Prologis Signs Record 228M SF of Leases, Guides $6.00-$6.20 Core FFO
Prologis posted 4Q25 rental revenue of $2.10B, missing the $2.148B consensus, while operating income rose 15% year-over-year to $1.63B and EPS increased to $1.49. It signed a record 228M SF of leases in 2025, expanded power capacity for data centers, and guided 2026 core FFO at $6.00-$6.20.
1. Fourth Quarter Financial Performance
Prologis reported fourth-quarter net earnings per diluted share of $1.49, up from $1.37 in the same period a year ago. Core funds from operations (Core FFO) per diluted share were $1.44, in line with analyst expectations but down from $1.50 a year earlier. Rental and other revenue totaled $2.10 billion, compared with $1.94 billion in the prior year, while operating income rose to $1.63 billion from $1.42 billion. Total expenses increased to $1.40 billion from $1.29 billion, reflecting higher interest and development costs.
2. Operational Metrics and Leasing Activity
At quarter end, Prologis’ owned & managed average occupancy stood at 95.3% (Prologis share average occupancy 95.2%), driven by strong demand from e-commerce and consumer-goods customers. Same-store property net operating income on a cash basis was up 5.7% year-over-year to $1.43 billion. The company signed a record 228 million square feet of leases during 2025, including 43.8 million square feet commenced in the fourth quarter, with a retention rate of 77.7%. Data-center power capacity secured or in advanced procurement stages expanded to 5.7 gigawatts.
3. Balance Sheet Strength and Liquidity
Prologis closed $3.0 billion of debt at a weighted average interest rate of 3.1% and average term of 7.2 years during the quarter, ending with $1.15 billion in cash and equivalents. Total available liquidity was $7.6 billion. Debt-to-Adjusted EBITDA was 5.3x, and debt represented 24.6% of total market capitalization. The weighted average interest rate on total debt was 3.3% with an average term of 8.2 years, providing ample capacity for capital deployment.
4. 2026 Guidance and Outlook
For fiscal 2026, Prologis expects core FFO attributable to common stockholders of $6.00 to $6.20 per share, slightly above the consensus estimate of $6.13. Net earnings per share guidance is $3.70 to $4.00. The company forecasts Prologis share average occupancy between 94.75% and 95.75%, cash same-store NOI growth of 5.75% to 6.75%, and net effective same-store NOI growth of 4.25% to 5.25%. Capital deployment plans include $2.25 billion to $2.75 billion in development stabilizations and $3.0 billion to $4.0 billion in new development starts.