Prologis stock rallies after profit and revenue beats, as net rent change in U.S. jumps 92%

Shares of Prologis Inc. (PLD) surged 2.4% toward a five-month high in premarket trading Tuesday, after the logistics real estate giant reported second-quarter profit and revenue that rose well above expectations and boosted its full-year outlook. Net income doubled to $1.22 billion, or $1.31 a share, from $610 million, or 82 cents a share, in the year-ago period. Excluding nonrecurring items, core funds from operations rose to $1.83 from $1.11 to beat the FactSet consensus of $1.67. Total revenue nearly doubled, rising 95.8% to $2.45 billion, well above the FactSet consensus of $1.72 billion. Net effective rent change was a record 78.5%, after 45.6% a year ago, with net effective rent change in the U.S. improving to 91.7% from 54.0%. For 2023, the company raised its core FFO guidance range to $5.56 to $5.60 from $5.42 to $5.50. The stock has rallied 13.5% year to date through Monday while the S&P 500 has climbed 17.8%.

-Tomi Kilgore

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07-18-23 0822ET

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