Q2 2025 Prologis Inc Earnings Call Transcript
Key Points
- Prologis Inc (PLD) exceeded expectations in the second quarter, showcasing strong performance in a challenging environment.
- The company achieved a significant rent change in same-store growth and maintained strong build-to-suit activity.
- Prologis Inc (PLD) reported a high leasing pipeline, indicating promising customer interest and potential future growth.
- The company increased its development starts guidance, reflecting confidence in future demand and successful build-to-suit projects.
- Prologis Inc (PLD) maintained a strong balance sheet with $7 billion in liquidity and expanded its commercial paper program, enhancing financial flexibility.
- Market vacancy rates have risen slightly, and net absorption remains subdued, indicating potential challenges in the leasing environment.
- The company experienced net outflows in its strategic capital business, with approximately $300 million in open-ended vehicle outflows.
- Prologis Inc (PLD) noted that market rents declined by approximately 1.4% during the quarter, reflecting some pricing pressure.
- The company anticipates choppy market conditions over the next few quarters, with uncertainty impacting customer decision-making.
- Bad debt levels remain elevated compared to historical norms, indicating potential credit risks among tenants.
Greetings, and welcome to the Prologis second quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Abhishek Kastiya, Director of Investor Relations. Thank you. You may begin.
Thanks, Molly, and good morning, everyone. Welcome to our second quarter 2025 earnings conference call. The supplemental document is available on our website at prologis.com under Investor Relations. I'd like to state that this conference call will contain forward-looking statements under Federal Securities laws. These statements are based on current expectations, estimates and projections about the market and the industry in which Prologis operates as well as management's beliefs and assumptions.
Forward-looking statements are not guarantees of performance, and actual operating results may be affected by a variety of factors. For a list of those factors, please refer to the forward-looking statement notice in our
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