Prologis (PLD) raises guidance after Q3 profits jump over 140%

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 Prologis (PLD) raises guidance after Q3 profits jump over 140%
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Highlights

  • Prologis Inc’s net earnings attributable to common stockholders skyrocketed to US$722 million in the quarter from US$299 million in the same period year ago.

  • Prologis’ net earnings per diluted share were US$0.97 in the quarter, up from US$0.40 in the previous year.

  • The company logged revenue of US$1,183 million in the quarter ended September 2021, up from US$1,083 million in the year-ago quarter.

Global real estate investment firm Prologis, Inc. (NYSE: PLD) has raised its revenue forecast for the fiscal year 2021 after reporting an over 140% jump in third-quarter profits on Friday.

The real estate sector has seen strong demand over the past two quarters amid various pandemic-induced supply problems, triggering a sharp increase in property prices.

Prologis’ net earnings per diluted share were US$0.97 in the quarter, up from US$0.40 in the previous year. Its core funds from operations per diluted share were US$1.04 against US$0.90 in the year-ago period.

Prologis Chairman and CEO Hamid R. Moghadam attributed the strong quarterly performance to an unprecedentedly low level of vacancies in commercial space. In addition, he said the company’s strong “structural forces” helped effectively sell out the market spaces.

Prologis Earnings

The San Francisco, California-headquartered company logged revenue of US$1,183 million in the quarter ended September 2021, up from US$1,083 million in the year-ago quarter.

Prologis’ net earnings attributable to common stockholders skyrocketed to US$722 million in the quarter from US$299 million in the same quarter of 2020.

In addition, Prologis Inc and its joint ventures issued US$1.3 billion of debt at an interest rate of 2.1%, including US$169 million in green bonds. Furthermore, the company had US$5.5 billion in cash and credit instruments (liquidity position) at the end of the quarter.

The company said the investment capacity, along with its open-ended ventures, was around US$15 billion as of September 30, 2021.

Revenue Guidance for FY2021

The company revised its fiscal 2021 revenue guidance in upward of US$3.64 to US$3.68 per diluted share from its previous forecast of US$3.08 to US$3.14 per diluted share, an increase of 17.7%.

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Prologis Inc logged revenue of US$1,183 million in the quarter ended September 2021, up from US$1,083 million in the year-ago quarter.

Source: Pixabay

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Stock Performance

The PLD stock traded at US$138.045, up 1.71%, at 10:54 am ET on Friday. Its 52-week highest and lowest stock prices were US$139.60 and US$93.08.

Prologis Inc has a market cap of US$102.47 billion, while the P/E and the forward P/E one-year ratios are 66.64 and 33.35, respectively.

In addition, its earnings per share (EPS) and annualized dividend are US$2.08 and US$2.52, respectively.

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Bottomline

The US real estate has been in high demand during the pandemic. This year, prices of homes and commercial real estate properties have skyrocketed due to a supply crunch and rising raw material costs. As a result, analysts expect the US housing market to see rapid growth in the coming quarters with an unprecedented demand for new properties, including private homes. Investors, however, should exercise due diligence before investing in stocks.

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