2. Prologis, Inc. (NYSE:PLD)
Number of Hedge Fund Holders: 51
Prologis, Inc. (NYSE:PLD) is a real estate investment trust that leases logistics facilities to business-to-business and retail/online fulfillment customers in North America, South America, Europe, and Asia. Prologis, Inc. (NYSE:PLD) is one of the best self storage stocks to watch.
On June 28, Goldman Sachs analyst Caitlin Burrows maintained a Buy rating and a $170 price target on Prologis, Inc. (NYSE:PLD) following the company’s announcement of a $3.1 billion agreement to purchase 14 million square feet in the Blackstone Industrial Portfolio. The analyst explained that while the assets will have a neutral to slightly positive impact on earnings in the first year, the main advantage of this acquisition lies in enhancing Prologis’ platform, clusters, and Essentials business. This, in turn, strengthens the company’s long-term potential for sustained earnings growth.
According to Insider Monkey’s first quarter database, 51 hedge funds were bullish on Prologis, Inc. (NYSE:PLD), compared to 55 funds in the prior quarter. Jeffrey Furber’s AEW Capital Management is the biggest stakeholder of the company, with 2.8 million shares worth $350.7 million.
Baron Real Estate Fund made the following comment about Prologis, Inc. (NYSE:PLD) in its first quarter 2023 investor letter:
“Industrial REITs that we expect to benefit from ongoing robust warehouse demand and increased rents fueled by the growth in e-commerce and the buildout of logistics’ supply chains. Examples: Prologis, Inc. (NYSE:PLD), Rexford Industrial Realty, Inc., EastGroup Properties, Inc., and Terreno Realty Corporation.
Prologis, Inc. is the world’s largest industrial REIT. The company owns a high-quality real estate portfolio that is concentrated in major global trade markets and large population centers across the Americas, Europe, and Asia. Prologis has an unmatched global platform, strong competitive advantages (scale, data, and technology), and attractive embedded growth prospects. The company is the only industrial REIT with an ‘A’ credit rating.
Following a decline in its shares of more than 30% in 2022, we believe Prologis’ current implied capitalization rate of 4.2% is compelling given that the company’s rents on its in-place leases are more than 65% below current market rents, thus providing a strong runway for growth in the next three to five years.
Following strong quarterly results, the shares of Prologis, Inc., the world’s largest industrial REIT, performed well in the first quarter of 2023. The company owns a high-quality real estate portfolio that is concentrated in major global trade markets and large population centers across the Americas, Europe, and Asia. Prologis has an unmatched global platform, strong competitive advantages (scale, data, and technology), and attractive embedded growth prospects. The company is the only industrial REIT with an ‘A’ credit rating.”
