Prologis (PLD) Stock Lower Despite Solid Q2 Results

Prologis (PLD) stock is retreating on Tuesday morning even though the REIT reported higher-than-expected results for the 2016 second quarter.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Prologis (PLD) - Get Report are declining 0.76% to $51.23 on Tuesday morning even though the industrial real estate investment trust posted better-than-expected results for the 2016 second quarter.

Before today's opening bell, the San Francisco-based company reported core funds from operations of 60 cents per share, topping analysts' expectations by a penny.

Funds from operations is a key metric in the REIT industry, which takes net income and adds back items such as depreciation and amortization.

Revenue for the quarter was $602.16 million, above Wall Street's estimates of $564.85 million.

For the full year, Prologis sees core fund from operations between $2.52 and $2.58 per share. Analysts are looking for funds from operations of $2.56 per share.

"We anticipate meaningful outperformance from operations...This performance will more than offset the incremental dilution from the increase in dispositions, contributions and fund ownership rebalances," CFO Thomas Olinger said in a statement.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, good cash flow from operations and expanding profit margins.

The team believes its strengths outweigh the fact that the company has had sub par growth in net income.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: PLD

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