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Here's How Much You'd Have If You Invested $1000 in Prologis a Decade Ago
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Prologis (PLD - Free Report) ten years ago? It may not have been easy to hold on to PLD for all that time, but if you did, how much would your investment be worth today?
Prologis' Business In-Depth
With that in mind, let's take a look at Prologis' main business drivers.
Prologis Inc. is a leading industrial real estate investment trust (REIT) that acquires, develops, operates and manages industrial real estate space in the Americas, Asia and Europe. The company principally targets investments in distribution facilities for customers who are engaged in global trade and depend on efficient movement of goods through the global supply chain.
As of Dec 31, 2021, Prologis owned or had investments in properties and development projects aggregating around 1.0 billion square feet of space in 19 countries, either on a wholly owned basis or through co-investment ventures. Modern distribution facilities are being leased by the company to around 5,800 customers. These customers belong to two main categories: business-to-business and retail/online fulfillment.
The company has been actively banking on its growth opportunities through acquisitions and developments. Since the ProLogis–AMB merger in 2011 through year-end 2020, this industrial REIT has accomplished investment transactions aggregating more than $131.4 billion across 30 global markets. These investments comprise a wide array, including the largest M&A transactions in the real estate sector as well as individual off-market deals of less than $5 million.
In February 2020, the company accomplished the $13-billion acquisition of Liberty Property Trust, strengthening its presence in target regions, such as Chicago, Lehigh Valley, New Jersey, Houston, Central PA and Southern California.
In 2021, the company’s share of building acquisitions amounted to $901 million, with a weighted average stabilized cap rate of 4.6%. Development stabilization aggregated $2.5 billion, while development starts totaled $3.6 billion, with 46.5% being build-to-suit.
Note**: All EPS numbers presented in this report represent funds from operations (FFO) per share. 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.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Prologis a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in March 2012 would be worth $4,383.72, or a gain of 338.37%, as of March 17, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 210.35% and the price of gold increased 11.60% over the same time frame in comparison.
Analysts are anticipating more upside for PLD.
Shares of Prologis have outperformed the industry in the past six months, while the estimate revision trend for 2022 funds from operations (FFO) per share indicates an optimistic outlook. This REIT announced a hike in the quarterly common stock dividend. Its results in recent quarters reflect low vacancies and increasing rental revenues. Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, demand for logistics infrastructure and efficient distribution networks has been shooting up. Along with the fast adoption of e-commerce, logistics real estate is anticipated to gain from a rise in inventory levels. Given Prologis’ capacity to offer high-quality facilities in key markets and robust balance-sheet strength, it is poised to bank on these trends despite rising supply in some markets.
Over the past four weeks, shares have rallied 7.06%, and there have been 8 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Prologis a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Prologis (PLD - Free Report) ten years ago? It may not have been easy to hold on to PLD for all that time, but if you did, how much would your investment be worth today?
Prologis' Business In-Depth
With that in mind, let's take a look at Prologis' main business drivers.
Prologis Inc. is a leading industrial real estate investment trust (REIT) that acquires, develops, operates and manages industrial real estate space in the Americas, Asia and Europe. The company principally targets investments in distribution facilities for customers who are engaged in global trade and depend on efficient movement of goods through the global supply chain.
As of Dec 31, 2021, Prologis owned or had investments in properties and development projects aggregating around 1.0 billion square feet of space in 19 countries, either on a wholly owned basis or through co-investment ventures. Modern distribution facilities are being leased by the company to around 5,800 customers. These customers belong to two main categories: business-to-business and retail/online fulfillment.
The company has been actively banking on its growth opportunities through acquisitions and developments. Since the ProLogis–AMB merger in 2011 through year-end 2020, this industrial REIT has accomplished investment transactions aggregating more than $131.4 billion across 30 global markets. These investments comprise a wide array, including the largest M&A transactions in the real estate sector as well as individual off-market deals of less than $5 million.
In February 2020, the company accomplished the $13-billion acquisition of Liberty Property Trust, strengthening its presence in target regions, such as Chicago, Lehigh Valley, New Jersey, Houston, Central PA and Southern California.
In 2021, the company’s share of building acquisitions amounted to $901 million, with a weighted average stabilized cap rate of 4.6%. Development stabilization aggregated $2.5 billion, while development starts totaled $3.6 billion, with 46.5% being build-to-suit.
Note**: All EPS numbers presented in this report represent funds from operations (FFO) per share. 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.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Prologis a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in March 2012 would be worth $4,383.72, or a gain of 338.37%, as of March 17, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 210.35% and the price of gold increased 11.60% over the same time frame in comparison.
Analysts are anticipating more upside for PLD.
Shares of Prologis have outperformed the industry in the past six months, while the estimate revision trend for 2022 funds from operations (FFO) per share indicates an optimistic outlook. This REIT announced a hike in the quarterly common stock dividend. Its results in recent quarters reflect low vacancies and increasing rental revenues. Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, demand for logistics infrastructure and efficient distribution networks has been shooting up. Along with the fast adoption of e-commerce, logistics real estate is anticipated to gain from a rise in inventory levels. Given Prologis’ capacity to offer high-quality facilities in key markets and robust balance-sheet strength, it is poised to bank on these trends despite rising supply in some markets.
Over the past four weeks, shares have rallied 7.06%, and there have been 8 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.