5 Best Real Estate Stocks for 2021

2. Prologis, Inc. (NYSE: PLD)

Number of Hedge Fund Holders: 40

Prologis, Inc. (NYSE: PLD) is a real estate investment trust that invests in logistic facilities. The company has over 5,500 customers in over 19 countries.

In Q2 2021, Prologis, Inc. (NYSE: PLD) reported an FFO of $1.01, beating the market consensus by $0.02. The company recorded revenue of $1.02 billion, up 8% from the prior-year quarter. For FY21, Prologis, Inc. (NYSE: PLD) lifted its guidance due to strong quarter and record rent growth. The company expects a core FFO of between $4.04-$4.08 per share, versus an estimate of $4.01. Recently, Deutsche Bank raised its price target on Prologis, Inc. (NYSE: PLD) to $150, with a ‘Buy’ rating on the shares. The bank expects growth in the company’s same-store rates and FFOs through 2021-2022. Prologis, Inc. (NYSE: PLD) gained 38.6% in the past year.

As of Q2 2021, 40 hedge funds tracked by Insider Monkey have positions in Prologis, Inc. (NYSE: PLD), worth $563.7 million. The number is up from 39 hedge fund holders in the previous quarter.

Third Avenue Management released its first-quarter 2021 investor letter and mentioned Prologis, Inc. (NYSE: PLD) in it. Here is what the firm has to say:

“Prologis, Inc. (a U.S.-based real estate investment trust that is the largest owner of modern logistic facilities with a platform that expands more than 950 million square feet of space in 19 countries globally) completing $2.0 billion USD of debt placements at a weighted average interest rate of 0.9% with an average term of more than 13 years. In the process, the company has further solidified one of the most compelling capital structures in the real estate industry with a prudent loan-to-value ratio of approximately 25% that is primarily comprised of fixed-rate debt at an average cost of 1.8% for a term that exceeds 10 years. As a result, the long-tenured management at Prologis (including one of the true leaders in the real estate space CEO Hamid Moghadam) have set up the company for what could be a very rewarding period ahead as incremental rental income and asset management fees seem likely to accrue disproportionately to shareholders on the “bottom-line” with its interest costs locked-in.”