PLD Prologis

   By Micah Maidenberg 
 

Prologis Inc. (PLD) said occupancies slipped in its warehouses during the third quarter but the company still exceeded Wall Street forecasts for a key profit metric.

San Francisco-based Prologis said Tuesday that core funds from operations--an adjusted profit metric investors follow that excludes depreciation and certain other costs--rose to 97 cents a share for the quarter.

That beat expectations from analysts polled by FactSet by three cents.

The company reported earnings of $450.6 million, or 71 cents a share, on a GAAP basis, compared with $346.3 million, or 60 cents a share, the year earlier.

Rental revenue rose 17% compared with last year, to $711 million.

The company reported its warehouses were 96.5% occupied at the end of the quarter, down one percentage point from last year. The drop is due to its decision to prioritize rents over boosting occupancies, Prologis said.

In July, Prologis agreed to purchase warehouse owner Industrial Property Trust in a deal valued at $3.99 billion including debt.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

October 15, 2019 08:29 ET (12:29 GMT)

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