Prologis Boosts 2025 Guidance on Record Leasing, 95.1% Occupancy

Prologis has revised its annual guidance for new development project revenue to 27.5 billion dollars, primarily driven by record-breaking leasing reserves. The company reported strong second-quarter performance, with core funds from operations (FFO) per share exceeding expectations and property occupancy rates reaching 95.1%. Additionally, Prologis has completed 58 billion dollars in financing activities.

The company's second-quarter financial report for 2025 highlights robust operational performance. Rental and other income increased from 18.53 billion dollars in the same period last year to 20.37 billion dollars, surpassing analyst estimates. This growth was fueled by an average occupancy rate of 94.8% and a 4.9% increase in net operating income (NOI), demonstrating the company's resilience in a high-demand logistics environment.

Despite the quarterly profit falling short of expectations, the optimistic outlook has driven Prologis' stock price upward. The company's earnings per share (EPS) stood at 0.61 dollars, below the analyst consensus of 0.69 dollars; however, revenue rose to 20.4 billion dollars, exceeding the market consensus of 20.1 billion dollars. Prologis has adjusted its 2025 EPS forecast to a range of 3.00 to 3.15 dollars, surpassing the average analyst estimate of 2.59 dollars. The company's strong operational execution, superior customer relationships, and record leasing reserves collectively support this positive outlook.

Prologis has also raised its 2025 core FFO guidance to 5.75 to 5.80 dollars, with an estimated 31.35% upside potential based on GF value estimates. The successful delivery of data center expansions and customized warehouses has led the company to increase its 2025 new development project guidance to 22.5 to 27.5 billion dollars. Furthermore, a robust liquidity position of 71 billion dollars and improved debt metrics provide a solid foundation for the company's continued growth in the e-commerce logistics sector.