Post Earnings Coverage as Prologis Posted 15% increase in Core FFO

Upcoming AWS Coverage on CubeSmart Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 1, 2017 / Active Wall St. announces its post-earnings coverage on Prologis, Inc. (NYSE: PLD). The Company posted its fourth quarter fiscal 2016 results on January 24, 2017. The industrial real estate developer posted a top-line beat while bottom-line met expectations. Register with us now for your free membership at:

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One of Prologis' competitors within the REIT - Industrial space, CubeSmart (NYSE: CUBE), announced on January 10, 2017, that it will release financial results for the three and twelve month periods ended December 31, 2016, after the market close on Thursday, February 16, 2017. This will be followed by conference call which will be held at 11:00 a.m. ET on Friday, February 17, 2017. AWS will be initiating a research report on CubeSmart in the coming days.

Today, AWS is promoting its earnings coverage on PLD; touching on CUBE. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=PLD

http://www.activewallst.com/registration-3/?symbol=CUBE

Earnings Reviewed

For the quarter ended on December 31, 2016, Prologis posted revenues of $620.1 million, lower than the year-ago number of $643.2 million; however, the reported number topped analysts' consensus estimates of $600 million.

Prologis' net earnings per diluted share were $0.82 for Q4 2016 and $2.27 for FY16 compared to $0.23 and $1.64 for the same period in 2015. The y-o-y increase was attributed to improved operating conditions and higher net promote income. The Company's Core funds from operations (FFO) per diluted share were $0.63 for the reported quarter and $2.57 for the year compared to $0.64 and $2.23 for the same period in 2015. The 15% annual y-o-y increase reflected improved operating conditions and higher net promote income. The Company earned promotes of $0.01 in Q4 2016 and $0.15 per share for FY16. Excluding promotes, core FFO was up 11%. The Company's FFO number for Q4 2016 matched Wall Street's expectations of $0.63 per share.

Higher Occupancy & Rent Change

At the end of Q4 2016, occupancy level in Prologis' operating portfolio was 97.1%, up 20 basis points compared to occupancy level of 96.9% in Q4 2015. The Company's global occupancy reached an all-time high of 97.1%. Europe also achieved record occupancy at 96.7%. During the reported quarter, Prologis signed 39 million square feet (MSF) of leases in its owned and managed portfolio, as compared with 40 MSF for the year earlier quarter. For FY16, Prologis leased over 180 MSF as demand for its portfolio remained strong.

During Q4 2016, Prologis' share of net effective rent change on rollover was 16% compared to 12.4% in Q4 2015. The growth was driven by the US which grew above 23%; that is the fourth consecutive quarter above 20%. Notably, the UK was also above 20% rent change for the second consecutive quarter. Prologis' cash rent change was 7.0% in Q4 2016 compared to 2.9% in Q4 2015.

Prologis' share of net effective same-store net operating income (NOI) growth was 3.2% for the reported quarter and 5.6% for FY16. Prologis' look-through leverage at year end was 27.1% on market capitalization and 34.6% on a book basis.

Acquisitions

In Q4 2016, Prologis' share of building acquisitions amounted to $127 million and $247 million for FY16. The Company's development stabilization totaled $674 million for the reported quarter and $2.16 billion for the year. Prologis' development starts totaled $717 million in Q4 2016 and $1.81 billion in FY16.

Balance Sheet

Prologis ended Q4 2016 with over $4 billion of liquidity. As of December 31, 2016, the Company had cash and cash equivalents of $807.3 million, up from $264.1 million at the end of FY15.

2017 Guidance

For FY17, Prologis is forecasting core FFO in the range of $2.60–$2.70 per share. The Company is expecting net effective same store NOI to grow at the rate of 4% to 5% in FY17.

Stock Performance

At the close of trading session on January 31, 2017, Prologis' stock price was slightly up 0.23% to end the day at $48.85. A total volume of 4.73 million shares were exchanged during the session, which was above the 3-month average volume of 2.95 million shares. The Company's share price has surged 28.15% in the past twelve months. The stock currently has a market cap of $25.82 billion. The Company's shares are trading at a PE ratio of 21.59 and have a dividend yield of 3.44%.

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SOURCE: Active Wall Street