Prologis, Inc. (NYSE:PLD) Q1 2024 Earnings Call Transcript

Operator: And our final question comes from the line of Vince Tibone with Green Street. Please proceed with your question

Vince Tibone: Hi. Thanks for the follow up. I was just curious, are you seeing any other landlords gain to offer more free rent or tenant allowances to try to attract tenants to their vacancies?

Hamid Moghadam: A really interesting question. So this is what has really surprised me from this cycle. We are getting calls from merchant developers that have had financing, have completed projects and are getting panicked. And for us to look at those opportunities. Boy, we’re looking at those opportunities. Because that’s where a good balance sheet and that’s where being on your front foot is all about. I think there were a lot of people in this business that thought, we’ll just get some financing at zero cost and throw up some buildings and it will lease. And I think that’s what accounted for some of that over-exuberance on the development side. And I think we’re going to end up being beneficiaries of that, and I’m seeing that real time. So, yes, I think people who are merchant developers and do not have the financial wherewithal are acting in a somewhat distressed way sooner than I would have guessed. And we’re happy about that.

Hamid Moghadam: So that was the last question, Vince. So with that, I want to thank you for your interest. And this is part of a long story and we’ll be there next quarter to tell you about the following chapters of it. Take care. Bye-bye.

Operator: And ladies and gentlemen, this concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.