Prologis Reports First Quarter 2025 Results

Core Insights - Prologis reported strong operational performance for Q1 2025, with 58 million square feet of leases signed and significant expansion in data center capacity [1][2] - The company maintains a robust balance sheet and liquidity, positioning itself to capitalize on emerging opportunities despite current policy uncertainties [2][5] Operating Performance - Average occupancy for Prologis was 94.9% in Q1 2025, with leases commenced totaling 65.1 million square feet and a retention rate of 72.9% [3] - Cash same-store net operating income (NOI) increased by 6.2%, while net effective rent change rose by 53.7% and cash rent change increased by 32.1% [3] Deployment Activity - Prologis made acquisitions totaling $811 million with a weighted average stabilized cap rate of 4.2% [4] - Development stabilizations amounted to $925 million, with an estimated weighted average yield of 6.9% and a value creation estimate of $240 million [4] - The company initiated development starts worth $646 million, with an estimated weighted average yield of 6.6% [4] Financial Performance - Total revenues for Q1 2025 reached $2.14 billion, up from $1.96 billion in Q1 2024 [16] - Net earnings attributable to common stockholders were $591.5 million, consistent with the previous year, while core funds from operations (Core FFO) increased by 10.9% to $1.42 per diluted share [8][16] - The company reported total available liquidity of approximately $6.5 billion, with a debt-to-EBITDA ratio of 4.9x [9] Guidance - Prologis maintained its earnings guidance for 2025, projecting net earnings per diluted share between $3.45 and $3.70 and Core FFO between $5.65 and $5.81 [7][11] - The company expects average occupancy to remain between 94.5% and 95.5% and cash same-store NOI growth of 4.0% to 5.0% [10]