Prologis tops quarterly estimates on strong warehouse leasing

Warehouse-focused real estate investment trust Prologis beat Wall Street estimates for third-quarter revenue and funds from operations on Wednesday, helped by robust demand for its storage facilities.

The San Francisco, California-based company also raised its 2025 core FFO forecast to a range of $5.78 per share to $5.81 per share, from $5.75 per share to $5.80 per share.

Logistics-focused warehouse operators have benefited from a rush by importers to front-load shipments ahead of U.S. tariffs, boosting demand for storage spaces and spurring leasing activity.

The world's largest industrial property developer reported a company-record 62 million square feet of lease signings during the quarter.

CEO Hamid Moghadam said the logistics market is nearing an inflection point for rent and occupancy growth, calling it "one of the most compelling setups I've seen in 40 years."

Prologis reported a quarterly core FFO of $1.49 per share, compared with analysts' average estimate of $1.44 per share, according to data compiled by LSEG.

Total revenue for Prologis, which counts Amazon, Home Depot, FedEx and UPS as its biggest customers, was $2.21 billion, above analysts' estimates of $2.16 billion.

The company, a developer and manager of warehouses, distribution facilities and fulfillment centers, owns and operates 1.3 billion square feet of logistics real estate across 20 countries.