In order to reinforce its premium assets portfolio,
Prologis Inc. (
announced the initiation of a new development project - Prologis
Park Kitamoto - in Japan. The move will strengthen Prologis'
position as one of the leading providers of industrial real
estate in Asia.
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Prologis Park Kitamoto, spanning 795,000 square feet, will be a
four-story facility. The facility is strategically positioned in
Saitama Ken-O submarket of Tokyo. The property is located within
29 miles of Tokyo's central business district and is well
connected to the region through Ken-O Express highway. The
project is slated to complete in early 2014.
Saitama Ken-O submarket is an emerging distribution hub of Tokyo.
Prologis made an entry into the market through Prologis Park
Kawajima - a multi-story speculative development. The
new property of Prologis will likely complement its existing
asset and strengthen its top-line growth in the long run.
Notably, this leading industrial real estate investment trust
(REIT) currently has roughly 47 high-quality facilities, spanning
21 million square feet of space, in Japan.
Moreover, the industrial property market in Japan is showing
signs of stability that was held back by the devastation and loss
caused by the earthquake and tsunami in early 2012. The strategic
move signifies Prologis' motive to capitalize on the opportunity
and meet the improving property values and growing institutional
demand for quality properties.
In this connection, Prologis recently expressed its intention to
set up a real estate investment trust in Japan through Nippon
Prologis REIT Inc. ('NPR'). The company would be sponsoring NPR
exclusively and keep a minimum of 15% ownership stake in it.
Prologis is scheduled to release its fourth-quarter 2012 results
on Feb 6, 2013. The Zacks Consensus Estimate for the company's
fourth-quarter FFO (funds from operations) is currently pegged at
41 cents per share.
Prologis currently holds a Zacks Rank #2 (Buy). One of its peers,
Winthrop Realty Trust (
, also holds a Zacks Rank #2.
Note: FFO, a widely accepted and reported measure of the
performance of REITs is derived by adding depreciation,
amortization and other non-cash expenses to net income.