Record Leasing Drives Strong Operating Performance
Prologis, Inc. (NYSE: PLD) reported a solid operating performance for the quarter and fiscal year ended December 31, 2025, supported by record leasing activity across its global logistics portfolio.
The company signed 228 million square feet of leases during the year, marking the highest annual total in its history and providing strong momentum heading into 2026.
Management noted that customers are making longer-term, more decisive commitments as supply chains, e-commerce, and digital infrastructure needs continue to evolve.
Net earnings per diluted share were $1.49 in the fourth quarter, up from $1.37 in the same period last year. For the full year, net earnings per diluted share totaled $3.56, compared with $4.01 in 2024.
The year-over-year decline in annual net earnings primarily reflects the absence of certain prior-year items, while underlying operating trends remained healthy.
Funds From Operations Highlight Embedded Growth
Core funds from operations (Core FFO) per diluted share were $1.44 for the quarter and $5.81 for the year, compared with $1.50 and $5.56, respectively, in the prior year.
On a more comparable basis, Core FFO excluding net promote income (expense) improved to $1.46 per diluted share for the quarter and $5.86 for the year, up from $1.42 and $5.53 in 2024. These results reflect embedded rent growth, favorable lease mark-to-market, and disciplined investment activity.
Chief Executive Officer Daniel S. Letter said 2025 was a record year for lease signings, adding that Prologis’ integrated platform combining logistics real estate, digital infrastructure, and energy solutions continues to resonate with customers globally.
Digital Infrastructure and Energy Expansion
During the quarter, Prologis expanded its data center power pipeline to 5.7 gigawatts of capacity that is secured or in advanced stages of procurement. The company also surpassed its target of 1 gigawatt of installed solar and battery storage, further strengthening its ability to support energy-intensive logistics and data center demand.
Strong Balance Sheet and Liquidity Position
Prologis maintained a strong balance sheet, closing $3.0 billion of debt during the quarter, including co-investment ventures, at a weighted average interest rate of 3.1% and an average term of 7.2 years.
As of quarter-end, total available liquidity was approximately $7.6 billion. Debt-to-adjusted EBITDA stood at 5.3 times, while debt represented 24.6% of total market capitalization. The weighted average interest rate on the company’s share of total debt was 3.3%, with an average maturity of 8.2 years.
Outlook Supported by High Earnings Visibility Looking ahead, Prologis reported that 98% of forecasted earnings for 2026 and 2027, and 97% for 2028, are denominated in U.S. dollars or hedged through derivative contracts. In addition, 96% of the company’s equity is in USD, providing stability and supporting confidence in earnings growth beyond 2026.
