By Micah Maidenberg

 

Prologis Inc. said demand for its properties was strong in the first quarter, reflecting the broader economic recovery from the Covid-19 pandemic.

The owner of warehouses and logistics properties said net income attributable to controlling interests in the company fell to $367.3 million for the fourth quarter from $491.1 million for the year-earlier period. Profit for common stockholders decreased to 49 cents from 70 cents on a per-share basis, the company said.

Core funds from operations increased to 97 cents a share from 83 cents a share, Prologis said. Analysts polled by FactSet predicted 94 cents a share for that earnings metric, which excludes gains and losses from property sales and excludes depreciation, among other adjustments.

Rental revenue increased to $1.02 billion from $879 million, the company said, therefore beating the $987 million consensus estimate.

Total revenue increased to $1.15 billion from $978 million.

Average occupancy in Prologis's properties stood at 95.4% in the first quarter, down a bit from 95.8% in the fourth quarter. Rents increased 27% in the latest quarter on a net-effective basis.

The company started another 43.9 million square feet of leases during the quarter.

"The robust demand from the fourth quarter has carried into 2021 and is as strong as I have seen in my career. Global supply chains are pushing to keep pace with accelerating economic activity, retooling for faster fulfillment and resilience," Chief Executive Hamid Moghadam said in a statement.

 

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

 

(END) Dow Jones Newswires

April 19, 2021 08:51 ET (12:51 GMT)

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