Warehouse market ‘found its footing,’ Prologis CFO says

Core Insights - The executives' tone has improved compared to the Q1 call, reflecting a more optimistic outlook on the industry despite ongoing tariff challenges [3][5] - Prologis raised its 2025 guidance for net earnings attributable to common stockholders to a range of $3.40 to $3.50, up from $3 to $3.15, indicating confidence in future performance [5] - The company reported a decrease in net earnings attributable to common stockholders to $0.82 in Q3 from $1.08 in the same period last year, while total revenues increased to $2.21 billion from $2.03 billion year-over-year [6] Financial Performance - Prologis' total revenues rose to $2.21 billion in Q3, reflecting a year-over-year increase [6] - Occupancy rates improved slightly to 95.3% at the end of Q3 from 95.1% in Q2, although it remains below the 95.9% recorded in Q3 of 2024 [6] Market Outlook - There are early signs of demand picking up, with low supply-side deliveries, suggesting potential for a sharp increase in market rents if macroeconomic conditions remain strong [6] - Prologis management noted a shift in customer strategies towards "network optimization rather than contraction," indicating a more stable planning environment for businesses [5][6] - The overall sentiment in the market appears to be strengthening, with improved leasing velocity and success in build-to-suit activities, suggesting a potential inflection point for occupancy and rent [6]