Prologis Inc (NYSE:PLD) stock fell 2.70% (As on July 17, 11:15:06 AM UTC-4, Source: Google Finance) after the company reported quarterly earnings below Wall Street expectations and cut its full-year profit guidance. In the quarter, 51.2 million square feet of leases commenced in the company’s owned and managed portfolio. The retention level was 74.9% in the quarter. The average occupancy level in Prologis’ owned and managed portfolio was 94.9% in the second quarter, unchanged from the prior quarter and down from 96.1% in the year-ago period. Prologis’ share of net effective rent change was 53.4% in the April-June quarter. In the reported quarter, the cash rent change was 34.8%. Cash same-store net operating income (NOI) grew 4.9% compared to 6.2% in the previous quarter. Prologis exited the second quarter of 2025 with cash and cash equivalents of $1.07 billion, up from $671.1 million at the end of the first quarter of 2025. Total liquidity amounted to $7.1 billion at the end of the quarter. Debt, as a percentage of the total market capitalization, was 27.9% as of June 30, 2025.
Moreover, the company’s share of building acquisitions amounted to $335 million, with a weighted average stabilized cap rate (excluding other real estate) of 5.7% in the second quarter. Development stabilization aggregated $192 million, with 5.3% being built to suit, while development starts totaled $846 million, with 62.7% being built to suit. PLD’s total dispositions and contributions were $96 million, with a weighted average stabilized cap rate (excluding land and other real estate) of 4.5%.
PLD in the second quarter of FY25 has reported the adjusted core funds from operations (FFO) per share of $1.46, beating the analysts’ estimates for the adjusted FFO per share of $1.41, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $2.04 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $2 billion. However, the logistics-focused real estate investment trust posted second-quarter earnings per share of $0.61, falling short of analysts’ average estimate of $0.69.
Prologis lowered its 2025 EPS forecast to a range of $3.00 to $3.15, even below its previously target of atleast $3.45. Though it well above the average analyst estimate of $2.59. Prologis also narrowed its 2025 core FFO per share guidance to the range of $5.75-$5.80 from the $5.65-$5.81 range guided earlier. The Zacks Consensus Estimate for the same is currently pegged at $5.70.