 gigawatts of power for data centers, which aligns with growth in cloud computing and digital infrastructure [11] - The company maintains a strong balance sheet with an in-place cost of debt around 3.2% and an average debt maturity of over eight years, allowing for investment through cycles [12] Financial Estimates Comparison - The Zacks Consensus Estimate for Realty Income's 2025 and 2026 sales implies year-over-year growth of 8.49% and 7.48%, respectively, with FFO per share growth of only 1.67% and 3.69% [14] - For Prologis, the 2025 and 2026 sales estimates suggest year-over-year growth of 8.72% and 6.30%, with FFO per share growth of 4.32% and 4.72% [17] Stock Performance and Valuation - Over the past six months, Realty Income shares have risen 4.5%, while Prologis stock has increased by 19.9%, outperforming the S&P 500's 14.8% gain [20] - Realty Income is trading at a forward price-to-FFO of 13.38X, above its three-year median, while Prologis is at 21.37X, also above its three-year median of 20.86X [20] Conclusion - Realty Income is ideal for investors seeking steady income and low volatility, while Prologis offers financial strength and exposure to long-term growth drivers in logistics and digital infrastructure [22] - Prologis is viewed as the stronger investment option currently, with a Zacks Rank of 2 (Buy) compared to Realty Income's 3 (Hold) [23]

Core Viewpoint - FIBRA Prologis has successfully completed the offering of USD 500 million in Senior Notes with a 5.625% interest rate, maturing in 2038, to enhance its financial flexibility and support strategic initiatives [1][2]. Group 1: Financial Offering - The company has issued USD 500 million in Senior Notes, which will be used to repurchase outstanding Terrafina Notes and redeem any remaining notes after the tender offer [1][2]. - The tender offer for the Terrafina Notes expired on January 12, 2026, and is expected to settle on January 15, 2026 [2]. Group 2: Listing and Regulatory Compliance - FIBRA Prologis has applied to list the Senior Notes on the Singapore Exchange Securities Trading Limited (SGX-ST) [3]. - The Notes have not been registered under the U.S. Securities Act and were offered privately to qualified institutional buyers [4]. Group 3: Company Profile - FIBRA Prologis is a prominent owner and operator of Class A industrial real estate in Mexico, with a portfolio of 515 investment properties totaling 87 million square feet as of September 30, 2025 [6]. - The portfolio includes 348 logistics and manufacturing facilities across six core industrial markets in Mexico, comprising 65.7 million square feet of Gross Leasing Area [6].

REIT Performance Overview - REITs finished December 2025 with a total return of -1.48%, underperforming the broader market indices such as the Dow Jones Industrial Average (+0.92%), S&P 500 (+0.06%), and NASDAQ (-0.09%) [1] - The Vanguard Real Estate ETF (VNQ) had a December return of -2.24%, but outperformed the average REIT over the full year with a return of +3.26% compared to -3.57% for the average REIT [1] - The spread between the 2026 FFO multiples of large cap REITs (15.9x) and small cap REITs (12.7x) narrowed, with large caps contracting by 0.3 turns and small caps by 0.1 turns [1] Monthly Performance by Market Capitalization - In December, only small cap REITs had a positive total return of +0.51%, while mid caps (-1.77%), large caps (-2.55%), and micro caps (-3.88%) all finished in the red [3] - For the full year 2025, small cap REITs outperformed large caps by 240 basis points [3] Monthly Performance by Property Type - Half of the REIT property types averaged positive returns in December, with a total return spread of 13.22% between the best (Malls +6.19%, Single Family Housing +5.20%) and worst performing property types (Infrastructure -7.02%, Office -6.79%) [5][6] - The average return for REITs in December was -1.48%, with 9 out of 18 property types showing positive returns [5][6] Year-to-Date Performance by Property Type - For the full year 2025, the worst performing property types included Office (-22.07%), Infrastructure (-20.08%), and Land (-15.77%), all averaging double-digit negative total returns [7] - The top performing property types for the year were Health Care (+25.74%), Advertising (+25.50%), and Malls (+15.56%) [7] FFO Multiples and Valuation Trends - The average P/FFO for the REIT sector decreased from 13.7x to 13.4x during December, with 22.2% of property types experiencing multiple expansion and 72.2% seeing contraction [8] - Data Centers (22x), Land (21x), Manufactured Housing (17.5x), and Shopping Centers (16.5x) had the highest average multiples among REIT property types, while Hotels (7.7x) and Office (8.1x) were the only types with single-digit FFO multiples [8][9] Notable Individual Securities - Paramount Group (PGRE) was acquired by Rithm Capital Corp. for $6.60/share on December 19, marking the end of its trading [10] - Alexander & Baldwin (ALEX) was the best performing REIT in December with a gain of +34.29%, driven by news of its acquisition by Blackstone Real Estate and others for $21.20/share [11] - Fermi (FRMI) experienced the steepest losses in December at -51.49% after a major tenant canceled a $150 million agreement [12] Overall Market Sentiment - 42.04% of REITs had a positive total return in December, while 38.36% were in the black for the full year [13] - The average total return for REITs in 2025 was -3.57%, significantly lower than the +3.70% return for the sector in 2024 [13]