By Angela Chen
Prologis Inc. swung to a third-quarter profit, while its funds
from operations--a key industry metric--improved more than
expected.
The current Prologis was formed in June 2011, when the nation's
two biggest publicly traded warehouse owners--Prologis and AMB
Property Corp.--merged in one of the largest real-estate deals
since the recession. The San Francisco-based real-estate investment
trust has continued to benefit from a rental rebound that has
raised occupancy rates and profits on its U.S. warehouses.
The company narrowed its guidance for its funds from operations
for the year, excluding gains and losses from property acquisitions
or dispositions. Prologis put the range at $1.85 to $1.86 a share,
from $1.82 to $1.86.
Overall, Prologis reported a quarterly profit of $137.9 million,
compared with a year-earlier loss of $5.4 million. On a per-share
basis, which reflects the impact of preferred dividend payments,
the profit was 23 cents, compared with a year-earlier loss of 2
cents.
Core funds from operations improved to 48 cents a share from 41
cents. Revenue fell 1.9% to $415.2 million, while rental revenue
fell 4.4% to $355.8 million.
Analysts polled by Thomson Reuters expected per-share earnings
of 9 cents, funds from operations of 46 cents, and revenue of $399
million.
As of the end of the quarter, the occupancy rate was 95%, up
1.1% from last year and 0.4% from the previous quarter. Tenant
retention was 83.9% and rental rates on leases signed during the
quarter were 9.7% higher than prior rents.
Write to Angela Chen at angela.chen@wsj.com
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