Prologis, Inc. (NYSE:PLD) reported second-quarter (Q2) rental and other revenues of $1.65 billion, up 50.7% year over year. Revenues missed estimates of $1.69 billion.
Core funds from operations per diluted share was $1.83 for Q2, higher than $1.11 a year ago.
Prologis co-founder and CEO Hamid R. Moghadam touted record-operating results as “a testament” to the company’s portfolio “that will provide industry-leading, predictable growth for years to come.”
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The average occupancy in the quarter under review was 97.5%, while the retention rate was 70.5%.
During Q2, Prologis and its co-investment ventures issued an aggregate of $7 billion of debt at a weighted average interest rate of 4.9% and a weighted average term of 8.4 years.
The San Francisco-based company has no significant debt maturities until 2026.
Prologis CFO Timothy D. Arndt said these opportunities, together with the company’s $38 billion of development build-out, “will add to the visibility we already have into long-term, organic earnings growth.”
Guidance
The company raised FY23 guidance to $3.30 to $3.40 (prior view: $3.10 to $3.25).
Core FFO attributable to common stockholders is expected to be in the range of $5.56 to $5.60 (prior view: $5.42 to $5.50).
Average occupancy is expected to be between 97% to 97.50%.
Price Action: PLD shares are trading higher by 1.07% to $129.35 in the premarket on the last check Tuesday.
