Shares of Prologis Inc. (PLD) surged 2.4% in premarket trading on Tuesday, reaching a five-month high, following the release of their impressive second-quarter financial report. The logistics real estate giant reported net income of $1.22 billion or $1.31 per share, doubling their earnings from the same period last year. Excluding nonrecurring items, core funds from operations rose to $1.83, surpassing the FactSet consensus of $1.67.
Prologis also saw a significant increase in total revenue, which nearly doubled to $2.45 billion, exceeding the FactSet consensus of $1.72 billion. The company’s net effective rent change recorded an all-time high of 78.5%, compared to 45.6% last year. In the United States, the net effective rent change improved to an impressive 91.7% from 54.0%.
Buoyed by their strong performance, Prologis raised its core FFO guidance range for 2023 to $5.56-$5.60 from $5.42-$5.50. This outlook revision demonstrates the company’s confidence in continued growth and success.
Year-to-date, Prologis’ stock has shown promising growth with a 13.5% increase, while the S&P 500 climbed 17.8% during the same period.
Prologis continues to solidify its position as a leader in the logistics real estate industry, delivering exceptional financial results and exceeding market expectations. With a positive outlook for the future, investors can remain optimistic about the company’s long-term prospects.