This leading REIT has a lot of hidden potential and is well off its highs.Prologis (PLD -1.15%) is the largest real estate investment trust in the market, but the logistics real estate giant could still have lots of upside potential. Not only that, but the stock is down by about 20% from its recent highs. In this video, I'll give the details about why I'm finally planning to add Prologis to my portfolio.*Stock prices used were the afternoon prices of April 17, 2024. The video was published on April 18, 2024 ...

Prologis expects some near-term headwinds to weigh on its growth this year.Prologis (PLD -7.19%) has done an incredible job paying dividends over the years. The real estate investment trust (REIT), focused on logistics properties, has grown its payout at a 13% compound annual rate over the last five years. That's more than double the 5% dividend growth rate of the S&P 500 and the average REIT. The industrial REIT had initially expected that 2024 would be another strong year. However, some near-term headwind ...

Financial Data and Key Metrics Changes - Core FFO, excluding promotes, was $1.31 per share, and including net promote expense was $1.28 per share, in line with forecasts [9] - Occupancy in the portfolio ended the quarter at 97%, with a decline of 80 basis points since the peak in summer 2022 [9] - Same-store growth on a cash basis was 5.7% and on a net effective basis was 4.1% [10] - Rent growth captured for the quarter was approximately $110 million on an annualized basis [10] - The company raised nearly $5 billion in capital, including $750 million in strategic capital [7] Business Line Data and Key Metrics Changes - The Energy business signed 405 megawatts of long-term storage-related contracts with investment-grade utilities [11] - New developments started in the quarter amounted to over $270 million, bringing the portfolio to approximately $7.5 billion at the company's share [10] Market Data and Key Metrics Changes - Net absorption in the US was low at just 27 million square feet for the quarter [12] - Overall leasing activity and net absorption are running below expectations due to persistent inflation and high interest rates [7][12] - Southern California and the Inland Empire are experiencing the most acute leasing slowdowns, with rents generally flat in most US markets [14][15] Company Strategy and Development Direction - The company is adjusting its guidance early to reflect expected occupancy below forecasts in the near term [8] - Focus remains on the development of the land bank, providing an opportunity for over $38 billion of build-out with an approximate return on incremental capital of 8.5% [17] - The company is actively looking at acquisition opportunities across all markets while maintaining a disciplined approach to speculative starts [19] Management's Comments on Operating Environment and Future Outlook - Management noted that persistent inflation and high interest rates have led to delays in customer decision-making, impacting leasing volume [7] - The overall economic data remains strong, but the company expects continued headwinds on overall absorption in the next few quarters [12][13] - Management expressed confidence in long-term demand despite short-term challenges, indicating that deferred demand is building up [20] Other Important Information - The company raised $4.1 billion of debt at a weighted average rate of 4.7% with a term of 10 years [11] - Global market rents declined slightly over 1% in the quarter, primarily driven by Southern California [15] - The company has liquidity of over $5.8 billion at the end of the quarter [11] Q&A Session Summary Question: Could you go through how much or what pieces might be more macro driven and how much is certain markets weighing on the outlook? - Management indicated that the softness in leasing velocity is due to both macroeconomic factors and specific market conditions, particularly in Southern California [22][23] Question: Can you help kind of flush out the timing of when some of these things became a little bit more evident? - Management clarified that while there may be a perception of an acute change, their long-term outlook remains consistent, with the first year of their three-year forecast being the only adjustment [25][26] Question: What evidence do you have that would support the delayed rebound in demand? - Management noted that while economic indicators are strong, the conversion of customer inquiries into signed leases has not yet materialized broadly across the market [28][29] Question: Can you discuss the markets of relative strength in your portfolio in terms of demand and market rents? - Management highlighted that the strongest markets include Mexico, Texas, parts of the Southeast US, and Europe, while Southern California remains the weakest [51] Question: Are you seeing any changes in CapEx or concessions that might not be so apparent in the headline face rents? - Management acknowledged an increase in free rent but noted that it is still below long-term averages [54] Question: How are you seeing supply chain disruption and geopolitical risks impacting customer behavior? - Management indicated that while geopolitical risks are causing caution, the overall impact on customer decisions remains manageable [59] Question: Can you provide additional color on the weaker net absorption due to tenants becoming more cost-conscious? - Management confirmed that demand has shifted from Southern California to adjacent markets, but overall demand has been deferred rather than lost [71][72]

Prologis, Inc. (PLD) reported first-quarter 2024 core funds from operations (FFO) per share of $1.28, in line with the Zacks Consensus Estimate. This compares favorably with the year-ago quarter’s figure of $1.22.However, the industrial REIT trimmed its guidance for the full-year 2024 as it prepares for a slower leasing environment in the next quarter or two. Reflecting the negative sentiments of investors, PLD shares are trending down during the initial hours of today’s trading session.Per Hamid R. Moghada ...

For the quarter ended March 2024, Prologis (PLD) reported revenue of $1.83 billion, up 11.9% over the same period last year. EPS came in at $1.28, compared to $0.50 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.81 billion, representing a surprise of +1.00%. The company has not delivered EPS surprise, with the consensus EPS estimate being $1.28.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare ...

Prologis (PLD) came out with quarterly funds from operations (FFO) of $1.28 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $1.22 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this industrial real estate developer would post FFO of $1.26 per share when it actually produced FFO of $1.26, delivering no surprise.Over the last four quarters, the company has surpassed consensus FFO estimates two times.Prologis, which bel ...

FOR IMMEDIATE RELEASE Prologis Reports First Quarter Results Positive Long-Term Outlook Amid Near-Term Macroeconomic Uncertainty SAN FRANCISCO (April 17, 2024) – Prologis, Inc. (NYSE: PLD), the global leader in logistics real estate, today reported first quarter results for 2024. Net earnings per diluted share was $0.63 for the first quarter of 2024 compared with $0.50 for the first quarter of 2023. Core funds from operations (Core FFO)* per diluted share was $1.28 for the first quarter of 2024, compared wi ...

Key PointsThe real estate sector has been the worst performer this year, but not all branches are created equal. Logistics and warehousing may be needed during the new manufacturing breakout in the United States when Prologis stock shines. Valuations show it as a preferred name with a double-digit upside ahead for its shareholders. 5 stocks we like better than PrologisThe U.S. real estate sector has been one of the worst-performing spaces in the past 12 months. The Vanguard Real Estate ETF NYSEARCA: VNQ fel ...

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Waiting for Godot mantonino/iStock via Getty Images Where valuation is concerned, things play out over very long timeframes. Investors tend to have the attention span of a bumblebee and are always enthralled with the "latest development". But the dial of valuation swings slowly and surely. We made such a case for one REIT that we took a lot of flack for. We go over how that is proceeding and why we are even more confident that we will see $80. Last Coverage On our last update, we felt the worst was still ah ...