Prologis (PLD) Is Up 11.6% After Record Leasing Surge and Raised 2025 Earnings Guidance
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Prologis recently reported record third-quarter results, including US$2.21 billion in revenue and a significant quarterly leasing surge, while also raising its full-year earnings guidance for 2025 to US$3.40–US$3.50 per diluted share.
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This expansion is being fueled by heightened demand for both warehouse and data center space, with portfolio occupancy increasing to 95.3% and new leasing activity reaching a historic 62 million square feet.
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We’ll consider how the raised earnings outlook and strong leasing performance may strengthen Prologis’ investment narrative going forward.
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To be a shareholder in Prologis, an investor needs confidence in continuing robust demand for logistics real estate and data centers, evidenced by Prologis’ record leasing activity and a raised earnings outlook. The latest results bolster the primary short-term catalyst: a recovery in leasing momentum and occupancy, while the elevated market vacancy rate remains the largest near-term risk. At this stage, the recent news does not meaningfully change the magnitude of this risk, but improving occupancy offers some offset.
The most relevant recent announcement is Prologis’ upward revision of its 2025 diluted earnings guidance to US$3.40–US$3.50 per share. This aligns closely with the short-term catalyst of accelerating leasing demand, as management’s move reflects a more optimistic view of revenue and earnings potential following a strong quarter. In context, the guidance increase appears closely tied to growing tenant appetite for both warehousing and data center capacity.
But investors should also stay alert to the contrast between surging demand and persistently elevated vacancy rates that…
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Prologis’ outlook anticipates $9.7 billion in revenue and $3.6 billion in earnings by 2028. This scenario is based on a 3.0% annual revenue growth rate and a $0.2 billion earnings increase from the current earnings of $3.4 billion.
Uncover how Prologis’ forecasts yield a $121.45 fair value, in line with its current price.
Six fair value estimates from the Simply Wall St Community for Prologis range from US$103 to US$121.45, showing a wide spread of investor outlooks. As fresh leasing records support improved guidance, it highlights the importance of assessing how persistent vacancy rates could affect future pricing power and returns.
