Prologis ( NYSE: PLD ) stock rose 1.6% in Wednesday premarket trading after its Q4 earnings and revenue beat consensus, helped by a higher average occupancy rate and rent increases.
The industrial REIT expects 2023 core FFO per share of $5.40-$5.50, up from the $5.16 reported for 2022, and trailing the $5.56 consensus estimate.
"While capital markets have begun to stabilize, it will likely take a few quarters before we see meaningful price discovery, and normalization of values," said Hamid R. Moghadam, co-founder and CEO.
Cash same-store net operating income (NOI) is expected to rise 8.5%-9.5%.
The company expects to spend $2.5B-$3.0B on development starts and $300M-$600M on acquisitions this year. It projects $800M-$1.2B of dispositions in the year.
Q4 core FFO per share of $1.24 vs. $1.21 consensus $1.73 in Q3 and $1.12 in Q4 2021.
Revenue of $1.75B vs. $1.46B consensus, $1.75B in the prior quarter and $1.28B in the year-ago quarter.
Q4 adjusted EBITDA of $1.63B compared with $1.61B in the prior quarter and $1.33B in the year-ago period.
Average occupancy was 98.0% in Q4 vs. 97.7% in Q3. Cash same-store net operating income rose 9.1% Y/Y, down from 9.3% in the prior quarter.
Cash rent change was 32.4%.
Conference call at 12:00 PM ET.
Earlier, Prologis FFO of $1.24, beats by $0.03, revenue of $1.75B beats by $290M
For further details see:
Prologis Q4 earnings beat expectations; 2023 guidance trails consensus