Shares of Prologis (PLD) gained in trading on Wednesday after the real estate investment trust (REIT) reported better-than-expected results in the third quarter. The company’s core funds from operations (FFO) increased by 10% year-over-year to $1.43 per share, beating consensus estimates of $0.66 per share. Core funds from operations account for maintenance costs, adjusting FFO by deducting recurring expenses needed to operate the property.
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PLD reported total revenues of $2.04 billion in Q3, compared to $1.92 billion in the same period last year. This surpassed analysts’ expectations of $1.91 billion.
PLD’s Management Comments on Its Long-Term Outlook
Hamid R. Moghadam, co-founder and CEO of Prologis, commented, “Looking ahead, the supply picture is improving, and the long-term demand drivers for our business remain strong.” Additionally, the company expects to gain more market share “while delivering holistic solutions to key customer challenges.”
PLD Lifts FY24 Outlook
Looking ahead, the company expects its adjusted core FFO attributable to common stockholders to be between $5.49 and $5.53 per unit, compared to its prior forecast between $5.46 and $5.54 per unit. Analysts were expecting a core FFO of $5.42 per unit.
Is PLD a Good Stock to Buy Now?
Analysts remain cautiously optimistic about PLD stock, with a Moderate Buy consensus rating based on nine Buys and five Holds. Over the past year, PLD has increased by more than 10%, and the average PLD price target of $133.29 implies an upside potential of 7.7% from current levels. These analyst ratings are likely to change following PLD’s results today.
