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Prologis (PLD: A3 pos / A): 2Q24 Preview

REAL ESTATE
  • Prologis releases its results tomorrow.
  • Analysts have been guided their estimates lower since the beginning of the year albeit only by -2.5% for EPS.
  • In the 1Q24 release, PLD gave revised guidance for the year -2.3% for Net Earnings
  • So, we shouldn’t expect a bumper set of results tomorrow, but expectations are muted.
  • The company is large and well covered with $94b in assets.
  • Moody’s placed the outlook on Positive in March with criteria for Upgrade being ND/EBITDA close to 4x from 4.8x and Interest Cover of >5x (already there at 7.7x)
  • It is very unlikely that tomorrow’s results will move the needle on Net Debt/EBITDA.
  • The company has almost no bonds maturing in ’24 or ’25 (USD 31m equiv in Yen)

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