Prologis (PLD) Beats Q1 Expectations With $0.63 EPS, $6.72 B in Revenue
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Prologis (PLD) Beats Q1 Expectations With $0.63 EPS, $6.72 B in Revenue

Prologis, Inc. (PLD) has reported strong financial results for Q1 2024, showcasing growth and operational excellence.
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Prologis, Inc. (NYSE: PLD) has reported its financial results for the first quarter of 2024, showcasing a continued trend of growth and operational excellence.

The company, a global leader in logistics real estate, has demonstrated its ability to thrive in a dynamic market environment, leveraging its high-barrier, high-growth market strategy to deliver solid financial and operational performance.

Prologis Reports $5.8 B in Q1 Net Operating Income

In the first quarter of 2024, Prologis, Inc. reported notable achievements in both financial and operational metrics. The company’s strategic positioning in key global logistics markets has enabled it to capitalize on the increasing demand for modern logistics facilities.

With a portfolio that spans approximately 1.2 billion square feet across 19 countries, Prologis leases these facilities to a diverse customer base, highlighting the strength and resilience of its business model.

The first quarter saw the company achieving an annualized Net Operating Income (NOI) of $5.8 billion, demonstrating the effectiveness of its operational strategies and the quality of its asset portfolio.

Moreover, the company reported significant value creation from development stabilizations, amounting to $691 million. This achievement underscores Prologis’ expertise in developing and stabilizing high-quality logistics properties, which remains a key growth driver.

The company’s Gross Asset Under Management (AUM) stood at $216 billion, with Prologis’ share of AUM at $157 billion, further illustrating the scale of its operations and its position as a leading player in the logistics real estate sector.

Performance Against Expectations

The performance of Prologis in the first quarter of 2024 surpassed expectations on several fronts. Analysts had projected an Earnings Per Share (EPS) of $0.58 and revenue of $1.84 billion for the quarter.

However, Prologis outperformed these projections, reporting an EPS of $0.63 and total revenues of $1.957 billion. This outperformance can be attributed to the company’s strategic focus on high-growth markets, operational efficiency, and ability to leverage its global platform to drive value creation across its portfolio.

The company’s core Funds From Operations (FFO) attributable to common stockholders/unitholders also exceeded expectations. This metric, a critical measure of a real estate investment trust’s (REIT) cash-generating ability, came in at $1.28 per share, excluding Net Promote Income (Expense), compared to the expected $1.22 per share. This indicates strong operational performance and efficient capital management, reinforcing investor confidence in Prologis’ ability to generate sustainable returns.

Prologis Expects Full Year Net Earnings Between $3.15 to $3.35 per Share

Looking ahead, Prologis has guided for the full year of 2024, reflecting management’s confidence in the company’s growth trajectory and its ability to navigate market dynamics effectively.

The company expects net earnings attributable to common stockholders to be in the range of $3.15 to $3.35 per share. Additionally, Core FFO attributable to common stockholders/unitholders is projected to be between $5.37 and $5.47 per share, excluding Net Promote Income (Expense).

Prologis’ guidance also highlights its operational targets, including maintaining an average occupancy rate in the Prologis share of 95.75% to 96.75%. The company aims for a same-store NOI growth rate, on a cash basis, in the range of 6.25% to 7.25%.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.