) is actively capitalizing on the growing demand for industrial
real estate. The company inked a preleasing deal for a 211,000
square feet facility at Prologis Park Osaka 5 in Osaka, Japan.
BOSTON PPTYS (BXP): Free Stock Analysis
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PROLOGIS INC (PLD): Free Stock Analysis
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Inked with a repeat customer - Koizumi Logistics, a third-party
logistics provider - the preleasing deal at this new development
boosts Prologis' ties and reflects its concerted efforts towards
meeting the increasing demand for spaces amid a lack of supply
and growing rents in the Osaka area.
Notably, Prologis Park Osaka 5, spanning 800,000 square foot of
space, would offer premium facility, upon its completion in early
2015. Its strategic location would enable Koizumi to proficiently
ship goods to and from the Osaka Port.
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. Specifically
in Japan, markets like Tokyo and Osaka have absorbed new
deliveries and with rising development expenses, new supply is
anticipated to be in check. As such, vacancy rates are low while
rents are exhibiting an upward trend.
Prologis stands to benefit as it has the capacity to offer modern
distribution facilities in strategic infill locations and with
around 22.9 million square feet of logistics and distribution
space as of Dec 31, 2013, the company is the leading provider of
industrial real estate in Japan.
Prologis is expected to release its first-quarter 2014 results on
Apr 22, 2014. The Zacks Consensus Estimate for funds from
operations (FFO) for the quarter is currently pegged at 42 cents,
reflecting a year-over-year increase of 4.79%.
Prologis currently carries a Zacks Rank #3 (Hold). Investors
interested in the REIT industry may also consider stocks like
Boston Properties Inc.
Cousins Properties Incorporated
Duke Realty Corporation
). All three stocks have 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.