Prologis Inc. PLD reported core funds from operations of 97 cents per share Monday, 3 cents ahead of the consensus estimate and 14 cents better than the year-ago quarter.
The San Francisco-based logistics real estate investment trust said occupancy was steady in the quarter at 95.4% with leases commenced (43.9 million square feet) increasing 25.4% year-over-year.
"The robust demand from the fourth quarter has carried into 2021 and is as strong as I have seen in my career," said Hamid Moghadam, Prologis chairman and CEO. "Global supply chains are pushing to keep pace with accelerating economic activity, retooling for faster fulfillment and resilience."
The better-than-expected quarter provided the catalyst for raised 2021 guidance. Core FFO guidance was raised to a range of $3.98 to $4.04 per share, compared to the current consensus estimate of $3.98.
Occupancy expectations were taken 50 basis points higher at the midpoint of the new range of 96.25% to 96.75%. The outlook increased even as new properties are coming online to meet surging demand for logistics space.
New development starts were raised 16% to a range of $2.75 billion to $3.05 billion.
The company will host a call at noon Monday to discuss these results with analysts. Stay tuned to FreightWaves for continuing coverage of Prologis' earnings report.
Prologis Ventures is an investor in FreightWaves.
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