Core Insights - Prologis (PLD) is expected to report quarterly earnings of $1.44 per share, reflecting a 4% decline year-over-year, while revenues are forecasted to reach $2.1 billion, indicating an 8.6% increase compared to the previous year [1] - Analysts have revised the consensus EPS estimate down by 0.3% over the last 30 days, indicating a reevaluation of initial earnings projections [1][2] Revenue Estimates - The consensus estimate for 'Revenues- Strategic capital' is projected at $142.86 million, showing a significant year-over-year decline of 43.6% [4] - 'Revenues- Development management and other' is expected to be $7.11 million, reflecting a decrease of 27.1% from the prior-year quarter [4] - The 'Revenues- Rental' segment is anticipated to reach $2.10 billion, marking an increase of 8.6% year-over-year [4] Operational Metrics - Analysts estimate an 'Average Occupancy' rate of 94.9%, down from 95.6% a year ago [5] - 'Depreciation and amortization' is projected to be $634.69 million [5] Market Performance - Over the past month, Prologis shares have returned +3.2%, outperforming the Zacks S&P 500 composite, which saw a +1.6% change [5] - Prologis currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near future [5]

Core Viewpoint - Prologis, Inc. (PLD) has shown strong performance among REITs, primarily due to the robust growth in logistics, and is now focusing on expanding into data centers [1] Group 1: Company Performance - Prologis has outperformed many REITs, attributed to the resilience of the logistics growth story [1] - The company is targeting a new frontier in data centers, indicating a strategic shift in its growth focus [1] Group 2: Analyst Insights - Julian Lin, a financial analyst, emphasizes the importance of identifying undervalued companies with long-term growth potential [1] - Lin's investment strategy includes focusing on companies with strong balance sheets and management teams, particularly in sectors with significant growth opportunities [1] - The investment group led by Lin, Best Of Breed Growth Stocks, aims to share high-conviction stock positions that have a high probability of outperforming the S&P 500 [1]

Group 1 - Prologis (PLD) has outperformed many REITs due to the resilience of the logistics growth story [1] - The company is now targeting a new frontier in data centers, indicating a strategic expansion [1] - Confidence in Prologis's growth trajectory remains strong, particularly in the warehouse sector [1] Group 2 - Julian Lin, a financial analyst, focuses on finding undervalued companies with secular growth potential [1] - The investment strategy emphasizes strong balance sheets and management teams in sectors with long growth runways [1] - The investment group led by Julian Lin provides exclusive access to high-conviction stock picks and comprehensive research reports [1]

Core Insights - The comparison between Realty Income (O) and Prologis (PLD) is not merely about income versus growth, as both are high-quality REITs tailored for different investor needs [1][2][3] Realty Income Overview - Realty Income's strength lies in its durable business model, owning over 15,500 properties leased to more than 1,600 tenants across 92 industries, with a portfolio occupancy rate close to 99% [4] - The company has invested approximately $1.4 billion in Q3 2025, raising its full-year investment guidance to around $6 billion, with a significant focus on Europe and strategic partnerships [5] - Realty Income declared its 133rd monthly dividend increase in 2025, showcasing its reliability as an income generator supported by long lease terms and high-quality tenants [6] - However, growth is measured, with same-store revenue gains being steady but limited, and the net lease structure capping upside potential in stronger economies [7] Prologis Overview - Prologis is positioned at the center of global logistics, with nearly 62 million square feet of leases signed in Q3 2025, leading to a portfolio occupancy of about 95.3% and strong rent growth [8] - The company increased its full-year development starts outlook to as much as $3.25 billion, with over half of development tied to build-to-suit projects for large global customers [9][10] - Prologis is expanding beyond traditional warehouses, securing 5.2 gigawatts of power for data centers, which aligns with growth in cloud computing and digital infrastructure [11] - The company maintains a strong balance sheet with an in-place cost of debt around 3.2% and an average debt maturity of over eight years, allowing for investment through cycles [12] Financial Estimates Comparison - The Zacks Consensus Estimate for Realty Income's 2025 and 2026 sales implies year-over-year growth of 8.49% and 7.48%, respectively, with FFO per share growth of only 1.67% and 3.69% [14] - For Prologis, the 2025 and 2026 sales estimates suggest year-over-year growth of 8.72% and 6.30%, with FFO per share growth of 4.32% and 4.72% [17] Stock Performance and Valuation - Over the past six months, Realty Income shares have risen 4.5%, while Prologis stock has increased by 19.9%, outperforming the S&P 500's 14.8% gain [20] - Realty Income is trading at a forward price-to-FFO of 13.38X, above its three-year median, while Prologis is at 21.37X, also above its three-year median of 20.86X [20] Conclusion - Realty Income is ideal for investors seeking steady income and low volatility, while Prologis offers financial strength and exposure to long-term growth drivers in logistics and digital infrastructure [22] - Prologis is viewed as the stronger investment option currently, with a Zacks Rank of 2 (Buy) compared to Realty Income's 3 (Hold) [23]

Core Viewpoint - FIBRA Prologis has successfully completed the offering of USD 500 million in Senior Notes with a 5.625% interest rate, maturing in 2038, to enhance its financial flexibility and support strategic initiatives [1][2]. Group 1: Financial Offering - The company has issued USD 500 million in Senior Notes, which will be used to repurchase outstanding Terrafina Notes and redeem any remaining notes after the tender offer [1][2]. - The tender offer for the Terrafina Notes expired on January 12, 2026, and is expected to settle on January 15, 2026 [2]. Group 2: Listing and Regulatory Compliance - FIBRA Prologis has applied to list the Senior Notes on the Singapore Exchange Securities Trading Limited (SGX-ST) [3]. - The Notes have not been registered under the U.S. Securities Act and were offered privately to qualified institutional buyers [4]. Group 3: Company Profile - FIBRA Prologis is a prominent owner and operator of Class A industrial real estate in Mexico, with a portfolio of 515 investment properties totaling 87 million square feet as of September 30, 2025 [6]. - The portfolio includes 348 logistics and manufacturing facilities across six core industrial markets in Mexico, comprising 65.7 million square feet of Gross Leasing Area [6].

REIT Performance Overview - REITs finished December 2025 with a total return of -1.48%, underperforming the broader market indices such as the Dow Jones Industrial Average (+0.92%), S&P 500 (+0.06%), and NASDAQ (-0.09%) [1] - The Vanguard Real Estate ETF (VNQ) had a December return of -2.24%, but outperformed the average REIT over the full year with a return of +3.26% compared to -3.57% for the average REIT [1] - The spread between the 2026 FFO multiples of large cap REITs (15.9x) and small cap REITs (12.7x) narrowed, with large caps contracting by 0.3 turns and small caps by 0.1 turns [1] Monthly Performance by Market Capitalization - In December, only small cap REITs had a positive total return of +0.51%, while mid caps (-1.77%), large caps (-2.55%), and micro caps (-3.88%) all finished in the red [3] - For the full year 2025, small cap REITs outperformed large caps by 240 basis points [3] Monthly Performance by Property Type - Half of the REIT property types averaged positive returns in December, with a total return spread of 13.22% between the best (Malls +6.19%, Single Family Housing +5.20%) and worst performing property types (Infrastructure -7.02%, Office -6.79%) [5][6] - The average return for REITs in December was -1.48%, with 9 out of 18 property types showing positive returns [5][6] Year-to-Date Performance by Property Type - For the full year 2025, the worst performing property types included Office (-22.07%), Infrastructure (-20.08%), and Land (-15.77%), all averaging double-digit negative total returns [7] - The top performing property types for the year were Health Care (+25.74%), Advertising (+25.50%), and Malls (+15.56%) [7] FFO Multiples and Valuation Trends - The average P/FFO for the REIT sector decreased from 13.7x to 13.4x during December, with 22.2% of property types experiencing multiple expansion and 72.2% seeing contraction [8] - Data Centers (22x), Land (21x), Manufactured Housing (17.5x), and Shopping Centers (16.5x) had the highest average multiples among REIT property types, while Hotels (7.7x) and Office (8.1x) were the only types with single-digit FFO multiples [8][9] Notable Individual Securities - Paramount Group (PGRE) was acquired by Rithm Capital Corp. for $6.60/share on December 19, marking the end of its trading [10] - Alexander & Baldwin (ALEX) was the best performing REIT in December with a gain of +34.29%, driven by news of its acquisition by Blackstone Real Estate and others for $21.20/share [11] - Fermi (FRMI) experienced the steepest losses in December at -51.49% after a major tenant canceled a $150 million agreement [12] Overall Market Sentiment - 42.04% of REITs had a positive total return in December, while 38.36% were in the black for the full year [13] - The average total return for REITs in 2025 was -3.57%, significantly lower than the +3.70% return for the sector in 2024 [13]

Core Viewpoint - The article compiles significant research calls from Wall Street, highlighting upgrades for various companies that indicate potential growth and positive market sentiment [1] Group 1: Upgrades - Stephens upgraded Okta (OKTA) to Overweight from Equal Weight with a price target of $120, increased from $97, due to an increasing probability of growth acceleration in 2026 and an attractive risk/reward setup [2] - Seaport Research upgraded Global Payments (GPN) to Buy from Neutral with a price target of $109, anticipating a rebound in Fintech after a volatile 2025, noting reasonable forward valuation multiples and a constructive fundamental outlook for most companies in the sector [2] - Scotiabank upgraded Prologis (PLD) to Outperform from Sector Perform with a price target of $146, up from $133, as the firm becomes more positive on the Industrial subsector ahead of Q4 earnings, raising 2026/2027 earnings estimates due to better occupancy expectations [2] - Barclays upgraded Fabrinet (FN) to Overweight from Equal Weight with a price target of $537, increased from $499, identifying it as having the most upside to revenue numbers in 2026 within the distributor space [2] - Wells Fargo upgraded Cintas (CTAS) to Overweight from Equal Weight with a price target of $245, up from $205, citing strong fundamentals in 2026 due to pricing power despite multiple compression in 2025 [2]

Core Viewpoint - The REIT and Equity Trust - Other industry is positioned to benefit from strong demand in specialized sectors such as industrial, data centers, healthcare, and modern office properties, driven by e-commerce growth, AI workloads, and aging populations [1][4]. Industry Overview - The Zacks REIT and Equity Trust - Other sector includes a variety of REIT stocks across asset categories like industrial, office, healthcare, and data centers, with economic growth being a key driver for real estate demand and occupancy rates [3]. - The performance of Equity REITs is influenced by the dynamics of their underlying assets and geographic locations, necessitating a thorough analysis before investment decisions [3]. Future Trends - Demand for specialized real estate is enhancing growth visibility, with industrial properties benefiting from e-commerce, data centers from cloud adoption and AI, and healthcare real estate from aging populations [4]. - Office markets are stabilizing as companies invest in modern, amenity-rich workplaces to improve employee engagement [4]. Financial Positioning - REITs are well-positioned to leverage a favorable interest rate environment, which supports property valuations and long-term capital planning [5]. - Prudent financial strategies, including fixed-rate debt and access to various capital sources, enhance operational flexibility and competitive advantage [5]. Risks - Asset obsolescence is a significant risk, with older properties struggling to compete against modern, technology-enabled spaces favored by tenants [2][6]. Industry Performance - The REIT and Equity Trust - Other industry has underperformed compared to the S&P 500 and the broader Finance sector, with a growth of 5.9% versus 21.8% and 19.4% respectively over the past year [11]. - The industry currently trades at a forward 12-month price-to-FFO ratio of 15.32, below the S&P 500's P/E of 23.45 and the Finance sector's P/E of 17.35 [13]. Stock Recommendations - **Postal Realty Trust (PSTL)**: Focuses on properties leased to the USPS, with a high occupancy rate of 99.8% and a disciplined growth strategy, acquiring 216 properties for $123 million at a 7.7% cash cap rate [17][18]. - **Industrial Logistics Properties Trust (ILPT)**: Owns 411 properties with a strong occupancy rate of around 94%, benefiting from positive leasing economics and a diverse tenant base [21][22]. - **Prologis (PLD)**: The largest industrial REIT, with a portfolio that supports high occupancy levels and strong rent growth, currently holding around $7.5 billion in liquidity [25][27].

Core Insights - Real estate investment trusts (REITs) are required to distribute 90% of their taxable income to investors annually, leading to substantial dividend payouts [1] - S&P Global Market Intelligence forecasts that U.S. REITs will distribute a total of $61.5 billion in dividends in 2026, representing a 4.9% increase from the previous year [1] Prologis - Prologis (NYSE: PLD) is one of the largest REITs by market capitalization, approximately $120 billion, and started 2026 with a 3.1% dividend yield [3] - S&P Global anticipates Prologis will pay $4.3 billion in dividends in 2026, marking a 10% increase from the $3.9 billion paid last year [4] - Prologis has demonstrated a strong track record of dividend growth, with a 13% compound annual growth rate over the past five years, significantly outpacing the REIT sector average of 6% and the S&P 500's 5% [4] American Tower - American Tower (NYSE: AMT) is the leading telecommunications infrastructure REIT, starting 2026 with a 3.9% dividend yield [5] - S&P Global projects that American Tower will distribute $3.4 billion in dividends in 2026, with current dividends at $1.70 per share, equating to approximately $3.2 billion annually [6] - The dividend has fluctuated in recent years, decreasing in 2024 before recovering in 2025, as the company adopted a more conservative approach to retain cash for debt reduction [7] Realty Income - Realty Income (NYSE: O) ranks as the sixth-largest global REIT, operating properties in nine countries, and currently offers a monthly dividend with a yield of 5.7% [9]

Core Viewpoint - FIBRA Prologis announces a leadership transition with Héctor Ibarzábal retiring as CEO, effective June 30, 2026, after over 30 years with the company, and Jorge Girault appointed as the new CEO while Alexandra Violante becomes CFO [1][2][3] Leadership Transition - Jorge Girault, currently CFO, will take over as CEO on July 1, focusing on delivering long-term value in the Mexican market [2] - Alexandra Violante, who leads Investor Relations, will become CFO on the same date, bringing extensive experience in capital markets and financial communications [3] Company Background - FIBRA Prologis is a leading owner and operator of Class-A industrial real estate in Mexico, with 515 investment properties totaling 87.0 million square feet (8.1 million square meters) as of September 30, 2025 [6] - The company includes 348 logistics and manufacturing facilities across six industrial core markets in Mexico, amounting to 65.7 million square feet (6.1 million square meters) of gross leasable area [6] Legacy and Impact - Héctor Ibarzábal is recognized for his outstanding leadership and significant contributions to establishing FIBRA Prologis as a leading logistics real estate platform in Mexico [3][5] - Girault's experience in the real estate and financial sectors is highlighted as a key factor in positioning FIBRA Prologis as the leading publicly traded real estate vehicle in Mexico [4]