Back to top

Analyst Blog

As part of its effort to boost its international business, Prologis Inc. (PLD - Analyst Report) completed the initial public offering (IPO) and listing of its Mexican real estate investment trust (REIT) – FIBRA Prologis (BMV: FIBRAPL 14). Following this announcement, shares of Prologis gained 0.12% on Jun 11.

Through the IPO, FIBRA Prologis reaped around 7 billion pesos ($541.4 million) which consists of 258 million Real Estate Trust Certificates (CBFIs). Out of the total, over 158 million CBFIs were raised through international placement and about 100 million through a domestic offering (excluding over-allotment of shares). Notably, this followed Prologis’ announcement of funding FIBRA Prologis single-handedly, last month (read: Prologis Solely Funds FIBRA Prologis in Mexico).

Importantly, FIBRA Prologis owns a class-A portfolio comprising 177 logistics and manufacturing facilities, which spans 29.7 million square feet of space, in Mexico. The portfolio also includes assets from the previous Prologis MX Fund LP, Prologis Mexico Fondo Logistico and Prologis' wholly owned Mexico properties. As of Jun 9, Prologis had around a 48% stake in this Mexican REIT.

This strategic move would help Prologis to capitalize on the growing opportunities in the logistics and manufacturing facilities in Mexico. With an improvement in operating conditions, the Latin American market is a good investment option for Prologis. According to the International Monetary Fund, GDP growth in Mexico is projected to be 3.0% in 2014, up from a mere 1.1% in the previous year.

The Mexican market continues to experience a recovery in demand with a sustained improvement in occupancy rate across six large logistics markets. Hence, we believe this premeditated decision should help this industrial REIT to ride high on the growth trajectory going forward.

Prologis currently carries a Zacks Rank #3 (Hold). Investors interested in the REIT industry may consider stocks like The GEO Group, Inc. (GEO - Snapshot Report), Terreno Realty Corp. (TRNO - Snapshot Report) and Chatham Lodging Trust (CLDT - Snapshot Report). All these stocks sport a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

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 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
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%