Prologis stock slides despite upbeat Q1 earnings: here’s why
Prologis Inc 
PLD is down about 7.0% on Wednesday even though it came in ahead of Street estimates for its fiscal first quarter.
Why is Prologis stock down today?
The stock is being hit primarily because the real estate investment trust lowered its full-year guidance for core funds from operations (FFO).
$PLD now forecasts core FFO on a per-share basis to fall between $5.37 and $5.47 in fiscal 2024. Analysts, in comparison, were at $5.51. Hamid R. Moghadam – the chief executive of Prologis Inc said in a press release today:
While operating conditions are healthy in the majority of our markets, customers remain focused on controlling costs, which is weighing on decision making and the pace of leasing.
Prologis stock is down over 20% for the year at writing.
Prologis Q1 earnings snapshot
For the first quarter, Prologis reported $1.96 billion in revenue on 63 cents a share of earnings per share. Experts had forecast $1.84 billion and 58 cents a share, respectively.
Note that $PLD did improve its core funds from operations in Q1 from $1.22 to $1.28. CEO Moghadam also said on Wednesday:
We remain optimistic about the fundamentals of our business, while being prepared for a slower environment in the next quarter or two.
Other notable figures in the earnings report include $1.6 billion of adjusted EBITDA and average occupancy at 96.8% down from 97.1% in the prior quarter. Wall Street currently has a consensus “overweight” rating on Prologis shares.