), a leading industrial real estate investment trust (REIT), has
recently disclosed that it had completed approximately $80 million
worth of asset sale in various markets in the U.S. Besides
providing additional liquidity, the sale of these wholly-owned
properties enabled the company to restructure its portfolio in tune
with its corporate strategy.
Prologis sold 10 properties spanning approximately 2.0 million
square feet of space in Memphis for $40 million. The company also
sold a portfolio totaling 0.7 million square feet in Tolleson,
Arizona; Queens, New York; Itasca, Illinois; Orange, California;
and Dallas, Texas, for an additional $40 million.
Prologis acquires, develops, operates and manages industrial
real estate space in North America, Asia and Europe. Given its
international presence, Prologis has lately faced unfavorable
foreign currency movements and other economic fluctuations that
have impaired its top-line growth.
Furthermore, although first quarter 2012 results were in sync
with the Zacks Consensus Estimates, macroeconomic issues had
contributed to a slower pace of recovery as the industry was
affected by the continued concerns about sovereign debt issues,
rising energy costs, global military actions and the devastation
and loss caused by the earthquake and tsunami in Japan.
In addition, the unrelenting troubles in the residential sector
are weighing on commercial property operations. The credit crunch
has also widened the bid-ask spread between buyers and sellers of
commercial real estate, which has caused deal volumes to fall
compared to pre-recession levels. Moreover, market vacancy
increases is expected to mitigate Prologis' ability to push through
rental rate increases, thereby affecting the long-term growth of
We currently have a Neutral recommendation and a Zacks #3 Rank
for Prologis, which translates into a short-term Hold rating.
However, we have an Outperform recommendation and a Zacks #1 Rank
(short-term Strong Buy rating) for
Winthrop Realty Trust
), one of the peers of Prologis.
WINTHROP REALTY (FUR): Free Stock Analysis
PROLOGIS INC (PLD): Free Stock Analysis Report
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