Shares of Prologis Inc.
PLD,
edged up 0.1% in premarket trading Tuesday after the logistics real estate company reported third-quarter earnings that fell from a year ago but beat expectations, while occupancy and leases commenced fell. Net earnings fell to $746 million, or 80 cents a share, from $1.01 billion, or $1.36 a share, in the year-ago period. Core funds from operations (FFO) fell to $1.30 from $1.73 but beat the FactSet consensus of $1.26. Total revenue grew 9.4% to $1.92 billion, above the FactSet consensus of $1.72 billion, as rental and other revenue jumped 53.8% to $1.78 billion. Average occupancy was 97.1%, compared with 97.5% in the sequential second quarter and 97.7% a year ago, while leases commenced of 46.4 million square feet was up from 43.3MSF in Q2 but down from 51.0MSF last year. “[U]ntil there is more stability in the economy, negative customer sentiment will weigh on demand,” said Chief Executive Hamid Moghadam. For 2023, the company nudged up its core FFO guidance range to $5.58 to $5.60 from $5.56 to $5.60. The stock has dropped 13.3% over the past three months through Monday, while the Real Estate Select Sector SPDR ETF
XLRE,
has lost 9.8% and the S&P 500
SPX,
has slipped 3.3%.
