Ushering in good news for its Mexico platform, industrial real
estate investment trust (REIT),
) disclosed the penning of two development lease deals for a
total space of 406,000 square feet at Prologis Park Tres Rios in
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In particular, the first lease deal is for a space of 250,000
square feet inked with DHL Metropolitan Logistics - a subsidiary
of postal and logistics provider DHL. The other deal is for
156,000 square feet of space signed with VF Outdoor México S.A. -
a subsidiary of the apparel company
The spaces leased are specifically at Tres Rios 9, which is the
newest development at Prologis Park Tres Rios. Positioned at the
leading distribution submarket of Mexico City, this park spans
around 2.3 million square feet with expansion capability of up to
2.7 million square feet and enjoys direct access to the NAFTA
highway and downtown Mexico City.
With a rise in consumption, the demand for Class-A facilities has
increased in key markets in Mexico and Prologis stands to benefit
since it has the capacity to offer modern distribution facilities
in strategic locations.
In fact, the above mentioned leasing deal reflects the strong
demand for the company's superior facilities. The company already
has 31 million square feet of logistics and distribution space as
of Dec 31, 2013 in Mexico to cater to the growing need for such
Late last month, Prologis reported core FFO (funds from
operations) per share of 43 cents in fourth-quarter 2013, which
was a penny ahead of both the Zacks Consensus Estimate and the
year-ago quarter figure. Though total revenue declined from the
year-ago quarter, it managed to beat the Zacks Consensus
Investors interested in the REIT industry may also consider
PS Business Parks Inc.
). Both these stocks carry a Zacks Rank #2 (Buy).
FFO, a widely used metric to gauge the performance of REITs,
are obtained after adding depreciation and amortization and other
non-cash expenses to net income.