Prologis (NYSE:PLD) signaled a robust outlook for the coming year, projecting a significant step-up in Core FFO as the warehouse giant successfully pivots toward digital infrastructure and renewable energy.
The San Francisco-based REIT reported fourth-quarter net earnings of $1.49 per diluted share, bringing full-year 2025 earnings to $3.56 per share.
For the fiscal year ended Dec. 31, 2025, Core FFO—a key measure of REIT performance—reached $5.81 per share, driven by record leasing activity totaling 228 million square feet.
The industrial powerhouse is increasingly looking like an energy and data infrastructure player, ending the year with a massive 5.7-gigawatt data center power pipeline and surpassing its 1-gigawatt milestone for installed solar and battery storage.
CEO Daniel S. Letter noted that the company’s "category of one" status is being solidified by the convergence of logistics, digital infrastructure, and energy.
This strategic shift is reflected in Prologis’s initial 2026 guidance, which calls for Core FFO in the range of $6 to $6.20 per share, comfortably ahead of 2025 levels.
Financial discipline also remained a hallmark of the year's performance.
Prologis tapped capital markets for $3 billion in debt at a highly competitive 3.1% weighted average interest rate, finishing the year with $7.6 billion in liquidity.
As supply-chain regionalization and AI-driven demand for data capacity continue to intensify, management expects market rents to find a new inflection point in 2026, supported by an 83% retention rate and a global portfolio that remains 95.8% occupied.