Prologis, Inc. (PLD): A Bull Case Theory

Core Thesis - Prologis, Inc. is positioned as a compelling growth opportunity in global logistics real estate, controlling approximately 1.3 billion square feet of warehouse space in high-growth markets [1][2] Growth Drivers - The growth of Prologis is driven by structural forces such as elevated inventory levels, faster delivery expectations, and supply chain reconfiguration due to geopolitical risks, rather than short-term economic cycles [2] - Demand for well-located logistics facilities remains strong even after post-pandemic normalization [2] Supply Dynamics - New supply is moderating due to higher financing and construction costs, which limits development activity [3] - This combination of durable demand and limited new supply enhances pricing power for low-cost operators like Prologis [3] Operating Metrics - Prologis maintains occupancy rates in the mid-90% range, with mid-single-digit cash same-store NOI growth and cash rent spreads near 30% as legacy leases reset to market rates [3] Financial Strength - Prologis has a net debt to EBITDA ratio of around 5x, supported by over $7 billion in liquidity and a weighted average interest rate just above 3% [4] - The stock yields approximately 3.2% at around $128 per share, backed by 11 consecutive years of dividend increases and a 70% payout ratio [4] Investment Thesis - With structural tailwinds, disciplined capital management, and embedded rent growth, Prologis is well-positioned to continue compounding FFO and dividends, supporting a strong buy thesis [4]