Prologis Lifts 2023 Earnings, Occupancy Outlook

By Dean Seal

Prologis Inc. raised its annual earnings and occupancy guidance on Tuesday with the expectation that demand will remain steady.

The San Francisco-based industrial-property landlord expects earnings to be between $3.10 and $3.25, up 10 cents from the low and high ends of its prior outlook.

Core funds from operations, a measure of operating performance, are projected to be at least $5.42, up 2 cents from previous guidance, and as high as $5.50.

Prologis forecasts average occupancy across its owned and managed portfolio to be between 97% and 97.5%, raising the low end of its prior projection by half a percentage point.

The company also raised its general and administrative expense forecast by 2% at the midpoint to between $380 million and $390 million.

Chief Executive Hamid R. Moghadam said demand remains healthy despite "some moderating in terms of decision-making," and that the company is operating cautiously. Prologis expects that any dent in demand would overlap with a deceleration in new deliveries, maintaining momentum for high occupancy and continued rent growth next year, he said.

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 08:48 ET (12:48 GMT)

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