Prologis Boosts 2025 Outlook on Growth
Real estate investment trust (REIT) giant Prologis (NYSE:PLD) reported its Q2 2025 earnings on Wednesday, July 16, reporting core FFO of $1.46 per share and occupancy at 95.1%, exceeding internal forecasts despite muted market absorption and modestly rising vacancies. Development starts reached a record $1.1 billion in the first half of 2025, with robust build-to-suit and data center momentum, prompting management to raise core FFO guidance to $5.75–$5.85 per share for FY2025 -- up $0.45 at the midpoint -- and increase development start guidance to $2.25–$2.75 billion for 2025.
The record leasing pipeline and continued success in energy and data center initiatives indicate resilience and strategic positioning for long-term growth despite persistent macroeconomic and policy uncertainty.
First-half development starts totaled $1.1 billion, marking the strongest start to any year in company history. In Q2 2025, nearly 65% of $900 million in new development starts were build-to-suit projects across the U.S. and Europe. Capital deployment also featured continued expansion of the Austin, Texas, data center project, and substantial grid power procurement to serve both logistics and data center growth.
Source Fool.com
