5 Best Real Estate and Realty Stocks to Buy According to Hedge Funds

2. Prologis, Inc. (NYSE:PLD)

Number of Hedge Fund Holders: 51

Prologis, Inc. (NYSE:PLD) is a real estate investment trust headquartered in San Francisco, California that invests in logistics facilities. The company was formed through the merger of AMB Property Corporation and Prologis in June 2011, which resulted in Prologis being one of the largest industrial real estate companies in the world.  The industrial REIT also ranks as an elite dividend stock, having increased its dividend at a 15% compound annual rate since its initial public offering (IPO).

Insider Monkey’s proprietary database of 943 hedge funds shows that 51 hedge funds had stakes in Prologis, Inc. (NYSE:PLD). The most notable stakeholder of Prologis, Inc. (NYSE:PLD) was Jeffrey Furber’s AEW Capital Management which owns a $350.77 million stake.

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.”