PLD Prologis

   By Lisa Beilfuss 
 

Prologis Inc. said earnings nearly doubled in its latest quarter as the owner of warehouses and distribution centers continues to benefit from companies' demand for storage space as they shift to e-commerce.

"Demand remains ahead of supply in both the U.S. and Europe, leading to all-time low vacancy rates," said Chief Executive Hamid Moghadam. As consumers are increasingly shopping online, opting to make purchases on sites like Amazon.com instead of at physical locations, companies still need to adapt their supply chain strategies, Mr. Moghadam said.

Occupancy across Prologis sites was 96.1% during the quarter, up from 95.4% a year earlier, and revenue from rent jumped 18%.

In all, the company reported a profit of $277.1 million, or 52 cents a share, up from $141.9 million, or 27 cents, a year earlier. Core funds from operations increased to 60 cents a share from 52 cents. Revenue rose 18% to $546.1 million.

Analysts projected 59 cents a share in adjusted funds from operations on $564.9 million in sales, according to Thomson Reuters.

Prologis on Tuesday updated its outlook for the year, tightening its forecast for core funds from operations to $2.52 to $2.58 a share. Analysts have been looking for $2.56 a share this year.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

(END) Dow Jones Newswires

July 19, 2016 09:12 ET (13:12 GMT)

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