Prologis (PLD) reached $114.45 at the closing of the latest trading day, reflecting a -1.33% change compared to its last close.
PLD's strong fundamentals, strategic data center push and steady dividend growth make it a compelling REIT pick for 2025.
Concrete manufacturing, and especially cement production, accounts for 8% of global greenhouse gas emissions, according to the World Economic Forum. Amazon, Meta and Prologis are joining other organizations in founding the Sustainable Concrete Buyers Alliance, led by RMI.
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Focus List.
Prologis, one of the largest warehouse owners in the US, is now building data centers. Susan Uthayakumar, an exec at the company, explained the advantages Prologis has against competitors.
Finding strong, market-beating stocks with a positive earnings outlook becomes easier with the Focus List, a top feature of the Zacks Premium portfolio service.
Prologis offers a stable debt profile, strong liquidity, and a healthy, growing dividend, making it attractive for long-term investors despite near-term headwinds. Share price growth has lagged e-commerce demand, but easing rates and supply chain reshoring could drive future upside and total return potential. Dividend yield is expected to hover around 3.5%, supported by consistent dividend growth and robust FFO, with manageable payout and refinancing risk.
Prologis is the global leader in logistics real estate, benefiting from the rise of e-commerce and an international expansion. Aggressive acquisitions and development have increased debt, but assets and long-term growth potential—especially in data centers—remain strong. Rate cuts are a key near-term catalyst, likely to boost both Prologis' financials and demand for its properties, as economic activity rebounds.
Prologis (PLD) closed the most recent trading day at $108.39, moving 1.62% from the previous trading session.
Prologis' valuation has normalized post-ZIRP. Q2-2025 results showed solid core FFO and guidance improvements. Occupancy remains soft at 95%, and oversupply from recent years still weighs on near-term recovery prospects despite management's optimism.
Prologis remains a core industrial REIT holding, boasting strong fundamentals despite a 13% stock price decline and sector headwinds. Q2 2025 results exceeded expectations with robust FFO growth, high occupancy, and a resilient rent roll even amid rising vacancies. The pipeline is exceptionally strong, with record build-to-suit activity and large tenants increasing investments, signaling improving demand.
I assign a cautious Buy rating to Prologis, citing its unique blend of global logistics and real estate, resilient market trends, and prudent risk management. Prologis demonstrates robust fundamentals, strong financial flexibility, and attractive long-term growth potential, despite recent short-term earnings volatility and a premium valuation. Key growth drivers include supply chain onshoring, expansion into data centers and renewables, and the innovative Prologis Essentials platform for tenant services.