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Ushering in good news for its Southern California platform, industrial real estate investment trust (REIT), Prologis Inc. (PLD - Analyst Report) disclosed the leasing of an 800,000 square foot logistics facility to a national retailer in the Inland Empire region.

Positioned at the Prologis Park Redlands Distribution Center with direct access to Interstate 10, this speculative development is now fully stabilized. It reflects the strong demand for high-quality logistic facilities in this market. The company has a notable land bank and a 33.1 million square foot operating portfolio in this market to cater to the growing need for such logistic properties.

With around 56.8 million square feet of logistics and distribution space as of Sep 30, 2013, Prologis is the leading provider of industrial real estate in Southern California.

We believe that with a growing customer base, rise in e-Commerce application and supply chain consolidation, there is an increasing demand for Class-A facilities and Prologis stands to benefit as it has the capacity to offer modern distribution facilities in strategic infill locations.

Prologis is scheduled to announce its fourth-quarter 2013 results on Jan 30. The Zacks Consensus Estimate for fourth-quarter funds from operations (FFO) is currently pegged at 42 cents per share, representing a year-over-year increase of 1.1%.

The Earnings ESP for Prologis is +2.38 %. This is because the Most Accurate estimate stands at 43 cents while the Zacks Consensus Estimate is lower at 42 cents. In addition, Prologis’ Zacks Rank #3 (Hold) enhances the predictive power of ESP. This combination of its Zacks Rank and Earnings ESP makes us confident of an earnings surprise call in the to-be-reported quarter.

Investors interested in the REIT industry may also consider stocks like Getty Realty Corp. (GTY - Snapshot Report), National Health Investors Inc. (NHI - Snapshot Report) and Pebblebrook Hotel Trust (PEB - Snapshot Report). All these stocks carry a Zacks Rank #1 (Strong Buy).

Note: FFO, a widely used metric to gauge the performance of REITs, are obtained after adding depreciation and amortization and other non-cash expenses to net income.

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