Back to main

Prologis to Develop Logistics Facilities in Japan - Analyst Blog

Posted
5/15/2014 10:50:00 AM
By: Zacks.com
Referenced Stocks:GEO;PLD;REXR;TRNO

Industrial real estate investment trust (REIT) - Prologis Inc. ( PLD ) disclosed that it will develop three inventory logistics facilities in Japan. These facilities will span 3.2 million square feet of space and offer its clientele central distribution to Tokyo and the neighboring metropolitan area.

Among the 3 facilities, one will be at Prologis Park Chiba New Town and span 1.4 million square feet. It will be positioned alongside the National Highway No. 464 and offer good accessibility to the Narita International Airport.

The other facility will be at Prologis Park Yoshimi near the Ken-O Expressway and total 1.1 million square feet of space. The third facility will include 695,000 square feet of space at Prologis Park Narashino 5. Notably, Narashino serves as a distribution hub for e-commerce clients.

As a matter of fact, there is an increasing demand for Class-A facilities in Japan with rise in e-Commerce application and supply chain consolidation. Vacancy rates are low and amid a constrained supply of new facilities, net effective rents are growing. As such Prologis is capitalizing on this trend and securing land parcels. The company is leveraging on its development expertise and aiming at creating premium facilities in strategic locations in the country.

With around 22.9 million square feet of logistics and distribution space in Japan as of Mar 31, 2014, Prologis is one of the notable providers of industrial real estate in Asia. This depicts the company's decent foothold in the region's industrial real estate market. Last month, Prologis also came up with an earnings surprise of 2.38% for first-quarter 2014.

Prologis currently carries a Zacks Rank #3 (Hold). Investors interested in the REIT industry may also consider stocks like The GEO Group, Inc. ( GEO ), Rexford Industrial Realty, Inc. ( REXR ) and Terreno Realty Corp. ( TRNO ). All these stocks carry a Zacks Rank #1 (Strong Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

GEO GRP INC/THE (GEO): Free Stock Analysis Report

PROLOGIS INC (PLD): Free Stock Analysis Report

REXFORD IND RTY (REXR): Free Stock Analysis Report

TERRENO REALTY (TRNO): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research