BMO Capital has revised its price objective for ProLogis (NYSE: PLD) upward to $123, an increase from the previous $119, reaffirming a Market Perform rating on the industrial real estate investment trust. Currently trading at $126.67 and close to its 52-week high of $134.94, ProLogis holds a market capitalization around $120.5 billion.
This price target adjustment follows the release of ProLogis's fourth-quarter financial results for 2025, which exceeded expectations and led BMO Capital to raise its forecast for the company’s Core Funds From Operations (Core FFO) per share in 2026. According to InvestingPro data, despite posting $8.79 billion in revenue over the past twelve months, the stock is considered overvalued relative to its Fair Value estimate.
BMO Capital underscores ProLogis as a blue-chip entity exhibiting strengthening near-term earnings potential. The company benefits from broad backing by institutional investors and joint venture partners and is positioned at a favorable turning point in industrial real estate fundamentals. Within the Industrial REIT sector, ProLogis stands out, maintaining a 3.19% dividend yield and boasting a track record of dividend increases for twelve consecutive years.
However, BMO points out certain risks accompanying the company's valuation and business outlook. Notably, ProLogis trades at a significant premium compared to peers in industrial and data center REIT categories. Moreover, the embedded growth within the firm appears to be diminishing. A salient factor is the evolving leasing landscape marked by Amazon—identified as a leading force in the leasing market—shifting its strategy toward greater property ownership rather than leasing space, a development that could weigh on ProLogis’s leasing model and future revenue streams.
Complementing these insights, ProLogis’s recently reported Q4 2025 earnings demonstrated robust performance, with an EPS of $1.49, more than twice the projected $0.70, representing a 112.86% increase over estimates. Revenue amounted to $2.1 billion, slightly above forecasts. These strong earnings have caught investor attention and led Evercore ISI to raise their price target for ProLogis to $121 from $118, while maintaining an "In Line" rating. Their revised projections reflect updated growth assumptions informed by the financial results.
The cumulative effect of these developments suggests a phase of solid financial footing and strategic recalibration for ProLogis amid a dynamic industrial real estate market.