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Globe and Mail
03-07-2025
- Business
- Globe and Mail
Prologis Stock Rises 10.3% in Three Months: Will the Trend Last?
Prologis Inc. PLD shares have gained 10.3% in the past three months, outperforming the industry 's growth of 6.3%. This industrial real estate investment trust (REIT) is well-poised to benefit from its portfolio of strategically located industrial real estate in some of the world's busiest distribution markets. Strategic buyouts and development activities appear promising. Its scale drives efficiency, and balance sheet strength aids its growth endeavors. Moreover, the company is also converting some of its warehouses into data centers to capitalize on the growing opportunity in this asset category. Analysts seem optimistic about this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 FFO per share has moved marginally northward over the past month to $5.70. Factors Behind PLD Stock Price Rise: Will This Trend Continue? Prologis provides industrial distribution warehouse space in some of the busiest distribution markets across the globe. The properties of the company are typically located in large, supply-constrained infill markets in close proximity to airports, seaports and ground transportation facilities, which facilitates rapid distribution of customers' products. The solid demand for Prologis' strategically located facilities is driving healthy operating performance over the past several quarters. Prologis continues to bolster its presence in high-barrier, high-growth markets through strategic acquisitions and development activities. In the first quarter of 2025, the company's share of acquisitions amounted to $811 million. Prologis has a high number of build-to-suit development projects. In the first quarter of 2025, development stabilization aggregated $925 million, with 64.5% being built to suit, while development starts totaled $646 million, with 78.0% being built to suit. The sites are positioned near large population centers, suited for serving as the last-mile warehouse before goods are delivered to consumers. Moreover, the data center industry is currently experiencing significant growth, driven by the demands of the evolving needs of today's digital economy, cloud and AI applications. To capitalize on this growing opportunity, Prologis is focusing on both warehouse conversions and ground-up developments. Prologis maintains a healthy balance sheet position with ample flexibility, which poises it well to capitalize on long-term growth opportunities. As of March 31, 2025, this industrial REIT had a total available liquidity of $6.52 billion. As of the same date, the company's weighted average interest rate on its share of the total debt was 3.2%, with a weighted average term of 8.7 years. Its credit ratings as of March 31, 2025 were A2 (Outlook Positive) from Moody's and A (Outlook Stable) from Standard & Poor's, enabling the company to borrow at an advantageous rate. Solid dividend payouts are arguably the biggest enticements for REIT shareholders, and Prologis remains committed to that. In the last five years, Prologis has increased its dividend five times, and its five-year annualized dividend growth rate is 13.71%. Given the company's solid operating platform, opportunities for growth and decent financial position compared with the industry, this dividend rate is expected to be sustainable in the near term. Key Risks for Prologis The choppiness in the industrial real estate market, with subdued demand, remains a concern for Prologis. Moreover, high borrowing expenses amid still elevated interest rates add to the company's woes. Stocks to Consider Some better-ranked stocks from the broader REIT sector are VICI Properties VICI and W.P. Carey WPC, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for VICI Properties' 2025 FFO per share is pegged at $2.35, up 4% year over year. The Zacks Consensus Estimate for W.P. Carey's 2025 FFO per share stands at $4.88, up 3.8% year over year. Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prologis, Inc. (PLD): Free Stock Analysis Report W.P. Carey Inc. (WPC): Free Stock Analysis Report VICI Properties Inc. (VICI): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Associated Press
19-06-2025
- Business
- Associated Press
Dream Industrial REIT Announces June 2025 Monthly Distribution
TORONTO--(BUSINESS WIRE)--Jun 19, 2025-- DREAM INDUSTRIAL REIT (TSX: (the 'Trust') announced today its June 2025 monthly distribution in the amount of 5.833 cents per Unit (70 cents annualized). The June distribution will be payable on July 15, 2025 to unitholders of record as at June 30, 2025. Dream Industrial REIT is an owner, manager, and operator of a global portfolio of well-located, diversified industrial properties. As at March 31, 2025, Dream Industrial REIT has an interest in and manages a portfolio which comprises 336 industrial assets (549 buildings) totalling approximately 72.6 million square feet of gross leasable area in key markets across Canada, Europe, and the U.S. Dream Industrial REIT's objective is to deliver strong total returns to its unitholders through secure distributions as well as growth in net asset value and cash flow per unit underpinned by its high-quality portfolio and an investment grade balance sheet. Dream Industrial REIT is an unincorporated, open-ended real estate investment trust. For more information, please visit our website at View source version on CONTACT: For further information, please contact: DREAM INDUSTRIAL REIT Alexander Sannikov President and Chief Executive Officer (416) 365-4106 [email protected] Lenis Quan Chief Financial Officer (416) 365-2353 [email protected] KEYWORD: NORTH AMERICA CANADA INDUSTRY KEYWORD: COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY REIT SOURCE: Dream Industrial REIT Copyright Business Wire 2025. PUB: 06/19/2025 10:03 AM/DISC: 06/19/2025 10:03 AM
Globe and Mail
14-06-2025
- Business
- Globe and Mail
1 Magnificent High-Yield Stock Down 55% to Buy and Hold Forever
Headline-grabbing news events often push investors into emotional investing decisions. That's exactly what is taking place today with regard to tariffs. The investor reaction to tariffs has pushed industry-leading industrial real estate investment trust (REIT) Prologis (NYSE: PLD) down 35% from its 2022 highs and led to an attractive yield of 3.7%. You can do even better, collecting a 4.7% yield, with this well-positioned industrial REIT that is down 55%. Here's what you need to know. Why are investors downbeat on Prologis? Prologis is an industrial REIT giant, with operations across North America, South America, Europe, and Asia. It owns 5,900 buildings containing 1.3 billion square feet of space. But the key part of the story is where its buildings are located. Prologis has assets in just about every major transportation hub in the world, serving 6,500 customers looking to import and export goods. This is a huge business strength, but right now it is seen as a huge negative. That's because U.S. tariffs have upended international trade norms. That's pushed Prologis' stock price down and its yield up. This is definitely a short-term disruption, but it seems unlikely to become a permanent negative. The world is so interconnected today that the more likely outcome is that trade patterns shift and Prologis' diverse portfolio of assets is still highly valuable. Prologis is, indeed, an attractive dividend investment opportunity today. And yet there's an even more interesting story to be told with Rexford Industrial Realty (NYSE: REXR). Highly focused Rexford is deeply out of favor Like Prologis, Rexford owns industrial assets that are vital to international trade. The most important difference between the two REITs is that Rexford is focused on just one single market, Southern California. It owns 424 properties with 51 million square feet of space in them. The key here is that Southern California is the major gateway for Asian goods entering the U.S. market (and vice versa). That, of course, is the problem, given the high-profile tariff fight between the United States and China. The near-term uncertainty has led investors to abandon Rexford. But, like Prologis, it seems more likely that international trade will adjust to a new normal than stop entirely. That alone makes Rexford's lofty 4.7% dividend yield attractive, but there's more. Southern California is a supply-constrained market. That gives Rexford a strong negotiating position when signing leases. Rexford is also a skilled redeveloper, frequently buying older assets and upgrading them so that they are more modern and desirable. That also helps its ability to raise rents. To be fair, the highly concentrated nature of Rexford's business does make it riskier than more diversified Prologis. But unless you believe international trade is going to stop, Rexford should come out the other side of the current uncertainty in a strong position. The opportunity to buy Rexford Industrial is in the here and now Oftentimes the best opportunities to buy a well-run company arise when Wall Street is overly pessimistic. The key is to figure out if the worry is about something that will linger or something that is likely to be temporary. The upheaval in international trade seems like a temporary issue, given how interconnected the world is today. For more conservative investors that could make Prologis an attractive option, while more aggressive investors will probably prefer higher-yielding Rexford industrial. And if you do buy one of these high-yield industrial REITs you'll probably end up owning it for the long term. Should you invest $1,000 in Prologis right now? Before you buy stock in Prologis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Prologis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor 's total average return is999% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
