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ublished October 16, 2024

    10:25 AM EDT

    

     Prologis exceeded analyst expectations for third-quarter earnings and revenue as the real estate market showed signs of recovery.Core funds from operations (FFO) surged 10%, driving significant gains.Prologis raised its full-year guidance for earnings and core FFO.

     Shares of Prologis (PLD) rose Wednesday after the company reported better-than-expected results, driven by strong funds from operations (FFO).The real estate investment trust (REIT) posted third-quarter earnings per share (EPS) of $1.08, with revenue increasing 6.3% year-over-year to $2.04 billion. Core FFO advanced 10% to $1.43, outpacing analyst estimates.

     Leases commenced rose to 50.8 million square feet from 46.4 million square feet a year ago.Average occupancy of its owned and managed properties was 95.9%, while retention stood at 75.7%.

     CEO Hamid Moghadam stated that the real estate market is entering a "bottoming process" as customers navigate an uncertain environment.Moghadam noted that supply is improving, and long-term demand drivers for Prologis remain strong.

     Prologis now expects full-year earnings of $3.35 to $3.45, up from its previous outlook of $3.25 to $3.45.Core FFO guidance was revised to $5.42 to 5.46, compared to the earlier range of $5.39 to $5.47.

     Prologis shares rose 2% after the opening bell Wednesday but are down 7% year-to-date.