— Jeff Ward, Lehigh Valley News Briefs
Prologis, operator of about 30 million square feet of Lehigh Valley warehouses, reported strong fourth-quarter results on Tuesday.
San Francisco-based Prologis is a REIT, or Real Estate Investment Trust. Investors who follow REITs pay more attention to Funds From Operations, or FFO, than to earnings per share (EPS).
FFO excludes one-time items such as the sale of an asset, and looks only at results from operations.
Fourth-quarter “core” FFO, as defined by Prologis, was $1.50 per share, exceeding the forecasts of Wall Street analysts. Shares of Prologis (NYSE:PLD) rose $7.79 to $117.27 Tuesday on the news. Today, they were trading at $116.55 at 10:40 a.m., down 72 cents.
Total fourth-quarter FFO was $1.44 billion.
Prologis is looking at more than just warehouses full of boxes for its future growth.
“… our platform is uniquely positioned to seize the opportunities created by favorable trends in our data center and energy businesses. The long-term outlook for Prologis is bright,” Hamid R. Moghadam, co-founder and CEO of Prologis, said in the earnings statement.
Prologis sees conversion of warehouses into data centers as part of its growth.
As of Sept. 30, 2024, the company owned or had investments in projects expected to total approximately 1.2 billion square feet (116 million square meters) in 20 countries, according to the company’s website.
Prologis has a market capitalization of $107.7 billion.
— Disclosure: I own shares of Prologis.
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