Q: What is Prologis (PLD) Q4 2024 Earnings Call Transcript Summary?
### Prologis (PLD) Q4 2024 Earnings Call Summary
#### Bullish Points:
1. Leasing activity accelerated following the U.S. election, with a healthy pipeline to start the year.
2. Prologis signed a record-breaking 60 million square feet of leases during the quarter.
3. Core FFO (Funds From Operations), excluding Net Promote Income, was $1.42 per share, and including net promotes, it was $1.50 per share.
4. Full-year results ended at the top end of guidance, reflecting 8.4% growth over 2023.
5. Average occupancy for the quarter was 95.8%, and for the year, it was 96.3%.
6. Net effective rent change was 66% for the quarter and 69% for the year, adding over $340 million in annualized NOI (Net Operating Income).
7. Net effective lease mark-to-market finished the year at 30%, representing $1.4 billion in incremental NOI.
8. Prologis contributed $2 billion of assets to strategic capital ventures, with a full-year total exceeding $3.3 billion.
9. Raised over $1.7 billion across the platform, driving third-party AUM (Assets Under Management) growth by over 7%.
10. Development portfolio stands at $4.7 billion, with an estimated value creation of $1.1 billion.
11. Forecasting development starts between $2.25 billion and $2.75 billion in 2025.
12. Forecasting average occupancy to range between 94.5% and 95.5%, with a target of 96% by year-end.
13. Forecasting net effective same-store growth of 3.5%-4.5% and cash growth of 4%-5%.
14. GAAP earnings guidance is projected to range between $3.45 and $3.70 per share.
15. Core FFO, including net promote expense, is expected to range between $5.65 and $5.81 per share, while excluding net promote expense, it will range between $5.70 and $5.86 per share.
16. Prologis is making significant progress in its data center business, with a growing pipeline and skilled team.
#### Bearish Points:
1. The devastating wildfires in Los Angeles could impact operations.
2. Market vacancy is peaking, and rents are expected to inflect later this year, indicating potential short-term challenges.
3. Capital flows in 2024 remained challenging, reflecting investor caution.
4. A dip in occupancy is forecasted over the next one to two quarters, partly due to seasonal factors.
5. Development starts in 2024 were deliberately slowed, reflecting a cautious approach to market conditions.
6. Completions are expected to decline significantly, potentially delaying new projects.
7. Net absorption is forecasted to build gradually over the year, indicating a slow recovery.
8. Current high vacancy levels are expected to decline over the year, paving the way for future rent growth.
9. Capital raising in open-end vehicles was muted in Q4 as investors adjusted to changes in the yield environment.
For more information about Prologis (PLD)'s earnings call, you can read the relevant news: Prologis (PLD) Q4 2024 Earnings Call Transcript
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