SAN FRANCISCO - Prologis , Inc. (NYSE: NYSE:PLD), a global leader in logistics real estate, reported a strong start to the year, surpassing analyst estimates for the first quarter of 2024. The company announced earnings per share (EPS) of $0.63, which was $0.05 higher than the analyst consensus of $0.58. Revenue for the quarter also exceeded expectations, coming in at $1.96 billion against a consensus estimate of $1.84 billion.
The company's net earnings per diluted share saw an increase from $0.50 in the first quarter of the previous year to $0.63 in the current quarter. Prologis' core funds from operations (Core FFO) per diluted share for the first quarter rose to $1.28, up from $1.22 YoY. Additionally, Core FFO, excluding Net Promote Income (Expense), reached $1.31 per diluted share, a slight increase from $1.23 in the first quarter of 2023.
Prologis' CEO, Hamid R. Moghadam, acknowledged the healthy operating conditions in most markets but noted that customers' focus on cost control is affecting leasing decisions and the pace of leasing. Despite near-term macroeconomic uncertainties and a volatile interest rate environment, the company remains optimistic about its business fundamentals and is prepared for a potential slowdown in the coming quarters.
The company's financial strength was highlighted by CFO Timothy D. Arndt, who pointed out Prologis' liquidity of almost $6 billion at the quarter's end, low leverage, and earnings insulated from foreign exchange movements. Prologis issued $4.1 billion of debt at a weighted average interest rate of 4.7% and a weighted average term of 9.5 years during the quarter.
Looking ahead, Prologis has updated its full-year guidance for 2024, anticipating net earnings attributable to common stockholders to be between $3.15 and $3.35, reflecting a decrease of 2.3% at the midpoint. This revised guidance is significantly above the analyst consensus of $2.47. Core FFO is expected to be between $5.37 and $5.47, a 1.3% decrease at the midpoint from previous projections. Despite the adjustments, the company expects Core FFO growth, excluding promotes, of nearly 8%, and Cash Same Store NOI growth to be 6.75%.
Prologis' strategic capital revenue guidance remains unchanged, and the company continues to project strong development stabilizations and contributions for the year. The company's balance sheet strength and strategic financial management position it well to navigate any short-term challenges while capitalizing on long-term growth opportunities.
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