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) Reports Robust Build-to-Suit Activity for 2016
Read MoreHide Full Article
Prologis Inc.'s (PLD - Free Report) build-to-suit activity remained solid in 2016, with the company completing 18 such development projects in the second half of the year. These projects included over 5.5 million square feet and are located both within the U.S. and abroad. They were made for customers like Amazon.com, Inc. (AMZN - Free Report) , Genuine Parts Company (GPC - Free Report) , BMW, Fedway, Coolblue, among others.
Further, this industrial real estate investment trust (REIT) was awarded 21 build-to-suit development projects during the same period, denoting over 6.5 million square feet of space.
Notably, this high number of build-to-suit development projects reflects the advantageous location of the company’s land bank as well as demand from current customers. This is because nearly 75% of its build-to-suits wins in 2016 were with the company’s existing customers.
The industrial real estate market has been experiencing solid growth, thanks to rising Internet retailing and supply-chain consolidation. This, in turn, is generating greater demand for logistics infrastructure and efficient distribution networks. While there is a rising demand for modern logistics facilities with vacancy rates tightening, new supply is still manageable which has been pushing up rents significantly in many of its markets. This is providing ample scope to industrial REITs like Prologis and DCT Industrial Inc. to capitalize on.
Amid this, Prologis is well poised to benefit from its capacity to offer modern distribution facilities in strategic in-fill locations. The company has a strong development expertise and completed 34 build-to-suit projects, aggregating over 12.3 million square feet of space in 2016. Notably, the company’s square footage of its 2016 build-to-suit starts escalated more than 15% over 2015, which is encouraging.
It has been a steady performer, having beaten the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 3.15%. Moreover, Prologis enjoyed a historical cash flow growth (3–5 years) of 27.49%, which comfortably exceeded the industry’s growth of 17.7%. Also, its current cash flow growth of 31.94% is way ahead of the industry’s rate of 14.82%.
In addition, shares of Prologis outperformed the Zacks categorized REIT and Equity Trust – Other industry over the past three months. In fact, its shares ascended around 8.0% against the 3.2% growth of the industry.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Prologis (PLD) Reports Robust Build-to-Suit Activity for 2016
Prologis Inc.'s (PLD - Free Report) build-to-suit activity remained solid in 2016, with the company completing 18 such development projects in the second half of the year. These projects included over 5.5 million square feet and are located both within the U.S. and abroad. They were made for customers like Amazon.com, Inc. (AMZN - Free Report) , Genuine Parts Company (GPC - Free Report) , BMW, Fedway, Coolblue, among others.
Further, this industrial real estate investment trust (REIT) was awarded 21 build-to-suit development projects during the same period, denoting over 6.5 million square feet of space.
Notably, this high number of build-to-suit development projects reflects the advantageous location of the company’s land bank as well as demand from current customers. This is because nearly 75% of its build-to-suits wins in 2016 were with the company’s existing customers.
The industrial real estate market has been experiencing solid growth, thanks to rising Internet retailing and supply-chain consolidation. This, in turn, is generating greater demand for logistics infrastructure and efficient distribution networks. While there is a rising demand for modern logistics facilities with vacancy rates tightening, new supply is still manageable which has been pushing up rents significantly in many of its markets. This is providing ample scope to industrial REITs like Prologis and DCT Industrial Inc. to capitalize on.
Amid this, Prologis is well poised to benefit from its capacity to offer modern distribution facilities in strategic in-fill locations. The company has a strong development expertise and completed 34 build-to-suit projects, aggregating over 12.3 million square feet of space in 2016. Notably, the company’s square footage of its 2016 build-to-suit starts escalated more than 15% over 2015, which is encouraging.
Prologis currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It has been a steady performer, having beaten the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 3.15%. Moreover, Prologis enjoyed a historical cash flow growth (3–5 years) of 27.49%, which comfortably exceeded the industry’s growth of 17.7%. Also, its current cash flow growth of 31.94% is way ahead of the industry’s rate of 14.82%.
In addition, shares of Prologis outperformed the Zacks categorized REIT and Equity Trust – Other industry over the past three months. In fact, its shares ascended around 8.0% against the 3.2% growth of the industry.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>