Deutsche Bank Reports Soft 1Q For Prologis

According to Deutsche Bank, Prologis

1Q was a “bit soft”. Deutsche Bank said that though 1Q results were a bit softer-than-expected, PLD's unchanged guidance implies a faster ramp than it had been modeling. “At this point, we think this is achievable given signs of improvement in the economy, though we acknowledge that the risks to our estimates have increased. With the shares trading at 23x our updated '12e FAD est and a 5.2% implied cap rate, we think much of the potential upside in the shares and perhaps some of the benefits of the pending merger with AMB are already priced in. Therefore, we maintain our Hold rating.” Prologis closed yesterday at $15.90.