Prologis (PLD) Q2 2024 earnings summary

Executive summary

• Prologis is a global leader in logistics real estate, managing 1.2B square feet across 19 countries with 6,700 tenants and 86% of NOI from the U.S.

• Q2 2024 saw 52 million sq ft leased, a 27% increase over Q1, with strong e-commerce and large tenant activity.

• Annualized NOI reached $5.9B, with $199B in gross AUM and $140B in Prologis share AUM as of June 30, 2024.

• Market equity stands at $107B, with 96% U.S. exposure.

• Demand for logistics space remains strong, though short-term leasing decisions may be delayed by economic uncertainty.

Financial highlights

• Q2 2024 total revenues were $2.01B, up from $1.65B in Q2 2023; net earnings attributable to common stockholders were $860M, down from $1.21B year-over-year.

• Core FFO for Q2 2024 was $1.28B ($1.34/share), down from $1.74B ($1.83/share) in Q2 2023; excluding Net Promote, Core FFO per share rose to $1.36.

• Same-store growth was 7.2% on a cash basis and 5.5% on a net effective basis.

• Net effective rent change was nearly 74% based on commencements and 64% on new signings.

• Dividends and distributions per common share/unit increased to $0.96 from $0.87 year-over-year.

Outlook and guidance

• 2024 Core FFO guidance is $5.39–$5.47 per share; net earnings guidance is $3.25–$3.45 per share.

• Average occupancy expected at 95.75–96.75%; same store NOI (cash) growth projected at 6.25–7.25%.

• Acquisitions guidance raised to $1B–$1.5B and dispositions/contributions to $2.75B–$3.65B.

• Development stabilizations guidance at $3.6B–$4.0B; strategic capital revenue (excluding promote) forecasted at $520M–$540M.

• Rent growth expected to be anemic in most markets for the next 12 months, with a 2%-5% decline projected, mainly due to Southern California.