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Prologis Inc. (PLD - Analyst Report), a leading industrial real estate investment trust (REIT), has recently signed two new lease agreements spanning about 227,979 square feet in Osaka, Japan. The deal was penned with two existing clients for an undisclosed amount. The lessees included ASKUL – a premier online retailer for office supplies, and an unnamed third-party logistics provider.

Both the customers would occupy space at Prologis Park Osaka 4 facility unveiled in May. The five-story state-of-the-art facility spanning over 1.1 million square feet of industrial space, has two spiral ramps making each floor easily accessible to vehicles.

Earlier, in July 2012, Prologis had signed five new lease agreements totaling 558,000 square feet of its development portfolio in Japan. The deal was forged with unnamed customers for an undisclosed amount.

Continued leasing activities in the region show signs of stability in the industrial property market in Japan that was held back by the devastation and loss caused by the earthquake and tsunami. Furthermore, it signifies the inherent high quality of the distribution facilities that make them attractive investment propositions for third-party companies to enhance their supply chain efficiencies.

With improving property values and growing institutional demand for quality properties, Prologis has also witnessed a growing customer interest in new build-to-suit development projects across the globe. Additionally, leasing decisions that were earlier postponed due to volatility in the markets are gradually coming off the shelf. As of June 30, 2012, Prologis had approximately 22 million square feet of logistics and distribution space in Japan.

Prologis acquires, develops, operates and manages industrial real estate space in North America, Asia and Europe. The industrial distribution warehouse space of the company is located in some of the busiest distribution markets across the globe. The properties of the company are typically located in large, supply-constrained infill markets in close proximity to airports, seaports, and ground transportation facilities, all of which enable rapid distribution of customers’ products. This has enabled the company to gain a significant pricing advantage over its competitors.

We currently have a Neutral recommendation and a Zacks #3 Rank for Prologis, which translates into a short-term Hold rating. On the other hand, we have an Underperform recommendation and a Zacks #5 Rank (short-term Strong Sell rating) for Winthrop Realty Trust (FUR - Snapshot Report), one of the peers of Prologis.

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