), a San Francisco-based industrial real estate investment trust
(REIT), touched a 52-week high of $41.19 on Thursday, Apr 11,
2013, as it gained momentum following the disclosure of
noteworthy deals and expansion moves in the recent months. The
closing price of this retail real estate investment trust (REIT)
on Apr 11, 2013 was $41.14, representing a year-to-date return of
10.9%. The average trading volume over the last 3 months was
nearly 3.1 million shares.
Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock
has plenty of upside left given its strong fundamentals and
Prologis provides industrial distribution warehouse space in some
of the busiest distribution markets across the globe. With growth
in e-Commerce, there is an increasing demand for Class-A
facilities and Prologis stands to benefit as it has the capacity
to offer modern distribution facilities in strategic infill
locations. Moreover, leasing decisions that were earlier
postponed due to volatility in the markets are gradually coming
off the shelf.
Curently, Prologis is significantly capitalizing on promising
opportunities across the globe. Its recent build-to-suit deal
with end-to-end e-Commerce service provider - SpeedFC, a
) and with Chinese logistics provider, Deppon is expected to
contribute meaningfully to the company's top line.
This week, Prologis penned a new build-to-suit deal with Subaru
of America for a distribution center spanning 715,000 square feet
in the Northwest Indianapolis submarket at Prologis Park Lebanon.
The location in is close proximity with major freeways as well as
the Indianapolis International Airport. Notably, with rising
occupancies over the last two years, the Indianapolis market
offers strong growth potential.
Also, the joint venture with Norges Bank Investment Management is
a strategic fit as it will enable the company to substantially
penetrate the industrial real estate market of Europe.
On Feb 6, Prologis reported core FFO (funds from operations) per
share of 42 cents for fourth-quarter 2012, in line with the Zacks
Consensus Estimate. However, total revenue during the reported
quarter was $517.6 million, up 13.3% from the prior-year period
and well ahead of the Zacks Consensus Estimate of $476 million.
Notably, Prologis has now delivered positive earnings surprises
in 2 out of past 4 quarters with an average beat of 2.36%.
Over the last 7 days, the Zacks Consensus Estimate for full-year
2013 remained unchanged at $1.67 per share while the Zacks
Consensus Estimate for full-year 2014 stood at $1.79 per share.
Of late, a number of REIT stocks achieved 52-week highs. These
Kimco Realty Corp.
Funds from operations, a widely accepted and reported measure
of REITs performance, are derived by adding depreciation,
amortization and other non-cash expenses to net income.
KIMCO REALTY CO (KIM): Free Stock Analysis
NAVARRE CORP (NAVR): Free Stock Analysis
PROLOGIS INC (PLD): Free Stock Analysis
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