Prologis(US:PLD) ZACKSยท2025-11-12 13:50Core Insights - Prologis Inc. (PLD) shares have increased by 20.4% over the past three months, significantly outperforming the industry growth of 3.3% [1] Company Performance - Prologis reported third-quarter 2025 core funds from operations (FFO) per share of $1.49, exceeding the Zacks Consensus Estimate of $1.44 and showing an increase from $1.43 in the same quarter last year [3] - The company experienced a rise in rental revenues and healthy leasing activity, with 65.6 million square feet of leases commencing in its owned and managed portfolio during the third quarter of 2025 [5] Growth Strategy - Prologis is strategically acquiring and developing properties in high-barrier, high-growth markets, with acquisitions totaling $1.19 billion and development starts amounting to $1.94 billion from the beginning of the year through September 30, 2025 [6] - The company plans to continue its growth with anticipated acquisitions between $1.25 billion and $1.50 billion and development starts in the range of $2.75 billion to $3.25 billion for 2025 [6][8] Financial Health - Prologis maintains a strong balance sheet with total available liquidity of $7.5 billion as of September 30, 2025, and a weighted average interest rate on total debt of 3.2% [9] - The company's credit ratings are A2 (Outlook Positive) from Moody's and A (Outlook Stable) from Standard & Poor's, allowing it to borrow at favorable rates [9] Market Opportunities - The company is converting some warehouses into data centers to leverage the growing demand in the digital infrastructure sector, with a capital investment of $0.9 billion for data centers under development [10] - The data center industry is experiencing significant growth due to the demands of the digital economy, cloud, and AI applications [10] Dividend Policy - Prologis has increased its dividend five times in the last five years, with a five-year annualized dividend growth rate of 12.66%, indicating a commitment to solid dividend payouts [11]