Prologis raises annual FFO forecast on strong demand for warehouse leasing, AI infrastructure

The results come as Prologis seeks to acquire British warehouse landlord Segro in a £12.6 billion ($17.02 billion) all-share deal that would strengthen its European logistics and data centre footprint, although Segro has rejected the proposal, calling it inadequate.

Shares of the company were marginally up in premarket trading.

($1 = 0.7401 pounds)

July 16 (Reuters) - Real estate investment trust Prologis on Thursday raised its annual forecast for core funds from operations (FFO), a key measure of recurring real estate earnings, betting on robust demand for warehouse leasing and AI infrastructure.

Here are more details:

• Prologis, whose biggest customers include Amazon, Home Depot, FedEx and UPS, reported record lease signings of 67 million square feet during the quarter ended June 30, and launched $1.6 billion of logistics and data center developments.
• The company has benefited from increased investment in AI infrastructure, driving demand for power-ready data centre sites.
• "Customer demand is broadening, and our opportunity set is expanding as logistics, digital infrastructure and energy needs increasingly intersect," CFO Timothy D. Arndt said.
• Prologis, which focuses on logistics real estate, raised its full-year adjusted annual core FFO forecast between $6.22 and $6.30 per share, above analysts' estimates of $6.18, according to data compiled by LSEG.
• It previously expected annual FFO in a range of $6.07 to $6.23 per share.
• Core FFO for the second quarter came in at $1.63 per share, beating analysts' average estimate of $1.54.