PLD Prologis

   By Austen Hufford 

Industrial real-estate company Prologis Inc. (PLD) posted a large gain in revenue from strong operating conditions and acquisitions, though profit dropped from the year-earlier quarter that was boosted by asset sales.

Chief Executive Hamid Moghadam said operating conditions remain "extremely healthy" and above the company's expectations in a majority of markets. The company projected 2016 earnings per share of 87 cents to 95 cents, up from the previously predicted range of 28 cents to 36 cents. It reaffirmed its expectation for core funds from operations of $2.50 to $2.60 a share. Analysts polled by Thomson Reuters projected core FFO of $2.56.

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.

Last April, the owner of warehouses and distribution centers agreed to buy industrial-property owner KTR Capital Partners for $5.9 billion. During the quarter, Prologis said it completed $1.2 billion of refinancings and fully retired the $400 million short-term financing associated with its KTR acquisition. After the quarter ended, Prologis increased its global line of credit by $640 million to $3.0 billion. It now matures in 2021.

In the latest quarter, Prologis said occupancy for real estate it owns and manages increased to 96.1% from 95.9% a year earlier.

In all for the period ended March 31, Prologis's profit fell to $209.7 million from $346.9 million a year earlier, which was boosted by a one-time gain of $341.9 million. On a per-share basis after the payout of preferred dividends, the company earned 23 cents a share, down from 81 cents a year earlier.

Core funds from operations were 61 cents a share, up from 49 cents a share a year prior. Revenue surged 31% to $606 million.

Analysts had forecast 10 cents a share in earnings on $562 million in revenue and 59 cents of core FFO.

Prologis shares, up 16% in the last three months, were inactive in early trading.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

April 19, 2016 09:21 ET (13:21 GMT)

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