Latest news with #warehousing
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
Associated Press
5 days ago
- Business
- Associated Press
PICKING AGV Deployment Exceeds 400 Units in a Single Project, Guozi Robotics' Warehousing Solution Boosts Picking Efficiency by 50%
HANGZHOU, China, June 16, 2025 /PRNewswire/ -- The warehouse covers an area of over 20,000 square meters, with nearly 400,000 storage locations and more than 150,000 SKUs. Over 400 Picking AGVs have been deployed. Recently, Guozi's warehousing solutions for the footwear and apparel e-commerce industry have added another overseas application case, with its overseas business continuing to expand steadily. Company F from the United States is one of the world's largest online retailers of sports apparel. In 2023 and 2024, it collaborated with Guozi Robotics twice to create a stable and easily manageable warehousing and logistics management system, increasing picking efficiency by 50% and completing the construction of its first global ultra-large fully automated warehouse. In 2023, Guozi provided a full-process intelligent warehousing solution in the first phase of the project. Through high-density storage and the 'tote-to-person' model, the warehouse capacity was increased by 50%, solving the storage and efficient picking issues for 150,000 SKUs and completing the implementation within six months. The intelligent warehousing management system (iWMS) precisely managed the information of each tote and deeply integrated with the AGV RCS system. The handling frequency of single orders was reduced by 20%, picking efficiency was increased by 50%, and labor input was reduced by about 40%. In 2024, in the second phase of the project, Guozi pioneered the second-level application of the Picking system. Using the same high-density shelving design, it achieved the full-process digitalization, intelligence, and automation of receiving, Inbound-processing, Outbound-processing, and Packing within limited space. In combination with the automatic loader Skyport, as well as conveyor lines and flash broadcast equipments, picking efficiency was further doubled compared to the ground level (Phase I project). The repicking rate was increased by 20%, and the Handling Frequency was reduced by 18%. A circular conveyor line design was adopted between stations to calmly handle peak and trough periods of picking, reducing the waiting time for totes at stations and achieving a more balanced load. After the project ran, it immediately faced the first 'Black Friday' sales peak following delivery. The warehouse shipped more than 150,000 units in a single day, with all system components maintaining stable operation. ABOUT Guozi Robotics: Guozi Robotics is committed to being a top-tier global mobile robotics company, focusing on innovating and applying cutting-edge core mobile robotics technology. The Guozi product lineup, including intelligent inspection and logistics solutions, positions us as an industry leader in production capacity, product variety, and practical applications. View original content to download multimedia: SOURCE Zhejiang Guozi Robotics Co., Ltd
CNA
5 days ago
- Business
- CNA
Singapore's self-storage sector faces space crunch amid continued rise in demand
SINGAPORE: Singapore's self-storage industry is feeling boxed in, with operators pushed to almost full capacity as demand for space from e-commerce businesses and individuals continues to surge. While recent moves have helped increase the supply of available land, industry players said that rising costs are becoming a major stumbling block to their expansion plans. One self-storage operator, Storefriendly, has reached close to maximum capacity at its premises in Paya Lebar. The company has seven locations across the island. Its storage units can be rented on a flexible basis for as short as one month – a key draw for small e-commerce businesses that need short-term warehousing solutions. But even with such offerings, operators are struggling to keep up. 'We get more inquiries when people develop the need (for self-storage) … but to drive the need, it depends to a large extent on external factors, and these can change,' said Storefriendly's CEO Jes Johansen. He told CNA that the firm tries to be 'one step ahead of full occupancy', given that higher occupancy rates means it cannot offer certain storage unit sizes or products to other consumers. According to a survey conducted for the Self Storage Association Asia last year, business owners now account for about 40 per cent of self-storage customers in Singapore – a rise from 26 per cent in 2023. 'Overall, in the portfolio, we're above 85 per cent (occupancy) and that's too high for my liking. We would like to have more space all the time – some of that is timing,' said Mr Johansen. To expand capacity at its Paya Lebar branch, Storefriendly took over space from other tenants last July, fully converting the entire six-floor building into a self-storage facility. However, the additional space is still not enough to meet growing demand. 'Overall, in Singapore, the demand is such that you could pretty much double the industry in Singapore,' Mr Johansen added. 'You've got 6 million people and 40,000-plus storage rooms – one in 150 – so there's a lot of room for expansion.' MORE LAND BUT COSTS CLIMBING In April, industrial landlord JTC Corporation lifted a temporary suspension to allow self-storage requests on selected industrial land – a move that industry players have welcomed. Selected sites in areas such as Bishan, Clementi, and Tampines are now available for self-storage use. Self Storage Association Asia's chair Helen Ng noted: 'There is clarity, and it has helped all the operators, because the fact that we couldn't do any expansion in almost three years, hasn't helped the business. 'But now that the moratorium has lifted, we are free to go out and look at real estate, knowing that it is all kosher,' added Ms Ng, who is also CEO of self-storage firm Lock+Store. Around 700,000 sqm of new industrial space is expected to be added by the end of the year. JTC said it will continue to monitor demand and work closely with the self-storage sector to ensure there is sufficient room for growth. The storage association said that operators prefer JTC-managed land due to better prices, which can be up to a third lower than private market rates, thanks to shorter lease terms. JTC is a statutory board under the Ministry of Trade and Industry that develops and manages a wide range of facilities, including industrial parks. But even with more land on offer, a larger challenge lies in rising costs. Industrial space prices grew by 5.3 per cent year-on-year in the first quarter of 2025, according to the latest figures from JTC. Ms Ng said that while the nature of the self-storage industry means it has to deal with real estate issues, it can control factors like internal efficiency, or its own use of space. This means using technology like predictive AI to analyse customer trends and target the right segment. 'The only impediment for us (is) the rising cost of real estate in Singapore … obviously, we don't want to pass all that on to our customers, right?' she questioned. 'In my 10, 12 years in the business, rental has almost doubled … but the cost of rental to our customers hasn't doubled. It's not just rent – it's utilities, salaries, everything has increased.
Tahawul Tech
12-06-2025
- Business
- Tahawul Tech
How AI is Revolutionising Warehousing Intralogistics
Alexander Honigmann, Director, Transportation and Logistics, EMEA, Zebra Technologies, outlines the improvements that artificial intelligence has brought to modern warehouses by reworking the scale of data analytics. The value of the global market for Artificial Intelligence (AI) in warehousing is projected to grow by almost a quarter by 2030, reaching around €39 billion. At the same time, warehouse businesses are saying that their most pressing challenges are developing smarter strategies around optimisation and automation and achieving a timely return on investment (ROI). The ongoing difficulty of finding enough skilled workers also means more operations turning to technology for help to maintain productivity. So it's no wonder that 60% of warehouse leaders in Europe say they plan to implement AI within five years. Cost savings is one of the key motivators behind that intention. Logistics research by McKinsey suggests that 'thanks to forecasting with AI, it is possible to reduce supply chain errors to 20-50%. At the same time, warehouse and administration costs can be decreased by 5% to 10% and 25% to 40%, respectively'. Savings of time and space are also key reasons why AI is sought out by warehouse leaders. One senior leader of operations at a global logistics company says that AI is delivering lots of small time and space savings which quickly add up to big cost savings for the company. And with on-device generative AI (GenAI) assistants on mobile computers and tablets, workers no longer need to leave the warehouse floor to consult a desk-based warehouse management system (WMS), as operating procedures, inventory data and task lists can be accessed quickly with the help of the AI assistant. And it's on the warehouse floor that the everyday improvements delivered by AI add up to big gains for logistics operations. They're also a more connected frontline workforce, with unified synchronised software designed to seamlessly connect workers with other. As well as the need to save space in existing premises, the challenge of managing the increasing average size of warehouses is also driving the shift to AI and predictive analytics. Worldwide the average warehouse size is now estimated to be over 100,00 square metres, and total global volume is projected to increase by 27%, from 3.06 billion square metres in 2023 to 3.9 billion square metres in 2030. Bigger Warehouses, More Data The vast size of modern warehouses is matched by the vast amount of data generated from warehouse activities, which is simply too great for manual analysis alone. The processing power and level of insight provided by AI-driven analytics tools and intelligent automation allows decision-makers and frontline workers to gain greater visibility into assets and inventory and respond proactively to potential inefficiencies and bottlenecks. AI-driven benefits can start long before the goods arrive at the loading area to be dispatched. The integration of AI into machine vision and fixed industrial scanning solutions enables inspection, sortation, and tracking workflows including the imaging of unstructured goods, such as a pallet or conveyor belt of items of different sizes and shapes. For example, implementing a scan tunnel solution for one of the world's largest global transportation and logistics enterprises resulted in improved read rate accuracy by 37%, decreased downtime and manual handling by 29%, and reduced operational costs by 13%. Then consider a team of warehouse workers tasked with loading delivery trucks. They must ensure that each truck is optimally filled, considering the weight, size, and destination of each parcel. Mobile dimensioning applications with AI algorithms can accurately measure box and package dimensions, significantly reducing manual errors and speeding up processing times. And AI-driven software on a tablet can visually represent the best way to load the truck for balance and efficiency. The AI could analyse each parcel's data and destination and suggests the order and position for loading. This ensures that the truck is securely packed and unloading at each stop is streamlined. It also reduces the risk of injury caused by manual handling – not a small concern, given that 73% of warehouse associates in Europe are concerned about injuries on the warehouse floor. But AI doesn't stop working its magic once the goods are on the truck and ready to go. By leveraging advanced algorithms and real-time data analysis, AI systems can calculate the most efficient paths for moving goods, based on a multitude of variables such as equipment availability, storage conditions, order priorities, and workforce distribution. The bottom line is that over eight in 10 decision-makers and associates agree that the increased use of technology and automation helps boost frontline productivity. AI in warehouse intralogistics will continue to play an increasingly large role in that picture over the next five years and more. Find out more about solutions transforming the warehouse logistics landscape here. Source: Zebra Technologies
