10:17 AM EST, 01/21/2025 (MT Newswires) -- Prologis' ( PLD ) core funds from operations surpassed market expectations for the fourth quarter, while the company guided for growth in the key metric during 2025.

The logistics real estate investment trust posted core FFO of $1.50 a share in the December quarter, up from $1.26 a year ago. The average analyst estimate on FactSet was for per-share core FFO of $1.38 for the three-month period.

Total revenue rose to $2.2 billion from $1.89 billion in the prior-year quarter. Rental revenue advanced to $1.94 billion from $1.76 billion, almost in line with the Street's view. Shares of Prologis ( PLD ) increased 3% in Tuesday trade.

The REIT reported a fourth-quarter rent change of 66.3% on a net effective basis and 40.1% on a cash basis, down from 74.1% and 51.8%, respectively, the year earlier. Prologis' ( PLD ) share of same-store net operating income grew 6.7% on a cash basis, compared with an 8.5% increase in the fourth quarter of 2023. Average occupancy was 95.6%, down from 97.1% last year.

"We closed out 2024 with solid results," President Dan Letter said in a statement. "It was capped off with the sale of our Elk Grove data center -- a turnkey facility under development -- that led to significant value creation and demonstrated the end-to-end capabilities of our platform."

For full-year 2025, Prologis ( PLD ) anticipates core FFO to come in between $5.65 and $5.81 a share, while the Street is looking for $5.78. For 2024, core FFO totaled $5.56 per share, representing an annual decline of 0.9%.

The company sees its share of full-year cash same-store net operating income to rise by 4% to 5% and average occupancy to be in a range of 94.5% to 95.5%.

Leasing activity has been strong since the US presidential election, "and our ongoing conversations with customers support our expectation that the market is nearing an inflection point," Chief Executive Hamid Moghadam said. "Meanwhile, our platform is uniquely positioned to seize the opportunities created by favorable trends in our data center and energy businesses."

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