Latest news with #Prologis
Yahoo
6 days ago
- Business
- Yahoo
Prologis Inc (PLD) Q2 2025 Earnings Call Highlights: Strong Performance Amid Market Challenges
Core FFO: $1.46 per share including net promote income; $1.47 per share excluding net promotes. Occupancy Rate: Ended the quarter at 95.1%, outperforming the market by 290 basis points. Rent Change: Monetized $75 million of NOI with a 53% net effective rent change and 35% on cash. Same-Store Growth: Net effective growth at 4.8% and cash growth at 4.9%. Development Starts: Over $900 million in new development starts, with $1.1 billion in build-to-suit starts for the first half of the year. Data Center Investment: $300 million investment in Austin, Texas, with a top hyperscaler. Solar Production and Storage: Nearly 1.1 gigawatts either in operation or under development. Financing Activity: Closed on $5.8 billion, including a $3 billion recast of a global credit line. Liquidity: Over $7 billion at quarter end. Guidance for Core FFO: $5.75 to $5.80 per share including net promote expense; $5.80 to $5.85 per share excluding net promote expense. Warning! GuruFocus has detected 7 Warning Signs with PLD. Release Date: July 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Prologis Inc (NYSE:PLD) exceeded expectations in the second quarter, showcasing strong performance in a challenging environment. The company achieved a significant rent change in same-store growth and maintained strong build-to-suit activity. Prologis Inc (NYSE:PLD) reported a high leasing pipeline, indicating promising customer interest and potential future growth. The company increased its development starts guidance, reflecting confidence in future demand and successful build-to-suit projects. Prologis Inc (NYSE:PLD) maintained a strong balance sheet with $7 billion in liquidity and expanded its commercial paper program, enhancing financial flexibility. Negative Points Market vacancy rates have risen slightly, and net absorption remains subdued, indicating potential challenges in the leasing environment. The company experienced net outflows in its strategic capital business, with approximately $300 million in open-ended vehicle outflows. Prologis Inc (NYSE:PLD) noted that market rents declined by approximately 1.4% during the quarter, reflecting some pricing pressure. The company anticipates choppy market conditions over the next few quarters, with uncertainty impacting customer decision-making. Bad debt levels remain elevated compared to historical norms, indicating potential credit risks among tenants. Q & A Highlights Q: Can you elaborate on the historically high leasing pipeline and its impact on development starts and acquisitions? A: Chris Caton, Managing Director, noted the pipeline is up 19% year-on-year, showing diversity across deal stages and customer industries. Larger customers are increasingly engaging, particularly in spaces over 100,000 square feet. Daniel Letter, President, added that the $1 billion increase in development starts includes $300 million for a data center and a mix of build-to-suit and speculative projects, with a strong pipeline in place. Q: Could you provide more color on the cadence of leasing activity throughout the quarter? A: Daniel Letter, President, explained that while volume was initially down 20% post-tariff surprises, it accelerated through May and June, ending the quarter only 10% below normal. Chris Caton added that they monitor a wide range of metrics, including lease signings and customer engagement, to provide a comprehensive update. Q: What drove the increase in FFO guidance, and how does it relate to occupancy and pricing expectations? A: Tim Arndt, CFO, stated that improved visibility and outperformance in the quarter led to increased confidence in guidance. Despite unchanged occupancy expectations, the environment has stabilized since April, and they anticipate landing at the stronger end of the same-store NOI growth range. Q: How are you thinking about the timing of the growing pipeline translating to signed leases, given the choppy conditions? A: Chris Caton noted that decision-making remains deliberate, with deals piling up as customers seek macro clarity. Hamid Moghadam, CEO, emphasized that while uncertainty persists, larger customers are increasingly unable to defer space needs, indicating potential future demand. Q: Can you discuss the impact of automation and higher power demands on warehouse space and how Prologis is managing this? A: Hamid Moghadam highlighted that automation and EV charging could increase power demands significantly. Daniel Letter mentioned that Prologis is proactively addressing this with new energy generation solutions, leveraging expertise from their mobility business to bridge gaps in utility capacity. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Bloomberg
7 days ago
- Business
- Bloomberg
Stocks Shrug Off Powell Rumors
Bloomberg Television brings you the latest news and analysis leading up to the final minutes and seconds before and after the closing bell on Wall Street. Today's guests are Federal Reserve Former Vice Chair Lael Brainard, Citi's Scott Chronert, Baird's David George, Prologis's Hamid Moghadam, Tether's William Quigley, Envestnet's Dana D'Auria, BD8 Capital Partner's Darbara Doran, Former Fed Governor Betsy Duke, Raymond James' Sunaina Sinha, Recognize's Charles Phillips, Wedbush Securities' Alicia Reese. (Source: Bloomberg)
Bloomberg
7 days ago
- Business
- Bloomberg
Construction Costs To Rise Rapidly: Prologis CEO
Prologis CEO Hamid Moghadam discusses trade, wearhouse demand overseas, immigration policy. He speaks with Romaine Bostick and Scarlet Fu on 'The Close.' (Source: Bloomberg)
Wall Street Journal
7 days ago
- Business
- Wall Street Journal
Prologis Ramps Up Plans for New Warehouse Construction
The world's largest owner of industrial real estate says companies are leasing more custom-built warehouse space despite broader economic uncertainty. San Francisco-based Prologis on Wednesday said it logged more than $900 million in new development starts in the quarter ended June 30, up from $324 million in the same period a year earlier. About 65% of the new projects were leased to tenants before construction started.
Bloomberg
7 days ago
- Business
- Bloomberg
Construction Costs to ‘Go Up Radically,' Prologis CEO Says
The chief executive officer of Prologis Inc., a real estate investment trust that owns and runs warehouses, said US immigration policy is causing a labor shortage that's driving building costs higher. 'Construction costs are going to go up radically,' Prologis CEO Hamid Moghadam said Wednesday on Bloomberg TV. 'We thought they were going to stabilize this year, but I think all of this immigration stuff is putting more pressure on construction.'
