Prologis Stock Soars: Q4 Earnings Smash Expectations

Prologis Shares Soar on Impressive Q4 Earnings

Revenue Growth and Solid Occupancy Rates Drive Success

Prologis Inc. (NYSE:PLD) has seen its shares rise significantly following the release of its fourth-quarter FY24 earnings results. The company’s impressive performance was driven by a 10.3% year-over-year increase in rental and other revenue, reaching $1.937 billion.

Core FFO Exceeds Expectations

While the revenue figure fell slightly short of analyst consensus estimates of $1.956 billion, Prologis’ core FFO of $1.50 surpassed expectations of $1.39. This strong performance was supported by owned and managed average occupancy rates of 95.6% and Prologis share average occupancy rates of 95.8%.

Expenses and Operating Income

Total expenses for the quarter increased by 3.3% to $1.3 billion, while operating income jumped an impressive 70% to $1.42 billion. Diluted earnings per share for the quarter reached $1.37, up from $0.68 in the previous year.

Adjusted EBITDA and Cash Reserves

Prologis’ adjusted EBITDA of $2.1 billion rose 22.5% year-over-year, demonstrating the company’s strong financial position. As of December 31, 2024, Prologis held $1.3 billion in cash and equivalents.

Guidance and Outlook

Looking ahead to FY25, Prologis expects core FFO to range from $5.65 to $5.81, with an estimated midpoint of $5.77. The company anticipates Prologis share average occupancy rates of 94.50% to 95.50%.

President’s Comments and Price Action

“We closed out 2024 with solid results,” said Prologis president Dan Letter. “The sale of our Elk Grove data center demonstrated the end-to-end capabilities of our platform and led to significant value creation.” As a result, PLD shares are trading higher by 1.01% at $110.59.

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