) continues to strengthen its foothold in Europe. The company has
recently announced the acquisition of two logistics facilities in
Poland and Hungary by its Prologis European Properties Fund II.
This acquisition followed a June disclosure regarding the
development of a logistic facility each in Slovakia and the Czech
The latest acquisitions, spanning over 1 million square feet, are
fully leased, reflecting the solid demand for the properties.
Specifically, the Poland property is a 610,000 square foot building
in Gliwice with access to two trans-European road networks. It is
occupied by multinational grocery retailer and repeat customer,
The Budapest, Hungary-based property covers 404,000 square feet and
is positioned near the city's international airport. It is occupied
by global retailer and repeat customer, Auchan.
The acquisitions along such important commercial routes look
promising for Prologis, given the increasing importance of
intra-regional trade in Central and Eastern Europe. Prologis,
specializing in industrial distribution warehouse space in some of
the busiest global markets, already owns and manages around 152
million square feet of logistics and distribution space in Europe
as of Mar 31, 2014.
Separately, it was revealed that Moody's Investors Service, the
rating arm of
) raised the company's senior unsecured debt rating to Baa1 from
Baa2, and its preferred stock rating to Baa2 from Baa3, with a
stable rating outlook. Material improvement in operational metrics
and portfolio occupancy over the past 10 quarters, have been cited
as the reason for the upgrade.
Going forward, we believe that given a solid balance sheet and
decent cash flow generating capabilities, this industrial real
estate investment trust (REIT) remains well poised to capitalize on
the improving fundamentals in the industrial REIT market worldwide.
Moreover, the rating upgrade plays an important role in boosting
investors' confidence on the stock.
Prologis currently carries a Zacks Rank #3 (Hold). Investors
interested in the REIT industry may consider stocks like
Cousins Properties Inc.
Duke Realty Corp.
), both holding a Zacks Rank #2 (Buy).
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