RBC Raises Prologis (PLD) Target as Industrial Real Estate Outlook Improves

Core Insights - Prologis, Inc. (NYSE:PLD) is recognized as one of the 14 best real estate stocks to buy according to hedge funds [1] - RBC Capital analyst Michael Carroll raised the price target for Prologis to $135 from $132, maintaining a Sector Perform rating after the company's fourth-quarter FFO beat [2] - Prologis is in discussions to launch a new co-investment fund focused on data centers, marking a potential expansion beyond its core logistics business [3] Financial Performance - Prologis reported fourth-quarter results that were mostly in line with expectations, with management expressing confidence in improving market conditions and the company's private capital business [2] - The company anticipates starting $4 billion to $5 billion in new development projects by 2026, with data centers expected to account for approximately 40% of that total, compared to only 10% last year [4] Strategic Initiatives - Prologis has been increasing its efforts in building data centers, hiring additional staff, and investing in equipment to support this expansion [4] - The potential new co-investment vehicle could provide Prologis with an additional source of capital to accelerate growth in the data center segment [4] Company Overview - Prologis operates as a global real estate company focused on logistics and industrial properties, with two main segments: Real Estate and Strategic Capital [5]