Prologis boasts a high-quality asset base and reliable income stream. We compare the attractiveness of dollar cost averaging into Prologis relative to the S&P 500. We also look at the preferred shares yielding 7.5%.
Prologis is a dominant logistics REIT with a fortress balance sheet, diversified tenant base, and a stellar track record of dividend growth. Despite recent headwinds from oversupply and higher rates, industrial construction starts are dropping, setting up a favorable supply-demand shift for Prologis. Growth catalysts include energy-efficient property upgrades, EV infrastructure, solar, and high-yield data center expansion, leveraging its global scale.
Prologis and EastGroup Properties are trading below historical averages, presenting a buying opportunity for long-term dividend investors amid market volatility. Both REITs have robust balance sheets, solid growth prospects, and well-covered dividends, making them resilient against economic downturns and tariff impacts. Prologis and EastGroup offer attractive dividend yields, with consistent growth and conservative payout ratios, ensuring steady income for investors.
I recently bought even more shares of Prologis (PLD -3.32%) and Rexford Industrial Realty (REXR -2.55%). I've purchased shares of the leading industrial real estate investment trusts (REITs) several times over the past year.
Market fear creates hesitation, but history shows scary headlines often mark great buying opportunities. I assess risk, not just wait for perfect timing. My strategy to rotate from growth to value has helped me outperform. I bought quality dividend growers when panic set in, based on logic, not luck. I highlight two compelling stocks: one a powerful long-term grower in healthcare, the other a higher-yielding pick tied to industrial strength and income stability.
Prologis remains a top REIT by market cap despite a 43% decline from its all-time high, reflecting broad sector weakness since 2022 rate hikes. A near decade high dividend yield of (4.11%) is attractive for long-term investors, especially given Prologis' AFFO yield (4.76%) and past dividend growth (10.93% CAGR). Historical fears from the 2008 crash still linger, but e-commerce growth and logistics demand have transformed the landscape, supporting Prologis' relevance.
Prologis, Inc. (NYSE:PLD ) Q1 2025 Earnings Conference Call April 16, 2025 12:00 PM ET Company Participants Justin Meng - Senior Vice President & Head, Investor Relations Tim Arndt - Chief Financial Officer Hamid Moghadam - Chief Executive Officer Chris Caton - Managing Director Dan Letter - President Conference Call Participants Tom Catherwood - BTIG Steve Sakwa - Evercore ISI Ronald Kamdem - Morgan Stanley Michael Goldsmith - UBS Nick Joseph - Citi Caitlin Burrows - Goldman Sachs Vikram Malhotra - Mizuho Ki Bin Kim - Truist Securities Vince Tibone - Green Street Blaine Heck - Wells Fargo Mike Mueller - JPMorgan Samir Khanal - Bank of America Brendan Lynch - Barclays Michael Carroll - RBC John Kim - BMO Capital Markets Nicholas Yulico - Scotiabank Operator Greetings, and welcome to the Prologis First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode.
PLD's Q1 FFO beat estimates, benefiting from a rise in rental revenues and healthy leasing activity. However, high interest expenses are a concern.
The headline numbers for Prologis (PLD) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Prologis (PLD) came out with quarterly funds from operations (FFO) of $1.42 per share, beating the Zacks Consensus Estimate of $1.38 per share. This compares to FFO of $1.28 per share a year ago.
While PLD's Q1 earnings may have benefited from its premium assets and expansion, elevated supply and high-interest costs may have offset some gains.
The past for Prologis has been stable but dull, with no significant growth prospects. Due to duties, there could be congestion in the logistics of goods, potentially leading to higher inventories. It is likely that some companies will decide to bring manufacturing back to the U.S., creating long-term demand for Prologis's services.