Prologis (PLD) Declined due to On-going Challenges Faced by REITs

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Growth & Income Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index increased by 2.4% in Q4, reaching a 25.0% gain in 2024. The past two years have been the best for the stock market since the 1990s, with AI excitement driving returns and strong earnings growth. The market’s on-going multiple expansion—the S&P 500 Index currently has its highest multiple this century, excluding COVID years—accounted for about half of 2024’s returns, with the other half coming from robust earnings growth. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

In its fourth quarter 2024 investor letter, Carillon Eagle Growth & Income Fund emphasized stocks such as Prologis, Inc. (NYSE:PLD). Prologis, Inc. (NYSE:PLD) is a global leader in logistics real estate. The one-month return of Prologis, Inc. (NYSE:PLD) was -6.50%, and its shares lost 11.28% of their value over the last 52 weeks. On March 17, 2025, Prologis, Inc. (NYSE:PLD) stock closed at $114.44 per share with a market capitalization of $106.07 billion.

Carillon Eagle Growth & Income Fund stated the following regarding Prologis, Inc. (NYSE:PLD) in its Q4 2024 investor letter:

“Prologis, Inc. (NYSE:PLD) detracted from performance because of ongoing challenges facing industrial real estate investment trusts more broadly. The company reported solid results for the third quarter, but the industrial space remains oversupplied — though the problem is abating — and clients chose to delay leasing decisions until aft er the U.S. presidential election.”

Prologis Inc. (PLD): "Not Talking Enough - Jim Cramer Sees a Bottom in Prologis"

A large logistic facility within the industrial real estate sector.

Prologis, Inc. (NYSE:PLD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Prologis, Inc. (NYSE:PLD) at the end of the fourth quarter compared to 49 in the third quarter. While we acknowledge the potential of Prologis, Inc. (NYSE:PLD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Prologis, Inc. (NYSE:PLD) and shared the list of best REIT stocks to buy. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.