Prologis Today
As of 10/17/2025 at 03:59 PM ET
- 52 week range
- $85.35
▼
$125.04
- Dividend yield
- 3.25%
- P/E ratio
- 36.23
- Price target
- $122.74
Prolog Company New York Stock Exchange: BLD The stock rose more than 4% in early trading after the real estate investment trust (REIT) reported a superior quarterly earnings report. Revenue of $2.05 billion was about 1% above expectations of $2.03 billion. Net income was better. EPS of $1.49 beat the consensus estimate of $1.44 by $0.05.
Prologis is at the heart of building the data center that is essential to the broader artificial intelligence (AI) story. This is just one of many reasons why we believe the opportunity in PLD stock will extend beyond this edition.
High occupancy and record rental signal for core strength
REITs have been a poor investment in the past three years, and Prologis is no exception. PLD stock has generated a total return of about 27% in the past three years, which is well below the sector average for finance stocks.
However, this performance requires context. Prologis benefited from the boom in 2021 and 2022 as its portfolio of logistics and warehouse properties were critical to strong consumer demand.
Even with demand returning to normal, the company has maintained occupancy rates of around 95% and the top 10 tenants contribute no more than 14% of the actual net rent. In fact, the company reported an increase in leasing activity despite uncertainty over tariffs, including record leasing activity in the third quarter.
Future growth will come from the company’s focus on sectors such as data centers, sustainable energy and storage. The company currently has 5.2 GW of facility capacity installed or committed.
Prologis continues to deliver strong, cash-generating growth
Prologis MarketRank™ stock analysis
- Total MarketRank™
- 91st percentile
- Analyst evaluation
- Moderate purchase
- Upside/Downside
- 1.2% negatives
- Short interest level
- correct
- Earnings power
- strong
- Environmental outcome
- -2.12
- News feelings
- 1.12
- Insider trading
- Selling shares
- project. Earnings growth
- 8.20%
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Funds from operations (FFO) is one of the most important metrics investors use to gauge the health of a real estate investment trust. FFO provides a cleaner measure of a company’s operating performance and cash generation ability for companies that invest heavily in depreciating assets, such as real estate.
Prologis raised its core funds from operating (FFO) forecast per share to a range of $5.78 to $5.81. This is in line with analyst estimates of $5.77 and slightly above the guidance of $5.75 to $5.80 that the company issued in its previous earnings report.
This trend has been in place for several quarters. For investors, this means the company’s earnings, which increased 12% last year, look safe. It also means that the company will have enough cash on hand to pay off its debt, which is in good ranges.
Supply shortages in Europe could be the next big catalyst for Prologis
According to the company’s internal research, Europe has been facing an imbalance between supply and demand for several years. The continent’s logistics real estate market is estimated to be worth approximately €500 billion (about US$580 billion). However, this supply is constrained by regulations, labor shortages, and infrastructure limitations.
Prologis estimates that more than €150 billion (about US$175 billion) is needed in new development projects, giving companies the ability to launch new projects in these areas with a distinct competitive advantage.
In its earnings presentation, Prologis highlighted its European operating portfolio, which totals more than 252 million square feet and has leasing rates in excess of 95%. Furthermore, Prologis is actively deploying capital in Europe to meet demand where other companies may lack the capacity to do so.
PLD stock is exploding as investors look to long-term expansion
The post-earnings move in PLD stock put it near the analyst consensus price target and a 52-week high. A break above the 50-day simple moving average (SMA) and the upper Bollinger Band indicates bullish momentum. But the stock price can extend at these levels, and there is a risk of a short-term pullback after such a rapid rise.
Investors will want to keep an eye on daily volume and what analysts have to say after the company’s earnings announcement. In September, Bank of America upgraded Prologis from hold to buy and increased its price target to $130, about 6.5% above the consensus price.
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As data centers and electric vehicles proliferate, pressures on the electric grid will increase. Download this report to learn how energy stocks could play a role in your portfolio as global energy demand continues to grow.
