On Wednesday, Goldman Sachs reaffirmed its Buy rating on ProLogis (NYSE: NYSE:), sustaining the stock’s price target at $142.00. ProLogis, a global leader in logistics real estate, has reported third-quarter 2024 core funds from operations per share (FFOPS) at $1.43, surpassing the Goldman Sachs estimate of $1.38 and the FactSet consensus of $1.37. This marks a 3.6% and 4.4% increase respectively.
The core FFOPS, which includes promote income, showed a year-over-year increase of 9.0%, reaching $1.45, which is 2.8% higher than Goldman Sachs’ estimate of $1.41. ProLogis also adjusted its 2024 core FFOPS guidance, excluding net promote income, raising it by a penny. This adjustment suggests an anticipated growth of 8.0% in year-over-year core FFOPS.
Goldman Sachs’ positive stance is further supported by ProLogis’ performance, which exceeded expectations, and its revised forecast. The company’s decision to narrow and increase its 2024 core FFOPS guidance comes at a time when there was concern that guidance might be reduced. Given these results, Goldman Sachs anticipates that ProLogis could perform better than other real estate investment trusts (REITs) in today’s market.
In other recent news, ProLogis reported impressive third-quarter financial results, surpassing expectations with a Core Funds From Operations (FFO) per share of $1.43. This performance was primarily attributed to gains from foreign currency and derivatives. The company also raised its full-year 2024 guidance to $5.44 at the midpoint, indicating a robust financial outlook.
BTIG maintained a Buy rating and a $154.00 price target on ProLogis, highlighting the company’s robust leasing activity and same-store net operating income (SSNOI) growth. However, Evercore ISI and Barclays maintained their In-Line and Overweight ratings respectively, with steady price targets of $128.00 and $131.00.
ProLogis reported a 96.2% occupancy rate for the third quarter, slightly above the forecasted 96.0%. The company also achieved 50.8 million square feet of leasing activity, marking the highest in eight quarters, and raised its acquisition guidance by $750 million.
RBC Capital shifted its rating from an “Outperform” to a “Sector Perform”, slightly increasing the price target to $127.00. Despite the positive performance, ProLogis is facing modest occupancy challenges and a slight uptick in concessions. BMO Capital maintained its Market Perform rating and $122.00 price target for ProLogis, expressing interest in further details regarding the treatment of currency fluctuations in the company’s yearly guidance.
InvestingPro Insights
ProLogis’s strong performance, as highlighted in the article, is further supported by recent data from InvestingPro. The company’s market capitalization stands at an impressive $119.56 billion, underlining its significant presence in the Industrial REITs industry. ProLogis has demonstrated its commitment to shareholder value, with InvestingPro Tips noting that it has raised its dividend for 10 consecutive years and maintained dividend payments for 14 consecutive years. This aligns with the company’s recent dividend yield of 3.16% and a robust dividend growth of 10.34% over the last twelve months.
While ProLogis’s P/E ratio of 40.99 suggests it’s trading at a high earnings multiple, this could be justified by its strong market position and consistent performance. The company’s revenue for the last twelve months reached $8.1 billion, with a healthy gross profit margin of 74.88%. These figures support Goldman Sachs’ optimistic outlook on the stock.
InvestingPro offers 10 additional tips for ProLogis, providing investors with a comprehensive analysis of the company’s financial health and market position. To gain access to these insights and make more informed investment decisions, consider checking out the full range of tips available on InvestingPro.
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