Prologis shakes off COVID headwinds to Q2 beat and raise

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Prologis Inc. (NYSE: PLD), the world’s leading logistics real estate investment trust (REIT), reported second quarter 2020 core funds from operations (FFO) of $1.11 per share, $0.12 per share better than the consensus estimate.

“Our results for the quarter were excellent, driven by strong operating performance and record promote income. I’m proud of our team members who have worked tirelessly to navigate the current environment. While e-commerce is clearly a tailwind, demand is broad-based across a variety of categories – a trend we saw accelerate in June,” said Prologis chairman and CEO Hamid R. Moghadam.

Total revenue was 60% higher year-over-year at $1.27 billion, with rental revenue increasing 35% to $944 million. Leases commenced increased 14% in the period to 42 million square feet. However, the company’s occupancy rate dipped 110 basis points to 95.7%.

Prologis raised its 2020 guidance for core FFO to $3.70 to $3.75 per share, compared to the prior range of $3.55 to $3.65 per share and ahead of the consensus estimate of $3.59 per share.

“While the economic impact of COVID-19 remains unknown, the combination of what we see in our proprietary data, the pace of rent collections, and dialogue with our customers gives us a more positive outlook for the back half of the year,” said chief financial officer Thomas S. Olinger.

Shares of PLD are up 5% in pre-market trading.

The company hosts a conference call today at noon and FreightWaves plans to provide commentary from the call in a later article.

Click for more FreightWaves articles by Todd Maiden.

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