In a major development, Prologis, Inc. PLD closed the acquisition of Class A industrial operating & development properties and retail assets from Morris Realty Associates LLC. This acquisition, announced previously, is in sync with the San Francisco, CA-based real estate investment trust’s (“REIT”) strategy of capitalizing on growth opportunities to enhance the value of its portfolio.
Prologis is a leading industrial REIT that acquires, develops, operates and manages industrial real estate space in the Americas, Asia and Europe. The company primarily invests in distribution facilities for customers who require efficient movement of goods through a global supply chain.
Prologis’ newly acquired assets include 3.2 million square feet of Class A properties situated mainly in northern New Jersey as well as retail properties spanning an area of 2.2 million square feet. This acquisition of high-quality industrial assets in the greater New York area will likely strengthen the REIT’s existing portfolio in a market which is currently constrained by lack of supply.
Notably, Prologis’ second-quarter 2015 core funds from operations (“FFO”) per share of 52 cents came in line with the Zacks Consensus Estimate and 4 cents above the prior-year quarter tally. Results were driven by growth in revenues as well as occupancy gains.
Currently, Prologis carries a Zacks Rank #3 (Hold).
Investors interested in the REIT industry may consider stocks like CoreSite Realty Corporation COR, Gramercy Property Trust Inc. GPT and W. P. Carey Inc. WPC. All three stocks sport a Zacks Rank #1 (Strong Buy).
Note: 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.
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