DENVER — Industrial real estate investment trust ProLogis said Thursday its first-quarter results increased nearly 12 percent on proceeds from property sales, beating Wall Street’s expectations.
Funds from operations, or FFO, rose to $370.3 million, or $1.38 per share, in the first quarter from $330.7 million, or $1.25 per share, in the year-ago period.
On average, analysts polled by Thomson Financial expected FFO of $1.16 per share.
FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of REIT strength because it gives a more accurate picture of cash performance.
Net income in the quarter slipped to $194 million, or 73 cents per share, from $236.1 million, or 89 cents per share.
Quarterly revenue jumped 73 percent to $1.65 billion from $955.6 million in the prior year on $1.26 billion in proceeds from property sales.
While the company has seen anecdotal evidence of softer fundamentals in the U.S. due to the economic slowdown, it remains bullish on growth prospects in international markets. The REIT noted that 80 percent to 85 percent of its new development this year is outside the U.S. and U.K. markets.
ProLogis shares slipped 53 cents to $65.62 in morning trading.
