Prologis earnings fall but beat expectations, while occupancy declines

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Tomi Kilgore is MarketWatch's deputy investing and corporate news editor and is based in New York. You can follow him on Twitter @TomiKilgore.

Shares of Prologis Inc. PLD, +1.16% edged up 0.1% in premarket trading Tuesday after the logistics real estate company reported third-quarter earnings that fell from a year ago but beat expectations, while occupancy and leases commenced fell. Net earnings fell to $746 million, or 80 cents a share, from $1.01 billion, or $1.36 a share, in the year-ago period. Core funds from operations fell to $1.30 from $1.73 but beat the FactSet consensus of $1.26. Total revenue grew 9.4% to $1.

Average occupancy was 97.1%, compared with 97.5% in the sequential second quarter and 97.7% a year ago, while leases commenced of 46.4 million square feet was up from 43.3MSF in Q2 but down from 51.0MSF last year. “ntil there is more stability in the economy, negative customer sentiment will weigh on demand,” said Chief Executive Hamid Moghadam. For 2023, the company nudged up its core FFO guidance range to $5.58 to $5.60 from $5.56 to $5.60. The stock has dropped 13.

 

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