Prologis Stock Rallies After Q4 Profit More Than Doubles: Retail Shows Admiration

synopsis

Prologis (PLD) shares rose 5.1% on Tuesday after the real estate investment trust’s (REIT) fourth-quarter profit more than doubled.

The company reported a net income of $1.28 billion, or $1.37 per share, for the three months ended Dec. 31, compared with $629 million, or $0.68 per share in profit, in the year-ago quarter.

The San Francisco-based firm reported core funds from operations (FFO), a metric used to gauge the profitability of REITs, of $1.50 per share, compared with the average analysts' estimate of $1.39 per share, according to FinChat data.

Its fourth-quarter revenue of $2.20 billion topped Wall Street's expectation of $1.94 billion.

"Post-election leasing activity has been strong, and our ongoing conversations with customers support our expectation that the market is nearing an inflection point," said CEO Hamid R. Moghadam in a statement.

Prologis, which has some form of ownership interest in 1.3 billion square feet of property, said its customer retention rose to 78.4% compared with 73.1% in the year-ago quarter.

The company added that its average occupancy stood at 95.8%, slightly below the 97.4% reported last year.

Its earnings also benefited from selling the Chicago-based Elk Grove data center to HMC Capital.

Prologis forecast net earnings in the range of $3.45 per share to $3.70 per share for 2025.

It projected core FFO to be in the range of $5.65 to $5.81 per share.

Retail sentiment on Stocktwits jumped to ‘extremely bullish’ (90/100) territory from ‘neutral’(52/100) a day ago, hitting the highest level in a year. Retail chatter rose to ‘extremely high’ levels.

PLD’s Sentiment Meter and Message Volume as of 12:06 a.m. ET on Jan. 21, 2025 | Source: Stocktwits

One user expressed satisfaction with the performance of the stock.

Over the past year, the stock has lost about 12%. 

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