We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Prologis (PLD) Fuels Growth With $3.1 Billion Blackstone Deal
Read MoreHide Full Article
Prologis (PLD - Free Report) , the worldwide frontrunner in logistics real estate, is set to acquire close to 14 million square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone (BX - Free Report) , in a cash-funded transaction valued at $3.1 billion. This deal, projected to conclude by the end of the second quarter of 2023, offers a promising 4% cap rate in the initial year, and a 5.75% cap rate when adjusted to current market rents, indicating a significant opportunity for Prologis to enhance its growth.
Reinforcing Growth and Relationships
The properties included in the deal are high-quality assets that add value to Prologis's existing portfolio, fitting into its long-term strategic plan for growth. "The acquisition demonstrates our unique ability to add significant scale to our portfolio - expanding customer relationships and increasing opportunities for our growing Essentials platform," said Dan Letter, president, Prologis.
Prologis and Blackstone have a history of successful transactions, with this deal marking the latest in more than a dozen collaborations spanning 11 years. This history strengthens their mutual commitment to executing strategies across markets and cycles.
Expanding Presence and Customer Base
This acquisition will significantly expand Prologis' presence in key markets, including Atlanta, Baltimore/Washington DC, California (Southern California, Central Valley, SF Bay Area), Dallas, Las Vegas, New York/New Jersey, Phoenix, and South Florida. It is also set to expand Prologis' relationship with 50 existing customers and introduce 77 new customers, furthering their reach and influence in the industrial real estate sector.
PLD intends to retain each of the properties acquired. At present, Prologis has ownership of 1.2 billion square feet of logistics real estate across 19 countries.
Steady Growth in Industrial Real Estate
With the ongoing rise of e-commerce and increased inventory levels by companies to counter potential supply-chain disruptions, the industrial real estate market is poised for significant growth. Prologis, along with other industry constituents like Rexford Industrial Realty (REXR - Free Report) and EastGroup Properties (EGP - Free Report) , stands to benefit from this favorable market environment.
Implications for Prologis
This acquisition underlines Prologis' robust growth strategy and commitment to capitalize on the opportunities presented by the healthy industrial real estate market. PLD’s strategic investments over the years, including the notable $23 billion acquisition of Duke Realty in 2022, emphasize its dedication to securing valuable assets, expanding its portfolio and fostering customer relationships.
Prologis’ ongoing expansion and robust financial health consolidate its position as a global industry leader and lay the groundwork for future growth. The latest deal is expected to positively influence Prologis's stock, which already climbed 1.8% in Monday’s regular trading session, making it an appealing choice for investors interested in the logistics real estate sector.
Suggesting its resilience, shares of PLD, currently carrying a Zacks Rank #3 (Hold), have risen 7.7% in the past six months against the industry’s decline of 4.5%.
Image Source: Zacks Investment Research
EastGroup Properties currently carries a Zacks Rank of 2 (Buy). The Zacks Consensus Estimate for EGP’s current-year funds from operations (FFO) per share has moved 1.6% north over the past two months to $7.56. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rexford Industrial Realty carries a Zacks Rank of 3 at present. Rexford Industrial Realty’s long-term growth rate is projected at 10.6%. The Zacks Consensus Estimate for REXR’s 2023 FFO per share of $2.19 suggests an 11.7% year-over-year increase.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Prologis (PLD) Fuels Growth With $3.1 Billion Blackstone Deal
Prologis (PLD - Free Report) , the worldwide frontrunner in logistics real estate, is set to acquire close to 14 million square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone (BX - Free Report) , in a cash-funded transaction valued at $3.1 billion. This deal, projected to conclude by the end of the second quarter of 2023, offers a promising 4% cap rate in the initial year, and a 5.75% cap rate when adjusted to current market rents, indicating a significant opportunity for Prologis to enhance its growth.
Reinforcing Growth and Relationships
The properties included in the deal are high-quality assets that add value to Prologis's existing portfolio, fitting into its long-term strategic plan for growth. "The acquisition demonstrates our unique ability to add significant scale to our portfolio - expanding customer relationships and increasing opportunities for our growing Essentials platform," said Dan Letter, president, Prologis.
Prologis and Blackstone have a history of successful transactions, with this deal marking the latest in more than a dozen collaborations spanning 11 years. This history strengthens their mutual commitment to executing strategies across markets and cycles.
Expanding Presence and Customer Base
This acquisition will significantly expand Prologis' presence in key markets, including Atlanta, Baltimore/Washington DC, California (Southern California, Central Valley, SF Bay Area), Dallas, Las Vegas, New York/New Jersey, Phoenix, and South Florida. It is also set to expand Prologis' relationship with 50 existing customers and introduce 77 new customers, furthering their reach and influence in the industrial real estate sector.
PLD intends to retain each of the properties acquired. At present, Prologis has ownership of 1.2 billion square feet of logistics real estate across 19 countries.
Steady Growth in Industrial Real Estate
With the ongoing rise of e-commerce and increased inventory levels by companies to counter potential supply-chain disruptions, the industrial real estate market is poised for significant growth. Prologis, along with other industry constituents like Rexford Industrial Realty (REXR - Free Report) and EastGroup Properties (EGP - Free Report) , stands to benefit from this favorable market environment.
Implications for Prologis
This acquisition underlines Prologis' robust growth strategy and commitment to capitalize on the opportunities presented by the healthy industrial real estate market. PLD’s strategic investments over the years, including the notable $23 billion acquisition of Duke Realty in 2022, emphasize its dedication to securing valuable assets, expanding its portfolio and fostering customer relationships.
Prologis’ ongoing expansion and robust financial health consolidate its position as a global industry leader and lay the groundwork for future growth. The latest deal is expected to positively influence Prologis's stock, which already climbed 1.8% in Monday’s regular trading session, making it an appealing choice for investors interested in the logistics real estate sector.
Suggesting its resilience, shares of PLD, currently carrying a Zacks Rank #3 (Hold), have risen 7.7% in the past six months against the industry’s decline of 4.5%.
Image Source: Zacks Investment Research
EastGroup Properties currently carries a Zacks Rank of 2 (Buy). The Zacks Consensus Estimate for EGP’s current-year funds from operations (FFO) per share has moved 1.6% north over the past two months to $7.56. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rexford Industrial Realty carries a Zacks Rank of 3 at present. Rexford Industrial Realty’s long-term growth rate is projected at 10.6%. The Zacks Consensus Estimate for REXR’s 2023 FFO per share of $2.19 suggests an 11.7% year-over-year increase.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.