Prologis(PLD) ZACKS·2025-04-16 18:00Core Insights - Prologis, Inc. reported first-quarter 2025 core funds from operations (FFO) per share of $1.42, exceeding the Zacks Consensus Estimate of $1.38 and up from $1.28 in the same quarter last year [1][2] - The company generated rental revenues of $1.99 billion, surpassing the Zacks Consensus Estimate of $1.94 billion, and increased from $1.83 billion year-over-year [3] - Total revenues reached $2.14 billion, up from $1.96 billion in the prior year [3] Financial Performance - The average occupancy level in Prologis' owned and managed portfolio was 94.9%, down from 95.6% in the previous quarter and 96.8% year-over-year [5] - Cash same-store net operating income (NOI) grew 6.2% compared to 6.7% in the previous quarter [5] - Interest expenses increased by 19.9% year-over-year to $231.8 million [7] Leasing and Development - In the quarter, 65.1 million square feet of leases commenced, with a retention level of 72.9% [4] - The company's share of building acquisitions amounted to $811 million, with a weighted average stabilized cap rate of 4.2% [6] - Development stabilization totaled $925 million, with 64.5% being built to suit [6] Liquidity and Debt - Prologis ended the first quarter with cash and cash equivalents of $671.1 million, down from $1.32 billion at the end of the previous quarter [8] - Total liquidity was $6.52 billion, with debt as a percentage of total market capitalization at 25.7% [8] - The weighted average interest rate on total debt was 3.2%, with a weighted average term of 8.7 years [8] 2025 Guidance - The company reaffirmed its 2025 core FFO per share guidance in the range of $5.65-$5.81, with the Zacks Consensus Estimate at $5.71 [10] - Average occupancy is expected to be between 94.5% and 95.5%, with cash same-store NOI projected in the range of 4-5% [10] - The outlook for capital deployment on development starts has been lowered to $1.50-$2.00 billion from $2.25-$2.75 billion [11]