Prologis net income skyrockets in Q3

The industrial and logistics real estate specialist saw net earnings grow over 90 percent and revenues up nearly 40 percent, respectively, compared to the third quarter of 2014, according to the company’s most recent financial statements.    Prologis, Inc. increased net earnings attributable to common stockholders 90.1 percent to $258.98 million in the third quarter of 2015 compared with the third quarter of 2014, according to the company’s most recent financial statements.
   The San Francisco, Calif.-based industrial and logistics real estate specialist reported revenues of $258.98 million during the third quarter, a 39.9 percent increase from last year.
   Net diluted earnings per share for the quarter more than doubled compared to the previous year, increasing from $0.23 per share in Q3 2015 to $0.49 per share in Q3 2014.
   The company attributed the strong results primarily to higher rents and occupancy rates. Occupancy rates for real estate Prologis owns and manages crept up from 95 percent to 96 percent in the third quarter compared to a year earlier.
   Eugene Reilly, head of Prologis in the Americas, told analysts and investors on the company’s earnings call vacancy rates in the U.S. specifically are approaching record lows, with a few cities in the low single digits and several more markets expected to reach those levels in 2016.
   “We have had strong cycles in the past, but nothing approaching this,” said Reilly.
   For the first nine months of 2015, Prologis has grown its net earnings an astounding 248.5 percent to $744.43 compared with the same period in 2014. Total revenues were up 18.3 percent to $1.55 billion for the first three quarters of the year, and diluted EPS jumped to $1.41 per share compared with $0.43 per share in the same period last year.
   “The team produced exceptionally strong financial and operating results in the third quarter,” Chairman and CEO Hamid Moghadam said in a statement. “The underlying trends in our businesses continue to be favorable, and as we look across our global portfolio, rents are trending higher while supply remains in check.”
   Prologis, Inc. was formed in June 2011 from the merger of Prologis and AMB Property Corp, then the two largest publicly traded warehousing companies in the U.S. As of the end of the third quarter, Prologis owns or has investments in properties and development projects totaling approximately 671 million square feet in 21 countries. The company has over 5,200 customers, primarily in the third-party logistics, transportation, retail and manufacturing sectors.