Prologis Outpaces Revenue Expectations In Q3; Revises Full-Year Guidance

Prologis Inc PLD reported Q3 FY23 rental revenues of $1.78 billion, beating the consensus estimates of $1.73 billion.

Core funds from operations per diluted share was $1.30 for Q3, lower than $1.73 a year ago.

Net earnings per share fell to $0.80 from $1.36 a year ago. 

As of Q3 FY23, the company's average occupancy stood at 97.1%, with leased 42.3MSF operating portfolio and 4.1MSF development portfolio.

"Our results reflect strong execution by our team and the quality of our global portfolio. That said, until there is more stability in the economy, negative customer sentiment will weigh on demand. We remain focused on capturing our embedded lease mark-to-market, building out our land bank into a favorable future supply environment, and partnering with our customers to address their most critical pain points." said Hamid R. Moghadam, co-founder and CEO.

During Q3, Prologis and its co-investment ventures issued an aggregate of $1.4 billion of debt at a weighted average interest rate of 3.2% and a weighted average term of 5.9 years.

The San Francisco-based company has no significant debt maturities until 2026.

Guidance Revised: PLD updated FY23 guidance for net earnings per share to $3.30 to $3.35 (from $3.30 to $3.40) and core FFO attributable to common stockholders to $5.58 to $5.60 (prior view: $5.56 to $5.60).

Average occupancy is now expected to be between 97.25% to 97.50% (from 97% to 97.50% earlier).

Price Action: PLD shares are trading higher by 0.14% to $111.04 at last check Tuesday. 

Now Read: Tesla Recalls Nearly 55,000 Model X; Applies Fix Via OTA Update

Photo: Shutterstock