Prologis Tops Earnings Expectations as Rental Demand Rises
July 19 2016 - 9:27AM
Dow Jones News
By Lisa Beilfuss
Prologis Inc. said earnings nearly doubled in its latest quarter
as the owner of warehouses and distribution centers continues to
benefit from companies' demand for storage space as they shift to
e-commerce.
"Demand remains ahead of supply in both the U.S. and Europe,
leading to all-time low vacancy rates," said Chief Executive Hamid
Moghadam. As consumers are increasingly shopping online, opting to
make purchases on sites like Amazon.com instead of at physical
locations, companies still need to adapt their supply chain
strategies, Mr. Moghadam said.
Occupancy across Prologis sites was 96.1% during the quarter, up
from 95.4% a year earlier, and revenue from rent jumped 18%.
In all, the company reported a profit of $277.1 million, or 52
cents a share, up from $141.9 million, or 27 cents, a year earlier.
Core funds from operations increased to 60 cents a share from 52
cents. Revenue rose 18% to $546.1 million.
Analysts projected 59 cents a share in adjusted funds from
operations on $564.9 million in sales, according to Thomson
Reuters.
Prologis on Tuesday updated its outlook for the year, tightening
its forecast for core funds from operations to $2.52 to $2.58 a
share. Analysts have been looking for $2.56 a share this year.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
July 19, 2016 09:12 ET (13:12 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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