Logistics warehouse operator Prologis beat third-quarter consensus expectations and slightly raised its full-year outlook on Wednesday.
Join the leaders shaping freight’s future at
F3: Future of Freight Festival, Oct 21-22.
Network with the industry’s best and discover what’s next.
Consolidated revenue of $2.21 billion was 9% higher year over year and ahead of analysts’ expectations of $2.03 billion. Core funds from operations (FFO) of $1.49 were 5 cents higher than consensus.
Click for full report – “Prologis sees warehouse market nearing upcycle”
New leases commenced in the period increased 29% y/y to 65.6 million square feet. Average occupancy fell 110 basis points y/y to 94.8%, but appears to have bottomed, remaining in line with the first two quarters of the year. (Occupancy was 95.3% to close the third quarter.)
“Our record leasing this quarter underscores the strength and resilience of our platform,” said Hamid Moghadam, Prologis co-founder and CEO, in a news release. “With a solid pipeline, improving customer sentiment and limited new supply, the logistics market is setting up for the next inflection in rent and occupancy growth — one of the most compelling setups I’ve seen in 40 years.”
Prologis (NYSE: PLD) slightly raised its full-year FFO guidance to a range of $5.78 to $5.81 per share, which was ahead of a consensus estimate of $5.77 at the time of the print.
The new outlook assumes average occupancy in a range of 94.75% to 95.25% (no change from the second quarter) and development starts between $2.75 billion and $3.25 billion (a $500-million increase at both ends of the range).
The company is expanding its data center portfolio. It currently has 5.2 gigawatts of utility-fed capacity installed or committed.
Click for full report – “Prologis sees warehouse market nearing upcycle”
Shares of PLD were up 0.7% in premarket trading on Wednesday.
Prologis will host a call at noon EDT on Wednesday to discuss third-quarter results.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
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.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-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