Prologis Remains My Go-To Industrial REIT - 3 Updates
Summary
- Prologis, the largest industrial REIT globally, faces a tough market with slow tenant decision-making and oversupply, impacting rent growth and occupancy rates.
- Despite a decrease in occupancy to 96.4% in Q2 2024, Prologis' performance aligns with management's cautious market outlook.
- Management expects further market challenges, including potential occupancy declines and continued rent drops, indicating the market hasn't peaked in harsh conditions yet.
- However, recent reports suggest potential improvement in the industrial landscape in the coming years, offering a glimmer of optimism for investors.
- PLD remains an undisputed leader in the industrial landscape, delivering double-digit core FFO and DPS growth with a 'sleep sound' business model and financing structure. Recent strategic initiatives provide even more optimism.
-Antonio-
Prologis ( NYSE: PLD ) is the largest industrial REIT in the world with ~$200B AUM (assets under management) globally. Most of it is located across the US (~65%) and the rest is in Europe, Asia, and Latin America.
I had
Analyst’s Disclosure: I/we have a beneficial long position in the shares of PLD, REXR, FR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The information, opinions, and thoughts included in this article do not constitute an investment recommendation or any form of investment advice.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.