Prologis, Inc. (NYSE:PLD) Q3 2023 Earnings Call Transcript

Hamid Moghadam: Yeah. I think the effect is going to be indirect, because the Middle East is not obviously a source of product or exports or we are not active in any of those markets. So it will be a second order effect on the macro economy. And if the Fed remains very aggressive on rates, if you believe their talk and all of a sudden we have some drop off in demand, because that conflict expands and the nightmare scenario would be that a couple of tankers get sunk in the Persian Gulf at the narrow end and oil goes to $200 a barrel. I mean, the bets are off. But boy, if we see that scenario, I can’t think of a better business to want to be in and I hate to see that scenario happen. But actually on a relative basis, it should be good for our business, because it will mean that people will, first of all, inventory becomes really important and it means that — it’s yet one more uncertainty like the pandemic, like the earthquake, like all these other disruptions that we have seen that will push the general posture of companies from just in time to just in case.

So I hate to say it would be good because it’s an awful situation that’s going there and before this is all over, a lot of innocent people are going to get killed and I don’t want to see this happen. But I don’t think its impact on the business on a relative basis is going to be terrible. I am honestly more worried about the Fed overdoing it than that conflict escalating. But those things are very hard to predict. I think that was our last question. So we really appreciate your participation. Really look forward to seeing all of you at our upcoming Investor Day and I promise it will be really good. So take care.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.