Logistics real estate investment trust Prologis (NYSE:PLD) reported better-than-expected results for the fourth quarter of 2022. The quarterly performance benefitted from increased rent and a higher average occupancy rate.
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The company’s Q4 revenue grew 37.2% year-over-year to $1.75 billion, exceeding analysts’ expectations of $1.42 billion. The top line increased due to a 48% growth in rental revenues. Meanwhile, net earnings decreased by approximately 62% to $0.63 but surpassed the Street’s expectations of $0.61.
The Q4 average occupancy level in Prologis’ owned and managed portfolio was 98%, compared with 97.7% in the previous quarter. Also, the retention rate was 82.4% in the quarter, up from 76.4% in the prior quarter.
For the full year 2022, Prologis reported revenue of $6 billion, up 25.5% year-over-year. Also, core FFO increased by 24.3% to $5.16 per share.
Regarding guidance, the company expects rent to increase by 10% in the United States and by 9% globally. Further, the average occupancy level is anticipated to be between 96.50% and 97.50%.
Is Prologis Stock a Good Buy?
Wall Street analysts are optimistic about PLD stock and have a Strong Buy consensus rating, which is based on 10 Buys and two Holds. The average stock price target of $133.50 implies 8.9% upside potential.
Supporting the bull case is PLD’s impressive dividend history. The company has been increasing payouts every year since 2014. Overall, PLD scores a Smart Score of 9 on the TipRanks Smart Score System, implying it has the potential to beat the broader market averages.
