Prologis, Inc.’s PLD fourth-quarter 2024 core funds from operations (FFO) per share of $1.50 surpassed the Zacks Consensus Estimate of $1.38. However, rental revenues of $1.94 billion missed the Zacks Consensus Estimate by just 0.09%.

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Core FFO per share and rental revenues reported a year over year increase of 19% and 10.3%, respectively.

For 2024, the company reported a core FFO per share of $5.56, down 0.9% from the previous year. However, the figure beat the Zacks Consensus Estimate of $5.45. Rental revenues of $7.51 billion increased 10.2% year over year but missed the consensus mark of $7.52 billion.

Prologis, Inc. Price, Consensus and EPS Surprise

Prologis, Inc. price-consensus-eps-surprise-chart | Prologis, Inc. Quote

PLD's Revenues Increase

PLD’s rental revenues increased 10.3% year over year to $1.94 billion in the fourth quarter of 2024. The figure was only 0.2% lower than our estimate.

Strategic capital revenues grew 95.4% year over year to $253.4 million. It was significantly higher than our estimate of $124.4 million.

Development management and other revenues experienced a year-over-year increase of 167.9%, totaling $9.8 million. The figure was higher than our estimate of $2 million.

Rental & other revenues came in at $1.95 billion, which increased 10.7% from the prior-year quarter. However, it was only 0.1% lower than our estimate.

PLD’s Occupancy Shrunk

As of Dec 31, 2024, the average occupancy for Prologis’ owned and managed portfolio stood at 95.6%, down 150 basis points from 97.1% as of Dec. 31, 2023. The average occupancy was lower than our consensus estimate of 95.85%.

PLD's Financial Position

Prologis exited the fourth quarter of 2024 with cash and cash equivalents of $1.32 billion, up from $780.9 million at the end of the third quarter of 2024. Total liquidity amounted to $7.38 billion at the end of the quarter.

2025 Guidance for PLD

Prologis provided its 2025 core FFO per share guidance in the range of $5.65-$5.81. The Zacks Consensus Estimate for the same is currently pegged at $5.79.

The company expects average occupancy to be between 94.5% and 95.5%. Cash same-store NOI (Prologis share) is projected in the range of 4-5%.

The company has issued its outlook for capital deployment (Prologis share) on development starts of $2.25-$2.75 billion. Spending on acquisitions is projected to be $750 million-$1.25 billion. Dispositions are estimated at $1.00-$1.50 billion.

Prologis currently carries a Zacks Rank #4 (Sell).

Upcoming Earnings Releases

We now look forward to the earnings releases of other REITs, such as BXP, Inc. BXP and Terreno Realty TRNO, slated to report on Jan. 28 and Feb. 5, respectively.

The Zacks Consensus Estimate for BXP’s fourth-quarter 2024 FFO per share is pegged at $1.79, which implies a year-over-year decrease of 1.7%. BXP currently carries a Zacks Rank #3 (Hold).

The Zacks Consensus Estimate for Terreno’s fourth-quarter 2024 FFO per share is pegged at 62 cents, which suggests a year-over-year increase of 6.9%. TRNO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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