11 Best Self Storage and Apartment Stocks to Buy Now

2. Prologis Inc. (NYSE:PLD)

Number of Hedge Fund Holders: 48

Prologis Inc. (NYSE: PLD), a real estate investment trust based in San Francisco, is the global leader in industrial real estate. Established in 2011 through the merger of AMB Property Corporation and Prologis, the company specializes in investing in and managing logistics facilities.

Prologis Inc. (NYSE:PLD) recently increased its quarterly dividend by 4% YoY to $0.96 per share. Furthermore, in Q1 2024, Prologis Inc. (NYSE:PLD)  reported revenue of $1.96 billion, up from $1.77 billion in Q1 2023.

Analysts are bullish on Prologis Inc. (NYSE:PLD) with a consensus rating of “Strong Buy” and a price target of $130. The price target reflects a potential upside of over 14% from the current price levels.

Here’s what Third Avenue Management said about Prologis Inc. (NYSE:PLD) in its Q4 2023 investor letter:

“Prologis, Inc. (NYSE:PLD) (a U.S.-based Industrial and Logistics REIT) held a capital markets forum, where the management team reviewed the evolution of the business and highlighted their “customer focus”. The team also covered several material value-drivers, including: (i) the “loss-to-lease” opportunity within the existing portfolio with market rents approximately 60% above in-place leases, thus representing nearly $3.0 billion of incremental cash flow3 that can be realized as leases renew, (ii) a 12k acre landbank that can accommodate more than 200 million square feet of additional properties, which is increasingly being used to deliver datacenters given the higher capital values relative to industrial properties, and (iii) its Essentials segment, including the addition of rooftop solar panels at many facilities, which currently account for 555 Megawatts (“MW”) of installed capacity (and generates $40 million of operating profits) but is expected to comprise 7000 MW of capacity by 2030 (and generate approximately $800 mm of annual profits).”

At the end of the first quarter of 2024, 48 hedge funds reported owning a stake in the company. Prologis Inc. (NYSE:PLD) ranks second on our list of the best self-storage and apartment stocks to buy now.