Logistics real estate investment trust Prologis Inc. beat first-quarter expectations and raised full-year guidance on Tuesday.
Core funds from operations (FFO) of $1.09 per share outpaced analysts’ expectations by 2 cents and were 12 cents higher than the year-ago period. Prologis (NYSE: PLD) expects 2022 net earnings to be in the range of $4.85 to $5 per share, 10% higher than its outlook provided at the beginning of the year. Core FFO guidance was raised nearly 2% to a range of $5.10 to $5.16 per share and ahead of the consensus estimate of $5.04 at the time of the print.
“The need for resilience in the supply chain continues to drive record demand despite today’s economic and geopolitical risks,” Hamid Moghadam, co-founder and CEO, stated in a press release. “With our well-positioned portfolio, irreplaceable land bank, abundant investment capacity and differentiated customer solutions, we expect to continue to outperform while delivering exceptional customer service.”
Occupancy remained high at 97.4%, in line with the fourth quarter and 200 basis points higher year-over-year. By quarter end, 98.1% of Prologis’ portfolio was leased.
Net effective rent change (average rate over the life of the lease) was 37% across the entire portfolio and 41.5% in the U.S.
Shares of PLD were up 2.1% in early trading Tuesday compared to the S&P 500, which was up 0.7%.
The company will host a call at noon Tuesday 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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