Q1 23: Prologis numbers out

PRESS RELEASE

PROLOGIS REPORTS STRONG FIRST QUARTER 2023 RESULTS

April 18, 2023 8:00am EDT

Company expects continued demand amid uncertain macroeconomic environment

SAN FRANCISCO, April 18, 2023 /PRNewswire/ — Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, today reported first quarter results for 2023.

Net earnings per diluted share was $0.50 for the first quarter of 2023 compared with $1.54 for the first quarter of 2022. In 2022, we had significant gains on dispositions while we had minimal in the first quarter of 2023.

Core funds from operations (Core FFO)* per diluted share was $1.22 for the first quarter of 2023, compared with $1.09 for the same period in 2022.

“We continue to deliver record results driven by the unparalleled quality of our portfolio and customer solutions,” said Hamid R. Moghadam, co-founder and CEO, Prologis. “Demand remains healthy, despite some moderating in terms of decision-making. Given the macroenvironment, we continue to operate our business with a degree of caution. We foresee any potential impact on demand as likely to overlap with a deceleration in new deliveries, sustaining momentum with favorable conditions for high occupancy and continued rent growth into 2024.”

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BALANCE SHEET STRENGTH & LIQUIDITY

“Our liquidity position of $6.7 billion, inclusive of $1.0 billion of additional line of credit capacity closed in April, is at an all-time high, providing further flexibility to capitalize as opportunities arise,” said Timothy D. Arndt, chief financial officer, Prologis. “We are well-positioned to deliver superior growth given our embedded rent upside and proven ability to create value from the build-out of our land bank.”

During the first quarter, Prologis and its co-investment ventures issued $3.6 billion of debt at a weighted average interest rate of 4.5%, and a weighted average term of 13.7 years. This activity included $3.2 billion of global bond raises. Additionally, on April 5, 2023, Prologis upsized its revolving line of credit capacity by $1.0 billion.

At March 31, 2023, debt as a percentage of total market capitalization was 19.1%, and the company’s weighted average interest rate on its share of total debt was 2.6%, with a weighted average term of 9.7 years. In addition, the company has no significant debt maturities until 2026.

FOREIGN CURRENCY STRATEGY

Prologis hedges its exposure to foreign currency fluctuations by borrowing in the currencies in which it invests and using derivative financial instruments. At March 31, 2023, 96% of Prologis’ equity was in USD and earnings forecasted in foreign currencies for 2023, 2024, and 2025 were 98%, 97% and 96%, respectively, hedged through derivative contracts…

The full statement can be found here.