Prologis, Inc. (NYSE:PLD) Q1 2019 Earnings Conference Call Transcript
Apr 16, 2019 • 12:00 pm ET
Welcome to the Prologis Q1 Earnings Conference Call. My name is Chris, and I'll be your operator for today's call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session. (Operator Instructions) Also note this conference is being recorded.
I'd now like to turn the call over to Tracy Ward. Tracy, you may begin.
Tracy A. Ward
Thanks, Chris, and good morning, everyone. Welcome to our first quarter 2019 conference call. The supplemental document is available on our website at prologis.com under Investor Relations. I'd like to state that this conference call will contain forward-looking statements under federal securities laws. These statements are based on current expectations, estimates and projections about the market and the industry in which Prologis operates as well as management's beliefs and assumptions.
Forward-looking statements are not guarantees of performance, and actual operating results may be affected by a variety of factors. For a list of those factors, please refer to the forward-looking statement notice on our 10-K or SEC filings. Additionally, our first quarter results press release and supplemental do contain financial measures such as FFO and EBITDA that are non-GAAP measures. And in accordance with Reg G, we have provided a reconciliation to those measures.
This morning, we'll hear from Tom Olinger, our CFO, who will cover results and guidance; and then Hamid Moghadam, our Chairman and CEO, who will comment on the company's outlook. Gary Anderson, Chris Caton, Mike Curless, Ed Nekritz, Eugene Reilly and Colleen McKeown are also here with us today.
With that, I will turn the call over to Tom.
Thanks, Tracy. Good morning and thanks for joining our call. Let me start with a few high-level observations. Supply generally remains disciplined across our markets. User demand is exceptionally strong in the small and medium-sized segments as our customers are prioritizing access to the end consumer and labor. Our proprietary leasing data continues to reflect healthy demand showing average gestation period and conversion rates have improved from the fourth quarter. This is notable as the first quarter is typically the softest leasing period of the year. Europe remains strong despite negative economic headlines, including the UK where our build-to-suit pipeline remains very active.
Now for our results. We had a great first quarter with very strong operating performance and core FFO of $0.73 per share. We leased almost 43 million square feet, bringing occupancy at quarter-end to 96.8%. This was down 70 basis points sequentially, consistent with our strategy to push rate and term. Rent change on roll continued to be excellent with our share at over 25% led by the US at over 30% and Europe over 13%. Globally, our spread between in-place and market rents remains elevated at more than 15%.
Our share of cash same-store NOI growth was also strong at 5.5%. This included a benefit of about 25 basis points from positive recovery and expense timing. G&A was about $5 million higher than expected due to stock-based compensation expense resulting from the increase