Earnings Preview: ProLogis

ProLogis (PLD), a REIT, is expected to report Q2 earnings before market open Thursday, July 24, with a conference call scheduled for 10:00 a.m. ET.

Guidance

Analysts are looking for EPS of $1.07 on revenue of $273.65M. The consensus range for EPS is 93c to $1.21, while the consensus range for revenue is $269.98M to $280M, according to First Call.

Analyst Views

J.P. Morgan downgraded the company to Neutral from Overweight last week because the firm believes investors will continue to scrutinize it especially closely due to the size of its development pipeline and the large percentage of its earnings that it obtains from profits on selling real estate. The firm also does not think the company's valuation is attractive. Wachovia recently reduced their space absorption assumption for all of the commercial property companies they cover. The firm believes that deteriorating property and leasing conditions will affect the companies' 2009-2010 results more than this year's.