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Why Is ProLogis (PLD) Down 2.8% Since the Last Earnings Report?
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A month has gone by since the last earnings report for ProLogis, Inc. (PLD - Free Report) . Shares have lost about 2.8% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Prologis' Q4 FFO In line, Down Y/Y; Revenues Beat
Prologis came up with fourth-quarter 2016 core FFO per share of $0.63, in line with the Zacks Consensus Estimate. The bottom-line figure for the year-ago quarter was $0.64.
For the quarter, the company posted revenues of $620.1 million, which beat the Zacks Consensus Estimate of $600 million. However, it came in lower than the year-ago number of $643.2 million.
Higher Occupancy & Rent Change
At the end of the fourth quarter, occupancy level in the company’s operating portfolio was 97.1%, expanding 20 basis points year over year. Notably, the company ended 2016 with record global occupancy.
During the fourth quarter, Prologis signed 39 million square feet of leases in its owned and managed portfolio, compared with 40 million square feet in the year-ago period.
Prologis’ share of net effective rent change was 16.0% in the reported quarter, compared with 12.4% a year ago. This was driven by 23.2% growth in the U.S. Further, cash rent change was 7.0% compared with 2.9% in the year-ago quarter.
Its share of net effective same-store net operating income (NOI) registered 3.2% growth, compared with the 6.6% increase reported in the prior-year period. Cash same store NOI climbed 4.4% compared with 4.5% in the year-ago period.
Dispositions and Development Starts On Track
In the fourth quarter, Prologis’ share of building acquisitions amounted to $127 million, development stabilization aggregated $674 million, while development starts totaled $717 million. Further, its total dispositions and contributions were $934 million.
Liquidity Profile Strengthened
Prologis ended the quarter with over $4 billion of liquidity. The company exited the fourth quarter with cash and cash equivalents of $807.3 million, up from $264.1 million at the end of 2015.
2017 Guidance
Prologis provided core FFO per share guidance for full-year 2017. The company projects core FFO per share in the range of $2.60–$2.70.
Net effective same store NOI – Prologis share – is expected to grow at 4–5% in 2017.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
At this time, ProLogis' stock has a subpar Growth Score of 'D', however its Momentum is doing a bit better with a 'C'. The stock was also allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is ProLogis (PLD) Down 2.8% Since the Last Earnings Report?
A month has gone by since the last earnings report for ProLogis, Inc. (PLD - Free Report) . Shares have lost about 2.8% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Prologis' Q4 FFO In line, Down Y/Y; Revenues Beat
Prologis came up with fourth-quarter 2016 core FFO per share of $0.63, in line with the Zacks Consensus Estimate. The bottom-line figure for the year-ago quarter was $0.64.
For the quarter, the company posted revenues of $620.1 million, which beat the Zacks Consensus Estimate of $600 million. However, it came in lower than the year-ago number of $643.2 million.
Higher Occupancy & Rent Change
At the end of the fourth quarter, occupancy level in the company’s operating portfolio was 97.1%, expanding 20 basis points year over year. Notably, the company ended 2016 with record global occupancy.
During the fourth quarter, Prologis signed 39 million square feet of leases in its owned and managed portfolio, compared with 40 million square feet in the year-ago period.
Prologis’ share of net effective rent change was 16.0% in the reported quarter, compared with 12.4% a year ago. This was driven by 23.2% growth in the U.S. Further, cash rent change was 7.0% compared with 2.9% in the year-ago quarter.
Its share of net effective same-store net operating income (NOI) registered 3.2% growth, compared with the 6.6% increase reported in the prior-year period. Cash same store NOI climbed 4.4% compared with 4.5% in the year-ago period.
Dispositions and Development Starts On Track
In the fourth quarter, Prologis’ share of building acquisitions amounted to $127 million, development stabilization aggregated $674 million, while development starts totaled $717 million. Further, its total dispositions and contributions were $934 million.
Liquidity Profile Strengthened
Prologis ended the quarter with over $4 billion of liquidity. The company exited the fourth quarter with cash and cash equivalents of $807.3 million, up from $264.1 million at the end of 2015.
2017 Guidance
Prologis provided core FFO per share guidance for full-year 2017. The company projects core FFO per share in the range of $2.60–$2.70.
Net effective same store NOI – Prologis share – is expected to grow at 4–5% in 2017.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
ProLogis, Inc. Price and Consensus
ProLogis, Inc. Price and Consensus | ProLogis, Inc. Quote
VGM Scores
At this time, ProLogis' stock has a subpar Growth Score of 'D', however its Momentum is doing a bit better with a 'C'. The stock was also allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.