Latest news with #distribution
Yahoo
21 hours 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
Daily Mail
a day ago
- Business
- Daily Mail
Second biggest alcohol distributor in the US quits California
The second largest alcohol distributor in the US has announced it is pulling out of California , blaming rising costs of doing business in the state. Texas-based Republic National Distributing has said that it will no longer do business in California after September 2. This has sent more than 2,500 drinks brands scrambling to find a new wholesaler and distributor in the state, which is famous in large part for its wine production. The departure of a wholesale giant from the largest wine market in the US is also a warning sign for an industry which is already struggling as Americans increasingly cut back on alcohol . Republic National, which is based in Grand Prairie, has not suggested that politics played a role in its decision to quit California. But the news may be resonating widely in part because of the narrative it presents that a Texas company wants nothing to do with California, the San Francisco Chronicle reported. President and CEO Bob Hendrickson said: 'This decision is driven by rising operational costs, industry headwinds, and supplier changes that made the market unsustainable.' He added that the company is 'using this moment to sharpen our focus and reinvest in the markets where we're best positioned to grow', naming Texas and Kentucky. It comes weeks after the distributor announced a 'strategic reinvestment' in its Texas operations. Several dozen of Republic National's crucial brands have defected in recent months to other distributors. This means the company no longer has the rights to sell popular spirits such as Jack Daniel's, Tito's and High Noon in California. While it is unclear why all the brands cut ties with the company, it is likely to have been a financial blow as many shifted distribution to a major rival, Reyes Beverage Group. Some workers have blamed executive mismanagement for the company's departure from California, according to specialist outlet VinePair. 'They started focusing on numbers instead of customer satisfaction and that's what drove them to their fall,' an anonymous California-based worker told the outlet. A former worker claimed the the company was 'terribly run' and its execs were 'in over their heads' in the Golden State. They alleged executives from Texas did not get out to meet customers or 'learn the market.' John Buehler, owner of Napa Valley's Buehler Vineyards, said Republic National's departure from California 'left everybody in the lurch.' Wholesale purchases drive 80 percent of the business. 'It was really such short notice,' he told the San Francisco Chronicle. Although Republic National continues to sell his wines in a handful other states, he will now need to find a new distributor in the Golden State. The company had only recently increased its presence in California when it purchased distributor Young's Market Co. in 2022. Industry analyst Impact Databank estimated Republic National made $2.8 billion in sales in California alone in 2022. But despite this success, Buehler told the outlet that the distributor consistently underperformed for him in terms of sales. 'I think I should have seen the writing on the wall,' he said. 'You lose these suppliers, and you're not attracting any new suppliers. Still, I had no idea that they were going to close up shop.' It comes after Republic National announced a 'strategic reinvestment' in its Texas operations in May, according to Global Drinks Intel. The company said the move would create around 100 jobs. 'We've taken a close look at where we are – and more importantly, where we need to be,' chief sales and execution officer Taylor Sommer said at the time. 'After listening to our associates, customers and supplier partners, one thing is clear: we need to strengthen our presence and performance in the market. 'Texas is a critical part of our foundation, and we're proud to reinvest here.'
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
Globe and Mail
a day ago
- Business
- Globe and Mail
Dream Residential REIT Announces June 2025 Monthly Distribution
DREAM RESIDENTIAL REAL ESTATE INVESTMENT TRUST (TSX: DRR.U and TSX: ('Dream Residential REIT' or the 'REIT') today announced its June 2025 monthly distribution in the amount of US$0.035 per unit (US$0.42 annualized). The June distribution will be payable on July 15, 2025 to unitholders of record as at June 30, 2025. About Dream Residential REIT Dream Residential REIT is an unincorporated, open-ended real estate investment trust established and governed by the laws of the Province of Ontario. The REIT owns a portfolio of garden-style multi-residential properties, primarily located in three markets across the Sunbelt and Midwest regions of the United States. For more information, please visit
National Post
a day ago
- Business
- National Post
Dream Residential REIT Announces June 2025 Monthly Distribution
Article content TORONTO — DREAM RESIDENTIAL REAL ESTATE INVESTMENT TRUST (TSX: DRR.U and TSX: ('Dream Residential REIT' or the 'REIT') today announced its June 2025 monthly distribution in the amount of US$0.035 per unit (US$0.42 annualized). The June distribution will be payable on July 15, 2025 to unitholders of record as at June 30, 2025. Article content About Dream Residential REIT Article content Article content Dream Residential REIT is an unincorporated, open-ended real estate investment trust established and governed by the laws of the Province of Ontario. The REIT owns a portfolio of garden-style multi-residential properties, primarily located in three markets across the Sunbelt and Midwest regions of the United States. For more information, please visit Article content Article content Article content Article content Article content Contacts Article content For further information, please contact: Article content Dream Residential REIT Article content Brian Pauls Chief Executive Officer (416) 365-2365 bpauls@ Article content Derrick Lau Chief Financial Officer (416) 365-2364 dlau@ Article content
