Prologis' Q4 FFO Beat Estimates, Rental Revenues Rise Y/Y

Core Insights - Prologis, Inc. reported a fourth-quarter 2024 core funds from operations (FFO) per share of $1.50, exceeding the Zacks Consensus Estimate of$ 1.38 and up from $1.26 in the same quarter last year [1][4] - The company generated rental revenues of$ 1.94 billion, slightly missing the consensus estimate by 0.09%, but showing an increase from $1.76 billion year-over-year [3] - Prologis provided a 2025 outlook, projecting core FFO per share in the range of$ 5.65- $5.81, with an expected average occupancy between 94.5% and 95.5% [12][13] Financial Performance - Total revenues for the fourth quarter were$ 2.2 billion, up from $1.89 billion in the year-ago quarter [3] - The company reported a core FFO per share of$ 5.56 for 2024, down 0.9% from the previous year, but still beating the consensus estimate of $5.45 [4] - Interest expenses increased by 33.1% year-over-year to$ 232.2 million [8] Leasing and Occupancy - In the fourth quarter, Prologis commenced 46.5 million square feet of leases, with a retention level of 78.4% [5] - The average occupancy level in the owned and managed portfolio was 95.6%, down from 95.9% in the prior quarter and 97.1% year-over-year [5] Capital Deployment and Liquidity - Prologis' share of building acquisitions amounted to $384 million, with a weighted average stabilized cap rate of 5.9% [7] - The company exited the fourth quarter with cash and cash equivalents of$ 1.32 billion, up from $780.9 million at the end of the third quarter [9] - Total liquidity was reported at$ 7.38 billion, with debt as a percentage of total market capitalization at 25.6% [9] Future Guidance - The company expects cash same-store net operating income (NOI) to grow in the range of 4-5% for 2025 [12] - Capital deployment for development starts is projected between $2.25 billion and$ 2.75 billion, with acquisition spending estimated at $750 million to$ 1.25 billion [13]