Key Takeaways
- • Prologis reported 4Q24 Net earnings per diluted share of $1.37, up 101.5%, driven by higher gains and promotes; Core FFO per diluted share was $1.50, up 19.0%.
- • For full-year 2024, Core FFO per diluted share was $5.56, down 0.9%, while Core FFO excluding Net Promote Income rose 8.4% to $5.53.
- • The company guided 2025 Core FFO per diluted share to $5.65 to $5.81 and net earnings per diluted share to $3.45 to $3.70.
- • Prologis reported $7.4 billion in total available liquidity, Debt-to-EBITDA of 4.6x, and a weighted average interest rate of 3.2% on its share of total debt.
- • CEO Hamid R. Moghadam said post-election leasing activity has been strong and the market is nearing an inflection point.
Summary
Prolpogis, Inc. (NYSE: PLD), the global logistics real estate company, reported results for the fourth quarter and full year ended December 31, 2024. Per the company's press release issued January 21, 2025, fourth-quarter net earnings per diluted share were $1.37, up 101.5%, due to higher gains and promotes. Core FFO per diluted share was $1.50, up 19.0%, while Core FFO excluding Net Promote Income (Expense) was $1.42, up 10.1%.
For the full year, net earnings per diluted share were $4.01, up 21.9%. Core FFO per diluted share was $5.56, down 0.9%, and Core FFO excluding Net Promote Income rose 8.4% to $5.53. Management highlighted the sale of its Elk Grove data center, described as a turnkey facility under development, as a capstone to the year that generated significant value creation.
On operations, Prologis reported 4Q24 average occupancy of 95.6% across its owned and managed portfolio and 95.8% on its share. Leases commenced totaled 46.5 million square feet, and cash same store NOI rose 6.7%. Prologis's share of acquisitions was $384 million in the quarter and $1,917 million for the year, at a weighted average stabilized cap rate of 5.9% in the quarter. Development stabilizations totaled $827 million in the quarter and $4,168 million for the year. Total dispositions and contributions were $1,955 million in the quarter and $3,985 million for the year.
During the quarter, the company and its co-investment ventures issued an aggregate $1.5 billion of debt at a weighted average rate of 3.5% and a 7.1-year term. At quarter-end, total available liquidity was approximately $7.4 billion, Debt-to-EBITDA was 4.6x, and debt represented 25.6% of total market capitalization.
For 2025, Prologis guided to net earnings per diluted share of $3.45 to $3.70 and Core FFO per diluted share of $5.65 to $5.81. Operating guidance projects average occupancy of 94.5% to 95.5% and cash same store NOI growth of 4.0% to 5.0%. Planned capital deployment includes $2.25 billion to $2.75 billion in development starts and $750 million to $1.25 billion in acquisitions. CEO Hamid R. Moghadam said the company's platform is positioned to benefit from favorable trends in its data center and energy businesses.
For the full year, net earnings per diluted share were $4.01, up 21.9%. Core FFO per diluted share was $5.56, down 0.9%, and Core FFO excluding Net Promote Income rose 8.4% to $5.53. Management highlighted the sale of its Elk Grove data center, described as a turnkey facility under development, as a capstone to the year that generated significant value creation.
On operations, Prologis reported 4Q24 average occupancy of 95.6% across its owned and managed portfolio and 95.8% on its share. Leases commenced totaled 46.5 million square feet, and cash same store NOI rose 6.7%. Prologis's share of acquisitions was $384 million in the quarter and $1,917 million for the year, at a weighted average stabilized cap rate of 5.9% in the quarter. Development stabilizations totaled $827 million in the quarter and $4,168 million for the year. Total dispositions and contributions were $1,955 million in the quarter and $3,985 million for the year.
During the quarter, the company and its co-investment ventures issued an aggregate $1.5 billion of debt at a weighted average rate of 3.5% and a 7.1-year term. At quarter-end, total available liquidity was approximately $7.4 billion, Debt-to-EBITDA was 4.6x, and debt represented 25.6% of total market capitalization.
For 2025, Prologis guided to net earnings per diluted share of $3.45 to $3.70 and Core FFO per diluted share of $5.65 to $5.81. Operating guidance projects average occupancy of 94.5% to 95.5% and cash same store NOI growth of 4.0% to 5.0%. Planned capital deployment includes $2.25 billion to $2.75 billion in development starts and $750 million to $1.25 billion in acquisitions. CEO Hamid R. Moghadam said the company's platform is positioned to benefit from favorable trends in its data center and energy businesses.
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