San Francisco-based logistics real estate operator ProLogis (NYSE:PLD) has outperformed third-quarter estimates, surpassing analysts' expectations with core funds from operations of $1.30 per share.
The figure was $0.05 higher than anticipated but marked a decrease of $0.43 year over year.
ProLogis (NYSE:PLD) CEO Hamid Moghadam attributed the results to the team's execution and the quality of their global portfolio but noted the impact of negative customer sentiment on demand due to economic instability.
The company reported a rise in rental revenues from $1.15 billion to $1.78 billion compared to the previous year.
Occupancy across ProLogis (NYSE:PLD)' portfolio remained robust at 97.1% during the quarter, although it experienced a 60 basis points decrease year-over-year. The company initiated leases for 46.4 million square feet of space, a 9% reduction compared to the previous year.
In response to the strong performance, Prologis adjusted the front end of its guidance range by $0.02, now expecting a range of $5.58 to $5.60, aligning with the current consensus estimate.
Prologis recently expanded its presence in critical U.S. markets in the previous year, finalizing a $26 billion deal to acquire Duke Realty Corp.