This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
Yesterday, Prologis Inc (
- Analyst Report
– a real estate investment trust (REIT) – inked a build-to-suit deal with Amazon.com Inc (
- Analyst Report
for constructing a distribution center at Prologis Park Tracy Phase II in Ca. This deal will likely strengthen Prologis’ relationship with its high-end loyal customers.
Seattle, Wa.-based Amazon.com Inc. is one of the largest online retailers, with extensive operations worldwide. The company owns several strategic distribution facilities of Prologis in eight markets across the world.
The new facility will be developed on 90 acres of land at Prologis Park Tracy Phase II – the 1.2 million square feet property that comprises two buildings. The park is strategically located between major ports and is also contiguous to major west coast metro areas, including the San Francisco bay area. On the completion of the construction of Amazon's facility, Prologis Park Tracy Phase II will be fully occupied and comprise three distribution facilities, spanning approximately 2.2 million square feet.
We remain impressed with the company for taking such a step considering Amazon’s thriving e-Commerce business and continued loyalty towards the former. This, in turn, is anticipated to provide steady source of rental revenue for Prologis going forward.
Prologis has been providing industrial distribution warehouse space through build-to-suit deals in some of the busiest distribution markets across the globe. Accordingly, in Nov 2012, Prologis signed such an agreement with a leading food and beverage company for approximately 1.2 million square feet of space in Lancaster, south of Dallas. These agreements have enabled the company to gain a significant advantage over its competitors.
Prologis is scheduled to release its fourth-quarter 2012 results on Feb 6, 2013. The Zacks Consensus Estimate for the company’s fourth-quarter FFO (funds from operations) is currently pegged at 41 cents per share.
Zacks Earnings ESP (Read: ZACKS EARNINGS ESP: A BETTER METHOD) for Plum Creek is +7.32% for the fourth quarter. This, along with its Zacks Rank #2 (Buy), makes us confident about a positive earnings surprise call.
Two of Prologis’ peers – Winthrop Realty Trust ( FUR - Snapshot Report ) and Brandywine Realty Trust ( BDN - Snapshot Report ) – also hold a Zacks Rank #2.
Note: FFO, a widely accepted and reported measure of the performance of REITs is derived by adding depreciation, amortization and other non-cash expenses to net income.
Please login to Zacks.com or register to post a comment.