San Francisco – Prologis Inc. (NYSE: NYSE:), a global leader in logistics real estate, reported a strong start to the year, exceeding analyst expectations for the first quarter of 2024. The company announced that its earnings per share (EPS) was $0.63. This beat the analyst consensus of $0.58 by $0.05. Revenue for the quarter also exceeded expectations, coming in at $1.96 billion, compared to the consensus estimate of $1.84 billion.
The company's diluted net income per share increased to $0.63 in the current quarter from $0.50 in the first quarter last year. Prologis' first-quarter core funds per diluted share (core FFO) rose to $1.28 from $1.22 year-over-year. Additionally, core FFO excluding net promotional income (expenses) amounted to $1.31 per diluted share, up slightly from $1.23 in Q1 2023.
Hamid R. Moghaddam, CEO of Prologis, acknowledged that business conditions continue to be healthy in most markets, but that customers focused on cost control are slowing down leasing decisions and the pace of leasing. It was pointed out that it was having an impact on Despite near-term macroeconomic uncertainty and a volatile interest rate environment, the company remains optimistic about the fundamentals of its business and is bracing for a potential slowdown in the coming quarters.
The company's financial strength was highlighted by Chief Financial Officer Timothy D. Arndt, who noted Prologis' liquidity of approximately $6 billion at quarter end, low leverage, and revenue growth. He pointed out that it is isolated from exchange rate fluctuations. Prologis issued $4.1 billion in bonds during the quarter with a weighted average interest rate of 4.7% and a weighted average term of 9.5 years.
Looking forward, Prologis has updated its full-year guidance for 2024 and now expects net income attributable to common stockholders to be between $3.15 and $3.35, reflecting a 2.3% decline at the midpoint. . This revised guidance is significantly higher than the analyst consensus of $2.47. Core FFO is expected to be between $5.37 and $5.47, down 1.3% from the previous forecast at the midpoint. Despite the adjustment, the company expects core FFO growth excluding promotions to be nearly 8% and cash same-store NOI growth to be 6.75%.
Prologis' strategic return on capital guidance remains unchanged, and the company continues to expect strong development stabilization and contribution this year. The company's balance sheet strength and strategic financial management position it to successfully navigate short-term challenges while capitalizing on long-term growth opportunities.
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