Prologis had a great fourth quarter capping out the company’s strongest year ever. That is according to Hamid R. Moghadam, chairman and CEO, Prologis, on the company’s recent Q4 earnings results call. Moghadam first addressed issues that were top of mind.
“The proprietary forward-looking operating metrics, which we monitor regularly, such as showing average deal gestation period and lease conversion rates are holding steady,” he said. “We signed 17 million square feet of leases in December and in the first 20 days of January, usually the slowest part of the year. Based on specific data, which we can elaborate on in Q&A, customer interest is robust.”
He explained that that company expects activity to remain strong “with our most dynamic customers building out new and improved logistics networks. While we haven’t seen any softness even in the slower growing segments, we wouldn’t be surprised if some users hit the pause button until they saw further clarity on the direction of the economy.”
Earnings results were as follows: Net earnings per diluted share was $0.94 for the quarter and $2.87 for the year compared with $0.55 and $3.06 for the same periods in 2017. Core funds from operations per diluted share was $0.80 for the quarter (including $0.05 of net promote income) compared with $0.67 for the same quarter in 2017. For the full year 2018, Core FFO was $3.03 compared with $2.81 for the same period in 2017. Further, Core FFO for full-year periods 2018 and 2017 included net promote income of $0.14 and $0.16 per diluted share, respectively.