Prologis Cites Strong Operating Conditions as Revenue Grows
April 19 2016 - 9:36AM
Dow Jones News
By Austen Hufford
Industrial real-estate company Prologis Inc. (PLD) posted a
large gain in revenue from strong operating conditions and
acquisitions, though profit dropped from the year-earlier quarter
that was boosted by asset sales.
Chief Executive Hamid Moghadam said operating conditions remain
"extremely healthy" and above the company's expectations in a
majority of markets. The company projected 2016 earnings per share
of 87 cents to 95 cents, up from the previously predicted range of
28 cents to 36 cents. It reaffirmed its expectation for core funds
from operations of $2.50 to $2.60 a share. Analysts polled by
Thomson Reuters projected core FFO of $2.56.
The current Prologis was formed in June 2011, when the nation's
two biggest publicly traded warehouse owners--Prologis and AMB
Property Corp.--merged in one of the largest real-estate deals
since the recession.
Last April, the owner of warehouses and distribution centers
agreed to buy industrial-property owner KTR Capital Partners for
$5.9 billion. During the quarter, Prologis said it completed $1.2
billion of refinancings and fully retired the $400 million
short-term financing associated with its KTR acquisition. After the
quarter ended, Prologis increased its global line of credit by $640
million to $3.0 billion. It now matures in 2021.
In the latest quarter, Prologis said occupancy for real estate
it owns and manages increased to 96.1% from 95.9% a year
earlier.
In all for the period ended March 31, Prologis's profit fell to
$209.7 million from $346.9 million a year earlier, which was
boosted by a one-time gain of $341.9 million. On a per-share basis
after the payout of preferred dividends, the company earned 23
cents a share, down from 81 cents a year earlier.
Core funds from operations were 61 cents a share, up from 49
cents a share a year prior. Revenue surged 31% to $606 million.
Analysts had forecast 10 cents a share in earnings on $562
million in revenue and 59 cents of core FFO.
Prologis shares, up 16% in the last three months, were inactive
in early trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
April 19, 2016 09:21 ET (13:21 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Prologis (NYSE:PLD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Prologis (NYSE:PLD)
Historical Stock Chart
From Sep 2023 to Sep 2024