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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