Analytical Report: Prologis, Inc. (NYSE:PLD)

Prologis, Inc. (NYSE:PLD) reported earnings for the three months ended Mar2016 on April 19, 2016. The company earned $0.13 per share on revenue of $554.12M. Analysts had been modeling earning per share of $0.15 with $562.3M in revenue.

Prologis, Inc. (PLD) on April 19, 2016 reported results for the first quarter of 2016.

HIGHLIGHTS

• Core funds from operations per diluted share was $0.61, up 24 percent year-over-year


• Prologis’ share of GAAP same store NOI increased 7.4 percent


• Prologis’ share of GAAP rent change on rollovers was +20.1 percent


• Short-term financing associated with the acquisition of the KTR real estate portfolio was fully repaid, ahead of plan

“We are off to an excellent start this year,” said Hamid Moghadam, chairman and CEO, Prologis. “Operating conditions remain extremely healthy in the majority of our markets, above our expectations. Consumption and e-commerce are the key drivers of our growth and both continue to grow faster than underlying economies would suggest. These factors, combined with our focused investment strategy, have resulted in strong operational and financial results in the first quarter.”

CONTINUED STRENGTHENING OF FINANCIAL POSITION

During the first quarter, Prologis completed $1.2 billion of refinancings and fully retired the $400 million short-term financing associated with the acquisition of the KTR real estate portfolio. Subsequent to quarter-end, the company recast its Global Line of Credit which now matures in 2021; the new facility was increased by $640 million to $3.0 billion and pricing decreased by 10 basis points to 90 basis points over LIBOR as of the closing of the line.

“With the recast of our credit facility last week and our existing yen facility, we’ve increased our total line capacity to $3.4 billion at attractive pricing as well as enhanced our already significant liquidity position,” said Thomas S. Olinger, chief financial officer, Prologis. “During the quarter, we received positive outlook revisions to our Baa1/BBB+ credit ratings from Moody’s and S&P, which support the continued upward trajectory of our balance sheet.”

Prologis, Inc. earnings per share showed an increasing trend of 33.3% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 103%.Analysts project EPS decline over the next 5 years at 0%. It has EPS annual growth over the past 5 fiscal years of 17.3% when sales grew 21.2. It reported 31% sales growth, and -39.5% EPS decline in the last quarter.

The stock is trading at $47.53, up 36.19% from 52-week low of $35.25. The stock trades down -1.39% from its peak of $48.2 and -67.47% below the consensus price target of $15.46. Its volume clocked up at 1.95 million shares which is lower than the average volume of 2.85 million shares. Its market capitalization currently stands at $25.00B.