Prologis Misses Q4 Topline Estimates, Eyes Bright 2024 Amid Uncertainties
Portfolio Pulse from Lekha Gupta
Prologis Inc (NYSE:PLD) reported Q4 FY23 results with rental revenue of $1.76 billion, missing consensus estimates of $1.81 billion. Core funds from operations (FFO) per diluted share increased to $1.26 from $1.24 year-over-year, and net earnings per share rose to $0.68 from $0.63. The company's average occupancy was 97.1%. Prologis issued $286 million of debt at a 2.0% interest rate. The company provided FY24 guidance with expected net earnings per share of $3.20 to $3.45 and core FFO of $5.42 to $5.56, with occupancy rates between 96.50% and 97.50%. Despite economic uncertainties, the CEO remains positive about 2024. PLD shares dropped 1.47% to $128.05 following the earnings release.
January 17, 2024 | 3:52 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Prologis Inc reported lower-than-expected Q4 rental revenue but showed growth in core FFO and EPS. The company remains optimistic for FY24 with a positive guidance despite current economic uncertainties.
The short-term impact on PLD's stock is likely negative due to the missed revenue estimates for Q4, which typically leads to bearish investor sentiment. However, the growth in core FFO and EPS, along with a positive outlook for FY24, may mitigate some of the negative impact over time.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100