We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Here's How Much a $1000 Investment in Prologis Made 10 Years Ago Would Be Worth Today
Read MoreHide Full Article
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 Sep 30, 2023, Prologis owned or had investments in properties and development projects aggregating around 1.2 billion square feet of space in 19 countries either on a wholly owned basis or through co-investment ventures. Modern logistics facilities are being leased by the company to around 6,700 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 June 2023, Prologis acquired nearly 14 million square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone for cash consideration of $3.1 billion.
Moreover, in October 2022, Prologis closed on the acquisition of Duke Realty in an all-stock transaction valued at $23 billion, including the assumption of debt, following the approval of the shareholders of both companies. The transaction boosts Prologis' presence in the key markets of the United States and aids its expansion into the fourth-largest U.S. gateway for container imports, Savannah, GA.
Note**: All EPS numbers presented in this report represents 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 November 2013 would be worth $2,912.70, or a 191.27% gain, as of November 29, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 152.04% and the price of gold increased 56.80% over the same time frame in comparison.
Analysts are forecasting more upside for PLD too.
Prologis’ portfolio of strategically located industrial facilities in some of the busiest distribution markets globally is poised to benefit the continuation of healthy demand for industrial real estate space. Along with the fast adoption of e-commerce, this asset category is expected to gain from a likely rise in inventory levels. The company’s strategic buyouts and development activities augur well for long-term growth. A healthy balance sheet acts as a tailwind. For 2023, we estimate a year-over-year increase of 38.7% in the company’s rental revenues. However, the elevated supply of industrial real estate in several markets is likely to intensify competition and limit Prologis’ pricing power in the market. High interest rates add to its woes. Our estimate indicates a significant year-over-year rise in interest expenses in 2023.
The stock has jumped 11.27% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2023; the consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's How Much a $1000 Investment in Prologis Made 10 Years Ago Would Be Worth Today
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 Sep 30, 2023, Prologis owned or had investments in properties and development projects aggregating around 1.2 billion square feet of space in 19 countries either on a wholly owned basis or through co-investment ventures. Modern logistics facilities are being leased by the company to around 6,700 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 June 2023, Prologis acquired nearly 14 million square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone for cash consideration of $3.1 billion.
Moreover, in October 2022, Prologis closed on the acquisition of Duke Realty in an all-stock transaction valued at $23 billion, including the assumption of debt, following the approval of the shareholders of both companies. The transaction boosts Prologis' presence in the key markets of the United States and aids its expansion into the fourth-largest U.S. gateway for container imports, Savannah, GA.
Note**: All EPS numbers presented in this report represents 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 November 2013 would be worth $2,912.70, or a 191.27% gain, as of November 29, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 152.04% and the price of gold increased 56.80% over the same time frame in comparison.
Analysts are forecasting more upside for PLD too.
Prologis’ portfolio of strategically located industrial facilities in some of the busiest distribution markets globally is poised to benefit the continuation of healthy demand for industrial real estate space. Along with the fast adoption of e-commerce, this asset category is expected to gain from a likely rise in inventory levels. The company’s strategic buyouts and development activities augur well for long-term growth. A healthy balance sheet acts as a tailwind. For 2023, we estimate a year-over-year increase of 38.7% in the company’s rental revenues. However, the elevated supply of industrial real estate in several markets is likely to intensify competition and limit Prologis’ pricing power in the market. High interest rates add to its woes. Our estimate indicates a significant year-over-year rise in interest expenses in 2023.
The stock has jumped 11.27% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2023; the consensus estimate has moved up as well.