Analyst Note
| Yousuf Hafuda |Prologis reported strong third-quarter results that underscore the industrial real estate industry’s impressive performance despite an economy still in the throes of the coronavirus-induced recession. Management largely maintained guidance following results that were in line with expectations. As a demonstration of the limited negative impact of the pandemic, 2020 guidance for core funds from operations, or FFO, is now slightly higher than it was when management initially announced its guidance in January. During the third quarter, core FFO per share was $0.90 per share, a decrease as compared with $0.97 per share during the third quarter of 2019. Prologis’ strong results and heightened near-term visibility lead us to raise the no-moat-rated firm’s fair value estimate to $75 per share from $71.