Is it Wise to Retain Prologis Stock in Your Portfolio Now?

Core Insights - Prologis (PLD) is well-positioned for growth due to its scale, strategically located distribution facilities, and prudent financial management [1][3][4] - The company is converting warehouses into data centers to leverage the increasing demand in this sector [1][6] - Despite strong operational performance, macroeconomic uncertainties are causing customers to delay leasing decisions, impacting demand [2][10] Operational Performance - Prologis operates in high-demand industrial distribution markets, with properties located near key transportation hubs [3] - Occupancy is projected to be 95.2% in 2025, with rental revenues expected to increase by 7.5% and 4.9% in 2025 and 2026, respectively [3] - The company plans to make acquisitions between $1 billion and $1.25 billion and development starts between $2.25 billion and $2.75 billion in 2025 [4][9] Financial Position - Prologis maintains a strong balance sheet with $7.1 billion in available liquidity as of June 30, 2025 [5] - The weighted average interest rate on total debt is 3.2%, with a debt to adjusted EBITDA ratio of 5.1X [5] - The company has seen a 20.9% year-over-year increase in interest expenses, totaling $251.9 million in Q2 2025 [11] Dividend and Share Performance - Prologis has increased its dividend five times in the last five years, with a five-year annualized growth rate of 12.66% [7] - The stock has risen 10.7% year-to-date, outperforming the industry average of 4.9% [8] - The Zacks Consensus Estimate for 2025 FFO per share is $5.77, indicating a positive outlook [8]