01:10 PM EDT, 10/16/2024 (MT Newswires) -- Prologis ( PLD ) increased the midpoint of its 2024 core funds from operations guidance as the company topped third-quarter projections for the key metric despite rental revenue trailing analysts' estimates.

The logistics real estate investment trust now expects full-year core FFO in the $5.42 to $5.46 range, narrowed from between $5.39 and $5.47 previously. Analysts on average are modeling for core FFO of $5.42 in the ongoing year, according to a Capital IQ survey.

"The bottoming process is underway as our customers navigate an uncertain environment," Chief Executive Hamid Moghadam said in a statement. "Looking ahead, the supply picture is improving, and the long-term demand drivers for our business remain strong."

In the third quarter, the company reported core FFO of $1.43, up from $1.30 a year ago and above the $1.38 average analyst estimate on Capital IQ. Shares of Prologis ( PLD ) were up 3.7% in Wednesday trade.

The results overall were "slightly better than expected," Truist Managing Director Ki Bin Kim said in a note reiterating a buy rating and a $137 price target on the stock. Core FFO was partly aided by better fund fees and lower taxes, he said. Prologis' ( PLD ) total expenses were flat at $1.25 billion.

Rental revenue advanced to $1.90 billion for the three months ended Sept. 30 from $1.78 billion last year but missed the $1.91 billion market view. Total revenue rose to $2.04 billion from $1.91 billion.

Average occupancy was 96.1% during the quarter, down from 97.5% in the same period of 2023 and from 96.3% in the second quarter. The REIT's third-quarter rent change dipped to 67.8% from 84% year to year on a net effective basis and to 44.1% from 54.2% on a cash basis.

Price: 126.98, Change: +5.59, Percent Change: +4.60