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Prologis raises its annual FFO forecast due to warehouse leasing rebound

Prologis, a warehouse-focused real estate trust focused on investment in 2025 operations, raised its bottom forecasted range of adjusted core funds after customers resumed leasing following a U.S. Tariff-induced slowdown in April.

In premarket trading, shares of the company increased by 2.6% to $111.5.

Despite the uncertainty surrounding President Donald Trump's tariffs, businesses are again increasing their leasing programs as they prepare for early holiday sales and back-to school business.

Daniel Letter, the company's president, said that "our leasing pipeline has reached a historically high level."

The company expects to achieve adjusted core FFO of between $5.80-$5.85 per share. It had previously forecasted a range from $5.70-$5.86. According to data compiled and analyzed by LSEG, the new forecast is higher than analysts' expectations of $5.63 a share.

The company reported core FFO at $1.46 per share, compared to the analysts' average estimate of just $1.41.

Analysts at BTIG wrote a note before Prologis released its quarterly results: "We expect (Prologis) to continue expanding their leasing pipeline. This could indicate a recovery in the demand if economic expansion accelerates."

Total revenue for the San Francisco-based company was $2.18 Billion. Analysts had predicted a revenue of $2.08billion on average.

According to Prologis' latest annual report, Amazon, Home Depot and FedEx are among the biggest customers. (Reporting and editing by Sahal Muhammad in Bengaluru, with Abhinav Paramar reporting from Bengaluru)

(source: Reuters)