Prologis(US:PLD) ZACKS·2026-01-21 17:01Core Insights - Prologis, Inc. (PLD) reported fourth-quarter 2025 core funds from operations (FFO) per share of $1.44, matching the Zacks Consensus Estimate but down from $1.50 in the same quarter last year [1][11] - The company generated rental revenues of $2.09 billion, which was below the Zacks Consensus Estimate of $2.17 billion, but increased from $1.94 billion year-over-year [2] - Total revenues for the quarter were $2.25 billion, slightly up from $2.20 billion in the previous year [2] Financial Performance - For the full year 2025, Prologis reported core FFO per share of $5.81, a 4.5% increase from the previous year, aligning with the Zacks Consensus Estimate [3] - Rental revenues for 2025 reached $8.16 billion, an 8.6% year-over-year increase, although it fell short of the consensus mark of $8.38 billion [3] Leasing and Occupancy - In Q4, Prologis commenced 43.8 million square feet of leases, with a retention level of 77.7% [4] - The average occupancy level in the owned and managed portfolio was 95.3%, up from 94.8% in the prior quarter but down from 95.6% year-over-year [4] Rent and Income Metrics - The company's share of net effective rent change was 43.8% in Q4, with a cash rent change of 27.3% [5] - Cash same-store net operating income (NOI) grew by 5.7%, compared to 5.2% in the previous quarter [5] Capital and Debt Management - Prologis' share of building acquisitions totaled $516.8 million, with a weighted average stabilized cap rate of 5.2% [6] - Interest expenses increased by 12.2% year-over-year to $260.5 million [7] - The company exited Q4 2025 with cash and cash equivalents of $1.15 billion and total liquidity of $7.6 billion [8] 2026 Guidance - Prologis provided guidance for 2026 core FFO per share in the range of $6.00-$6.20, with expected average occupancy between 94.75% and 95.75% [11][12] - Projected cash same-store NOI growth is estimated to be between 5.75% and 6.75% [12] - The company anticipates capital deployment for development starts of $3.00-$4.00 billion and acquisitions of $1.00 billion-$1.50 billion [13]