SAN FRANCISCO, CA – Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, has released its third-quarter results for 2023, surpassing market expectations.
In the latest report, Prologis revealed that net earnings per diluted share for the third quarter of 2023 were $0.80, a notable performance compared to $1.36 for the same period in 2022. Core funds from operations (Core FFO)* per diluted share came in at $1.30 for Q3 2023, demonstrating resilience despite the evolving economic landscape, as it compared to $1.73 in the third quarter of 2022. Core FFO, excluding Net Promote Income* per diluted share, registered at $1.33 for the third quarter of 2023, a substantial increase from the $1.16 reported for the third quarter of 2022.
Hamid R. Moghadam, co-founder, and CEO of Prologis, commented on the results, stating, “Our results reflect strong execution by our team and the quality of our global portfolio. That said, until there is more stability in the economy, negative customer sentiment will weigh on demand. We remain focused on capturing our embedded lease mark-to-market, building out our land bank into a favorable future supply environment, and partnering with our customers to address their most critical pain points.”
Prologis reported an average occupancy rate of 97.1% for the third quarter, emphasizing their dedication to maintaining a robust portfolio of logistics real estate assets.
Timothy D. Arndt, chief financial officer at Prologis, expressed pride in the company’s prudent financial management. He stated, “We have worked hard and with discipline to build an industry-leading balance sheet, which we continue to manage prudently. Incredibly, our balance sheet has only strengthened over the last year in terms of coverage and liquidity, something we’re very proud of and allows us to be opportunistic amidst challenging markets.”
During the third quarter, Prologis, in collaboration with its co-investment ventures, issued a total of $1.4 billion in debt at a weighted average interest rate of 3.2% and an average term of 5.9 years.
As of September 30, 2023, debt as a percentage of total market capitalization stood at 22.3%. The company’s weighted average interest rate on its share of total debt was 2.9%, with an average term of 9.5 years. Importantly, the company does not face any significant debt maturities until 2026, providing financial stability and flexibility.
In its forward-looking guidance, Prologis projects earnings per share (EPS) for the full year 2023 to be in the range of $3.30 to $3.35, exceeding the analyst consensus of $2.94.
Prologis Inc (PLD) stock opened today at $110.24, indicating positive market sentiment and confidence in the company’s financial performance.
