Prologis Inc (NYSE:PLD) stock rose 0.24% (As on April 19, 11:14:27 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 23. The average occupancy level in Prologis’ owned and managed portfolio was 98.0% in the first quarter. In the quarter under review, 49.7 million square feet of leases commenced in the company’s owned and managed portfolio, with 41.6 million square feet in the operating portfolio and 8.1 million square feet in the development portfolio. The retention level was 77.2% in the quarter. The company’s share of building acquisitions amounted to $6 million in the reported quarter. Development stabilization aggregated $770 million, while development starts totaled $57 million, with 100% being build to suit. PLD’s total dispositions and contributions were $59 million. Prologis exited the first quarter of 2023 with cash and cash equivalents of $522.5 million, up from $278.5 million at the end of 2022. Debt, as a percentage of the total market capitalization, was 19.1%. The company’s weighted average interest rate on its share of the total debt was 2.6%, with a weighted average term of 9.7 years. Prologis and its co-investment ventures issued $3.6 billion of debt in the first quarter at a weighted average interest rate of 4.5%%, with a weighted average term of 13.7 years.

PLD in the first quarter of FY 23 has reported the adjusted funds from operations (FFO) per share of $1.22, beating the analysts’ estimates for the adjusted FFO per share of $1.21, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $1.633 billion in the first quarter of FY 23, beating the analysts’ estimates for revenue of $1.625 billion.

For 2023, the company revised EPS guidance to $3.10 – $3.25 (from $3.00 – $3.15 earlier) and core FFO per share to $5.42 – $5.50 (from $5.40 – $5.50 earlier). The company now expects average occupancy of 97.0% – 97.5% compared to the previous guidance of 96.5% – 97.5%. Prologis slightly raised its 2023 core FFO per share guidance to the range of $5.42-$5.50 from the $5.40-$5.50 guided earlier, suggesting a 0.2% increase at the midpoint. The Zacks Consensus Estimate for the same is currently pegged at $5.50. Cash same-store NOI (Prologis share) is projected at 9.00-9.75%, up 37.5 bps at the midpoint than what was guided earlier.