Prologis(PLD)2024-10-16 12:05Company Overview - Prologis owned or had investments in properties and development projects totaling approximately 1.2 billion square feet (116 million square meters) across 20 countries as of September 30, 2024[4]. Financial Performance - Total revenues for Q3 2024 were 1.915 billion in Q3 2023, representing a 6.3% increase year-over-year[8]. - Core FFO attributable to common stockholders/unitholders for Q3 2024 was 1.238 billion in Q3 2023, reflecting a 10.4% increase[11]. - Net earnings attributable to common stockholders for Q3 2024 were 746,174 in Q3 2023, representing a year-over-year increase of 34.6%[173]. - The company reported operating income of 882,108 in Q3 2023, indicating a growth of approximately 42%[40]. - The diluted net earnings per share for Q3 2024 were 0.80 in Q3 2023, indicating an increase of 35%[39]. - Adjusted EBITDA attributable to common stockholders/unitholders for Q3 2024 was 1,618,657 in Q3 2023, reflecting a growth of 7.1%[47]. Guidance and Projections - The company expects net earnings attributable to common stockholders for 2024 to be between 3.45 per share[33]. - Prologis anticipates core FFO attributable to common stockholders/unitholders for 2024 to be in the range of 5.46 per share[33]. - Average occupancy for Prologis Share is projected to be between 96.00% and 96.50% for 2024[33]. - Strategic capital revenue, excluding promote revenue, is expected to be between 535 million for 2024[33]. - Development stabilizations for 2024 are forecasted to be between 4.3 billion[33]. - Prologis plans to initiate development starts in the range of 2.25 billion for 2024[33]. Occupancy and Leasing - The average occupancy rate for the operating portfolio was 97.1% in Q3 2024, consistent with the previous quarter[59]. - Total square feet of leases commenced in Q3 2024 was 50,764, an increase from 46,391 in Q3 2023, representing a growth of 9.1%[51]. - The net effective rent change for Prologis share in Q3 2024 was 67.8%, down from 84.0% in Q3 2023[51]. - The cash rent change for Prologis share in Q3 2024 was 44.1%, compared to 54.2% in Q3 2023[51]. Assets and Liabilities - Total assets as of September 30, 2024, were 93,020,840 at June 30, 2024, showing an increase of approximately 0.6%[34]. - Total liabilities increased to 35,614,097 at June 30, 2024, representing an increase of about 7.3%[35]. - The company’s net investments in real estate properties reached 77,864,755 at June 30, 2024, reflecting a growth of approximately 2.4%[34]. Development Activities - Development starts in YTD Q3 2024 reached 2,501 million[75]. - The total development portfolio for Prologis includes 7,065 thousand square feet, with a total expected completion value of 128,991 million[80]. - The total development starts for Q3 2024 reached 1,855 thousand square feet, with a leased percentage of 30.1%[84]. Debt and Financial Ratios - Total liabilities amounted to 6,167,428,000[111]. - The leverage ratio as of the period end was 30.9%, significantly below the covenant limit of 60%[186]. - Fixed charge coverage ratio was 6.7x, well above the required minimum of 1.5x[186]. - The weighted average interest rate on debt remained stable at 3.1%, indicating effective debt management[127]. Solar Capacity and Sustainability - Total U.S. solar capacity reached 92 MW, contributing to a gross book value of 294,183,000[103]. - The estimated weighted average stabilized yield was reported at 28%[103]. Customer and Market Insights - Top 10 customers account for 14.7% of net effective rent, with Amazon leading at 5.0% and a total of 151,004 thousand square feet[71]. - The total occupied square feet across all properties is 1,120,623 thousand, with a weighted average term of leases remaining of 4.0 years[72].