Prologis (PLD) Q3 2024 earnings summary

Executive summary

• Prologis reported strong operating and financial results for Q3 and the nine months ended September 30, 2024, with high occupancy, robust rent growth, and significant gains from property contributions, despite a softening demand environment and rising vacancies.

• The company manages a global portfolio of approximately 1.2 billion square feet across 20 countries, generating $6.2B in annual NOI, with U.S. operations accounting for 86% of NOI.

• Gross AUM reached $218B, with $156B attributable to Prologis Share and $120B in market equity.

• Total available liquidity at quarter-end was $6.6 billion, supporting ongoing development and acquisition activities.

• Management remains focused on long-term value creation, expanding global reach, and investing in energy and digital infrastructure.

Financial highlights

• Q3 2024 total revenues were $2.04B, up from $1.92B in Q3 2023; net earnings attributable to common stockholders were $1.00B, up from $746M year-over-year.

• Core FFO for Q3 2024 was $1.37B ($1.43/share), up from $1.24B ($1.30/share) in Q3 2023; AFFO was $1.01B.

• Adjusted EBITDA for Q3 2024 was $1.73B, up from $1.62B in Q3 2023.

• For the nine months ended September 30, 2024, total revenues were $6.0B, net earnings $2.45B, and Core FFO $3.87B.

• Dividends and distributions per share were $0.96 for Q3 2024; $2.68 per share paid for the nine months.

Outlook and guidance

• 2024 net earnings guidance: $3.35–$3.45 per share; Core FFO guidance: $5.42–$5.46 per share.

• Average occupancy forecast tightened to 96%–96.5%; cash same-store NOI growth projected at 6.5%–7%.

• Strategic capital revenue guidance (excluding promote) set at $525M–$535M; G&A guidance at $415M–$425M.

• Development starts guidance reduced to $1.75B–$2.25B; acquisition guidance increased to $1.75B–$2.25B.

• FX risk largely hedged for 2024 results.