Prologis posts 3Q loss, raises 2012 forecast
SAN FRANCISCO -- Industrial real estate developer Prologis Inc. posted a third-quarter loss, but said its core funds from operations improved from a year ago on a 9 percent increase in revenue.
The company said it had record leasing and higher occupancy and effective rents in the quarter.
Prologis raised its forecast for full-year core FFO to between $1.72 and $1.74 per share, up from $1.64 to $1.70 per share. Analysts were expecting $1.69 per share, according to FactSet.
Amid a broad market selloff, Prologis shares slipped in midday trading. Shares lost 46 cents, to $34.70. The stock is up about 21 percent since the start of the year, and has traded between $24.91 and $37.58 in the past 52 weeks.
The company reported a net loss of $46.5 million, or 10 cents per share, compared with year-ago net income of $55.4 million, or 12 cents per share.
Funds from operations slipped less than 1 percent to $205.9 million, or 44 cents per share.
FFO adds back real estate depreciation and amortization, write-downs, gains on currency and derivatives, and merger-related costs, and is considered a key to measuring financial performance in the real estate industry.
Core FFO, which further strips out impairment charges, merger costs and other items, rose 12 percent to $232 million, or 49 cents per share, including a tax benefit of 6 cents per share.
Analysts, who usually exclude items, had expected 43 cents per share in funds from operations, on average, according to FactSet.
Revenue rose to $512.1 million from $469.1 million a year ago. Wall Street was expecting $471.5 million, on average.