Prologis Misses Q4 Topline Estimates, Eyes Bright 2024 Amid Uncertainties

Prologis Inc PLD shares are trading lower after the company reported fourth quarter FY23 results.

Rental revenue of $1.76 billion missed the consensus estimates of $1.81 billion.

Core funds from operations per diluted share was $1.26, higher than $1.24 a year ago. Net earnings per share rose to $0.68 from $0.63 a year ago. 

The company’s average occupancy stood at 97.1%, with a leased 36.8MSF operating portfolio and a 6.9MSF development portfolio.

During the quarter, Prologis and its co-investment ventures issued an aggregate of $286 million of debt at a weighted average interest rate of 2.0% and a weighted average term of 4.0 years.

“We had another strong year of earnings with annual growth in Core FFO of nearly 11%, excluding promotes. Since our merger 12 years ago, the earnings and dividend growth CAGRs have been approximately 10%, while reducing leverage by over 30 percentage points,” said Timothy D. Arndt, chief financial officer.

FY24 Guidance: PLD expects net earnings per share of $3.20 to $3.45 and core FFO attributable to common stockholders of $5.42 to $5.56. Average occupancy is expected to be 96.50% to 97.50% in FY24.

Hamid R. Moghadam, co-founder and CEO said, “While uncertainties remain in the economic and geopolitical environment, we are positive about the outlook for 2024.”

Price Action: PLD shares are trading lower by 1.47% to $128.05 on the last check Wednesday.

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