Prologis, Inc. (NYSE:PLD) Q1 2023 Earnings Call Transcript

I’m just kind of size the issue for you, that could be $1.5 billion. We’re probably not going to invest $1.5 billion, but it’s got to be like a small portion of our overall balance sheet.But we love that stuff because we know it. We like it. It’s exactly the kind of property we want to have. And redemptions give us a really good opportunity to do that without affecting the strategy of the fund.Operator And the next question comes from the line of Jamie Feldman with Wells Fargo. Please proceed.James Feldman Great. Thank you. I thought your commentary on credit was pretty interesting in terms of how low it is. I guess you have such a wide view of what’s going on in the world. Can you just talk through maybe across your regions, some of the data points you’re seeing that either give you some confidence in where the economy is heading or give you some concern about where the economy is heading and how that factors into where you want to put capital to work?Hamid Moghadam I’ll just take two things.

This is more a global comment than US comment. Japan is having more supply than it normally has, but demand is actually still pretty strong. I’m a little worried about vacancy rates in Japan going up into the mid-teens.So that’s one place we’re seeing it. The U.K. has actually been pretty surprisingly good on the industrial side. If you look at the headlines for the U.K., you would expect more trouble than what we’re seeing in the industrial market. In the U.S., it’s — I can’t think of a trend that it’s worth talking about that. The markets are generally pretty good. I mean can you guys think of anything?Chris Caton Hey, Jamie, it’s Chris Caton. There’s been a lot of economic news over the last few weeks, and I think there are probably three takeaways.

The first is consumers are stable, notwithstanding all the noise in that. And it seems to be treading towards perhaps GDP growth of 2%, if not a bit higher. Second, I think quite clearly, e-commerce is reaccelerating with online shopping, now back on trend taking 100 basis points of share from in-store. And the third is, indeed, inventories are rising but they have not yet risen to pre-COVID level, little on a higher level for resilience.Hamid Moghadam With Jamie’s question, that’s the last one in the queue. I wanted to thank all of you for participating in our call. We’re excited over here because it’s our 40th anniversary that we’ll be celebrating in June. And there are going to be lots of opportunities between the investor meeting later on in the year and also GROUNDBREAKERS where we will be speaking to you.

So I look forward to seeing all of you and take care.Operator And that concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.