Have you been eager to see how Prologis Inc. (PLD) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this San Francisco, California-based industrial real estate investment trust’s (REIT) earnings release this morning:
A FFO Beat
Prologis came out with core funds from operations (FFO) per share of 48 cents, beating the Zacks Consensus Estimate of 47 cents.
Solid top line growth, aided by higher occupancy, primarily drove this earnings beat.
How Was the Earnings Surprise Trend?
Prologis has a decent earnings surprise history. Before posting earnings beat in Q4, the company delivered positive surprises in the prior three quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 3.37% in the trailing four quarters.
Revenue Came In Higher Than Expected
Prologis posted revenues of $450.9 million, which significantly beat the Zacks Consensus Estimate of $371 million. It also compared favorably with the year-ago number of $436.8 million.
Key Developments to Note:
Prologis expects core FFO for full year 2015 in the range of $2.04 and $2.12 per share. At the mid-point this marks an 11% growth from full year 2014 figure. The company projects year-end occupancy in the range of 95.5%–96.5% and GAAP same store NOI growth between 3.5% and 4.5%.
What Zacks Rank Says
Prologis currently has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this Prologis earnings report later!
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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