Prologis 3Q Earnings Fall Amid Rising Costs

By Will Feuer

Prologis posted lower earnings for the third quarter amid rising costs, even as demand for its industrial properties held up.

The San Francisco-based industrial-property landlord posted earnings of $747.6 million, or 80 cents a share, down from $1.02 billion, or $1.36 a share, in the same quarter a year ago.

Core funds from operations, a measure of operating performance, came to $1.30 a share, topping the $1.26 a share that analysts were expecting, according to FactSet.

Total revenue rose to $1.92 billion from $1.75 billion last year. Rental revenue climbed to $1.78 billion from $1.16 billion last year. Analysts surveyed by FactSet had expected rental revenue of $1.72 billion.

Costs climbed more than 37% to $1.25 billion.

Average occupancy in Prologis's owned and managed portfolio came to 97.1%, down from 97.5% in the previous quarter.

"Until there is more stability in the economy, negative customer sentiment will weigh on demand," Chief Executive Hamid Moghadam said.

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

October 17, 2023 08:32 ET (12:32 GMT)

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