Prologis Beats Q4 FFO Expectations, Signals Strong Market Outlook

San Francisco, CA - Prologis, a leading real estate investment trust (REIT), surpassed analysts' expectations for fourth-quarter core funds from operations (FFO). The company attributed its success to rising demand for warehousing spaces and the sale of a data center.

Prologis's core FFO reached $1.50 per share for the quarter ended December 31, outperforming the $1.39 estimate by analysts. This performance reflects improved leasing activity following the elections and strong customer demand driven by potential tariff-related stocking.

CEO Hamid R. Moghadam expressed optimism for the company's prospects, stating, "Our ongoing conversations with customers support our expectation that the market is nearing an inflection point."

Despite uncertainty in future freight demand, Prologis projects its 2025 core FFO to fall within the range of $5.65 to $5.81, slightly below the Wall Street consensus of $5.77.

In December 2024, Prologis sold its Chicago-based Elk Grove data center to HMC Capital for an undisclosed sum.