Prologis Inc (NYSE:PLD) stock fell 1.44% (As on October 18, 11:12:32 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 23. Prologis exited the third quarter of 2023 with cash and cash equivalents of $740.8 million, up from $531.1 million at the end of the second quarter of 2023. Debt, as a percentage of the total market capitalization, was 22.3% as of Sep 30, 2023. The company’s weighted average interest rate on its share of the total debt was 2.9%, with a weighted average term of 9.5 years. Prologis and its co-investment ventures issued $1.4 billion of debt in the reported quarter at a weighted average interest rate of 3.2%, with a weighted average term of 5.9 years.
Moreover, In the quarter under review, 46.4 million square feet of leases commenced in the company’s owned and managed portfolio, with 42.3 million square feet in the operating portfolio and 4.1 million square feet in the development portfolio. The retention level was 76.8% in the reported quarter. The average occupancy level in Prologis’ owned and managed portfolio was 97.1% in the third quarter, falling 40 basis points (bps) from the prior quarter and 60 bps from the year-ago quarter. The company’s estimate for average occupancy was 97.3%. The company’s share of building acquisitions amounted to $66 million in the third quarter. Development stabilization aggregated $456 million, while development starts totaled $943 million, with 72.6% being build to suit. PLD’s total dispositions and contributions were $486 million.
PLD in the third quarter of FY 23 has reported the adjusted earnings per share of $1.30, beating the analysts’ estimates for the adjusted earnings per share of $1.26, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $1.78 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $1.71 billion.
Prologis raised its core FFO per share guidance for 2023 to the range of $5.58-$5.60 from $5.56-$5.60 expected earlier, suggesting a cent’s increase at the midpoint. The Zacks Consensus Estimate for the metric is currently pegged at $5.59.
The company now estimates cash same-store NOI (Prologis share) between 9.75% and 10.00%, up 12.5 basis points at the midpoint than what was guided earlier. PLD also raised the lower end of its outlook for average occupancy to 97.25-97.50% from 97.00-97.50% projected earlier.