Industrial real estate investment trust (REIT)
) preleased a China-based facility to the e-commerce division of
a leading traditional retailer - RT-MART International Ltd. The
asset, which will be placed at Prologis Qingpu Logistics Centerin
western Shanghai, is poised to serve as East China's local
e-commerce distribution center.
The preleased building, spanning 318,000 square feet, is
conveniently connected to major expressways. Moreover, the
facility signifies the second phase at the Prologis Qingpu
Logistics Center, which upon completion will span around 597,560
square feet in total. Notably, phase one of the Prologis Qingpu
Logistics Center, which is a 281,000 square foot facility, is
100% leased and has been operational since 2011.
The industrial property market in China is maintaining an
upward trend. Particularly, amid a larger customer base and rise
in e-Commerce application and supply chain consolidation, there
is an increasing demand for high-quality logistics facilities by
leading e-commerce companies such as
) and Alibaba.com. Prologis stands to benefit as it has the
capacity to offer modern distribution facilities in strategic
infill locations globally.
Prologis inked a similar deal last month in another vibrant
market of Japan. The company penned two new lease deals for
452,000 square feet at Prologis Park Kawajima 2 in a Tokyo
submarket. With the signing of these deals, the facility that is
yet to be completed is fully preleased.
Hence, with around 38 million square feet of distribution
space in Asia as of Jun 30, 2013, Prologis is one of the top
providers of industrial real estate in the continent. This
depicts the company's solid foothold in the expanse's industrial
real estate market.
Prologis is scheduled to release its third-quarter 2013
results on Oct 23, 2013, before the opening bell. The Zacks
Consensus Estimate for the third-quarter 2013 funds from
operations (FFO) is currently pegged at 41 cents, reflecting a
year-over-year decline of 6.64%.
Prologis currently carries a Zacks Rank #3 (Hold). Some better
performing REITs include
Sotherly Hotels Inc.
) with a Zacks Rank #1 (Strong Buy) and
Cousins Properties Inc.
) with a Zacks Rank #2 (Buy).
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.
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