Prologis sticks with 2025 outlook, but customers grow 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 could raise the guidance, but the “Tahrir Day” tariff was announced on April 2, forced 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.”

Prologis (NYSE: PLD) reported the basic funds in the first quarter of operations (FFO) of $ 1.42 per share before the market opened 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 witness an elevator in the short term due to the 90 -day stopping on some customs tariffs as customers continue to build stocks.

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.