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San Francisco-based industrial real estate investment trust (REIT), Prologis Inc. (PLD - Analyst Report) recently announced the initiation of a new development project – Prologis Park Kawajima 2 – in Japan. The move is aimed at strengthening Prologis’ position as one of the leading providers of industrial real estate in Asia.

Positioned at the Saitama Ken-O submarket of Tokyo, Prologis Park Kawajima 2 will span 451,000 square feet. The strategic location of the facility, in proximity to Tokyo’s business district, will facilitate customers to get access to northern region markets of the country. The facility will comprise modern technology such as a one megawatt solar system and an emergency disaster alert mechanism.

Saitama Ken-O submarket is an emerging distribution hub of Tokyo. Prologis made an entry into the market through Prologis Park Kawajima – a multi-story speculative development. In Jan 2013, Prologis reinforced its premium assets portfolio in Japan, with the initiation of a development project – Prologis Park Kitamoto.

The development of Prologis Park Kawajima 2 will likely complement its existing asset and strengthen its top-line growth going forward. Notably, this leading REIT currently has facilities spanning 21 million square feet of space in Japan.

Moreover, the industrial property market in Japan is showing signs of stability from the devastation and loss caused by the earthquake and tsunami in early 2012. The strategic move signifies Prologis’ motive to capitalize on the opportunity and meet the improving property values and growing institutional demand for quality properties.

Last month, Prologis reported fourth quarter 2012 results with core FFO (funds from operations) per share of 42 cents, which was in line with the Zacks Consensus Estimate. However, earnings lagged the prior-year numbers by a couple of cents.

Prologis currently holds a Zacks Rank #3 (Hold). Other REITs that are performing better and are worth a look include Sabra Health Care REIT, Inc. (SBRA - Snapshot Report), Omega Healthcare Investors (OHI - Snapshot Report) and Cousins Properties Inc. (CUZ - Analyst Report). The first two carry a Zacks Rank #1 (Strong Buy), while the latter holds a Rank #2 (Buy).

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.

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