Prologis Reports 8.8% Revenue Growth to $2.18 Billion in Q2 2025

Prologis, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $2.18 billion, a 8.8% increase from $2.01 billion in the same period last year. The company's rental revenue rose to $2.03 billion, up from $1.85 billion, while strategic capital revenue decreased slightly to $147.2 million from $154.7 million. For the first half of 2025, total revenues reached $4.32 billion, compared to $3.96 billion in the first half of 2024. However, net earnings attributable to common stockholders fell to $569.7 million, or $0.61 per share, down from $859.8 million, or $0.93 per share, in the prior year.

The company experienced a notable increase in expenses, which totaled $1.33 billion for the second quarter, compared to $1.27 billion in the same quarter of 2024. This rise in expenses was primarily driven by higher rental and depreciation costs. Operating income before gains on real estate transactions was $855.2 million, up from $736.8 million a year earlier, but total operating income decreased to $912.7 million from $1.02 billion, largely due to lower gains on property dispositions. The company reported a comprehensive income of $197.8 million for the quarter, significantly lower than $1.04 billion in the same quarter of 2024.

In terms of strategic developments, Prologis continued to expand its real estate portfolio, with investments in real estate properties increasing to $94.33 billion as of June 30, 2025, from $91.25 billion at the end of 2024. The company also reported a total of 3,003 operating properties, with a total square footage of 651 million, and an occupancy rate of 95.0%. The company’s development activity included 19 new buildings started during the first half of 2025, with a total expected investment of $1.51 billion.

Prologis' debt increased to $34.67 billion, up from $30.88 billion at the end of 2024, with a weighted average interest rate of 3.2%. The company maintained a strong liquidity position, with approximately $7 billion available, including $1.07 billion in cash and cash equivalents. The company’s management expressed confidence in its ability to navigate economic uncertainties and continue to capitalize on growth opportunities, particularly in the logistics sector, which remains robust due to ongoing demand for e-commerce and supply chain efficiency.

Looking ahead, Prologis anticipates continued demand for logistics real estate driven by long-term trends in e-commerce and supply chain modernization. The company plans to leverage its strong balance sheet and strategic partnerships to enhance its growth trajectory, while also focusing on sustainability initiatives and operational efficiency to meet evolving customer needs.