Latest news with #HamidMoghadam
Mint
17-07-2025
- Business
- Mint
Construction Costs to ‘Go Up Radically,' Prologis CEO Says
(Bloomberg) -- The chief executive officer of Prologis Inc., a real estate investment trust that owns and runs warehouses, said US immigration policy is causing a labor shortage that's driving building costs higher. 'Construction costs are going to go up radically,' Prologis CEO Hamid Moghadam said Wednesday on Bloomberg TV. 'We thought they were going to stabilize this year, but I think all of this immigration stuff is putting more pressure on construction.' President Donald Trump has vowed to undertake the largest deportation campaign in American history, with US Immigration and Customs Enforcement detaining migrants at 60 new facilities this year, according to government figures analyzed by Bloomberg. The White House has given ICE a quota of 3,000 arrests a day. 'It is a real issue for our customers, because they need people to work in their warehouses, and often those are the same people that are having immigration issues,' Moghadam said Wednesday. 'So they're being forced into more automation, which is not necessarily economic at this point in time.' Moghadam added that he doesn't 'know where the employees are going to come from that are going to do all this manufacturing that we are talking about.' For his part, the CEO said the labor shortage makes Prologis' buildings more valuable because it will cost more to replace them. Shares of the San Francisco-based firm rose 1.4% Wednesday after it reported second-quarter results that were 'better than initially feared' after tariffs came into focus, according to Evercore ISI's Steve Sakwa. Prologis' funds from operations — a measure of a cash generated by a REIT — exceeded analysts' expectations, and its occupancy rates remained stable at about 95%. --With assistance from Romaine Bostick and Scarlet Fu. More stories like this are available on
Bloomberg
16-07-2025
- Business
- Bloomberg
Construction Costs To Rise Rapidly: Prologis CEO
Prologis CEO Hamid Moghadam discusses trade, wearhouse demand overseas, immigration policy. He speaks with Romaine Bostick and Scarlet Fu on 'The Close.' (Source: Bloomberg)
Yahoo
16-07-2025
- Business
- Yahoo
Prologis says warehouse ‘demand is piling up'
Logistics warehouse operator Prologis boasted a record leasing pipeline as 'broader economic uncertainty begins to clear' following April's Liberation Day tariff announcements. The company cautioned that conditions will likely 'remain choppy' over the next few quarters but said leased space utilization is increasing and 'demand is piling up.' The San Francisco-based real estate investment trust said Wednesday that customers are actively signing leases, albeit at a slower-than-normal pace. The company's leasing pipeline of 130 million square feet was up 19% year over year in the second quarter and now stands at 'historically high levels.' 'With every passing day there's more water building up behind the dam,' said Hamid Moghadam, Prologis co-founder and CEO, on a quarterly call with analysts. 'I think every bit of business that's delayed is going to translate to more business in the future.' Occupancy across Prologis' (NYSE: PLD) portfolio was 94.9% in the second quarter, 120 basis points lower y/y, but level with the first quarter as market conditions appear to have stabilized. The company ended the quarter with the portfolio 95.1% occupied, which it said is 290 bps ahead of the broader market. Prologis reported second-quarter core funds from operations (FFO) of $1.46 per share before the market opened on Wednesday, which was 4 cents above the consensus estimate and 12 cents higher y/y. Total revenue increased 9% to $2.18 billion as new leases commenced rose 10% to 51.2 million square feet. Leasing activity slumped 20% shortly after the April tariff announcements but improved throughout the period, ending the quarter just 10% lower than normal. Roughly one-third of Prologis' leasing activity in the quarter came from 3PLs. That was a little lower than the prior two quarters, but those periods saw outsized activity from logistics operators. The company raised its full-year FFO guidance range to $5.80 to $5.85 per share, which was roughly 1% higher than the prior guide at the midpoint of the range. The new outlook assumes average occupancy in a range of 94.75% to 95.25% and development starts between $2.25 billion and $2.75 billion. The new guide for starts is back in line with the company's initial outlook for 2025, which was issued in January. Importantly, Moghadam said that the market has seen a 7.4% median vacancy rate since 2000, with vacancy exceeding that level 44% of the time. He believes the market has already topped out at a mid-7% vacancy rate and noted that at 5% vacancy, the landlord regains pricing power. (Market rents were off 1.4% in the quarter.) A fear of missing out and inflationary concerns are likely to push tenants away 'from being very conservative to being much more aggressive,' Moghadam said. 'I think if you have people that are pulling the trigger on big capital improvements … they are going to take comfort by seeing other people make the same decisions.' Shares of PLD were up 1.4% at 2:28 p.m. EDT on Wednesday compared to the S&P 500, which was up 0.2%. More FreightWaves articles by Todd Maiden: J.B. Hunt still waiting for market to turn LTL pricing index to hit record high in Q3 June produces mixed freight trends, recovery remains 'elusive' The post Prologis says warehouse 'demand is piling up' appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
Prologis misses Q2 profit estimates but shares up on outlook
--Prologis Inc reported quarterly earnings below Wall Street expectations and cut its full-year profit guidance. Though the lower guide was better than the consensus on 'strong' leasing demand. The better than expected outlook helped lift shares of Prologis (NYSE:PLD) 1.55% to $110 in premarket trading on modest volume. The logistics-focused real estate investment trust posted second-quarter earnings per share of $0.61, falling short of analysts' average estimate of $0.69. Revenue rose to $2.04 billion, beating the $2.01 billion consensus. Prologis lowered its 2025 EPS forecast to a range of $3.00 to $3.15, even below its previously target of atleast $3.45. Though it well above the average analyst estimate of $2.59. CEO Hamid Moghadam said quarter saw strong operational execution and customer relationships, while President Dan Letter pointed to record-high leasing pipeline activity. "What we're hearing from customers, especially the larger ones, is clear: they're planning, engaging and increasingly ready to act," Letter said. "These trends are evident in both our leasing and build-to-suit activity—and we're in a strong position to meet that demand." Related articles Prologis misses Q2 profit estimates but shares up on outlook These Under-the-Radar Stocks Offer Better Risk-Reward Ratio Than Nvidia After soaring 149%, this stock is back in our AI's favor - & already +25% in July Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
3 Top Dividend Stocks Yielding Over 3% to Buy Before They Soar
Prologis expects demand for warehouse space to strengthen. PepsiCo's investments should grow its earnings and cash flow in the future. NextEra Energy is capitalizing on surging power demand. 10 stocks we like better than Prologis › The stock market has taken investors on quite a roller-coaster ride in the past year. It tumbled due to concerns that tariffs could cause an uptick in inflation and a slowdown in economic growth. However, it has bounced back as the U.S. has walked back its initially high tariff rates. While most stocks have recovered much of their tariff-driven losses, several are still down quite a bit from their recent highs, and one benefit of lower stock prices is that dividend yields move in the opposite direction. Because of that, several top dividend stocks currently offer yields well above 3%, which is more than double the S&P 500's dividend yield (recently below 1.5%). Three stocks that stand out for their high yields are Prologis (NYSE: PLD), PepsiCo (NASDAQ: PEP), and NextEra Energy (NYSE: NEE). Here's why investors should consider scooping up shares before they bounce back. Prologis is a terrific dividend stock. The real estate investment trust (REIT) has grown its payout at a 13% compound annual rate over the past five years. That's faster than the S&P 500 (5%) and REIT sector (6%). Prologis' growing payout and a more than 15% slump in its stock price from its 52-week high have pushed its yield up to 3.6%. The REIT's stock price has declined because "policy uncertainty is making customers more cautious," commented co-founder and CEO Hamid Moghadam in the first-quarter earnings press release. That's causing a slowdown in leasing activity, which is impacting rent growth and occupancy. Prologis is performing well despite this headwind. Its core funds from operations increased by 10.9% in the first quarter, driven by the company's strong execution in the period. Meanwhile, the longer-term outlook is very positive because a limited supply of new warehouses and high construction costs should support continued rent growth as demand for warehouse space grows. That should enable the REIT to continue increasing its high-yielding payout at a healthy rate. Shares of PepsiCo have fallen nearly 30% from their 52-week high. That has helped drive the beverage and snacking giant's dividend yield up to 4.3%. That's an attractive level for a company with such a strong record of dividend growth. PepsiCo recently hiked its payout by another 5%, which extended its dividend growth streak to 53 straight years. It kept the company in the elite group of Dividend Kings, companies with 50 or more years of annual dividend increases. PepsiCo is in an excellent position to continue growing its dividend. While the company is facing some near-term headwinds from a more cautious consumer and tariffs, its longer-term outlook is bright. PepsiCo is investing heavily in product innovation, productivity gains, manufacturing capacity, and other drivers. The company expects these catalysts to deliver 4% to 6% annual organic revenue growth, which, along with improving margins, should support high-single-digit annual earnings-per-share growth. Meanwhile, PepsiCo has a strong balance sheet, which enables it to make strategic acquisitions to enhance growth, like its recent $1.7 billion deal for healthier soda maker Poppi. Shares of NextEra Energy have slumped nearly 20% from their 52-week high. That has helped drive the utility's dividend yield up to 3.2% NextEra Energy has an exceptional record of growing its dividend and has increased its payout annually for the past three decades. For the past two decades, its dividend has grown at a double-digit annual rate. NextEra currently expects to maintain that pace through at least next year. The utility is in an excellent position to continue growing in the future by capitalizing on the expected surge in power demand. Catalysts like data centers, the electrification of everything, and the onshoring of manufacturing could power a 55% increase in U.S. electricity demand by 2040. That's driving robust growth for the company's renewable energy business. It positions NextEra Energy to grow its earnings at a mid- to high-single-digit annual rate for several years. That robust growth rate should propel NextEra's stock higher in the future. Shares of Prologis, PepsiCo, and NextEra Energy are still well below their recent highs. Because of that, investors can lock in higher yields on these high-quality dividend stocks. On top of that, the trio offers compelling upside potential as their stock prices recover and they grow their earnings. That makes them great stocks to buy for investors seeking strong total-return potential. Before you buy stock in Prologis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Prologis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $598,613!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $753,878!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 169% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Matt DiLallo has positions in NextEra Energy, PepsiCo, and Prologis. The Motley Fool has positions in and recommends NextEra Energy and Prologis. The Motley Fool recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy. 3 Top Dividend Stocks Yielding Over 3% to Buy Before They Soar was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
