Before delving into PLD's quarterly report, here is a little background on what the company does. As mentioned above, the company is a real estate investment firm -- specifically, it is constructed as a REIT. It focuses on high-barrier, high-growth markets, seeking to acquire and manage modern distribution facilities to customers in two main categories: business-to-business and retail/online fulfillment. As of June 30, 2017, it had investments in properties and development projects that totaled approximately 684 million square feet in 19 countries, serving about 5,200 customers.
Circling back to its Q2 results, PLD generated FFO of $0.84, comfortably beating the $0.78 Capital IQ Consensus. The last time PLD beat the FFO estimate by that margin was way back in 3Q12. Revenues grew by 27% year/year to $766.2 million, blowing past the $576 million consensus. The 27% topline growth was its strongest performance since the 31% mark it posted in 1Q16.
Taking a look at a couple other metrics, same store rental revenue was up by 3.6%, net effective rent change was +24%, and period end occupancy improved slightly to 96.2% from 96.1% in the year ago period. In regards to guidance, PLD lifted its FY17 FFO guidance to $2.78-$2.82 from $2.72-$2.78, above the $2.75 Capital IQ Consensus. So, across the board, the performance for the quarter looks quite solid.
In the earnings press release, management credited the results to a very favorable environment. For instance, the CEO commented that market conditions continue to be healthy and that it is now even more positive about its outlook as it sees increased activity form its customers. The market for quality locations is competitive and supportive of higher prices. In fact, market rent growth surprised the company to the upside. Additionally, PLD's portfolio of assets increased in value by 13% globally, which bodes well for its operating performance in the coming years.
Wrapping up, PLD seems to be hitting on all cylinders right now. With a combination of solid growth and income generation, the stock looks to be an attractive option for many investors.