First look: Prologis sees ‘record leasing’ activity in Q3

Core Insights - Prologis exceeded third-quarter consensus expectations and slightly raised its full-year outlook [1][5] - Consolidated revenue reached $2.21 billion, a 9% year-over-year increase, surpassing analysts' expectations of $2.03 billion [2] - Core funds from operations (FFO) were $1.49, exceeding consensus by 5 cents [2] Performance Metrics - New leases commenced increased by 29% year-over-year to 65.6 million square feet [3] - Average occupancy decreased by 110 basis points year-over-year to 94.8%, but appears to have stabilized [3] - Prologis raised its full-year FFO guidance to a range of $5.78 to $5.81 per share, above the previous consensus estimate of $5.77 [4] Market Outlook - The company noted a solid pipeline, improving customer sentiment, and limited new supply, indicating a favorable logistics market for rent and occupancy growth [3] - Development starts are projected between $2.75 billion and $3.25 billion, reflecting a $500 million increase at both ends of the range [4] - Prologis is expanding its data center portfolio, currently having 5.2 gigawatts of utility-fed capacity installed or committed [5]