Prologis Set to Release Mid-Quarter Earnings Amid Analyst Optimism

Prologis, Inc. (PLD), based in San Francisco, California, holds a commanding position in the logistics real estate sector, particularly in high-growth, high-barrier markets. The company boasts a market capitalization of $104.1 billion and leases modern logistics facilities to a broad array of customers primarily in business-to-business and retail/online fulfillment sectors.

The real estate leader will publish its Q1 earnings before market trading begins on Wednesday, April 16. Analysts predict that PLD will deliver core funds from operations (FFO) of $1.38 per share, reflecting a 7.8% increase from the $1.28 per share reported in the same quarter last year. Importantly, Prologis has consistently met or exceeded Wall Street’s FFO forecasts in each of the last four quarters, having reported a core FFO per share of $1.50 in the last quarter, which was 8.7% above analyst expectations.

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For fiscal 2025, analysts anticipate Prologis will report a core FFO per share of $5.73, which is a 3.1% rise compared to $5.56 in fiscal 2024. Looking ahead to fiscal 2026, expectations are even more robust, with an estimated core FFO increase of 8.4%, leading to a projection of $6.21 per share.

Over the past year, Prologis’ stock has decreased by 19.4%, significantly underperforming the Real Estate Select Sector SPDR Fund (XLRE), which has gained 6.2%, and the S&P 500 Index ($SPX), up 3.6% during the same period.

Despite this drop, Prologis’ stock jumped 7.1% following the release of its mixed Q4 2024 results on January 21. The company reported a 10.7% increase in rental revenues YoY to $1.95 billion, though it fell slightly short of street expectations. Nevertheless, strategic capital revenue growth propelled the overall revenue up by 16.5% YoY, reaching $2.2 billion. The net earnings attributable to shareholders shot up 103% YoY to $1.3 billion, and core FFO rose 19.4% YoY to $1.4 billion, thereby boosting investor confidence.

Despite the drop in stock performance, analysts have maintained an optimistic outlook. The consensus rating for PLD stock is labeled as moderately bullish, with an overall “Moderate Buy” rating. Among the 24 analysts covering the stock, 15 recommend a “Strong Buy,” one advises a “Moderate Buy,” seven suggest “Hold,” and one has a “Strong Sell” rating.

The average price target stands at $130.71, indicating a promising 28.7% upside potential based on current prices.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.

 

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