Prologis Posts Q3 FFO Beat, FY25 Guidance Raised Despite Revenue Miss

Prologis Inc. (NYSE:PLD) reported third-quarter FY25 rental and other revenue stood at $2.06 billion, missing the analyst consensus estimate of $2.16 billion.

Key Figures

Total expenses for the quarter increased to $1.32 billion from $1.25 billion in the same quarter last year.

Also Read: Prologis Set To Benefit From Shrinking Warehouse Supply And Pent-Up Demand: Analyst

Operating income for the quarter declined to $940 million from $1.25 billion in the prior year's quarter.

Core FFO rose 4.2% year over year (Y/Y) to $1.49, beating the analyst consensus estimate of $1.44. 

EPS declined 24.1% Y/Y to $0.82 in the quarter.

Operating Metrics

Owned & Managed Average Occupancy was 94.8% and Prologis Share Average Occupancy was 94.7%.

Prologis Share of Same Store Property NOI – Cash rose 5.2% Y/Y to $1.42 billion.

The company reported record lease signings of 62 million square feet.

Prologis held $1.19 billion in cash and equivalents as of September 30, 2025.

Management Commentary

"We are extending our leadership position in logistics to data centers, where we are investing to meet the growing power demands of digital infrastructure,” Prologis president Dan Letter said.

“With additional advanced power contracts, Prologis now has a 5.2-gigawatt allocation of utility-fed capacity secured or in advanced stages, which we expect to use to unlock significant data center opportunities.”

Hamid R. Moghadam, co-founder and CEO of Prologis added, “With a solid pipeline, improving customer sentiment and limited new supply, the logistics market is setting up for the next inflection in rent and occupancy growth — one of the most compelling setups I’ve seen in 40 years.”

Guidance

Prologis raised FY25 core FFO Guidance from $5.75-$5.80 to $5.78-$5.81 vs consensus of $5.77.

Prologis reiterated its FY25 Prologis Share Average Occupancy outlook of 94.75% – 95.25%.

Investors can gain exposure to the stock through the Pacer Industrial Real Estate ETF (NYSE:INDS) and the SP Funds S&P Global REIT Sharia ETF (NYSE:SPRE).

Price Action: PLD shares are up 2.12% at $117.90 in the premarket as of the last check on Wednesday.

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