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Investing.com - Citi has reduced its price target on ProLogis (NYSE:PLD) to $140.00 from $150.00 while maintaining a Buy rating on the industrial real estate investment trust. The company, currently valued at $103.77 billion, offers a 3.7% dividend yield and has maintained dividend payments for 15 consecutive years.
The price target adjustment follows ProLogis’ second quarter 2025 results and revised forward growth assumptions from the investment bank.
Citi slightly increased its 2025 funds from operations (FFO) estimate to $5.78 from $5.74, while maintaining its 2026 FFO estimate at $6.23.
The lower price target reflects a reduced target adjusted funds from operations (AFFO) multiple of 31x for 2026 estimates, down from the previous 33x multiple.
Citi attributed the multiple contraction to "uncertainty from unresolved trade policies and the associated impact on tenant decision making and lease gestation periods" affecting the logistics property company.
In other recent news, Prologis reported its second-quarter 2025 earnings, showing a mixed performance. The company posted earnings per share of $0.61, which fell short of the expected $0.69. However, revenue surpassed forecasts, reaching $2.04 billion compared to the anticipated $2.01 billion. UBS has maintained its Buy rating on Prologis, highlighting the company’s strong second-quarter performance and extensive leasing pipeline, setting a price target of $120. The firm noted that Prologis’ funds from operations per share, excluding promote, were $1.47, exceeding consensus estimates of $1.42. Additionally, Prologis updated its 2025 FFO guidance to a range of $5.80-$5.85 per share, slightly adjusted from the previous $5.70-$5.86 range. KeyBanc also reiterated its Sector Weight rating, pointing out that while there is uncertainty in the industrial real estate market, Prologis’ near-term outlook remains stable. The firm observed that the quarterly results exceeded expectations, although guidance increased slightly less than the quarterly beat. These developments indicate a potentially slower second half of 2025 than previously anticipated.
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