Analysts Take ‘Positive’ View of Industrial REITs

Prologis Park Desoto, near Memphis, one of the nation’s leading logistics markets. (Photo courtesy of Prologis)

SAN FRANCISCO—Bearing out the “positive” outlook that Barclays equity research analysts gave industrial REITs ahead of first-quarter earnings season, Prologis Inc. kicked off earnings season Tuesday by beating the analysts’ estimates. The logistics giant reported core funds from operations of 61 cents per share for Q1, up 24% year over year and beating the Barclays estimate by three cents per share and the Zacks consensus estimate by two cents per share.

“We are off to an excellent start this year,” says Hamid Moghadam, chairman and CEO of San Francisco-based 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.”