Prologis Earnings: Occupancy and Rent Remain Under Pressure as Supply Pipeline Shrinks

No-moat-rated Prologis reported a middling set of numbers in the third quarter as industrial fundamentals remain under pressure, but the moderating supply pipeline augurs well for the sector. The firm reported a core funds from operation of $1.43 per share, 10% higher than the $1.30 in FFO during the third quarter of 2023. Excluding net promotion income, which tends to be lumpy, the firm reported a core FFO of $1.45 per share, up 9% on a year-over-year basis. We are slightly increasing our fair value estimate for Prologis to $125 per share from $120 per share after incorporating third-quarter results.