Warehouse-focused real estate investment trust Prologis PLD-N on Thursday raised its forecast for annual core funds from operations (FFO) above analysts’ estimates, fueled by resilient demand for its storage facilities and steady warehouse leasing.
The REIT, which focuses on logistics real estate, expects full-year adjusted annual core FFO per share between US$6.07 and US$6.23, the midpoint of which is above estimates, according to LSEG data.
Shares of the company rose 1.6 per cent before the bell.
The company has seen a boom from surging investment in artificial intelligence infrastructure, with firms seeking large, power-ready sites for data centers.
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The world’s largest industrial property developer has also benefited from resilient demand from retailers and manufacturers seeking to stock up on inventory.
Prologis, which counts Amazon, Home Depot, FedEx and UPS among its biggest customers, reported lease signings of 64 million square feet during the quarter.
“We also advanced our data center platform with $1.3 billion of build-to-suit development starts, and we are scaling digital infrastructure and energy to support our next phase of growth,” CEO Daniel Letter said.
Prologis said quarterly core funds from operations, a closely watched measure of recurring real estate earnings, came in at US$1.50 per share, marginally above analysts’ estimate of US$1.49.
The San Francisco, California-based company reported revenue of US$2.30-billion for the quarter ended March 31, compared with estimates of US$2.21-billion, according to data compiled by LSEG.
The latest forecast for 2026 core FFO per share is above analysts’ expectations of US$6.14 per share. It had forecast a range of US$6 and US$6.20 per share earlier.