Prologis beats Q3 expectations

Occupancy ticks lower, remains firm at 97.1%

Prologis slightly raises full-year 2023 outlook. (Photo: Jim Allen/FreightWaves)

Logistics real estate operator Prologis beat third-quarter estimates Tuesday before the market opened but noted softened demand.

The San Francisco-based company reported core funds from operations (FFO) of $1.30, 5 cents ahead of analysts’ expectations but 43 cents lower year over year (y/y).

“Our results reflect strong execution by our team and the quality of our global portfolio,” said co-founder and CEO Hamid Moghadam. “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.”

Link to full story – Prologis sees demand uncertainty, posts Q3 beat

Occupancy across Prologis’ (NYSE: PLD) portfolio was 97.1% in the quarter, 60 basis points lower y/y. It commenced leases on 46.4 million square feet of space, which was a 9% reduction compared to the year-ago period.

Net effective rent change (over the entire lease term) was up more than 24 percentage points to 84%.

Prologis raised the front end of its guidance range by 2 cents to reflect the beat. The new range is $5.58 to $5.60, which brackets the current consensus estimate.

The company will host a call Tuesday at 12 p.m. EDT to discuss third-quarter results.

Link to full story – Prologis sees demand uncertainty, posts Q3 beat

Table: Prologis’ key performance indicators

More FreightWaves articles by Todd Maiden

Upcoming FreightWaves Events
FreightTech

F3: Future of Freight Festival

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

October 27, 2026 – October 28, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
FreightTech F3: Future of Freight Festival Oct 27 – Oct 28 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now

Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.