Analyst Report: ProLogis

Summary

Prologis is a global industrial REIT that owns and manages space for warehouses, manufacturing, distribution, and large-scale storage. PLD has become the world's largest industrial REIT by focusing on business-to-business fulfillment and e-commerce. As of the end of 3Q24, the company's portfolio includes 5,607 buildings with 1.2 billion square feet of space. About one-fifth of assets are warehouses over 500,000 square feet. The REIT has a presence in 19 countries on four continents with about 70% of the portfolio is in North America, 20% in Europe, 6% in South America, and 5% in Asia. About 86% of current NOI comes from North American assets. The company's top tenants are Amazon, Home Depot, and FedEx, with Amazon accounting for about 5% of net effective rent. PLD partners with other companies in joint ventures to reduce risk.About one-fifth of properties currently have at least 500,000 square feet of space. The REIT has a co-investment program labeled Strategic Capital that creates venture opportunities for institutional capital partners. PLD has faced pressure from an oversupply of warehouse space due to slowing sales at online retailers. In response, the company has focused on customized facilities. In early 2023, all new developm