Industrial giant GLP posted record second-quarter profit and revenue, and the company expects better prospects ahead.

The San Francisco-based REIT reported second-quarter revenue of $2.45 billion, nearly double the $1.25 billion it generated a year earlier. Net income hit nearly $1.22 billion, or $1.31 a share, compared with $610 million, or 82 cents, in the second quarter of 2022. Core funds from operations, a standard metric for REITs, totaled $1.74 billion, or $1.83 per share.

pros is world’s largest Industrial real estate investor who owns or has interests in approximately 1.2 billion square feet of real estate and development projects in 19 countries. The average occupancy rate for the company’s owned and operated portfolio was 97.5% in the second quarter.

The increase in revenue and net profit was mainly due to acquisitions.Last year, ProLogis acquired Indianapolis-based rival Duke Properties All-stock deal for $26 billion. When the deal closed in the fourth quarter, the company absorbed 153 million square feet of industrial space in 19 markets.

In the second quarter, the company issued $7 billion in new debt, a core element of its buyout growth strategy. The debt has an average interest rate of 4.9 percent and a maturity of 8.4 years, according to the company.

Timothy Arndt, Chief Financial Officer of Prologis, said: “Our balance sheet gives us unrivaled access to global debt markets, allowing us to fund our ongoing development platform and add value in a market where most players are stretched thin. investment,” said in a statement.

Looking ahead, full-year operating core funds are expected to be $5.56 to $5.60 per share, higher than the previous forecast of $5.42 to $5.50 per share. Prologis expects same-property net operating income to grow 9.5% to 10%, also above its previous forecast. Net profit to shareholders is expected to rise 5.5%, the company said.

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The industrial giant posted strong earnings despite a cooling national industrial market. According to a second-quarter report from brokerage Cushman & Wakefield, the vacancy rate was 4.1%, the first time it has topped 4% in two years. ​​Net absorption was 45 million square feet, down from 71 million square feet in the previous quarter and down from 126 million square feet a year earlier.

Prologis continues to acquire substantial assets from competitors.last month it hit billion dollar deal Partnered with the Blackstone Group to purchase a portfolio of nearly 14 million square feet of industrial space from Stephen Schwarzman’s firm for $3.1 billion. The portfolio consists of approximately 70 properties in major markets, including the Dallas, South Florida and New York City metro areas.

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