San Francisco, California-based Prologis, Inc. (PLD) is the global leader in logistics real estate, focusing on high-barrier, high-growth markets. With a market cap of $104.1 billion, Prologis leases modern logistics facilities to a diverse base of customers, principally across business-to-business and retail/online fulfilment categories.
The real estate giant is expected to release its Q1 earnings before the market opens on Wednesday, Apr. 16. Ahead of the event, analysts expect PLD to report core funds from operations (FFO) of $1.38 per share, up 7.8% from $1.28 per share reported in the year-ago quarter. Furthermore, the company has consistently surpassed or matched Wall Street’s FFO estimates in each of the past four quarters. Its core FFO per share of $1.50 for the last reported quarter exceeded analysts’ estimates by 8.7%.
For fiscal 2025, analysts expect Prologis to report a core FFO per share of $5.73, up 3.1% from $5.56 in fiscal 2024. Furthermore, its core FFO is expected to surge 8.4% year-over-year to $6.21 per share in fiscal 2026.
Over the past 52-week period, Prologis stock has plummeted 19.4%, significantly underperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 6.2% gains and the S&P 500 Index’s ($SPX) 3.6% uptick during the same time frame.
Nevertheless, Prologis’ stock soared 7.1% after the release of its mixed Q4 2024 results on Jan. 21. While the company’s rental revenues increased 10.7% year-over-year to $1.95 billion, it missed the Street expectations by a thin margin. Meanwhile, driven by solid growth in strategic capital revenues, PLD’s overall topline surged 16.5% year-over-year to $2.2 billion. Furthermore, its net earnings to shareholders skyrocketed 103% year-over-year to $1.3 billion and its core FFO increased 19.4% year-over-year to $1.4 billion, which boosted investor confidence.
Despite its underperformance on the stock exchange, analysts remain optimistic about the stock’s prospects. The consensus opinion on PLD stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 24 analysts covering the stock, 15 recommend “Strong Buy,” one suggests “Moderate Buy,” seven advise “Hold,” and one has a “Strong Sell” rating.
Its mean price target of $130.71 suggests a 28.7% upside potential from current price levels.
