Prologis tops revenue expectations, lifts FFO outlook as ‘demand remains healthy’

Prologis Inc.
PLD,
+2.82%
reported Tuesday first-quarter revenue that rose above expectations, as funds from operations (FFO) that matched forecasts, saying demand remains “healthy.” The logistics real estate company’s stock slipped 0.1% in premarket trading. Net income dropped to $463 million, or 50 cents a share, from $1.15 billion, or $1.54 a share, in the year-ago period. Core FFO rose $1.22 from $1.09, in line with the FactSet consensus of $1.22. Total revenue grew 45.1% to $1.77 billion, above the FactSet consensus of $1.63 billion. Average occupancy improved to 98.0% from 97.4% a year ago. For 2023, the company nudged up its core FFO guidance range to $5.42 to $5.50 from $5.40 to $5.50, and its average occupancy guidance range to 97.00% to 97.50% from 96.50% to 97.50%. “Demand remains healthy, despite some moderating in terms of decision-making,” said Chief Executive Hamid Moghadam. “Given the macroenvironment, we continue to operate our business with a degree of caution.” The stock rose 9.2% year to date through Monday, while the Real Estate Select Sector SPDR exchange-traded fund
XLRE,
+2.27%
has tacked on 1.4% and the S&P 500
SPX,
+0.33%
gained 8.1%.