Prologis Shares Higher After Earnings, Guidance Boost
April 19 2022 - 1:46PM
Dow Jones News
By Michael Dabaie
Prologis Inc. shares rose 2.7% to $167.40 after the logistics
real estate company reported first quarter results above analyst
expectations and boosted 2022 guidance.
Prologis reported first-quarter per-share earnings of $1.54, up
from 49 cents the same period a year earlier, and beating the
FactSet consensus for 68 cents.
Per-share core funds from operations came to $1.09 for the
quarter, compared to the $1.07 expected.
"The need for resilience in the supply chain continues to drive
record demand despite today's economic and geopolitical risks,"
Chief Executive Hamid Moghadam said.
"Our lease mark-to-market of 47 percent provides substantial
embedded earnings growth for years to come even without any further
increase in market rents," Chief Financial Officer Timothy Arndt
said. "The long-term growth outlook for our business and balance
sheet has never been stronger."
Prologis raised its 2022 profit guidance to $4.85 to $5 a share
from its previous outlook of $4.40 to $4.55. The company boosted
outlook for per-share core FFO to $5.10 to $5.16, from $5 to
$5.10.
"Prologis kicked off industrial REIT 1Q earnings season with
another strong quarterly print and raised 2022 guidance that
reaffirms our bullish outlook on logistics focused industrial REITs
and, more specifically, Strong Buy-rated PLD shares," Raymond James
analysts William A. Crow and Ronak Patel said in a research
note.
The sector continues to benefit from factors like strong demand
by logistics providers, the shift in consumer habits from
brick-and-mortar stores, online consumer adoption rates
skyrocketing and increased demands from consumer returns, the
analysts said.
"Prologis is ideally positioned with exposure to infill and
urban submarkets and major transportation nodes across the largest
global markets that have close access to the end consumer
population," the Raymond James note said.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
April 19, 2022 13:31 ET (17:31 GMT)
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