October 20, 2015
The industrial sector of commercial real estate continues to perform strongly, judging by the recent quarterly results from San Francisco-based REIT Prologis, one of the largest industrial landlords.
During the third quarter, funds from operations (FFO) rose 21 percent year over year, while net operating income increased 6.2 percent. Occupancy also rose one percent from the same year-ago quarter, hitting 96 percent, in the company’s portfolio, which is at 671 million square feet in ownership and development.
On the development end, Prologis started $229 million of projects during the quarter, bringing its year-to-date total to just more than $1.2 billion. The firm also made $240.3 million in acquisitions over its Q3, hitting slightly over $3.5 billion for the year.