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hares of Prologis, a leading industrial real estate company, surged 5% on Tuesday after the firm released its fourth-quarter and year-end 2024 results. The strong earnings report exceeded analyst expectations, with core funds from operations (core FFO) growing by 10% year-over-year.

    Prologis' development pipeline is thriving, both in its core industrial business and its data center segment. The company reported a significant increase in cash rent changes of 40.1% on new and renewed leases, driven by the pandemic-era surge in industrial property rental rates. As older leases mature, Prologis expects to rapidly boost rental income.

    Looking ahead, Prologis is optimistic about leasing activity, with core FFO expected to rise in 2025. This is a positive sign, given the recent demand issues and occupancy decline in the industrial real estate market. Despite being down 35% from its 2022 peak, CEO Hamid Moghadam believes an "inflection point" is near, citing customer conversations that support this view. A combination of falling interest rates and a strong US economy could drive this shift.