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$PLD declared a dividend of $0.44 per share on its common stock for 3Q17, payable on Sept. 29, 2017, to stockholders of record on Sept. 18, 2017. $PLD also declared a dividend of $1.0675 per share on its 8.54% Series Q Cumulative Redeemable Preferred Stock, payable Oct. 2, 2017, to stockholders of record on Sept. 18, 2017.
$PLD has acquired Cyrela Commercial Properties' (CCP) interest in its Brazil portfolio and now owns 100% of Prologis CCP. Prologis CCP was a JV between $PLD and Cyrela Commercial Properties. Now that the transaction has closed, Prologis Brazil owns and operates 9.2MM sq.ft. of logistics facilities in São Paulo and Rio De Janeiro.
$PLD expects margins to continue to grow in the second half of 2017, but at a slightly slower rate than in the first half. The company sees its same store performance improving in fiscal 2018, compared to this year, on the back of higher market rents.
Logistics real estate firm $PLD said market rent growth in the US is on pace to reach 8% this year, while most of the international markets will also witness an increase. According to the company, e-commerce will remain the most significant contributor to its growth in the coming quarters. Another potential growth driver is the healthcare sector.
$PLD has narrowed the range of its year-end occupancy outlook to 96.5-97% from 96-97%. The development starts guidance has been increased by $200MM to the range of $1.8Bil to $2.1Bil. While the growth prospects for 2017 are constrained by non-availability of space, the company has marginally increased its expectations of supply and demand for 2018.
$PLD revised up its EPS forecast for 2017 to the $2.76-$2.84 range from the earlier forecast between $1.7 and $1.8. Core FFO is currently seen between $2.78 per share and $2.82 per share, higher than the previous outlook of $2.72-$2.78 per share. The outlook of net promote income for 2017 has been raised to $90MM from $65-$75MM estimated earlier.
Logistics real estate company $PLD said its net profit dropped 3% to $267MM or $0.50 per share in 2Q17 from $275MM or $0.52 per share a year earlier. However, revenues advanced 27% YoY to $766MM, helped mainly by higher rents and property values.
$PLD to acquire its partner's interest in its Brazil portfolio for R$1.2Bil (US$362MM). Upon transaction close, $PLD will own 100% of Prologis CCP and rename the business to Prologis Brazil. The transaction is expected to close in 2H17. Prologis CCP is a JV between $PLD and Cyrela Commercial Properties.
$PLD has reaffirmed its commitment to long-term climate action. In the annual sustainability report, Prologis said it is meeting or exceeding its greenhouse gas emission reduction goal of 20% by 2020, and achieved progress in sustainable buildings certifications. Solar installations in the company’s footprint rose by 18 MW to 165 MW in 9 countries.
$PLD said its operating subsidiary Prologis L.P. priced an offering of GBP500MM of notes due 2029. The notes will be senior unsecured obligations of the operating subsidiary and will be fully and unconditionally guaranteed by $PLD. The sale of the notes is expected to close on or about June 7, 2017.
$PLD declared a regular cash dividend for the quarter ending June 30, 2017 of $0.44 per share of its common stock, payable on June 30, 2017, to stockholders as on June 14, 2017. Additionally, a dividend of $1.0675 per share was declared on its 8.54% Series Q Preferred Stock, payable on June 30, 2017, to Series Q stockholders as on June 19, 2017.