Prologis Inc (NYSE: PLD) stock rose over 2.1% on 15th October, 2019 (as of 11:07 am GMT-4; Source: Google finance) after the company posted mixed results for the third quarter of FY 19. The company’s investor interest for the Strategic Capital ventures is exceptional, as the company witnesses a record capital raise of more than $1.6 billion for the open-ended vehicles.
Meanwhile, during the third quarter, PLD and its co-investment ventures issued $2.8 billion of debt, mainly in euros, at a weighted average fixed interest rate of less than 1% and a weighted average term of more than 14 years. The company ended the third quarter with leverage of 18.4 percent on a market capitalization basis, debt-to-adjusted EBITDA of 3.9x and $4.9 billion of liquidity. This quarter’s financing activity has lowered the total weighted average interest rate by 10 basis points to 2.4% and lengthened the weighted average maturity by approximately 2 years to 7.7 years
PLD in the third quarter of FY 19 has reported the adjusted funds from operations per share of 97 cents, beating the analysts’ estimates for the adjusted funds from operations per share of 93 cents, as per analysts surveyed by Zacks Investment Research. The company had reported the adjusted revenue growth of 17 percent to $710.5 billion in the third quarter of FY 19, missing the analysts’ estimates for revenue of $713.2 million. Rental revenue rose 17% compared with last year, to $711 million. The company reported its warehouses were 96.5% occupied at the end of the third quarter, down one percentage point from last year. The drop is due to its decision to prioritize rents over boosting occupancies. In July, Prologis agreed to purchase warehouse owner Industrial Property Trust in a deal valued at $3.99 billion including debt.
Additionally, the company has already declared a regular cash dividend for the quarter. A dividend of $0.53 per share of the company’s common stock, which was paid on September 30, 2019, to common stockholders of record at the close of business on September 20, 2019 and a dividend of $1.0675 per share of the company’s 8.54% Series Q Cumulative Redeemable Preferred Stock.
Prologis expects full-year 2019 funds from operations to be in the range of $3.30 to $3.32 per share compared to previous guidance of $3.26 to $3.30. The net earnings for FY 19 are expected to be in the range of $2.65 to $2.69 compared to previous expectations of $2.38 to $2.46. Prologis also lowered the top end of its occupancy outlook, dropping it a half percentage point to 97%.