Prologis Surpasses Q4 Expectations, Signals Market Inflection
Real estate investment trust (REIT) Prologis outperformed Wall Street estimates for its fourth-quarter core funds from operations (FFO), driven by rising demand for warehousing space and the sale of a data center.
Shares of the warehouse-focused REIT surged 3.3% in early trading. The demand for storage spaces across the U.S. has been buoyed by potential stocking activity from importers anticipating new tariffs under the Trump administration.
"Post-election leasing activity has been strong, and our ongoing conversations with customers support our expectation that the market is nearing an inflection point," said CEO Hamid R. Moghadam.
Prologis reported a core FFO of $1.50 per share for the quarter ended December 31, beating analysts' estimates of $1.39, according to data from LSEG. However, the San Francisco, California-based company projected 2025 core FFO in the range of $5.65 to $5.81, below Wall Street's consensus of $5.77 due to uncertainties surrounding future freight demand.
In December 2024, Prologis sold its Elk Grove data center in Chicago to HMC Capital, though financial details of the transaction were not disclosed.