Prologis sticks to 2025 Outlook, but customers are growing more cautious

Logistics Real Estate Investment Trust Prologis has announced that it adheres to its initial expectations for 2025 even with uncertainty about commercial policy some customers who delay rental decisions. The company said that the favorable trends in the first quarter were in a position that enables it to raise the guidance, but the tariff “liberation day” April 2 announced He forced her to stop this decision.

Looking forward, Management told the analysts at a group conference on Wednesday that there are still a lot of unknown people about the demand for leasing in the short term, but these are long -term basics and the need for a gradual storage space that is still sound.

“Let’s be clear: the scope of the results is wide,” said Tim Erndt.

He said that the company was “designed to overcome any environment”, with reference to a varied customer portfolio, a strongly built -in rental and a strong public budget, but “customers simply lack a fixed background to plan their business.”

introduction (New York: pldThe basic funds mentioned in the first quarter of operations (FFO) of $ 1.42 per share before the opening of the market on Wednesday, which was 4 cents above consensus and 14 cents higher on an annual basis.

The total revenue increased by 9 % on an annual basis to $ 2.14 billion, as new rental contracts increased by 35 % to 65.1 million square feet, but occupancy slid 190 basis points to 94.9 %. (The occupancy ended 95.2 %.)

ARNDT said that many clients pull the stock forward before the customs tariff and others are now looking for a greater storage space. Ports markets can also see an elevator in the short term given Stop for 90 days On some customs tariffs, as customers continue to build a stock.

The deals are still completed, but at a reduced pace. Prologis general leasing activity has decreased by 20 % over the past two weeks. 80 decades covered 6 million square feet in that period. However, the company believes that the need for an area will increase in a “separate world” where many players will be asked to stand on new supply chains.

Prologis maintained its entire 2025 directives for Core FFO to range from $ 5.65 to $ 5.81. Expectations continue to take over the average occupancy in the range of 94.5 % to 95.5 %. Its 30 % development forecast has reduced in the middle of the new range, which ranges between $ 1.5 billion to two billion dollars until the vision improves.

The lower end of the FFO direction range thought the worst scenarios of cases of previous contraction such as the great financial crisis when the rents decreased by 18 % and vacancies decreased 170 basis points.