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The industrial REITs had a surprisingly positive batch of Q1 2025 earnings releases.

Terreno (TRNO) provides the first update, but the update only covers operating activity in the first quarter. It’s useful, but not a key document in this case. We are primarily interested in commentary on the environment in April and the change in guidance. TRNO’s update doesn’t include that kind of commentary.

Rexford (REXR) and Prologis (PLD) both reported first-quarter results after the close on 4/16/2025.

Note: I’ll be discussing the earnings call commentary as part of this article. The Prologis earnings call was last night, so we have a transcript. I was listening to the REXR earnings call live and the transcript doesn’t exist at the time I’m preparing this article. Terreno does not host an earnings call. 

Guidance

TRNO:

• TRNO does not provide guidance.

REXR:

• Guidance was unchanged for Core FFO, same property NOI, cash same property NOI, and even occupancy.
• Projected net interest expense is down slightly, but this is not a material impact. Around one fifth of a penny per share.

These results are positive. I was expecting to see a dip in guidance to reflect increased uncertainty from tenants.

Using the earnings call, we had another update:

• During the Q4 2024 earnings call, REXR was forecasting GAAP leasing spreads of 30% and cash leasing spreads of 20%.
• REXR is now forecasting GAAP leasing spreads of 25% and cash leasing spreads of 15%. So those spreads dropped about 5%.

PLD:

• Guidance was unchanged for Core FFO, Core FFO excluding net promote income, same store NOI, cash same store NOI, and occupancy.
• PLD reduced guidance for development stabilizations, development starts, dispositions, and contributions.

In English? PLD will sell fewer properties and reduce their development activity because of greater uncertainty in the market. Guidance for acquisitions was steady, suggesting PLD feels confident in going out to bid on properties.

I went into additional depth in our free Industrial REIT Q1 2025 Sector Update.

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Disclosure: Long TRNO, PLD, and REXR.