Prologis (NYSE:PLD) reported its Q4 results, with EPS coming in at $0.63, compared to the Street estimate of $0.61. Revenue was $1.75 billion, beating the Street estimate of $1.42 billion.
According to the analysts at Deutsche Bank, the company delivered a high-quality beat as strong occupancy, rent growth and balance sheet position the company to deliver outsized relative trading performance in 2023.
Industrial REITs are set to re-establish their favored investor status as analysts expect the company’s strong fundamentals to outshine concerns over the likely Global economic slowdown. Although Industrial REITs are not immune to slowing or negative GDP growth, the analysts contend that the strong demand for the company’s last mile (and low vacancy) assets are highly coveted by their tenant base, thus any vacancy is likely to be relet briskly.