Prologis Inc (
- a real estate investment trust (REIT) - inked a build-to-suit
Amazon.com Inc (
for constructing a distribution center at Prologis Park Tracy
Phase II in Ca. This deal will likely strengthen Prologis'
relationship with its high-end loyal customers.
AMAZON.COM INC (AMZN): Free Stock Analysis
BRANDYWINE RT (BDN): Free Stock Analysis
WINTHROP REALTY (FUR): Free Stock Analysis
PROLOGIS INC (PLD): Free Stock Analysis
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Seattle, Wa.-based Amazon.com Inc. is one of the largest online
retailers, with extensive operations worldwide. The company owns
several strategic distribution facilities of Prologis in eight
markets across the world.
The new facility will be developed on 90 acres of land at
Prologis Park Tracy Phase II - the 1.2 million square feet
property that comprises two buildings. The park is strategically
located between major ports and is also contiguous to major west
coast metro areas, including the San Francisco bay area. On the
completion of the construction of Amazon's facility, Prologis
Park Tracy Phase II will be fully occupied and comprise three
distribution facilities, spanning approximately 2.2 million
We remain impressed with the company for taking such a step
considering Amazon's thriving e-Commerce business and continued
loyalty towards the former. This, in turn, is anticipated to
provide steady source of rental revenue for Prologis going
Prologis has been providing industrial distribution warehouse
space through build-to-suit deals in some of the busiest
distribution markets across the globe. Accordingly, in Nov 2012,
Prologis signed such an agreement with a leading food and
beverage company for approximately 1.2 million square feet of
space in Lancaster, south of Dallas. These agreements have
enabled the company to gain a significant advantage over its
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.
Zacks Earnings ESP (Read:
ZACKS EARNINGS ESP: A BETTER METHOD
) for Plum Creek is +7.32% for the fourth quarter. This, along
with its Zacks Rank #2 (Buy), makes us confident about a positive
earnings surprise call.
Two of Prologis' peers -
Winthrop Realty Trust (
Brandywine Realty Trust (
- also hold 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.