From Yahoo Finance: 2025-04-16 14:29:00

Prologis reported a drop in warehouse occupancy to 94.9% in the first quarter due to uncertainties in trade policy. The company maintained its 2025 outlook despite delays in customer leasing decisions caused by the “Liberation Day” tariffs. Prologis remains resilient with diverse customers, rent escalators, and strong finances.

The company’s first-quarter core funds from operations (FFO) were $1.42 per share, exceeding consensus by 4 cents. Total revenue increased by 9% year over year to $2.14 billion. New leases commenced rose by 35% to 65.1 million square feet, but occupancy decreased by 190 basis points to 94.9%.

Prologis anticipates increased demand for warehousing space as customers pull forward inventories ahead of tariffs. While leasing activity has slowed, deals are still being completed. The company signed 80 leases covering 6 million square feet in the past two weeks and expects the need for space to grow in a changing global economy.

Maintaining its full-year 2025 guidance, Prologis expects core FFO to range from $5.65 to $5.81 with average occupancy between 94.5% and 95.5%. Development starts forecast was lowered by 30% until visibility improves. The company is prepared for varying economic scenarios, drawing on past downturns for insights.



Read more at Yahoo Finance: Prologis sticks with 2025 outlook, but customers grow more cautious