) is actively capitalizing on the growing demand for industrial
real estate. The company recently penned a preleasing deal for a
258,000 square foot facility in Denver, Colorado, while its
Japanese unit planned new investment units issuance for funding
CUBESMART (CUBE): Free Stock Analysis Report
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PROLOGIS INC (PLD): Free Stock Analysis
PUBLIC STORAGE (PSA): Free Stock Analysis
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Inked with a repeat customer, the preleasing deal enhances
Prologis' ties and reflects its concerted efforts towards meeting
the growing demand for mid-size spaces across the region.
Notably, the company, which has around 320 million square feet of
logistics and distribution space as of Sep 30, 2013, is a top
provider of industrial real estate in North America.
On the other hand, Nippon Prologis REIT, Inc. (NPR), a Japanese
real estate investment trust managed by a wholly owned subsidiary
of Prologis - disclosed its plan to issue new investment units
for funding its premium properties acquisition.
In particular, NPR, in which Prologis will retain a 15% ownership
interest, expects to reap approximately JPY 32 billion ($324
million) from this issuance. This, in addition to the debt of
around JPY 22 billion ($223 million), is to be used for acquiring
four Class-A properties for approximately JPY 54 billion ($547
The acquisition of these assets, spanning approximately 2.6
million square feet, is conditional to the successful issuance of
units and is projected to be complete on Dec 3.
Going forward, we believe that amid the backdrop of a larger
customer base, rise in e-Commerce application and supply chain
consolidation, there will continue to be an increasing demand for
Class-A facilities. Prologis stands to benefit as it has the
capacity to offer modern distribution facilities in strategic
In the last month, this industrial real estate investment trust
(REIT) reported core FFO (funds from operations) per share of 41
cents for third-quarter 2013, which was line with the Zacks
While the company experienced a notable decline in expenses
(17.2%), the benefit was partly shadowed by a fall in revenues.
Yet, the company's strategic measures and capital market moves
helped enhance flexibility and extend maturities. Notably, the
company's rents on rollover increased 6.1% in the quarter.
Prologis currently carries a Zacks Rank #3 (Hold). Some better
performing REITs include
Extra Space Storage Inc.
). All the 3 stocks carry a Zacks Rank #2 (Buy).
FFO, a widely used metric to gauge the performance of REITs,
is obtained after adding depreciation and amortization and other
non-cash expenses to net income.