Prologis Inc (NYSE:PLD) posts solid result

Prologis Inc (NYSE:PLD) stock rose 2.17% (As on Jan 20, 11:30:02 AM UTC-4, Source: Google Finance) after the company posted better than expected result for the fourth quarter of FY 21. Net effective rent change on rollover accelerated to 33%, up 510 basis points sequentially and was led by the U.S. at over 37%. Average occupancy was 97.4%, up 80 basis points sequentially. Cash same-store NOI growth remained strong at 7.5% for the quarter and 6.1% for the full year.

During the fourth quarter, Prologis and its co-investment ventures issued $2.9 billion of debt at a weighted average interest rate of 1.1 percent, and issued $11.5 billion of debt for the full year at a weighted average interest rate of 1.3 percent, including $906 million in green bonds. The company maintained its leading liquidity position with approximately $5.0 billion in cash and availability on its credit facilities at year-end.

As of December 31, 2021, debt as a percentage of total market capitalization was 13.5 percent and the company’s weighted average interest rate on its share of total debt was 1.7 percent with a weighted average term of 10.0 years. The combined investment capacity of Prologis and its open-ended ventures, at levels in line with their current ratings, is approximately $15.5 billion.

PLD in the fourth quarter of FY 21 has reported the adjusted funds from operations per share of $1.12, beating the analysts’ estimates for the adjusted funds from operations per share of $1.10, according to Zacks Investment Research. The company had reported the adjusted revenue of $1.07 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $1.06 billion.

Prologis expects full-year funds from operations in the range of $5 to $5.10 per share. The company expects cash same-store NOI growth to range between 6% and 7%, and average occupancy to range between 96.5% to 97.5%. The company is forecasting rent growth in the markets to be 11% in the U.S. and 10% globally. For Strategic Capital, the company expects revenue excluding promotes to range between $540 million and $560 million. The company expects net promote income of $0.55 per share for the year. The company is forecasting development starts of $4.5 billion to $5 billion with approximately 35% build-to-suits. Dispositions will range between $1.5 billion and $1.8 billion, two-thirds of which the company expects to close this quarter. The company projects core FFO, including the $0.55 of net promote income, to range between $5 and $5.10 share, representing 22% year-over-year growth at the midpoint.

Copyright © 2022. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.