Prologis (PLD) recently signed two lease contracts for a total space of 410,200 square feet in Prologis Park Kawajima, located near Tokyo. This new facility is 70.0% leased totaling 1.55-million square feet, and comprises seismic resistance technology. Seismic resistance technology is a set of technical equipments aimed at mitigating seismic impacts in building structures.
Amongst the two leases, the first lease is with one of Prologis’ largest global customer totaling 327,000 square feet while the second lease is with a third-party logistics provider totaling 83,000 square feet.
This transaction is a strategic move on the company’s part as the customers are increasingly opting for modern facilities built to higher seismic standards. Moreover, the company remains optimistic about the industrial market in Japan going forward.
Prologis is a leading industrial real estate investment trust (REIT) that acquires, develops, operates and manages industrial real estate space in North America, Asia and Europe. The majority of the company’s portfolio comprises high throughput distribution (HTD), which provides multiple options for quick movement and the distribution of goods to the customer and serves as a critical element in creating efficiencies in the global supply chain.
HTD properties are warehouses or other industrial properties that are located near airports, seaports, and ground transportation facilities, which enable rapid distribution of customers’ products.
ProLogis currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Underperform recommendation on the stock. One of its competitors, PS Business Parks Inc. (PSB) also holds a Zacks #3 Rank.
PROLOGIS INC (PLD): Free Stock Analysis Report
PROLOGIS INC (PLD): Free Stock Analysis Report
PS BUSINESS PKS (PSB): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment