Prologis (NYSE:PLD) reported third-quarter results on Wednesday that beat Wall Street forecasts and raised its full-year outlook, driven by record leasing activity and a growing push into data centers.
The world’s largest warehouse owner posted earnings per share of $0.82, above analyst estimates of $0.67.
Core funds from operations, a key profitability metric for real estate investment trusts, climbed 4.2% to $1.49 per share. The company signed a record 62 million square feet of leases in the quarter as businesses raced to secure warehouse space amid rising demand.
Prologis also announced it is expanding its power capacity to support data center development, with 5.2 gigawatts of utility-fed capacity either secured or in advanced planning stages.
The company raised its 2025 net earnings guidance to between $3.40 and $3.50 per share, up from its previous forecast of $3.00 to $3.15.
Chief Executive Hamid Moghadam said the logistics market is “setting up for the next inflection in rent and occupancy growth.”
“We are extending our leadership position in logistics to data centers, where we are investing to meet the growing power demands of digital infrastructure,” said Dan Letter, President of Prologis.
Shares of the San Francisco-based company were up 0.6% in premarket trading following the announcement.
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