Prologis lowers FY24 core FFO ex-items to $5.45-$5.55 from $5.50-$5.64

Consensus is for FY24 FFO $5.50. Core FFO view excludes net promote income. Lowers FY24 Cash Same Store NOI view to 6.25%-7.25% from 8.00%-9.00%. “While we had a successful first quarter, we expect net absorption in the upcoming quarters to be lower than our prior expectations and leasing to stay competitive in a handful of our larger, higher-rent markets,” said Timothy D. Arndt, CFO, Prologis. “With that, our current view calls for lower average occupancy in the year. Accordingly, we have reduced full-year guidance ranges for occupancy, same-store growth and earnings, but view the adjustments more as a matter of timing as the outlook on new supply remains very favorable.” Arndt added: “At the midpoint, we project Core FFO growth, excluding promotes, of nearly 8%, and Cash Same Store NOI growth to be 6.75%. While our Southern California portfolio faces near-term headwinds, we remain very positive about long-term growth and value given the market’s supply barriers and secular forces driving future demand.”