By Dean Seal


Prologis Inc. expects to post fewer earnings and sees a lower average occupancy at its properties in 2023 as the economy slows.

The San Francisco-based industrial-property landlord is guiding for earnings to be between $3 and $3.15 a share in 2023, down from $4.25 a share in 2022. Analysts polled by FactSet are expecting earnings of $3.25 in 2023.

Core funds from operations, a measure of operating performance, are projected to be between $5.40 and $5.50 a share in 2023, up from $5.16 a share in 2022. Analysts are looking for core funds from operations of $5.57 a share in 2023, according to FactSet.

Prologis forecasts average occupancy across its owned and managed portfolio to be between 96.5% and 97.5% in 2023, compared with 97.4% in the first quarter and 98% in the fourth quarter in 2022 after ticking up throughout the year.

Chief Executive Hamid R. Moghadam said Prologis is operating "in the face of a slowing economy" and although capital markets are stabilizing, "it will likely take a few quarters before we see meaningful price discovery, and normalization of values."

Shares are up half a percentage point, at $122, in premarket trading Wednesday.


Write to Dean Seal at dean.seal@wsj.com


(END) Dow Jones Newswires

01-18-23 0914ET