Prologis Inc (NYSE:PLD), the global leader in logistics real estate, stock fell 1.96% (As on January 17, 11:19:32 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 23. During the fourth quarter, Prologis and its co-investment ventures issued an aggregate of $286 million of debt at a weighted average interest rate of 2.0%, and a weighted average term of 4.0 years. For the full year, Prologis and its co-investment ventures issued $12.3 billion of debt at a weighted average interest rate of 4.5% and a weighted average term of 9.6 years. Prologis’s profit rose in the fourth quarter despite economic uncertainty. The San Francisco-based logistics-property landlord posted a profit of $630.9 million, or 68 cents a share, in the quarter ended Dec. 31, compared with $587.2 million, or 63 cents a share, a year earlier. Average occupancy was 97.1%, the same as in the previous quarter.
PLD in the fourth quarter of FY 23 has reported the adjusted funds from operations (FFO) per share of $1.26, which is inline with the analysts’ estimates for the adjusted FFO per share of $1.26, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 7.8 percent to $1.76 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $1.78 billion.
Looking ahead, Prologis has set optimistic projections for 2024. The company forecasts net earnings per diluted share to be between $3.20 and $3.45. The guidance range for Core FFO per diluted share is $5.42 to $5.56. These projections indicate the company’s confidence in its continued strong performance, driven by its robust portfolio and strategic initiatives. The guidance suggests Prologis’ expectations of maintaining its growth trajectory in the coming year. The company is forecasting average occupancy of 96.5% to 97.5% for the full year.
On the other hand, the company has announced that Vice Chairman Gene Reilly will be retiring at year end, after which he will serve as a senior advisor through April 2024.
Meanwhile, Rooftop solar and storage installations on Prologis Inc’s (NYSE: PLD) buildings can now generate 500 megawatts (MW) of energy – a significant milestone that puts the company halfway to its one gigawatt (GW) of solar supported by storage by 2025 goal. With its large global footprint, Prologis projects it could add as much as six GW of solar and storage capacity to its portfolio over the long term.