Latest news with #Prologis
Yahoo
a day ago
- Business
- Yahoo
Is it Wise to Retain Prologis Stock in Your Portfolio Now?
Prologis PLD is poised to gain from its strategically located modern distribution facilities in key markets globally and scale. Prudent buyouts and development and a healthy balance sheet will drive growth. The company is also converting some of its warehouses into data centers to capitalize on the growing opportunity in this asset category. However, amid macroeconomic uncertainty and geopolitical issues, customers remain focused on cost controls and delay their decision-making with respect to leasing. Elevated interest expenses add to PLD's concerns. Prologis provides industrial distribution warehouse space in some of the busiest distribution markets across the globe. The properties of the company are typically located in large, supply-constrained infill markets in close proximity to airports, seaports and ground transportation facilities, which facilitates rapid distribution of customers' products. The solid demand for Prologis' strategically located facilities has driven healthy operating performance over the past several quarters. The company's new and renewal leases are expected to translate into considerable rises in future rental income. Our estimate points to a year-over-year increase of 6.3% in rental revenues in 2025. Prologis continues to bolster its presence in high-barrier, high-growth markets through strategic acquisitions and development activities. In the first quarter of 2025, the company's share of acquisitions amounted to $811 million. For 2025, the company anticipates acquisitions at Prologis share between $750 million and $1.25 billion. Development starts are expected in the range of $1.5-$2.0 billion. Prologis maintains a healthy balance sheet position with ample flexibility. As of March 31, 2025, this industrial REIT had a total available liquidity of $6.52 billion. As of the same date, the company's weighted average interest rate on its share of the total debt was 3.2%, with a weighted average term of 8.7 years. In addition, as of March 31, 2025, the company's credit ratings were A2 (Outlook Positive) from Moody's and A (Outlook Stable) from Standard & Poor's, enabling the company to borrow at an advantageous rate. The demand for high-performing data centers is likely to increase in the coming years amid high growth in cloud computing, the Internet of Things (IoT), big data and elevated requirements for third-party IT infrastructure. To capitalize on this growing opportunity, Prologis is focusing on both warehouse conversions and ground-up developments, which will aid future revenue growth. Solid dividend payouts are arguably the biggest enticements for REIT shareholders, and Prologis remains committed to that. In the last five years, Prologis has increased its dividend five times, and its five-year annualized dividend growth rate is 13.71%. Given the company's solid operating platform, opportunities for growth and decent financial position compared with the industry, this dividend rate is expected to be sustainable in the near term. Check Prologis' dividend history here. Analysts seem bullish on this Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 FFO per share indicates a favorable outlook as it has moved marginally northward over the past month to $5.70. In a volatile and still elevated interest rate environment and geopolitical concerns, customers remain focused on cost controls and delaying their decisions with respect to decision-making for leasing. As such, demand remains subdued, and this trend is expected to continue in the near term. Despite the Federal Reserve announcing rate cuts in the second half of 2024, the interest rate is still high and is a concern for Prologis. The company's consolidated debt as of March 31, 2025 was $32.26 billion. For 2025, our estimate indicates an 11.7% year-over-year increase in the company's interest expenses. Shares of Prologis have declined 6.2% over the past three months, underperforming the industry's fall of 1.2%. Image Source: Zacks Investment Research Some better-ranked stocks from the REIT sector are VICI Properties VICI and W.P. Carey WPC,each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for VICI Properties' 2025 FFO per share is pegged at $2.34, up 3.54% year over year. The Zacks Consensus Estimate for W.P. Carey's2025 FFO per share is pegged at $4.88, up 3.83% year over year. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prologis, Inc. (PLD) : Free Stock Analysis Report W.P. Carey Inc. (WPC) : Free Stock Analysis Report VICI Properties Inc. (VICI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
a day ago
- Business
- Globe and Mail
Is it Wise to Retain Prologis Stock in Your Portfolio Now?
Prologis PLD is poised to gain from its strategically located modern distribution facilities in key markets globally and scale. Prudent buyouts and development and a healthy balance sheet will drive growth. The company is also converting some of its warehouses into data centers to capitalize on the growing opportunity in this asset category. However, amid macroeconomic uncertainty and geopolitical issues, customers remain focused on cost controls and delay their decision-making with respect to leasing. Elevated interest expenses add to PLD's concerns. What's Aiding Prologis Stock? Prologis provides industrial distribution warehouse space in some of the busiest distribution markets across the globe. The properties of the company are typically located in large, supply-constrained infill markets in close proximity to airports, seaports and ground transportation facilities, which facilitates rapid distribution of customers' products. The solid demand for Prologis' strategically located facilities has driven healthy operating performance over the past several quarters. The company's new and renewal leases are expected to translate into considerable rises in future rental income. Our estimate points to a year-over-year increase of 6.3% in rental revenues in 2025. Prologis continues to bolster its presence in high-barrier, high-growth markets through strategic acquisitions and development activities. In the first quarter of 2025, the company's share of acquisitions amounted to $811 million. For 2025, the company anticipates acquisitions at Prologis share between $750 million and $1.25 billion. Development starts are expected in the range of $1.5-$2.0 billion. Prologis maintains a healthy balance sheet position with ample flexibility. As of March 31, 2025, this industrial REIT had a total available liquidity of $6.52 billion. As of the same date, the company's weighted average interest rate on its share of the total debt was 3.2%, with a weighted average term of 8.7 years. In addition, as of March 31, 2025, the company's credit ratings were A2 (Outlook Positive) from Moody's and A (Outlook Stable) from Standard & Poor's, enabling the company to borrow at an advantageous rate. The demand for high-performing data centers is likely to increase in the coming years amid high growth in cloud computing, the Internet of Things (IoT), big data and elevated requirements for third-party IT infrastructure. To capitalize on this growing opportunity, Prologis is focusing on both warehouse conversions and ground-up developments, which will aid future revenue growth. Solid dividend payouts are arguably the biggest enticements for REIT shareholders, and Prologis remains committed to that. In the last five years, Prologis has increased its dividend five times, and its five-year annualized dividend growth rate is 13.71%. Given the company's solid operating platform, opportunities for growth and decent financial position compared with the industry, this dividend rate is expected to be sustainable in the near term. Check Prologis' dividend history here. Analysts seem bullish on this Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 FFO per share indicates a favorable outlook as it has moved marginally northward over the past month to $5.70. What's Hurting Prologis Stock? In a volatile and still elevated interest rate environment and geopolitical concerns, customers remain focused on cost controls and delaying their decisions with respect to decision-making for leasing. As such, demand remains subdued, and this trend is expected to continue in the near term. Despite the Federal Reserve announcing rate cuts in the second half of 2024, the interest rate is still high and is a concern for Prologis. The company's consolidated debt as of March 31, 2025 was $32.26 billion. For 2025, our estimate indicates an 11.7% year-over-year increase in the company's interest expenses. Shares of Prologis have declined 6.2% over the past three months, underperforming the industry 's fall of 1.2%. Stocks to Consider Some better-ranked stocks from the REIT sector are VICI Properties VICI and W.P. Carey WPC,each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for VICI Properties' 2025 FFO per share is pegged at $2.34, up 3.54% year over year. The Zacks Consensus Estimate for W.P. Carey's2025 FFO per share is pegged at $4.88, up 3.83% year over year. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Prologis, Inc. (PLD): Free Stock Analysis Report W.P. Carey Inc. (WPC): Free Stock Analysis Report VICI Properties Inc. (VICI): Free Stock Analysis Report
Yahoo
5 days ago
- Business
- Yahoo
Here's How You Can Earn $100 In Passive Income By Investing In Prologis Stock
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Prologis Inc. (NYSE:PLD) is a real estate investment trust focused on logistics facilities. The 52-week range of Prologis stock price was $85.35 to $132.57. Prologis' dividend yield is 3.72%. It paid $4.04 per share in dividends during the last 12 months. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can On April 16, the company announced its Q1 2025 earnings, posting FFO of $1.42, beating the consensus estimate of $1.38, while revenues of $2 billion came in below the consensus of $2.04 billion, as reported by Benzinga. 'We delivered exceptional results this quarter—signing leases totaling 58 million square feet, breaking ground on new build-to-suits with strategic customers and expanding our power capacity to support the growing demand for data centers,' said Dan Letter, president of Prologis. For full-year 2025, the company expects core FFO per share in the range of $5.65 to $5.81. Trending: Invest Where It Hurts — And Help Millions Heal: If you want to make $100 per month — $1,200 annually — from Prologis dividends, your investment value needs to be approximately $32,258, which is around 297 shares at $108.50 each. Understanding the dividend yield calculations: When making an estimate, you need two key variables — the desired annual income ($1,200) and the dividend yield (3.72% in this case). So, $1,200 / 0.0372 = $32,258 to generate an income of $100 per month. You can calculate the dividend yield by dividing the annual dividend payments by the current price of the stock. The dividend yield can change over time. This is the outcome of fluctuating stock prices and dividend payments on a rolling instance, assume a stock that pays $2 as an annual dividend is priced at $50. Its dividend yield would be $2/$50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). A drop in stock price to $40 will have an inverse effect and increase the dividend yield to 5% ($2/$40). In summary, income-focused investors may find Prologis stock an attractive option for making a steady income of $100 per month by owning 297 shares of stock. There may be more upside to come as investors benefit from the company's consistent dividend hikes. Prologis has raised its dividend consecutively for the last 11 years. Check out this article by Benzinga for three stocks offering high dividend yields. Read Next: Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock This article Here's How You Can Earn $100 In Passive Income By Investing In Prologis Stock originally appeared on Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
3 Top Stocks I Wouldn't Hesitate to Invest $1,000 in Right Now
Alphabet trades at a very appealing valuation these days. Brookfield Infrastructure offers an attractive combination of income, growth, and value. Prologis has an excellent record of delivering above-average growth. 10 stocks we like better than Alphabet › This year has been a bit more volatile than most of us had probably hoped. Wars that we thought might end soon are flaring back up. Tariff-driven trade disputes have arisen. And on top of all that, inflation has continued to stick around, which has kept interest rates high. These factors have caused stocks to gyrate, making it tough to invest with much confidence. Despite all this uncertainty, there are a few stocks I wouldn't hesitate to buy in the current environment. Topping that list are Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL), Brookfield Infrastructure (NYSE: BIP)(NYSE: BIPC), and Prologis (NYSE: PLD). Given their combination of financial strength, visible growth, and reasonable valuations, I wouldn't hesitate to invest $1,000 in any one of them right now. Alphabet is one of the world's largest technology companies. From its ubiquitous Google search engine to its popular YouTube platform, cloud computing, and beyond, Alphabet has an expansive business. The tech titan generates massive revenues (over $90 billion in the first quarter) and prodigious profits (nearly $35 billion last quarter). It's growing quickly despite its enormous size (its revenue rose 12% last quarter, while its net income soared 46%). Its robust profitability enables it to invest heavily in expanding its business while returning boatloads of cash to shareholders. On the growth front, Alphabet is going all-in on artificial intelligence (AI). It rolled out Gemini 2.5 in the first quarter, its most intelligent AI model. The company is leveraging the power of AI to boost its Google search business through new features, such as AI overviews. It's also providing customers with AI infrastructure and generative AI solutions. Meanwhile, it's returning more cash to investors by recently hiking its dividend by 5% and approving a new $70 billion share repurchase authorization. Despite its robust growth, Alphabet trades at a relatively attractive valuation these days. With a forward price-to-earnings ratio of around 18.5 times, it trades at a discount to the broader market index. The S&P 500 trades at 22.5 times forward earnings, while the Nasdaq-100 fetches 28 times forward earnings. Alphabet's combination of growth and value is hard to beat. Leading global infrastructure operator Brookfield Infrastructure also offers a compelling combination of growth and value. The company expects to grow its funds from operations (FFO) by more than 10% per share this year. It believes it can continue growing at a more than 10% annual rate in the future, driven by inflation-linked rate increases, volume growth, expansion projects (notably data centers and semiconductor fabrication plants), and acquisitions. The company has already lined up a couple of deals this year to help bolster its growth rate. Brookfield Infrastructure's outlook, implying that it will deliver more than 10% FFO per share growth this year, suggests it will generate at least $3.43 per share in FFO this year. With the stock recently trading at less than $41.50 per share, Brookfield sells for around 12 times its FFO. That dirt cheap valuation is a big reason why Brookfield offers such an attractive dividend yield. At over 4%, it's more than double the S&P 500's dividend yield. The company's combination of growth and income at a value price puts it in a strong position to produce robust total returns from here. Leading industrial real estate investment trust (REIT) Prologis has an extensive record of delivering above-average growth. The company has grown its core FFO at a 12% compound annual rate over the past five years, outpacing the S&P 500's 9% rate. That has also supported faster compound annual dividend growth during that period (13% versus 5% for the S&P 500). While the industrial real estate market is currently facing some headwinds due to all the market uncertainty, Prologis' leadership position has enabled it to continue thriving. It delivered 10.9% core FFO per share growth during the quarter, driven by strong leasing demand for its properties, new build-to-suit projects with strategic customers, and its strategic investments to capitalize on the growing demand for data centers to support AI and other catalysts. Prologis expects the industry's current headwinds to eventually fade. Limited new supply of warehouses and high construction costs should drive continued rent growth. Meanwhile, the REIT has a fortress-like balance sheet, giving it the flexibility to pounce on new investment opportunities as they arise (acquisitions and development projects). These catalysts should continue driving above-average growth. Add in its attractive valuation (shares are nearly 20% below their 52-week high) and dividend yield (3.8%), and Prologis is in a strong position to produce robust total returns for its investors. Alphabet, Brookfield Infrastructure, and Prologis have excellent track records of growing shareholder value. The companies currently have lots of growth ahead. Despite that, they trade at very reasonable valuations these days. Their combination of growth, financial strength, and value is why I wouldn't hesitate to invest another $1,000 into any one of them right now. Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Matt DiLallo has positions in Alphabet, Brookfield Infrastructure, and Prologis. The Motley Fool has positions in and recommends Alphabet and Prologis. The Motley Fool recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy. 3 Top Stocks I Wouldn't Hesitate to Invest $1,000 in Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
1 Magnificent High-Yield Stock Down 55% to Buy and Hold Forever
Investors have put industrial REITs in the doghouse. Many investors are focused on industry giant Prologis, which is down 35% and yielding 3.7%. This lesser-known industrial REIT's business is strongly positioned, the stock is down 55%, and the shares are yielding 4.7%. 10 stocks we like better than Prologis › Headline-grabbing news events often push investors into emotional investing decisions. That's exactly what is taking place today with regard to tariffs. The investor reaction to tariffs has pushed industry-leading industrial real estate investment trust (REIT) Prologis (NYSE: PLD) down 35% from its 2022 highs and led to an attractive yield of 3.7%. You can do even better, collecting a 4.7% yield, with this well-positioned industrial REIT that is down 55%. Here's what you need to know. Prologis is an industrial REIT giant, with operations across North America, South America, Europe, and Asia. It owns 5,900 buildings containing 1.3 billion square feet of space. But the key part of the story is where its buildings are located. Prologis has assets in just about every major transportation hub in the world, serving 6,500 customers looking to import and export goods. This is a huge business strength, but right now it is seen as a huge negative. That's because U.S. tariffs have upended international trade norms. That's pushed Prologis' stock price down and its yield up. This is definitely a short-term disruption, but it seems unlikely to become a permanent negative. The world is so interconnected today that the more likely outcome is that trade patterns shift and Prologis' diverse portfolio of assets is still highly valuable. Prologis is, indeed, an attractive dividend investment opportunity today. And yet there's an even more interesting story to be told with Rexford Industrial Realty (NYSE: REXR). Like Prologis, Rexford owns industrial assets that are vital to international trade. The most important difference between the two REITs is that Rexford is focused on just one single market, Southern California. It owns 424 properties with 51 million square feet of space in them. The key here is that Southern California is the major gateway for Asian goods entering the U.S. market (and vice versa). That, of course, is the problem, given the high-profile tariff fight between the United States and China. The near-term uncertainty has led investors to abandon Rexford. But, like Prologis, it seems more likely that international trade will adjust to a new normal than stop entirely. That alone makes Rexford's lofty 4.7% dividend yield attractive, but there's more. Southern California is a supply-constrained market. That gives Rexford a strong negotiating position when signing leases. Rexford is also a skilled redeveloper, frequently buying older assets and upgrading them so that they are more modern and desirable. That also helps its ability to raise rents. To be fair, the highly concentrated nature of Rexford's business does make it riskier than more diversified Prologis. But unless you believe international trade is going to stop, Rexford should come out the other side of the current uncertainty in a strong position. Oftentimes the best opportunities to buy a well-run company arise when Wall Street is overly pessimistic. The key is to figure out if the worry is about something that will linger or something that is likely to be temporary. The upheaval in international trade seems like a temporary issue, given how interconnected the world is today. For more conservative investors that could make Prologis an attractive option, while more aggressive investors will probably prefer higher-yielding Rexford industrial. And if you do buy one of these high-yield industrial REITs you'll probably end up owning it for the long term. Before you buy stock in Prologis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Prologis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Prologis. The Motley Fool recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy. 1 Magnificent High-Yield Stock Down 55% to Buy and Hold Forever was originally published by The Motley Fool Sign in to access your portfolio
