Prologis Beats Q4 Revenue Estimates as Warehouse Demand Remains Strong
Prologis reported fourth-quarter revenue of $2.25 billion, surpassing analyst estimates of $2.15 billion, driven by strong demand for warehouse facilities from major customers including Amazon, Home Depot, FedEx, and UPS. The company achieved core funds from operations of $1.44 per share, meeting analyst expectations, while providing full-year guidance of $6.00-$6.20 per share. Prologis expanded its data center power pipeline to 5.7 gigawatts and exceeded its 1 gigawatt target for solar and battery storage installations during the quarter.
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Warehouse-focused real estate investment trust Prologis exceeded Wall Street expectations for fourth-quarter revenue, demonstrating the continued resilience of industrial property demand. The San Francisco-based company reported strong financial performance driven by sustained customer demand for storage and distribution facilities.
Financial Performance Highlights
Prologis delivered solid results for the quarter ended December 31, with key metrics showing the company's operational strength:
| Metric | Q4 Result | Analyst Estimate | Performance |
|---|---|---|---|
| Revenue | $2.25 billion | $2.15 billion | Beat estimates |
| Core FFO per share | $1.44 | $1.44 | Met estimates |
| Full-year Core FFO guidance | $6.00-$6.20 per share | $6.13 per share (midpoint: $6.10) | Slightly below |
Shares gained approximately 1% in premarket trading following the earnings announcement.
Global Operations and Customer Base
As the world's largest industrial property developer, Prologis maintains an extensive global footprint spanning 20 countries. The company owns and operates approximately 1.3 billion square feet of logistics real estate across nearly 5,900 facilities worldwide.
The company serves major customers across various sectors:
- E-commerce: Amazon
- Retail: Home Depot
- Logistics: FedEx and UPS
CEO Daniel Letter noted that "customers are making long-term decisions with greater conviction," highlighting the sustained demand from retailers and manufacturers seeking warehouse space to support e-commerce operations and efficient inventory management.
Infrastructure Expansion Initiatives
Prologis achieved significant milestones in expanding its infrastructure capabilities during the quarter. The company grew its data center power pipeline to 5.7 gigawatts, positioning itself to capitalize on growing demand for data center facilities.
Additionally, Prologis surpassed its target for renewable energy infrastructure, achieving over 1 gigawatt of installed solar and battery storage capacity. This expansion supports the company's sustainability initiatives while providing additional revenue streams.
Management Outlook
CFO Timothy Arndt expressed confidence in the company's long-term growth prospects, stating that "embedded growth, disciplined investment activity and unmatched global capital access give us confidence in our earnings growth outlook for 2026 and beyond."
The company's performance reflects the ongoing strength in industrial real estate demand, particularly as businesses continue to prioritize efficient supply chain operations and e-commerce fulfillment capabilities.
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