Prologis, Inc. Net Income Dips 33.7% in Q2 2025

Prologis, Inc. reported its financial results for Q2 2025, with revenues reaching $2.184 billion, an increase from $2.008 billion in Q2 2024. Net earnings attributable to common stockholders were $570 million, a decrease from $860 million in the prior year quarter. Diluted net earnings per share stood at $0.61, down from $0.92 in Q2 2024. The company’s revenue surpassed the analyst estimate of $2.025 billion, while its EPS of $0.61 missed the analyst estimate of $1.41 for the quarter.

Operating Performance

The company's rental and other revenues increased to $2.037 billion in Q2 2025 from $1.853 billion in Q2 2024. However, strategic capital revenues saw a slight decrease from $155 million in Q2 2024 to $147 million in Q2 2025. Total expenses rose to $1.329 billion, up from $1.271 billion in the prior year, primarily driven by increases in rental expenses and depreciation and amortization.

Financial Highlights

Net earnings attributable to common stockholders decreased by 33.7% year-over-year. Revenue, however, saw an increase of 8.8%. Operating income before gains on real estate transactions was $855 million, up from $737 million in Q2 2024. Total liabilities increased to $40.410 billion at June 30, 2025, from $37.918 billion at June 30, 2024. Total assets also increased to $97.717 billion from $95.993 billion over the same period.

Management Outlook

For the full year 2025, Prologis, Inc. projects net earnings attributable to common stockholders to be between $3.00 and $3.15 per share. Core FFO attributable to common stockholders/unitholders is expected to range from $5.75 to $5.80 per share. Average occupancy for Prologis' share is forecasted at 94.75% to 95.25%, while same-store NOI (cash) is anticipated to grow between 4.25% and 4.75%. Development stabilizations for Prologis' share are estimated at $1.900 billion to $2.300 billion.