A look at Prologis’s revenue and earnings

Let’s take a look now at Prologis (PLD), an international investor in real estate markets. It recorded a 15.0% rise in revenue in 2016 compared to 25.0% in 2015. Real estate in the United States recorded growth in 2015, offset by real estate in other Americas, Europe, and Asia. Strategic capital in other Americas and Europe recorded growth, offset by strategic capital in the United States and Asia. In 2016, real estate in every region recorded growth. Strategic capital in every region also recorded growth in 2016 except the United States, which had flat growth. Operating income rose 76.0% in 2016 compared to 19.0% in 2015, despite higher expenses. Diluted EPS (earnings per share) rose 38.0% in 2016 compared to 32.0% in 2015. EPS was also enhanced by lower interest expenses, higher earnings from unconsolidated entities, gains on asset dispositions, and foreign currency gains.

Prologis has noted a 15.0% rise in revenue in the first half of 2017, driven by every segment. Operating income rose 61.0% despite higher expenses. Diluted EPS, however, fell 4.0% due to lower gains on asset disposition, higher foreign currency losses, and a loss on debt extinguishment, offset by lower interest expenses and higher income from unconsolidated entities. The company has successfully increased its funds from operations over the years.

Why Prologis Has a Downward Sloping Dividend Yield Curve

Prologis’s dividend trajectory

Prologis’s downward trajectory of its dividend yield curve despite the dividend increase is mainly due to price gains, as you can see in the chart below. The company hasn’t allowed the dividend yield to fall below the $2.5% mark yet.

Why Prologis Has a Downward Sloping Dividend Yield Curve

Let’s look at two dividend ETFs with exposure to Prologis. The WisdomTree Global Equity Income ETF (DEW) offers a 3.3% dividend yield at a PE (price-to-earnings) multiple of 17.5x. It has a 21.0% exposure to financials. The WisdomTree Equity Income ETF (DHS) offers a 3.1% dividend yield at a PE multiple of 21x. The ETF has a 17.0% exposure to consumer non-cyclical.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

14 Jun

Why Kimberly-Clark Stock May Stop Rising

WRITTEN BY Amit Singh

Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.

172.31.38.64