Prologis, Inc. (NYSE:PLD) is included among the 12 Best REIT Dividend Stocks to Buy Now. Prologis (PLD): Unlocking Value in the Market for REIT Dividend Stocks Photo by Jp Valery on Unsplash Prologis, Inc. (NYSE:PLD) is a California-based REIT that invests in logistics facilities. The company is well-positioned for long-term growth with a high-quality property portfolio, global reach and scale, data, and technology. CEO Hamid Moghadam talked about long-term growth and pointed to a favorable demand, supp ...

Goodman Group (Sonic Healthcare Ltd (GMG share price in focusThe ASX:GMG ) share price has decreased 8.3% since the start of 2025. Meanwhile, the ASX:SHL ) share price is 27.8% away from its 52-week high.Founded in 1989, Goodman Group is a leading global property group that owns, develops, and manages real estate assets across multiple continents.As the largest ASX-listed property group, Goodman operates in key markets including Australia, New Zealand, the UK, Japan, the US, and Brazil.The company focuses p ...

Group 1: Company Overview - Xero Ltd, founded in 2006 in Wellington, New Zealand, has become a global leader in cloud-based accounting software, employing over 3,000 people and serving millions of subscribers worldwide [2] - Goodman Group, established in 1989, is a leading global property group that owns, develops, and manages real estate assets across multiple continents, operating in key markets including Australia, New Zealand, the UK, Japan, the US, and Brazil [4] Group 2: Product and Service Offerings - Xero's accounting software is designed for accountants and bookkeepers, providing real-time financial data accessible on any device, which empowers small business owners and their advisors with up-to-date insights [3] - Goodman Group focuses on large-scale logistics facilities, warehouses, and business and office parks, aiming to foster long-term relationships with customers while delivering high-quality, sustainable assets [5] Group 3: Financial Performance Metrics - Xero has achieved a revenue growth rate of 26.4% per year since 2021, reaching $1,714 million in FY24, with net profit increasing from -$9 million to $175 million during the same period, and a reported ROE of 14.3% [7] - Goodman Group reported a debt/equity ratio of 21.2% in FY24, indicating more equity than debt, and has paid an average dividend yield of 1.3% per year since 2020, with an ROE of 0.1% in FY24, which is below the expected level for a mature business [8][9]

Company Overview - Prologis (PLD) is a leading REIT in logistics real estate, focusing on the ownership, development, and management of high-quality logistics facilities, which are crucial for the economy [1] Analyst Background - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology, and has written extensively on value investing [1] Investment Focus - The analyst has a particular interest in metals and mining stocks but is also knowledgeable in other industries such as consumer discretionary/staples, REITs, and utilities [1]

Financial Data and Key Metrics Changes - Rental revenue increased by 6.4% to $11.7 million in Q2 2025, and grew 9.6% on a six-month basis [6] - Net operating income rose by 3.7% in the quarter and 4.8% during the first half [7] - Operating cash flow increased by 23.5% year over year to $8.9 million [17] - Financing costs decreased by over 15% due to lower interest rates in Colombia [17] - Average net effective rent per square foot was $8.07, an increase of 2.5% compared to Q2 2024 [15] Business Line Data and Key Metrics Changes - Colombia led revenue growth with a 19% increase, followed by Peru at 10.7%, while Costa Rica saw a decrease of 1% [13] - Operating Gross Leasable Area (GLA) increased by 6.6% year over year to 5.3 million square feet, with total GLA rising by 9.1% to 5.8 million square feet [15] Market Data and Key Metrics Changes - Demand for premium logistics and industrial real estate continues to outstrip supply in target markets, particularly in Colombia and Peru [12][22] - The life sciences sector in Costa Rica and the mining sector in Peru are driving economic growth and demand for logistics facilities [22] Company Strategy and Development Direction - The company is expanding its property portfolio to capture growth in target markets, with a focus on Mexico as a key market for future growth [6][9] - Ongoing construction of new facilities, including Building 300 in Lima, is expected to contribute significantly to near-term growth [8] - The company aims to maintain a disciplined approach to investments in Mexico, focusing on domestic consumption-driven sectors [12][24] Management's Comments on Operating Environment and Future Outlook - Management emphasized strong domestic consumption trends supporting demand for logistics facilities [21] - The company expects to benefit from operating leverage as new facilities come online, enhancing earnings power by late 2025 and into 2026 [24] - There is a clear flight to quality in the market, with the company capturing premium pricing due to market tightness [23] Other Important Information - The company is facing administrative delays in the purchase of two logistics facilities in Puebla, Mexico, but remains confident in the attractiveness of the transaction [10] - A strategic partnership with Allos in Mexico is expected to enhance local market penetration and operational excellence [11] Q&A Session Summary Question: Decrease of other income - The decrease in other income was attributed to one-time fees related to lockup releases from shareholders when the company went public [20]

Core Insights - Prologis plays a critical role in the global economy, with nearly $3.2 trillion worth of goods flowing through its warehouses in 2024, representing 2.9% of the world's GDP [1][2] - The company's operations supported 3.6 million jobs worldwide and contributed $348 billion to the global economy [1][3] - The report highlights Prologis' significant impact on local economies and supply chains, emphasizing its role as an engine of economic activity [4] Economic Impact - The 2024 Future Flow of Goods report, produced in collaboration with Oxford Economics, estimates the throughput of goods, direct employment in warehouses, and total economic impact across direct, indirect, and induced channels [3] - Economic activity in Prologis warehouses generated $77 billion in global tax revenues [7] - California led with $465 billion in throughput, supporting 162,000 direct jobs and generating a $54 billion total GDP impact [8] Regional Highlights - In the United States, goods moving through Prologis warehouses totaled $2 trillion across 22 states [2] - Texas ranked second with $273 billion in goods and over 223,000 total jobs across all impact channels [8] - Mexico and Canada experienced significant employment gains, with Prologis direct warehouse jobs up 8% globally since 2022 [7]

Company Overview - Prologis owned or had investments in properties and development projects expected to total approximately 13 billion square feet in 20 countries as of June 30, 2025[9] - The company leases modern logistics facilities to approximately 6,500 customers[9] - The build out of land (TEI) is $415 billion[10] Financial Performance - Rental and other revenues for the three months ended June 30, 2025, were $2037 million, compared to $1853 million for the same period in 2024[25] - Core FFO attributable to common stockholders/unitholders for the three months ended June 30, 2025, was $1396 million, compared to $1281 million for the same period in 2024[25] - AFFO attributable to common stockholders/unitholders for the three months ended June 30, 2025, was $1036 million, compared to $1072 million for the same period in 2024[25] - Strategic capital revenues for the three months ended June 30, 2025, were $147 million, compared to $155 million for the same period in 2024[25] Operations - The company's annual NOI is $64 billion[12] - 85% of the company's NOI comes from the U S[10] - The average occupancy for the Prologis Share was 95%[66] Strategic Capital - The company's gross AUM is $205 billion[17] - The company's Prologis Share AUM is $139 billion[23] - Fees and promotes are $452 million[14] Capital Deployment - Value creation from stabilizations is $731 million[23] - The estimated build out of the land portfolio is 216 million square feet, with a TEI of $379 billion[99]

Financial Data and Key Metrics Changes - Revenue increased by 12.9% to $11.8 million and NOI grew almost 6% to $9.4 million in Q1 2025 [5] - Average rent per square foot increased by 1.9% across the property portfolio compared to Q1 2024 [14] - Net debt to adjusted EBITDA improved, decreasing by 30 basis points over the same period [17] Business Line Data and Key Metrics Changes - Peru, representing 29% of the portfolio GLA, saw rental income grow by 38.4% [15] - Costa Rica, accounting for 47% of the portfolio, experienced a revenue increase of 6.1% [15] - Colombia, which makes up 24% of the portfolio, delivered a 2.6% revenue increase [15] Market Data and Key Metrics Changes - Peru's economy is characterized by low inflation, minimal government debt, and low unemployment, contributing to strong consumer spending [5] - Mexico is viewed as a new avenue for long-term growth, with a focus on logistics rather than light manufacturing due to tariff uncertainties [10][12] Company Strategy and Development Direction - The company aims to replicate its success in Mexico while being selective in investments, focusing on logistics space driven by domestic consumption [10][12] - Plans to increase footprint in Lima with a new 215,000 square foot building, already 73% pre-leased [7] - The company maintains a strong pipeline of near and long-term investment opportunities in foundational markets and Mexico [26] Management's Comments on Operating Environment and Future Outlook - Management remains constructive on Mexico's medium and long-term prospects despite tariff uncertainties [10] - The foundational markets are demonstrating resilience, with expectations for additional NOI growth this year [26] - The company emphasizes the importance of being selective about customers and investments to scale its regional platform [26] Other Important Information - The company achieved 100% occupancy across its operating portfolio of 5.6 million square feet [7] - G&A expenses increased by 112% due to higher professional services and D&O insurance expenses [16] - The company repurchased $800,000 worth of ordinary shares during the quarter, totaling 2.1 million buybacks [17] Q&A Session Summary Question: Is the company shying away from light manufacturing in Mexico? - Management prioritizes logistics assets in Mexico and is being selective regarding light manufacturing, particularly in the auto sector [20][22] Question: Are tenants still in a wait-and-see mode regarding tariffs? - Management indicates that foundational markets are mostly consumer-driven, and tariffs have not significantly impacted leasing activity [21][24]

Financial Data and Key Metrics Changes - LPA's revenue increased by 12.9% to $11.8 million, while NOI grew almost 6% to $9.4 million in Q1 2025 [5][14] - Average rent per square foot increased by 1.9% across the property portfolio compared to Q1 2024 [14] - The net debt to adjusted EBITDA improved, decreasing by 30 basis points over the same period [16] Business Line Data and Key Metrics Changes - Peru, representing 29% of LPA's portfolio GLA, saw rental income grow by 38.4% [15] - Costa Rica, accounting for 47% of the portfolio, experienced a revenue increase of 6.1% [15] - Colombia, which makes up 24% of the portfolio, delivered a 2.6% revenue increase [15] Market Data and Key Metrics Changes - Peru's economic environment is characterized by low inflation, minimal government debt, and low unemployment, contributing to strong consumer spending [5][6] - Mexico is viewed as a long-term growth avenue, with a focus on logistics rather than light manufacturing due to tariff uncertainties [10][12] Company Strategy and Development Direction - LPA plans to increase its footprint in Lima with a new 215,000 square foot building, which is already 73% pre-leased [7] - The company aims to replicate its success in Mexico while being selective in investments due to potential tariff impacts [10][12] - LPA maintains a disciplined approach to investment, focusing on logistics space driven by domestic consumption [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of foundational markets and the potential for additional NOI growth in 2025 [26] - The company is focused on high-quality customers and investments to scale its regional platform [26] - Management noted that tariffs have not significantly impacted operations in foundational markets, which are primarily consumer-driven [22] Other Important Information - LPA's entire operating portfolio reached 100% occupancy, marking a significant milestone [7] - The company has a healthy maturity profile with no significant debt due in the near term [16] - LPA repurchased $800,000 worth of ordinary shares during the quarter, totaling 2.1 million in buybacks [16] Q&A Session Summary Question: Is LPA shying away from light manufacturing in Mexico? - Management indicated a preference for logistics assets in Mexico while remaining selective about light manufacturing due to current uncertainties [21] Question: Are tenants still in a wait-and-see mode regarding tariffs? - Management noted that foundational markets are mostly consumer-driven, and tariffs have not significantly affected leasing activity [22][23]

Core Insights - Prologis Inc. (PLD) has seen a stock price increase of 17.4% year-to-date, outperforming the industry growth of 7.3% [1] - The company reported a fourth-quarter 2024 core funds from operations (FFO) per share of $1.50, exceeding the Zacks Consensus Estimate of $1.38 and up from $1.26 in the same quarter last year [2] - The demand for logistics infrastructure is driven by the rising e-commerce market, positioning Prologis favorably to capitalize on this trend [3] Financial Performance - In the fourth quarter of 2024, Prologis commenced 46.5 million square feet of leases in its owned and managed portfolio, indicating strong operating performance [4] - The company made acquisitions totaling $1.92 billion in 2024, with development stabilization at $4.17 billion and development starts at $1.34 billion [5] - For 2025, Prologis anticipates acquisitions between $750 million and $1.25 billion, with development stabilization and starts expected in the range of $2.25-$2.75 billion [5] Market Position and Strategy - Prologis is focusing on warehouse conversions and ground-up developments to leverage growth in the data center industry, driven by digital economy demands [6] - The company maintains a strong balance sheet with $7.38 billion in available liquidity as of December 31, 2024, and favorable credit ratings from Moody's and Standard & Poor's [7] Dividend Policy - Prologis announced a quarterly cash dividend of $1.01 per share for the first quarter of 2025, reflecting a 5% increase from the previous payout [8] - The company has increased its dividend six times in the last five years, with a five-year annualized dividend growth rate of 13.66% [8][10]