Prologis Logistics Real Estate Investment Trust announced that it was adhering to its initial 2025 forecast even as uncertainty about trade policy is getting some customers delaying leasing decisions. The company said favorable trends in the first quarter had been found in the position to raise guidance but tariffs “Relief Day” Published April 2 forced it to delay that decision.
Looking ahead, management told analysts on the call of a conference on Wednesday that there were still many unknown things around the leasing demand of near -term but that longer -term essentials and the need for incremental warehousing space remain intact.
“Let's be clear: the range of results is wide. We see the potential for a recession, inflation or possibly both.
He said the company was “designed to survive any environment,” noting a diverse customer portfolio, built -in rented escalator and a strong balance sheet, but that “customers simply lack a consistent background to plan their businesses.”
Prologis (NYSE: PLD) Core funds first quarter of operations (run) reported from $ 1.42 per share before the market opened on Wednesday, which was 4 cents above consensus and 14 cents higher year on year.
Total revenue was up 9% per/yi $ 2.14 billion as new leases began to increase by 35% to 65.1 million square feet, but 190 base points slipped to 94.9%. (Opposition ended at the period at 95.2%.)
ARDT said that many customers have been taking forwards in front of tariffs and that some are now looking for more storage space. Port markets could also see a near -term lift given 90 -day pause on some tariffs as customers continue to build stock piles.
Deals are still being made at the moment but at less speed. The general leasing activity for prologis was down 20% over the past two weeks. It signed 80 leases covering 6 million square feet in that period. However, the company believes the need for a place will increase in a “disconnected world” as many players will be required to stand up new supply chains.
Prologis maintained its 2025 full year guide to a core fleeing ranging from $ 5.65 to $ 5.81. Forecasts continue to assume average tenure in a range of 94.5% to 95.5%. His forecast for development initiated 30% at the focus of the new range of $ 1.5 billion to $ 2 billion until the visibility improved.
The lower end of a run -off considered the worst of decline in the past as the major financial crisis when rents fell 18% and vacancies declined 170 BPS.