Prologis Stock Earnings Reports

Prologis delivered a strong Q3 2025 with record leasing (~62M sqft), portfolio occupancy improving to 95.3% (+20 bps), and robust rent performance (net effective rent change highlighted at ~49% and cash ~29% in remarks). Lease mark-to-market remains meaningful (19% at quarter-end) supporting several years of embedded NOI upside. The company reported continued build-to-suit momentum (21 BTS deals YTD, ~$1.6B expected investment this year) and is increasing development-start guidance to $2.75B–$3.25B (at-share), while boosting disposition/contribution guidance to $1.5B–$2.25B. Prologis’ data-center business is a major strategic priority: 5.2 GW of utility-fed capacity secured or in advanced stages, representing substantial potential investment (management cited ~$15B as powered shell) and the company is exploring additional capitalization structures to capture value. The energy platform is on track for 1 GW by year-end (825 MW current capacity; 28 MW delivered this quarter). Balance sheet and capital access remain strengths (in-place cost of debt ~3.2%, €1B financing at 3.5%, >8 years average debt life). Management sees an inflection in operating fundamentals: US net absorption improving (estimated ~47M sqft in Q3), market vacancy ~7.5% and expected to top out, starts below pre-COVID levels and supply moderating, which together support a path to recovery in occupancy and rents into 2026–2027. Guidance was updated modestly higher for same-store NOI growth and strategic-capital revenue; core FFO guidance was nudged up slightly. Operational cautions include elevated but manageable credit/bad-debt levels and the usual timing/lumpiness of items such as investment-tax-credit monetizations. Leadership note: CEO Hamid Moghadam announced this is his last earnings call as CEO and will transition to executive chairman; management emphasized continuity and conviction in the long-term opportunity.