Core Insights - Prologis (PLD) shares have increased by 12.9% over the past three months, significantly outperforming the industry's growth of 1.7, indicating a strong recovery in performance [1] - The positive investor sentiment is attributed to stabilizing industrial fundamentals, improved leasing momentum, and favorable commentary from the company's third-quarter results [1][3] Financial Performance - Prologis reported record leasing activity of nearly 62 million square feet in the third quarter, with occupancy improving to 95.3% and a net effective rent change of 49%, indicating strong demand and lease durability [3] - The Zacks Consensus Estimate for Prologis' 2025 FFO per share has increased to $5.80, reflecting a year-over-year growth of 4.3% [2] Market Conditions - The demand environment for industrial real estate is strengthening, with net absorption in U.S. industrial real estate reaching an estimated 47 million square feet for the quarter and market vacancy stabilizing around 7.5% [4] - Management believes that rents and occupancy have reached their cyclical bottom, suggesting a positive outlook for future growth [4] Growth Drivers - Prologis' expanding data center platform, with 5.2 gigawatts of power secured or in advanced stages, is generating investor enthusiasm and indicates strong demand for utility-fed power suitable for data centers [5] - The company maintains a total available liquidity of $7.5 billion and a low cost of debt at 3.2%, providing financial flexibility for strategic investments [8] Industry Outlook - The broader industrial sector is showing improving sentiment, supported by easing supply pressures and a return to normalized leasing demand, creating a constructive backdrop for Prologis shares [12] - The combination of internal execution and sector-level stabilization suggests that Prologis is entering a more favorable earnings phase [9]

Financial Performance - Data center revenue increased by 9% year-over-year[6] - Record CFFO (Core Funds From Operations) per share of $1.89[6] - Total bookings reached $201 million at 100% share[6] - The company expects Core FFO per Share to be between $7.32 and $7.38[36] Capacity and Development - In-place IT capacity is approximately 2,890 MW[9] - Future development capacity is greater than 5 GW[11] - 52% of the future development capacity is in blocks greater than 100 MW[11] Bookings and Renewals - $85 million in bookings from 0-1MW + Interconnection (IX), representing 52% of total 3Q bookings[12] - Signed renewals represent $192 million of annualized rental revenue[27] - Renewal spreads for >1 MW increased by 19.9% (GAAP) and 17.5% (Cash)[27] Sustainability - The company has contracted 1.7 GW of renewable energy[16] - $7.2 billion in aggregate principal amount of green bonds issued[16]