Global logistics real estate company Prologis released its quarterly earnings results on Tuesday. The supply chain company has over $70 billion in market cap and serves customers including Amazon, UPS, USPS, FedEx and PepsiCo. Hamid Moghadam, chairman and CEO of Prologis, joins “Squawk Box” to discuss.
Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, reported results for the second quarter of 2020.
Net earnings per diluted share was $0.54 for the quarter compared with $0.60 for the second quarter of 2019. Core funds from operations* per diluted share was $1.11 compared with $0.77 for the same period in 2019. The second quarter of 2020 included $0.23 of net promote income, while the same period in 2019 had no net promote income.
Prologis raises FY20 core FFO view to $3.70-$3.75 from $3.55-$3.65. Consensus is for FY20 FFO $3.59.
“While the economic impact of COVID-19 remains unknown, the combination of what we see in our proprietary data, the pace of rent collections, and dialogue with our customers gives us a more positive outlook for the back half of the year,” said Thomas S. Olinger, chief financial officer, Prologis. “Year-over-year Core FFO growth at the midpoint, excluding promotes, is extremely strong, at over 12.5%, with leverage flat. Additionally, we continue to have significant dividend coverage of 1.6x and expect to generate free cash flow after dividends of $1 billion in 2020.”
“Our results for the quarter were excellent, driven by strong operating performance and record promote income. I’m proud of our team who has worked tirelessly to navigate the current environment,” said Hamid R. Moghadam, chairman and CEO, Prologis. “While e-commerce is clearly a tailwind, demand is broad-based across a variety of categories—a trend we saw accelerate in June.”