Why did Q4 Core FFO per share decline year over year even though the full year improved?

Q4 2025 Core FFO was $1.44 per diluted share versus $1.50 in Q4 2024. The difference is largely Net Promote Income: in Q4 2025 it was a $(0.02) per share expense, driven by amortization of stock compensation tied to promote income recognized in prior periods, compared with a $0.09 per share benefit in Q4 2024. Excluding Net Promote Income, Core FFO was $1.46 in Q4 2025 versus $1.42 a year earlier, a 2.8% increase. For the full year, Core FFO rose to $5.81 from $5.56, and excluding promote it rose to $5.86 from $5.53.

What is the 2026 outlook for Prologis?

Management guides 2026 Core FFO to $6.00 to $6.20 per diluted share, or $6.05 to $6.25 excluding Net Promote Income. Net earnings are guided to $3.70 to $4.00 per share. Operating assumptions include Prologis Share average occupancy of 94.75% to 95.75%, cash same-store NOI growth of 5.75% to 6.75%, and net effective same-store NOI growth of 4.25% to 5.25%. Strategic capital revenue excluding promotes is expected at $650 million to $670 million, and G&A at $500 million to $520 million.

How is Prologis deploying capital, and what does it mean for future growth?

In Q4 2025 Prologis started $1.02 billion of development (Prologis Share TEI) and stabilized $539 million, with an estimated value creation of $95 million. For 2026, guidance calls for $2.25 to $2.75 billion of development stabilizations and $3.0 to $4.0 billion of development starts, along with $1.0 to $1.5 billion of acquisitions. Funding is planned through $1.75 to $2.25 billion of dispositions and $1.5 to $2.0 billion of contributions to co-investment ventures. Realized development gains are guided at $400 to $600 million, a meaningful source of earnings that is excluded from Core FFO.

Is the balance sheet a concern for investors?

The balance sheet appears solid. Debt to Adjusted EBITDA was 5.3x at year-end, up from 5.0x in the prior quarter, while the fixed charge coverage ratio was 5.9x. Debt represented 24.6% of gross market capitalization, the weighted average interest rate on Prologis Share of debt was 3.3%, and the weighted average remaining maturity was 8.2 years. Floating rate debt was 3.8% of the total, and total available liquidity was approximately $7.6 billion. Credit ratings are A2 from Moody's and A from S&P, both with stable outlooks.

What is driving the company's data center and energy initiatives?

The company expanded its data center power pipeline to 5.7 gigawatts of capacity that is secured or in advanced procurement, and it surpassed its 1 GW target for installed solar and battery storage. Data centers in the development portfolio carry a TEI of $0.7 billion on an owned and managed basis, and total TEI for yards, parking lots, data centers and non-industrial assets was $1.0 billion. These initiatives are positioned as a growth driver, but they represent a relatively small share of total development and carry execution risk that investors should monitor.

PLD/PLDGP 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed January 21, 2026. Cited figures are marked; the original filing is the authoritative source.

Prologis reported fourth quarter and full-year 2025 results on January 21, 2026.

Core FFO per diluted share was $1.44^a for the quarter (down from $1.50 a year earlier) and $5.81 for the full year (up from $5.56). Excluding Net Promote Income (Expense), Core FFO was $1.46 for the quarter and $5.86 for the year. Net earnings per diluted share were $1.49 for the quarter and $3.56 for the year, compared with $1.37 and $4.01.

The full-year net earnings decline reflects lower development and other gains relative to the prior year's larger total, while the quarterly Core FFO dip was driven mainly by a swing in Net Promote Income, which turned negative in 2025 because of stock compensation amortization tied to prior promote income. Operationally, management highlighted record 2025 lease signings of 228 million square feet. Owned and managed Q4 period-end occupancy was 95.8%^b, and Prologis Share cash same-store NOI growth was 5.7%.

Rent change on a net effective basis was 43.8% for the Prologis Share of the portfolio, and cash rent change was 27.3%. Capital deployment in the quarter included $1.02 billion^c of development starts (TEI, Prologis Share), $539 million of development stabilizations with an estimated $95 million of value creation, and $517 million of third-party acquisitions, offset by $1.89 billion of dispositions and contributions. Full-year estimated value creation from stabilizations was $568 million.

For 2026, guidance calls for Core FFO of $6.00 to $6.20^d per diluted share ($6.05 to $6.25 excluding Net Promote Income), net earnings of $3.70 to $4.00, average Prologis Share occupancy of 94.75% to 95.75%, and cash same-store NOI growth of 5.75% to 6.75%. Balance sheet metrics remained solid, with debt to Adjusted EBITDA at 5.3x, debt at 24.6% of gross market capitalization, a weighted average interest rate of 3.3%, and approximately $7.6 billion of total liquidity. Investors will want to monitor how 2026 execution on the large development pipeline, data center power build-out, and dispositions translates into the guided Core FFO growth.

02—Key points

Key Highlights

Q4 2025 Core FFO of $1.44 per diluted share vs. $1.50 in Q4 2024; full-year 2025 Core FFO of $5.81 vs. $5.56, up about 4.5%
Q4 2025 net earnings of $1.49 per diluted share vs. $1.37 a year earlier; full-year net earnings of $3.56 vs. $4.01
Record 228 million square feet of leases signed in 2025; Q4 period-end occupancy of 95.8% (owned and managed)
Prologis Share cash same-store NOI growth of 5.7% in Q4 and net effective rent change of 43.8%
2026 guidance: Core FFO of $6.00 to $6.20 per diluted share and net earnings of $3.70 to $4.00 per diluted share
Balance sheet remains strong: debt to Adjusted EBITDA of 5.3x, weighted average interest rate of 3.3%, and approximately $7.6 billion of liquidity
Development activity: $1.02 billion of Q4 development starts and $568 million of full-year estimated value creation from stabilizations; data center power pipeline expanded to 5.7 GW

03—Questions

Frequently Asked Questions

Why did Q4 Core FFO per share decline year over year even though the full year improved?
Q4 2025 Core FFO was $1.44 per diluted share versus $1.50 in Q4 2024. The difference is largely Net Promote Income: in Q4 2025 it was a $(0.02) per share expense, driven by amortization of stock compensation tied to promote income recognized in prior periods, compared with a $0.09 per share benefit in Q4 2024. Excluding Net Promote Income, Core FFO was $1.46 in Q4 2025 versus $1.42 a year earlier, a 2.8% increase. For the full year, Core FFO rose to $5.81 from $5.56, and excluding promote it rose to $5.86 from $5.53.
What is the 2026 outlook for Prologis?
Management guides 2026 Core FFO to $6.00 to $6.20 per diluted share, or $6.05 to $6.25 excluding Net Promote Income. Net earnings are guided to $3.70 to $4.00 per share. Operating assumptions include Prologis Share average occupancy of 94.75% to 95.75%, cash same-store NOI growth of 5.75% to 6.75%, and net effective same-store NOI growth of 4.25% to 5.25%. Strategic capital revenue excluding promotes is expected at $650 million to $670 million, and G&A at $500 million to $520 million.
How is Prologis deploying capital, and what does it mean for future growth?
In Q4 2025 Prologis started $1.02 billion of development (Prologis Share TEI) and stabilized $539 million, with an estimated value creation of $95 million. For 2026, guidance calls for $2.25 to $2.75 billion of development stabilizations and $3.0 to $4.0 billion of development starts, along with $1.0 to $1.5 billion of acquisitions. Funding is planned through $1.75 to $2.25 billion of dispositions and $1.5 to $2.0 billion of contributions to co-investment ventures. Realized development gains are guided at $400 to $600 million, a meaningful source of earnings that is excluded from Core FFO.
Is the balance sheet a concern for investors?
The balance sheet appears solid. Debt to Adjusted EBITDA was 5.3x at year-end, up from 5.0x in the prior quarter, while the fixed charge coverage ratio was 5.9x. Debt represented 24.6% of gross market capitalization, the weighted average interest rate on Prologis Share of debt was 3.3%, and the weighted average remaining maturity was 8.2 years. Floating rate debt was 3.8% of the total, and total available liquidity was approximately $7.6 billion. Credit ratings are A2 from Moody's and A from S&P, both with stable outlooks.
What is driving the company's data center and energy initiatives?
The company expanded its data center power pipeline to 5.7 gigawatts of capacity that is secured or in advanced procurement, and it surpassed its 1 GW target for installed solar and battery storage. Data centers in the development portfolio carry a TEI of $0.7 billion on an owned and managed basis, and total TEI for yards, parking lots, data centers and non-industrial assets was $1.0 billion. These initiatives are positioned as a growth driver, but they represent a relatively small share of total development and carry execution risk that investors should monitor.

04—Continue

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