Key Takeaways
- Prologis, the world’s largest industrial real estate company, said that despite subdued customer demand, it sees an improvement ahead and boosted its full-year outlook.
- The real estate investment trust (REIT) also reported better-than-expected core funds from operations when it released second-quarter earnings Wednesday.
- Chief Financial Officer Timothy Arndt said Prologis is capitalizing on a “wide range” of growth opportunities.
Prologis (PLD) shares gained Wednesday as the world’s largest industrial real estate company posted better-than-expected earnings for the second quarter and raised its outlook because of improving demand.
The real estate investment trust (REIT) reported second-quarter earnings per share (EPS) of 92 cents, with core funds from operations (FFO) at $1.34 per share, beating estimates. Revenue fell 18.1% to $2.01 billion, just short of forecasts.
Prologis Chief Financial Officer Timothy Arndt said that Prologis is “capitalizing on a wide range of growth opportunities, including our data-center and energy businesses.”
Prologis Says Demand Is Improving
Co-founder and Chief Executive Officer Hamid Moghadam said that even though customer demand remained subdued, “it is improving, and we expect that trend to continue as the construction pipeline shrinks.”
The company now anticipates full-year net EPS of $3.25 to $3.45, compared with its previous outlook of $3.15 to $3.35. Prologis expects core FFO per share in a range of $5.39 to $5.47, versus the earlier $5.37 to $5.47 forecast.
Despite Wednesday’s advance of 1.4% to $123.21 Wednesday, shares of Prologis remain in negative territory for 2024.
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