Prologis 1Q Revenue Rises as Occupancy Holds at 98%

By Dean Seal

Prologis Inc. logged above-consensus revenue growth in the first quarter as average occupancy held steady and its core fund operations rose in line with analyst expectations.

The San Francisco-based industrial-property landlord posted earnings of $464.6 million, or 50 cents a share, compared with $1.15 billion, or $1.54 a share, in the same quarter a year ago. Analysts polled by FactSet had been expecting 56 cents a share.

Core funds from operations, a measure of operating performance, came in at $1.22 a share, in line with analyst expectations, according to FactSet.

Total revenue rose to $1.77 billion from $1.22 billion last year, topping analyst expectations of $1.63 billion.

Average occupancy in Prologis's owned and managed portfolio was flat from the prior quarter at 98%.

Chief Executive Hamid R. Moghadam said demand remains healthy despite "some moderating in terms of decision-making."

"Given the macroenvironment, we continue to operate our business with a degree of caution," he said. "We foresee any potential impact on demand as likely to overlap with a deceleration in new deliveries, sustaining momentum with favorable conditions for high occupancy and continued rent growth into 2024."

Shares ticked up less than 1% to $124 in premarket trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

April 18, 2023 08:37 ET (12:37 GMT)

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