Analyst Note
| Kevin Brown |Prologis reported solid first-quarter results and increased 2021 guidance, though we don't see anything in the quarter that would materially impact our long-term view or $84 fair value estimate for the no-moat company. Same-store occupancy fell 60 basis points, both sequentially and year over year, to 95.5% in the first quarter. Despite the slight drop in occupancy, Prologis reported its share of same-store net operating income rose 4.2% year over year in the first quarter, a larger gain than any quarter in 2020. Prologis stabilized $396 million in development projects in the first quarter and that, combined with the external growth the company completed in 2020, led to it reporting 12.5% year-over-year growth in cash rents and core funds from operations per share of $0.97, 16.8% higher than the first quarter of 2020.