Prologis Profit Climbs as Data Center Demand Outpaces Expectations

The company posted a profit of $815.7 million, or 86 cents per share, marking a significant increase from the $762.9 million, or 82 cents per share, recorded during the same period last year. Core funds from operations hit $1.60 per share, surpassing the $1.57 estimate anticipated by analysts surveyed by FactSet. Chief Executive Daniel Letter noted that customers are currently running lean, having largely cleared through the inventory bloat that hampered logistics networks in previous quarters. While demand remains robust across advanced manufacturing and digital infrastructure, Prologis opted to adjust its financial guidance for the remainder of the year. The company narrowed its outlook for core funds from operations to a range of $6.25 to $6.29 per share and lowered its full-year profit expectation to between $4.05 and $4.15 per share, down from the previous forecast of $4.40 to $4.55.