California-based industrial real estate investment trust (REIT) Prologis, Inc. (PLD - Free Report) disclosed the penning of a redevelopment lease deal for a total space of 702,000 square feet in Paris. The company leased the space to its existing France based client – TRANSALLIANCE, a European transport and logistics operator.
The building is attractive owing to its location advantage. It is situated at Prologis Park Moissy II Les Chevrons, which is a part of Paris metropolitan area, enjoying proximity to major roads. Further, the various facilities in the building bode well for TRANSALLIANCE.
In addition to its present portfolio in Prologis Park Moissy II Les Chevrons, the company can expand upto around 2.5 million square foot. With the rising need of competent supply chain systems in this region, Prologis is poised to gain owing to its ability to offer clients with modern distribution facilities in strategic locations.
Notably, as of Dec 31, 2013, Prologis had around 45.5 million square feet of logistics and distribution space in Southern Europe. The latest deal further strengthens its growth prospects in the region.
This move seems to be a continuation of Prologis’ strong leasing activity. On Feb 10, 2014, the company declared that it has inked two development lease deals for a total space of 406,000 square feet at Prologis Park Tres Rios in Mexico City. The company penned the leasing agreement with Metropolitan Logistics – a subsidiary of postal and logistics provider DHL – and VF Outdoor México S.A. – a subsidiary of the apparel company V.F. Corp. (VFC - Free Report) .
Late last month, Prologis reported core FFO (funds from operations) per share of 43 cents for fourth-quarter 2013, which was a penny ahead of both the Zacks Consensus Estimate and the year-ago quarter figure. Though total revenue declined from the year-ago quarter, it managed to beat the Zacks Consensus Estimate.
Prologis currently carries a Zacks Rank #3 (Hold). Some better-ranked REITs include Sabra Health Care REIT, Inc. (SBRA - Free Report) and Chatham Lodging Trust (CLDT - Free Report) . Sabra Health Care holds a Zacks Rank #1 (Strong Buy) while Chatham Lodging carries a Zacks Rank #2 (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.