Back to top

Analyst Blog

San Francisco-based industrial real estate investment trust (REIT) Prologis Inc. (PLD - Analyst Report) recently initiated an at-the-market (ATM) equity-offering program. The company plans to sell shares up to $750 million aggregate offering price, from time to time, based on market conditions and capital requirements. 

BofA Merrill Lynch, a corporate and investment banking division of Bank of America Corporation (BAC - Analyst Report) and Citigroup Global Markets Inc., an operating arm of Citigroup, Inc. (C - Analyst Report) will support Prologis as the managers for the ATM offering.

Prologis plans to use net proceeds from the shares sale for general corporate purposes – such as funding proposed acquisitions and investments as well as reducing the debt level.

We believe that the above-mentioned transaction by Prologis will provide it financial flexibility and position it favorably to pursue expansion opportunities, which will go a long way in enhancing top-line growth. Notably, Prologis have been riding on a growth trajectory lately, by joining hands with various retailers for build-to-suit deals. However, the share dilution impact cannot be ignored.  

Last week, the company penned a deal with a retailer for a build-to-suit facility in Poland. Spanning 376,000 square feet, this distribution center represents the fourth build-to-suit project in less than two years at Prologis Park Wroclaw V.

In March 2013, Prologis penned a new build-to-suit agreement with end-to-end e-Commerce service provider – SpeedFC – a subsidiary of Navarre Corp. . The agreement is for a distribution center spanning 770,000 square feet in Etna, Ohio.

Prologis currently carries a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.64 +6.37%
RF MICRO DE… RFMD 12.43 +5.65%
VASCO DATA… VDSI 14.79 +4.82%
CHYRONHEGO… CHYR 2.85 +4.78%
RTI SURGICA… RTIX 5.39 +2.86%