Prologis stock slides despite upbeat Q1 earnings: here's why

Prologis Inc (NYSE: 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:

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:

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.