FILE PHOTO: View of the Prologis warehouse in Nieuwegein, Netherlands in this undated handout obtained by Reuters on November 30, 2020. Courtesy of Prologis/Handout via REUTERS/File Photo

By Abhinav Parmar

(Reuters) -Warehouse-focused real estate investment trust Prologis beat Wall Street estimates for third-quarter revenue and funds from operations on Wednesday, helped by robust demand for its storage facilities.

The San Francisco, California-based company also raised its 2025 core FFO forecast to a range of $5.78 per share to $5.81 per share, from $5.75 per share to $5.80 per share.

Shares of the company rose 6.1% in afternoon trading.

Logistics-focused warehouse operators have benefited from a rush by importers to front-load shipments ahead of U.S. tariffs, boosting demand for storage spaces and spurring leasing activity.

The world's largest industrial property developer reported a company-record 62 million square feet of lease signings during the quarter.

CEO Hamid Moghadam said the logistics market is nearing an inflection point for rent and occupancy growth, calling it "one of the most compelling setups I've seen in 40 years."

The company whose major customers include Amazon, Home Depot, FedEx and UPS, said on its post earnings call that large clients are optimizing their distribution networks rather than shrinking them, a trend it expects smaller firms to follow.

Prologis reported a quarterly core FFO of $1.49 per share, compared with analysts' average estimate of $1.44 per share, according to data compiled by LSEG.

Total revenue for the company was $2.21 billion, above analysts' estimates of $2.16 billion.

"Prologis once again had a solid quarter in the face of tariff and macroeconomic uncertainty. However, the company is pulling some levers to maintain a high level of occupancy – moderating rents and higher concessions," said BMO Capital Markets analyst, John Kim.

The company, a developer and manager of warehouses, distribution facilities and fulfillment centers, owns and operates 1.3 billion square feet of logistics real estate across 20 countries.

(Reporting by Abhinav Parmar in Bengaluru; Editing by Sahal Muhammed)