Prologis Reports Second Quarter 2025 Results
Resilient performance through volatile environment
SAN FRANCISCO, July 16, 2025 /PRNewswire/ -- Prologis, Inc. (NYSE:PLD) today announced the following results for the quarter ended June 30, 2025, as compared to the corresponding period in 2024:
Net earnings per diluted share was $0.61 and decreased 33.7% due to lower gains and unrealized FX.
Core funds from operations (Core FFO)* per diluted share was $1.46 and increased 9.0%.
Core FFO, excluding Net Promote Income (Expense)* per diluted share was $1.47 and increased 8.1%.
Hamid R. Moghadam, co-founder and CEO of Prologis, commented: "Our teams performed exceptionally in our operations and deployment activity over the quarter. This success stems from strong execution, staying close to customers, and the long-term fundamentals of our business."
"Our leasing pipeline has reached historically high levels, and what we're hearing from customers, especially the larger ones, is clear: they're planning, engaging and increasingly ready to act," said Daniel S. Letter, president of Prologis. "These trends are evident in both our leasing and build-to-suit activity—and we're in a strong position to meet that demand."
OPERATING PERFORMANCE
Owned & Managed
2Q25
Average Occupancy
94.9 %
Period End Occupancy
95.1 %
Leases Commenced (Operating and Development Portfolio)
51.2 MSF
Retention
74.9 %
Prologis Share
2Q25
Average Occupancy
94.8 %
Cash Same Store NOI*
4.9 %
Net Effective Rent Change
53.4 %
Cash Rent Change
34.8 %
DEPLOYMENT ACTIVITY
Prologis Share
2Q25
Acquisitions
$335M
Weighted avg stabilized cap rate (excluding other real estate)
5.7 %
Development Stabilizations
$192M
Estimated weighted avg yield
6.9 %
Estimated weighted avg margin
33.2 %
Estimated value creation
$64M
% Build-to-suit
5.3 %
Development Starts
$846M
Estimated weighted avg yield
6.3 %
Estimated weighted avg margin
21.4 %
Estimated value creation
$181M
% Build-to-suit
62.7 %
Total Dispositions and Contributions
$96M
Weighted avg stabilized cap rate (excluding land and other real estate)
4.5 %
BALANCE SHEET STRENGTH & LIQUIDITYDuring the quarter, the company:
Issued, together with its co-investment ventures, an aggregate of $5.8 billion of debt at a weighted average interest rate of 4.5% and a weighted average term of 5.4 years. This activity included the extension of the maturity date of the company's $3.0 billion revolving line of credit.
As of quarter-end:
Total available liquidity was approximately $7.1 billion.
Debt-to-EBITDA* was 5.1x and debt as a percentage of total market capitalization was 27.9%.
The weighted average interest rate on the company's share of total debt was 3.2%, with a weighted average term of 8.5 years.
Forecasted earnings for 2025, 2026 and 2027 are 99%, 98% and 98%, respectively, in USD or hedged through derivative contracts and 96% of Prologis' equity was in USD.
2025 GUIDANCE Prologis' guidance for net earnings is included in the table below as well as guidance for Core FFO*, which are reconciled in our supplemental information.
"The increase in our guidance reflects our confidence in the strength and resilience of our business," said Timothy D. Arndt, chief financial officer of Prologis. "Our teams are executing at a high level, and we're well-positioned for the remainder of the year."
2025 GUIDANCE
Earnings (per diluted share)
Previous
Revised
Net earnings attributable to common stockholders
$3.45 to $3.70
$3.00 to $3.15
Core FFO attributable to common stockholders/unitholders*
$5.65 to $5.81
$5.75 to $5.80
Core FFO attributable to common stockholders/unitholders, excluding Net Promote Income (Expense)*
$5.70 to $5.86
$5.80 to $5.85
Operations - Prologis Share
Average Occupancy
94.50% to 95.50%
94.75% to 95.25%
Cash Same Store NOI*
4.00% to 5.00%
4.25% to 4.75%
Net Effective Same Store NOI*
3.50% to 4.50%
3.75% to 4.25%
Strategic Capital (in millions)
Strategic Capital revenue, excluding promote revenue
$560 to $580
$570 to $590
Net Promote Income (Expense)1
$(50)
$(50)
G&A (in millions)
Previous
Revised
General & administrative expenses
$450 to $470
$450 to $470
Capital Deployment - Prologis Share (in millions)
Development stabilizations
$1,900 to $2,300
$1,900 to $2,300
Development starts
$1,500 to $2,000
$2,250 to $2,750
Acquisitions
$750 to $1,250
$1,000 to $1,250
Contributions
$150 to $500
$500 to $1,000
Dispositions
$250 to $500
$500 to $750
Realized development gains
$100 to $250
$150 to $250
1.
Net promote expense relates to amortization of stock compensation issued to employees related to promote income recognized in prior periods.
*
This is a non-GAAP financial measure. See the Notes and Definitions in our supplemental information for further explanation and a reconciliation to the most directly comparable GAAP measure.
The earnings guidance described above includes potential gains recognized from real estate transactions but excludes any future or potential foreign currency or derivative gains or losses as our guidance assumes constant foreign currency rates. In reconciling from net earnings to Core FFO*, Prologis makes certain adjustments, including but not limited to real estate depreciation and amortization expense, gains (losses) recognized from real estate transactions and early extinguishment of debt, impairment charges, deferred taxes and unrealized gains or losses on foreign currency or derivative activity. The difference between the company's Core FFO* and net earnings guidance relates predominantly to these items. Please refer to our quarterly Supplemental Information, which is available on our Investor Relations website at https://ir.prologis.com and on the SEC's website at www.sec.gov for a definition of Core FFO* and other non-GAAP measures used by Prologis, along with reconciliations of these items to the closest GAAP measure for our results and guidance.
July 16, 2025, CALL DETAILS The call will take place on Wednesday, July 16, 2025, at 9:00 a.m. PT/12:00 p.m. ET. To access a live broadcast of the call, please dial +1 (877) 897-2615 (toll-free from the United States and Canada) or +1 (201) 689-8514 (from all other countries). A live webcast can be accessed from the Investor Relations section of www.prologis.com.
A telephonic replay will be available July 16, July 30 at +1 (877) 660-6853 (from the United States and Canada) or +1 (201) 612-7415 (from all other countries) using access code 13750493. The webcast replay will be posted in the Investor Relations section of www.prologis.com under "Events & Presentations."
ABOUT PROLOGISThe world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one–not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.
FORWARD-LOOKING STATEMENTSThe statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "aims," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to rent and occupancy growth, acquisition and development activity, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures or form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties, including the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; (x) risks related to global pandemics; and (xi) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.
dollars in millions, except per share/unit data
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Rental and other revenues
$ 2,037
$ 1,853
$ 4,036
$ 3,682
Strategic capital revenues
147
155
288
283
Total revenues
2,184
2,008
4,324
3,965
Net earnings attributable to common stockholders
570
860
1,161
1,444
Core FFO attributable to common stockholders/unitholders*
1,396
1,281
2,752
2,504
AFFO attributable to common stockholders/unitholders*
1,036
1,072
2,120
2,104
Adjusted EBITDA attributable to common stockholders/unitholders*
1,789
1,719
3,561
3,317
Estimated value creation from development stabilizations - Prologis Share
64
296
304
346
Common stock dividends and common limited partnership unit distributions
966
917
1,931
1,833
Per common share - diluted:
Net earnings attributable to common stockholders
$ 0.61
$ 0.92
$ 1.25
$ 1.55
Core FFO attributable to common stockholders/unitholders*
1.46
1.34
2.88
2.63
Core FFO attributable to common stockholders/unitholders, excluding Net PromoteIncome (Expense)*
1.47
1.36
2.91
2.66
Business line reporting:
Real estate*
1.40
1.29
2.76
2.54
Strategic capital*
0.06
0.05
0.12
0.09
Core FFO attributable to common stockholders/unitholders*
1.46
1.34
2.88
2.63
Realized development gains, net of taxes*
0.01
0.09
0.04
0.13
Dividends and distributions per common share/unit
1.01
0.96
2.02
1.92
*This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.
in thousands
June 30, 2025
March 31, 2025
December 31, 2024
Assets:
Investments in real estate properties:
Operating properties
$ 80,115,830
$ 79,492,052
$ 78,279,353
Development portfolio
2,891,025
2,596,069
2,829,613
Land
4,826,727
4,660,431
4,453,522
Other real estate investments
6,498,929
5,992,839
5,683,688
94,332,511
92,741,391
91,246,176
Less accumulated depreciation
13,827,462
13,290,678
12,758,159
Net investments in real estate properties
80,505,049
79,450,713
78,488,017
Investments in and advances to unconsolidated entities
10,618,184
10,287,314
10,079,448
Assets held for sale or contribution
253,331
545,542
248,511
Net investments in real estate
91,376,564
90,283,569
88,815,976
Cash and cash equivalents
1,066,081
671,117
1,318,591
Other assets
5,274,405
5,038,705
5,194,342
Total assets
$ 97,717,050
$ 95,993,391
$ 95,328,909
Liabilities and Equity:
Liabilities:
Debt
$ 34,666,551
$ 32,262,055
$ 30,879,263
Accounts payable, accrued expenses and other liabilities
5,743,685
5,655,898
5,832,876
Total liabilities
40,410,236
37,917,953
36,712,139
