Prologis beats core FFO estimates on improving warehouse demand

(Reuters) – Real estate investment trust (REIT) Prologis (NYSE:PLD) beat Wall Street expectations for fourth-quarter core funds from operations (FFO), helped by improving demand for its warehousing spaces and sale of a data center.

Shares of the warehouse-focused REIT were up 3.3% in morning trade.

Potential stocking activity by importers owing to the threat of new tariffs by the Trump administration has aided the demand for storage spaces across the U.S.

“Post-election leasing activity has been strong, and our ongoing conversations with customers support our expectation that the market is nearing an inflection point,” CEO Hamid R. Moghadam said.

Prologis reported a core FFO, a key REIT metric closely monitored by investors, of $1.50 per share for the quarter ended December 31, beating analysts’ estimates of $1.39, according to data compiled by LSEG.

The San Francisco, California-based company, however, forecast 2025 core FFO between $5.65 and $5.81, compared with Wall Street estimates of $5.77, amid uncertainty around future freight demand.

In December 2024, Prologis sold its Chicago-based Elk Grove data center to HMC Capital but did not disclose any financial details.