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Prologis, Inc.’s (PLD - Free Report) fourth-quarter 2024 core funds from operations (FFO) per share of $1.50 surpassed the Zacks Consensus Estimate of $1.38. However, rental revenues of $1.94 billion missed the Zacks Consensus Estimate by just 0.09%.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Core FFO per share and rental revenues reported a year over year increase of 19% and 10.3%, respectively.
For 2024, the company reported a core FFO per share of $5.56, down 0.9% from the previous year. However, the figure beat the Zacks Consensus Estimate of $5.45. Rental revenues of $7.51 billion increased 10.2% year over year but missed the consensus mark of $7.52 billion.
PLD’s rental revenues increased 10.3% year over year to $1.94 billion in the fourth quarter of 2024. The figure was only 0.2% lower than our estimate.
Strategic capital revenues grew 95.4% year over year to $253.4 million. It was significantly higher than our estimate of $124.4 million.
Development management and other revenues experienced a year-over-year increase of 167.9%, totaling $9.8 million. The figure was higher than our estimate of $2 million.
Rental & other revenues came in at $1.95 billion, which increased 10.7% from the prior-year quarter. However, it was only 0.1% lower than our estimate.
PLD’s Occupancy Shrunk
As of Dec 31, 2024, the average occupancy for Prologis’ owned and managed portfolio stood at 95.6%, down 150 basis points from 97.1% as of Dec. 31, 2023. The average occupancy was lower than our consensus estimate of 95.85%.
PLD's Financial Position
Prologis exited the fourth quarter of 2024 with cash and cash equivalents of $1.32 billion, up from $780.9 million at the end of the third quarter of 2024. Total liquidity amounted to $7.38 billion at the end of the quarter.
2025 Guidance for PLD
Prologis provided its 2025 core FFO per share guidance in the range of $5.65-$5.81. The Zacks Consensus Estimate for the same is currently pegged at $5.79.
The company expects average occupancy to be between 94.5% and 95.5%. Cash same-store NOI (Prologis share) is projected in the range of 4-5%.
The company has issued its outlook for capital deployment (Prologis share) on development starts of $2.25-$2.75 billion. Spending on acquisitions is projected to be $750 million-$1.25 billion. Dispositions are estimated at $1.00-$1.50 billion.
Prologis currently carries a Zacks Rank #4 (Sell).
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs, such as BXP, Inc. (BXP - Free Report) and Terreno Realty (TRNO - Free Report) , slated to report on Jan. 28 and Feb. 5, respectively.
The Zacks Consensus Estimate for BXP’s fourth-quarter 2024 FFO per share is pegged at $1.79, which implies a year-over-year decrease of 1.7%. BXP currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Terreno’s fourth-quarter 2024 FFO per share is pegged at 62 cents, which suggests a year-over-year increase of 6.9%. TRNO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Prologis' Q4 FFO Surpasses Estimates, Rental Revenues Improve
Prologis, Inc.’s (PLD - Free Report) fourth-quarter 2024 core funds from operations (FFO) per share of $1.50 surpassed the Zacks Consensus Estimate of $1.38. However, rental revenues of $1.94 billion missed the Zacks Consensus Estimate by just 0.09%.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Core FFO per share and rental revenues reported a year over year increase of 19% and 10.3%, respectively.
For 2024, the company reported a core FFO per share of $5.56, down 0.9% from the previous year. However, the figure beat the Zacks Consensus Estimate of $5.45. Rental revenues of $7.51 billion increased 10.2% year over year but missed the consensus mark of $7.52 billion.
Prologis, Inc. Price, Consensus and EPS Surprise
Prologis, Inc. price-consensus-eps-surprise-chart | Prologis, Inc. Quote
PLD's Revenues Increase
PLD’s rental revenues increased 10.3% year over year to $1.94 billion in the fourth quarter of 2024. The figure was only 0.2% lower than our estimate.
Strategic capital revenues grew 95.4% year over year to $253.4 million. It was significantly higher than our estimate of $124.4 million.
Development management and other revenues experienced a year-over-year increase of 167.9%, totaling $9.8 million. The figure was higher than our estimate of $2 million.
Rental & other revenues came in at $1.95 billion, which increased 10.7% from the prior-year quarter. However, it was only 0.1% lower than our estimate.
PLD’s Occupancy Shrunk
As of Dec 31, 2024, the average occupancy for Prologis’ owned and managed portfolio stood at 95.6%, down 150 basis points from 97.1% as of Dec. 31, 2023. The average occupancy was lower than our consensus estimate of 95.85%.
PLD's Financial Position
Prologis exited the fourth quarter of 2024 with cash and cash equivalents of $1.32 billion, up from $780.9 million at the end of the third quarter of 2024. Total liquidity amounted to $7.38 billion at the end of the quarter.
2025 Guidance for PLD
Prologis provided its 2025 core FFO per share guidance in the range of $5.65-$5.81. The Zacks Consensus Estimate for the same is currently pegged at $5.79.
The company expects average occupancy to be between 94.5% and 95.5%. Cash same-store NOI (Prologis share) is projected in the range of 4-5%.
The company has issued its outlook for capital deployment (Prologis share) on development starts of $2.25-$2.75 billion. Spending on acquisitions is projected to be $750 million-$1.25 billion. Dispositions are estimated at $1.00-$1.50 billion.
Prologis currently carries a Zacks Rank #4 (Sell).
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs, such as BXP, Inc. (BXP - Free Report) and Terreno Realty (TRNO - Free Report) , slated to report on Jan. 28 and Feb. 5, respectively.
The Zacks Consensus Estimate for BXP’s fourth-quarter 2024 FFO per share is pegged at $1.79, which implies a year-over-year decrease of 1.7%. BXP currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Terreno’s fourth-quarter 2024 FFO per share is pegged at 62 cents, which suggests a year-over-year increase of 6.9%. TRNO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.