PLD Prologis

By Austen Hufford

Prologis Inc. (PLD) said revenue and profit rose in its latest quarter as the owner of warehouses and distribution centers said its customers continued to increase investment in their supply chains.

"Customers continue to invest in their supply chains to improve efficiencies," Chief Executive Hamid Moghadam said. "Their requirements for logistics facilities are matching up very well with our properties' locations and functional characteristics."

Results in the quarter were driven by e-commerce, automotive, consumer products and construction supplies.

The company raised its guidance for the year, now expecting earnings per share of between $1.90 to $1.95 from $1.70 to $1.90 previously.

It also said it expects annual core funds from operations to be between $2.56 to $2.57 a share compared with between $2.52 and $2.58 previously. Analysts polled by Thomson Reuters had expected $2.57.

Occupancy across Prologis sites was 96.6% during the quarter, up from 96% a year prior.

In all, the company reported a profit of $280.9 million, or 52 cents a share, up from $260.7 million, or 49 cents, a year prior. Core funds from operations increased to 73 cents a share from 58 cents. Revenue rose 21% to $705 million.

Analysts projected 70 cents a share in adjusted funds from operations on $555 million in sales.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

October 20, 2016 09:06 ET (13:06 GMT)

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