Prologis (NYSE:PLD), the San Francisco-based industrial-property landlord, reported a drop in Q3 earnings on Tuesday. The company's earnings fell to $747.6 million, or 80 cents per share, down from last year's $1.02 billion or $1.36 per share, as noted by Will Feuer. Despite the drop in earnings, Prologis's core funds from operations, primarily from its industrial properties, exceeded FactSet analysts' expectations at $1.30 per share against the projected $1.26 per share.
The company's total revenue rose to $1.92 billion and rental revenue significantly surged to $1.78 billion from last year's $1.16 billion. This aligns with the data from InvestingPro, which shows a revenue growth of 49.88% for the last twelve months. However, costs also increased by over 37% to reach $1.25 billion. The average occupancy rate in Prologis's portfolio dipped slightly to 97.1% from 97.5% in the previous quarter. Amid economic instability, CEO Hamid Moghadam expressed concerns about future demand. According to InvestingPro Tips, Prologis has been a prominent player in the Industrial REITs industry and has maintained dividend payments for 13 consecutive years.
On the same day, Bank of America reported a 10% increase in their Q3 earnings to $7.8 billion or 90 cents per share, surpassing expectations. Revenue also rose by 3% to $25.2 billion, slightly above estimates. This mirrors the InvestingPro data showing a revenue growth of 5.63% for the last twelve months. However, unrealized losses grew in its securities portfolio bought during low-interest rates, negatively impacting its share price which fell 18.5% this year through Tuesday.
Bad loans escalated with net charge-offs reaching $931 million, leading the bank to augment its rainy day funds for potential future loan losses. CEO Brian Moynihan discussed these results in light of a slowing but resilient economy, with U.S. consumer spending still ahead of last year. Notably, Bank of America has maintained dividend payments for 53 consecutive years, according to InvestingPro Tips.
Other major banks like JPMorgan Chase (NYSE:JPM), Wells Fargo, and Citigroup (NYSE:C) also reported increased earnings from the previous year due to the economy's resilience against higher interest rates. Bank of America reported an 8% growth in adjusted trading revenue to $4.4 billion, a 4% increase in net interest income to $14.4 billion, and a rise in investment banking fees to about $1.3 billion, while noninterest income remained stable at $10.8 billion. For more insights, consider checking out the InvestingPro platform, which offers an array of useful tips and real-time metrics for investors.
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