Wells Fargo has increased its price target for Prologis (PLD, Financial) from $101 to $137, while maintaining an Overweight rating on the stock. This adjustment is part of the firm's analysis of the industrial and cold storage real estate investment trust (REIT) sector ahead of the second quarter. The bank believes that these REITs are well-positioned to withstand negative revisions in estimates, thanks to their conservative early forecasts and strong first-quarter performances. However, Wells Fargo notes that the duration of the current leasing slowdown will be crucial for investors to monitor.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Prologis Inc (PLD, Financial) is $118.66 with a high estimate of $150.00 and a low estimate of $95.00. The average target implies an upside of 8.70% from the current price of $109.17. More detailed estimate data can be found on the Prologis Inc (PLD) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, Prologis Inc's (PLD, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Prologis Inc (PLD, Financial) in one year is $142.67, suggesting a upside of 30.69% from the current price of $109.17. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Prologis Inc (PLD) Summary page.
PLD Key Business Developments
Release Date: April 16, 2025
- Core FFO: $1.42 per share including net promotes; $1.43 per share excluding net promotes.
- Occupancy Rate: 95.2%, down 70 basis points from year-end.
- Net Effective Rent Change: 54%; on a cash basis, 32%.
- Same-Store Growth: Net effective growth at 5.9%; cash growth at 6.2%.
- Net Effective Lease Mark-to-Market: 25%, representing $1.1 billion of incremental NOI.
- New Developments: $650 million started, with nearly 80% in build-to-suits.
- Data Center Power Capacity: Expanded by 400 megawatts, totaling 2 gigawatts in advanced stage category.
- Solar and Storage Capacity: Over 900 megawatts in operation or under development.
- Capital Raised: Approximately $400 million in new capital for flagship open-ended funds.
- Debt Issuance: $550 million raised at a weighted average rate of 4.1%.
- Moody's Rating: Upgraded to A2.
- Guidance for Core FFO: $5.65 to $5.81 per share including net promotes; $5.70 to $5.86 per share excluding net promotes.
- Development Start Guidance: Reduced to $1.5 billion to $2 billion.
- G&A Guidance: Increased to $450 million to $470 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Prologis Inc (PLD, Financial) delivered a strong quarter, leasing 58 million square feet and breaking ground on several build-to-suit developments.
- The company expanded its power capacity by 400 megawatts to support growing demand for data centers, marking a 13% increase.
- Core FFO per share exceeded forecasts, with occupancy ending the quarter at 95.2%, better than expected due to strong retention.
- Prologis Inc (PLD) has a global footprint with a highly diversified rent roll and a fortress balance sheet, providing resilience in uncertain times.
- The company has over 900 megawatts of solar and storage capacity either in operation or under development, advancing towards its 1 gigawatt goal for the year.
Negative Points
- Prologis Inc (PLD) is maintaining its earnings guidance due to uncertainty from global tariffs and their downstream impacts.
- The instability created by recent global events may disrupt logistics and supply chains, slowing decision-making among customers.
- Occupancy dropped by 70 basis points from year-end, reflecting a decline in retention despite being better than expected.
- The company is reducing its development start guidance and capital deployment expectations due to uncertainty in capital markets.
- Leasing volumes have decreased by approximately 20% in recent weeks, and further slowdown is expected.
