PLD Prologis

By Dean Seal

Prologis Inc. raised its annual earnings and occupancy guidance on Tuesday with the expectation that demand will remain steady.

The San Francisco-based industrial-property landlord expects earnings to be between $3.10 and $3.25, up 10 cents from the low and high ends of its prior outlook.

Core funds from operations, a measure of operating performance, are projected to be at least $5.42, up 2 cents from previous guidance, and as high as $5.50.

Prologis forecasts average occupancy across its owned and managed portfolio to be between 97% and 97.5%, raising the low end of its prior projection by half a percentage point.

The company also raised its general and administrative expense forecast by 2% at the midpoint to between $380 million and $390 million.

Chief Executive Hamid R. Moghadam said demand remains healthy despite "some moderating in terms of decision-making," and that the company is operating cautiously. Prologis expects that any dent in demand would overlap with a deceleration in new deliveries, maintaining momentum for high occupancy and continued rent growth next year, he said.

Shares ticked up less than 1% to $124 in premarket trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

April 18, 2023 08:48 ET (12:48 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.