|
Related Topics
|
|
Category: Stock Market and Prologis
Date: 16 October 2019 Stock Price: $89.11 We take a look at the 3rd quarter earnings report of their 2019 fiscal year of Prologis a leader in logistics real estate with a focus on high-barrier, high-growth markets. The company is active in 19 countries.
|
|
About Prologis
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of September 30, 2019, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 797 million square feet (74 million square meters) in 19 countries. Prologis leases modern logistics facilities to a diverse base of approximately 5,100 customers principally across two major categories: business-to-business and retail/online fulfillment.
Prologis Redlands Park, California
Overview of Prologis' latest earnings report
Data below refers to quarterly data unless specified otherwise:
- Total Revenues: $942 million (up from $682 million for the same period of the previous year)
- Net sales increased by 38.1% over the last 12 months
- Net income: $451 million (up from $346 million for the same period of the previous year)
- Diluted earnings per share: $0.71 (up from $0.60 for the same period of the previous year)
- PE ratio of Prologis.: 31.3
- Dividend: $0.53
- Dividend yield: 2.37%
- Dividend yield: 2.37%
- Diluted weighted-average shares outstanding: 655.259 million (up from 597.697 million for the same period of the previous year)
- Cash and cash equivalents: $1.024 billion
- Cash and cash equivalents per share: $1.56
- Cash and cash equivalents makes up 1.75% of Prologis' market capital
- Cash and cash equivalents makes up 2.59% of Prologis' total assets
- Stockholders equity of Prologis: $25.935 billion
- Stockholders equity per Prologis stock: $39.6
- So Prologis is trading at 2.25 times its stockholders equity which is within the excepted range of between 2 and 4 times that most firms tend to trade at.
Prologis' management commentary on the results
SAN FRANCISCO, Oct. 15, 2019 /PRNewswire/ -- Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, reported results for the third quarter of 2019.
Net earnings per diluted share was $0.71 for the quarter compared with $0.60 for the third quarter of 2018. Core funds from operations (Core FFO)* per diluted share was $0.97 for the quarter, including $0.18 of net promote income, compared with $0.72 for the same period in 2018, which did not include any promote income.
"Our third-quarter results were excellent—reflecting record rent increases and significant earnings from our Strategic Capital business," said Hamid R. Moghadam, chairman and CEO, Prologis. "Markets remain healthy, driven by customers who are prioritizing proximity to consumers to offset supply chain costs such as labor and transportation. Additionally, investor interest for our Strategic Capital ventures is exceptional, as evidenced by a record capital raise of more than $1.6 billion for our open-ended vehicles."
"Our ability to source capital on a global basis, while naturally hedging our assets against foreign currency movements, is of tremendous strategic advantage," said Thomas S. Olinger, chief financial officer, Prologis. "This quarter's financing activity lowered our total weighted average interest rate by 10 basis points to 2.4% and lengthened our weighted average maturity by approximately 2 years to 7.7 years."
The image below shows the current and previous guidance for Prologis 2019 fiscal year
Net earnings per diluted share was $0.71 for the quarter compared with $0.60 for the third quarter of 2018. Core funds from operations (Core FFO)* per diluted share was $0.97 for the quarter, including $0.18 of net promote income, compared with $0.72 for the same period in 2018, which did not include any promote income.
"Our third-quarter results were excellent—reflecting record rent increases and significant earnings from our Strategic Capital business," said Hamid R. Moghadam, chairman and CEO, Prologis. "Markets remain healthy, driven by customers who are prioritizing proximity to consumers to offset supply chain costs such as labor and transportation. Additionally, investor interest for our Strategic Capital ventures is exceptional, as evidenced by a record capital raise of more than $1.6 billion for our open-ended vehicles."
"Our ability to source capital on a global basis, while naturally hedging our assets against foreign currency movements, is of tremendous strategic advantage," said Thomas S. Olinger, chief financial officer, Prologis. "This quarter's financing activity lowered our total weighted average interest rate by 10 basis points to 2.4% and lengthened our weighted average maturity by approximately 2 years to 7.7 years."
The image below shows the current and previous guidance for Prologis 2019 fiscal year
Prologis 2019 fiscal guidance as at end 3rd quarter 2019
Advertisement
Prologis (NYSE: PLD) stock price history
The image below, obtained from Google, shows the stock price history of Prologis over the last 5 years. And it's been a very good time for Prologis stockholders. 5 years ago the stock was trading at around $39.10 a stock and its currently trading at $89.11 a stock. Thats a return of 127.90% provided to Prologis shareholders over the last 5 years.
The stock of Prologis is trading at a lot closer to its 52 week high of $89.32 than it is to its 52 week low of $55.21 which to us is a indication that the short term momentum and sentiment of Prologis stock is very positive at this point in time.
The stock of Prologis is trading at a lot closer to its 52 week high of $89.32 than it is to its 52 week low of $55.21 which to us is a indication that the short term momentum and sentiment of Prologis stock is very positive at this point in time.
Prologis (NYSE: PLD) stock price history over the last 5 years
Recent coverage of Prologis Inc.
The extract below discusses expected earnings from Prologis as obtained from TheStreet.com
Prologis, Inc. (PLD - Get Report) is expected to report adjusted net income of $292.8 million, or 53 cents a share, on sales of $715.9 million before the market opens on Tuesday, based on a FactSet survey of 7 analysts. In the same period a year ago, the company posted earnings of 62 cents a share on sales of $609 million. It reported net income of $336.1 million. The stock has risen 7.4% since the company last reported earnings on Jul. 15. Quarterly estimates have risen less than 1 cent a share in the past month. In the upcoming quarter analysts are forecasting adjusted net income of $251.4 million, or 46 cents a share, on sales of $731.5 million.
Read the full article here
Prologis, Inc. (PLD - Get Report) is expected to report adjusted net income of $292.8 million, or 53 cents a share, on sales of $715.9 million before the market opens on Tuesday, based on a FactSet survey of 7 analysts. In the same period a year ago, the company posted earnings of 62 cents a share on sales of $609 million. It reported net income of $336.1 million. The stock has risen 7.4% since the company last reported earnings on Jul. 15. Quarterly estimates have risen less than 1 cent a share in the past month. In the upcoming quarter analysts are forecasting adjusted net income of $251.4 million, or 46 cents a share, on sales of $731.5 million.
Read the full article here
Prologis Park, Augsburg, Germany
Prologis (NYSE:PLD) latest stock valuation
So what is Prologis Inc. stock worth based on the release of their latest earnings report and their outlook for the rest of their 2019 fiscal year? Based on Prologis, Inc's latest earnings report and their outlook our valuation models provide a target (full value) price for Prologis, Inc stock at $71.20 a stock. We therefore believe that the stock of Prologis, Inc is slightly overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $71.20 Therefore we believe a good entry point into Prologis stock is at $64.10 or below. We expect the stock of Prologis to pull back in coming weeks and months to levels closer to our target (full value) price of $71.20.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $71.20 Therefore we believe a good entry point into Prologis stock is at $64.10 or below. We expect the stock of Prologis to pull back in coming weeks and months to levels closer to our target (full value) price of $71.20.
Next earnings release date for Prologis Inc
It is expected that Prologis's 4th quarter 2019 earnings report will be released in early January 2020