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Prologis (PLD) reported earnings 30 days ago. What's next for the stock?
PLD's 20% stock rally reflects strong leasing, strategic development and a push into data centers amid a solid financial footing.
PLD strengthens its growth outlook through a surge in strategic acquisitions across key logistics markets.
Prologis, Inc. remains an attractive long-term REIT, benefiting from global scale and growing demand for data center infrastructure amid AI expansion. PLD's Q3 earnings beat expectations, with raised full-year guidance and record leasing activity, highlighting resilience despite market softness and rent declines. The REIT maintains a strong balance sheet, A-rated credit, and a growing dividend, though its high payout ratio warrants monitoring for sustainability.
Prologis is poised for accelerated growth, driven by rebounding logistics demand and a strategic push into high-margin data center development. With logistics supply tightening and in-place rents far below market rates, Prologis has embedded rent growth potential that could drive earnings in the coming years. The company is aggressively expanding into the high-margin data center space, leveraging its strong balance sheet, vast land bank, power access, and strategic locations close to end-users.
Prologis remains a leader in industrial real estate, demonstrating adaptability and strong execution amid a challenging market environment. Prologis posted record Q3 leasing activity, robust data center expansion, and improved portfolio occupancy, supporting continued earnings growth and resilience. Risks include rising credit concerns, elevated industrial vacancy rates, and power constraints for data center projects, but Prologis' scale and diversification help mitigate these threats.
Prologis Inc. NYSE: PLD stock is up more than 4% in early trading after the real estate investment trust (REIT) delivered a beat-and-raise quarterly earnings report. Revenue of $2.05 billion was about 1% higher than the forecast of $2.03 billion.
Prologis, Inc. (NYSE:PLD ) Q3 2025 Earnings Call October 15, 2025 12:00 PM EDT Company Participants Justin Meng Timothy Arndt - Chief Financial Officer Dan Letter - President & Director Christopher Caton - Senior VP & Global Head of Research Hamid Moghadam - Co-Founder, Chairman & CEO Conference Call Participants Jonathan Petersen - Jefferies LLC, Research Division Michael Goldsmith - UBS Investment Bank, Research Division Steve Sakwa - Evercore ISI Institutional Equities, Research Division Ronald Kamdem - Morgan Stanley, Research Division Nicholas Joseph - Citigroup Inc. Exchange Research Caitlin Burrows - Goldman Sachs Group, Inc., Research Division Vikram Malhotra - Mizuho Securities USA LLC, Research Division Samir Khanal - BofA Securities, Research Division Nicholas Thillman - Robert W. Baird & Co. Incorporated, Research Division Vince Tibone - Green Street Advisors, LLC, Research Division Blaine Heck - Wells Fargo Securities, LLC, Research Division Michael Mueller - JPMorgan Chase & Co, Research Division Nicholas Yulico - Scotiabank Global Banking and Markets, Research Division Brendan Lynch - Barclays Bank PLC, Research Division Todd Thomas - KeyBanc Capital Markets Inc., Research Division John Kim - BMO Capital Markets Equity Research Craig Mailman - Citigroup Inc., Research Division Presentation Operator Greetings, and welcome to the Prologis Third Quarter 2025 Earnings Conference Call.
PLD's Q3 FFO beats estimates, benefiting from a rise in rental revenues and healthy leasing activity. However, high interest expenses are a concern.
Prologis' expansion into data centers and logistics gives it a powerful growth edge over Realty Income's steady dividend model.