5 Best REIT Stocks To Buy Right Now

2. Prologis, Inc. (NYSE:PLD)

Number of Hedge Fund Holders: 37

Prologis, Inc. (NYSE:PLD) is the largest real estate investment trust in the world. It operates a network of warehouses located in key transportational hubs across the globe. It leases its logistics facilities to more than 5,500 clients globally, serving e-commerce and B2B companies. Owing to the growth in online shipping and the rise in real estate valuations, Prologis, Inc. (NYSE:PLD) is well-positioned to continue its upward trajectory.

37 hedge funds reported bullish bets on Prologis, Inc. (NYSE:PLD) in the fourth quarter, with combined stakes worth $544.4 million. This shows a positive trend from the previous quarter where 32 hedge funds held $483.5 million worth of positions in the company. As of April 1, shares of Prologis, Inc. (NYSE:PLD) have gained 52.99% in the last year, and 30.73% in the last 6 months.

Deutsche Bank analyst Derek Johnston on March 31 maintained a ‘Buy’ rating on Prologis, Inc. (NYSE:PLD) shares, and lowered the price target to $179 from $180. The analyst sees further occupancy growth for the REITs he covers, and sees resilient demand for well-located centers. In March, Prologis, Inc. (NYSE:PLD) submitted an offer to acquire Blackstone’s European portfolio of logistics properties, in a deal worth €21 billion which could see it further enhance its global logistics footprint. The firm’s revenue for the fourth quarter was recorded at $1.07 billion, up 8.76% year-on-year and surpassing estimates by $20.20 million.

Third Avenue Management, an investment firm, mentioned Prologis, Inc. (NYSE:PLD) in its Q2 2021 investor letter. The fund said:

“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.”