In This Article:
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Core FFO: $1.42 per share including net promotes; $1.43 per share excluding net promotes.
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Occupancy Rate: 95.2%, down 70 basis points from year-end.
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Net Effective Rent Change: 54%; on a cash basis, 32%.
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Same-Store Growth: Net effective growth at 5.9%; cash growth at 6.2%.
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Net Effective Lease Mark-to-Market: 25%, representing $1.1 billion of incremental NOI.
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New Developments: $650 million started, with nearly 80% in build-to-suits.
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Data Center Power Capacity: Expanded by 400 megawatts, totaling 2 gigawatts in advanced stage category.
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Solar and Storage Capacity: Over 900 megawatts in operation or under development.
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Capital Raised: Approximately $400 million in new capital for flagship open-ended funds.
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Debt Issuance: $550 million raised at a weighted average rate of 4.1%.
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Moody's Rating: Upgraded to A2.
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Guidance for Core FFO: $5.65 to $5.81 per share including net promotes; $5.70 to $5.86 per share excluding net promotes.
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Development Start Guidance: Reduced to $1.5 billion to $2 billion.
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G&A Guidance: Increased to $450 million to $470 million.
Release Date: April 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Prologis Inc (NYSE:PLD) delivered a strong quarter, leasing 58 million square feet and breaking ground on several build-to-suit developments.
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The company expanded its power capacity by 400 megawatts to support growing demand for data centers, marking a 13% increase.
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Core FFO per share exceeded forecasts, with occupancy ending the quarter at 95.2%, better than expected due to strong retention.
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Prologis Inc (NYSE:PLD) has a global footprint with a highly diversified rent roll and a fortress balance sheet, providing resilience in uncertain times.
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The company has over 900 megawatts of solar and storage capacity either in operation or under development, advancing towards its 1 gigawatt goal for the year.
Negative Points
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Prologis Inc (NYSE:PLD) is maintaining its earnings guidance due to uncertainty from global tariffs and their downstream impacts.
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The instability created by recent global events may disrupt logistics and supply chains, slowing decision-making among customers.
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Occupancy dropped by 70 basis points from year-end, reflecting a decline in retention despite being better than expected.
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The company is reducing its development start guidance and capital deployment expectations due to uncertainty in capital markets.
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Leasing volumes have decreased by approximately 20% in recent weeks, and further slowdown is expected.