Logistics warehouse operator Prologis beat first-quarter expectations Wednesday before the market opened. The San Francisco-based real estate investment trust reported core funds from operations (FFO) of $1.42 per share, which was 4 cents higher than the consensus estimate and 14 cents higher year over year.

Total revenue was up 9% y/y to $2.14 billion. New leases commenced covered 65.1 million square feet, a 35% y/y increase, but occupancy fell 190 basis points to 94.9% in the quarter.

Prologis (NYSE: PLD) maintained its full-year 2025 guidance for core FFO of $5.65 to $5.81. The guide continues to assume average occupancy will range from 94.5% to 95.5% across the portfolio.

“In the near term, policy uncertainty is making customers more cautious,” said Hamid Moghadam, Prologis co-founder and CEO, in a news release. “But over the long term, limited new supply and high construction costs support continued rent growth. We’re confident in the strength and resilience of our business.”

The company lowered guidance for new development starts in 2025 by 30% (at the midpoint) to a range of $1.5 billion to $2 billion.

Prologis will host a call at noon EDT on Wednesday to discuss first-quarter results.

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