Prologis Posts Record 228M Square Feet of Leases, Expands Data Center Power Pipeline to 5.7 GW
January 21, 2026 · by Fintool Agent
Prologis-0.24% delivered record leasing activity and expanded its data center infrastructure in Q4 2025, beating earnings expectations while positioning the $124 billion industrial REIT for continued growth in 2026.
The company reported Q4 net earnings of $1.49 per diluted share, up 8.8% from $1.37 in the prior-year quarter, with full-year Core FFO of $5.81 per share compared to $5.56 in 2024—a 4.5% increase. Total Q4 revenue reached $2.25 billion, up 2.4% year-over-year.
"2025 was a record year for lease signings, setting the business up with strong momentum for 2026," said CEO Daniel S. Letter. "Customers are making long-term decisions with greater conviction, and we are meeting that demand with a platform that brings logistics, digital infrastructure and energy together at a global scale."
Ask Fintool AI AgentRecord Leasing Drives Operating Momentum
The headline number: 228 million square feet of leases signed in 2025, a record for the company. This activity translated into powerful rent growth:
| Metric | Q4 2025 | Full Year 2025 |
|---|---|---|
| Net Effective Rent Change | 43.8% | 50.1% (trailing 4Q avg) |
| Cash Rent Change | 27.3% | — |
| Retention Rate | 77.7% | — |
| Period-End Occupancy | 95.8% | — |
The 95.8% occupancy marks an improvement from 95.4% in Q3, while same-store cash NOI grew 5.7% year-over-year. Customer retention of 77.7% reflects tenants extending leases at higher rents rather than relocating.
Financial Performance
The Q4 numbers show healthy operating fundamentals:
| Metric | Q4 2025 | Q4 2024 | Change |
|---|---|---|---|
| Total Revenues | $2,253M | $2,201M | +2.4% |
| Net Earnings | $1,398M | $1,277M | +9.5% |
| Core FFO | $1,384M | $1,435M | -3.5% |
| Adjusted EBITDA | $2,002M | $2,112M | -5.2% |
The year-over-year decline in Core FFO reflects timing of promote income—Q4 2024 included significant promote revenues that didn't recur. Excluding promote effects, Core FFO per share grew to $1.46 from $1.42.
Full-year 2025 performance:
- Total Revenue: $8.79 billion, up 7.2% YoY
- Core FFO: $5.56 billion, up 4.8% YoY
- Operating Cash Flow: $5.3 billion
Ask Fintool AI AgentData Centers: The Next Growth Engine
Perhaps the most significant strategic development is Prologis' aggressive expansion into data center infrastructure. During Q4, the company:
- Expanded its data center power pipeline to 5.7 gigawatts of capacity secured or in advanced procurement stages
- Surpassed 1 gigawatt of installed solar and battery storage capacity
This positions Prologis to capture the intersection of logistics real estate and digital infrastructure—a natural evolution given that hyperscale data centers and AI training facilities require the same large-format, well-located buildings that e-commerce fulfillment demands.
The data centers in Prologis' development portfolio currently have Total Expected Investment (TEI) of approximately $0.7 billion, with $0.3 billion remaining to complete.
Global Portfolio at Scale
At December 31, 2025, Prologis owned or had investments in approximately 1.3 billion square feet across 5,882 buildings in 20 countries:
| Region | Square Feet | % of NOI |
|---|---|---|
| U.S. | 802M | 85% |
| Europe | 255M | 9% |
| Other Americas | 128M | 5% |
| Asia | 115M | 1% |
Top markets by NOI include Southern California ($331M quarterly), New Jersey/NYC ($144M), Chicago ($90M), and Dallas/Fort Worth ($90M).
Customer Concentration
Amazon-1.29% remains Prologis' largest tenant at 5.3% of net effective rent, occupying 47.9 million square feet. The top 10 customers represent 15.2% of rent, with logistics-heavy names dominating:
| Rank | Customer | % of Rent | Sq Ft (000s) |
|---|---|---|---|
| 1 | Amazon | 5.3% | 47,903 |
| 2 | Home Depot | 1.8% | 18,980 |
| 3 | FedEx | 1.4% | 10,736 |
| 4 | DHL | 1.2% | 13,596 |
| 5 | DSV | 1.2% | 14,034 |
The weighted average remaining lease term is 4.2 years on a Prologis share basis.
Ask Fintool AI Agent2026 Guidance: Growth Ahead
Management's 2026 outlook signals continued expansion:
| Metric | 2026 Guidance |
|---|---|
| Net Earnings | $3.70-$4.00/share |
| Core FFO | $6.00-$6.20/share |
| Average Occupancy | 94.75%-95.75% |
| Cash Same Store NOI | +5.75%-6.75% |
| Development Starts | $3.0-$4.0B |
| Development Stabilizations | $2.25-$2.75B |
| Acquisitions | $1.0-$1.5B |
CFO Timothy Arndt noted: "As we look ahead, embedded growth, disciplined investment activity, and unmatched global capital access give us confidence in our earnings growth outlook for 2026 and beyond."
Balance Sheet Strength
Prologis closed 2025 with a fortress balance sheet:
| Metric | Q4 2025 |
|---|---|
| Total Liquidity | $7.6B |
| Debt-to-Adjusted EBITDA | 5.3x |
| Debt/Market Cap | 24.6% |
| Weighted Avg Interest Rate | 3.3% |
| Weighted Avg Debt Maturity | 8.2 years |
Credit ratings of A2 (Moody's) and A (S&P) support access to low-cost capital. The company hedged 98% of 2026 earnings for currency exposure.
What to Watch
Near-term catalysts:
- Q1 2026 earnings (April) for early occupancy and rent trends
- Data center development progress and power procurement
- Same-store NOI trajectory as pandemic-era leases roll
Risks:
- Interest rate sensitivity on development economics
- E-commerce growth normalization post-pandemic
- Rising industrial supply in certain markets
PLD shares rose 2.4% in pre-market trading following the release.
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