Logistics real estate investment trust Prologis Inc. raised its full-year 2022 guidance Monday, noting the market indicators it follows “remain strong.”
“The pandemic drove record demand for the past two years, which translated into all-time low vacancies and unprecedented rent growth,” Hamid Moghadam, co-founder and CEO, said in a news release. “As conditions normalize, we are still seeing healthy demand that rivals past peak cycles and, informed by our proprietary data insights, we expect strong demand for our properties to continue.”
Prologis (NYSE: PLD) now expects net earnings per share of $5.15 to $5.25, a 5.6% increase from the midpoint of the range issued a quarter ago. The company upped guidance by 10% when it reported first-quarter results in mid-April.
Ahead of the market open on Monday, Prologis reported second-quarter core funds from operations (FFO) of $1.11 per share, which was in line with the consensus estimate but 10% higher year over year. Occupancy of its portfolio increased 160 basis points to 97.6% during the period and net effective rent change — the average rate change over the life of the lease — was 45.6% compared to 31.5% in the 2021 second quarter. The metric averaged 54% in the U.S.
The company still expects new facility development starts to range between $4.5 billion and $5 billion. In June, Prologis entered into an agreement to acquire Duke Realty (NYSE: DRE) for $26 billion. The all-stock transaction is expected to close by the end of the year.
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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