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If You Invested $1000 in Prologis 10 Years Ago, This Is How Much You'd Have Now

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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Prologis (PLD - Free Report) ten years ago? It may not have been easy to hold on to PLD for all that time, but if you did, how much would your investment be worth today?

Prologis' Business In-Depth

With that in mind, let's take a look at Prologis' main business drivers.

Prologis Inc. is a leading industrial real estate investment trust (REIT) that acquires, develops, operates and manages industrial real estate space in the Americas, Asia and Europe. The company principally targets investments in distribution facilities for customers who are engaged in global trade and depend on efficient movement of goods through the global supply chain.

As of Mar 31, 2022, Prologis owned or had investments in properties and development projects aggregating around 1.0 billion square feet of space in 19 countries either on a wholly owned basis or through co-investment ventures. Modern distribution facilities are being leased by the company to around 5,800 customers. These customers belong to two main categories: business-to-business and retail/online fulfillment.

The company has been actively banking on its growth opportunities through acquisitions and developments. Since the ProLogis–AMB merger in 2011 through year-end 2020, this industrial REIT has accomplished investment transactions aggregating more than $131.4 billion across 30 global markets. These investments comprise a wide array, including the largest M&A transactions in the real estate sector as well as individual off-market deals of less than $5 million.

In February 2020, the company accomplished the $13-billion acquisition of Liberty Property Trust, strengthening its presence in target regions, such as Chicago, Lehigh Valley, New Jersey, Houston, Central PA and Southern California.

In the first quarter of 2022, Prologis’ share of building acquisitions amounted to $98 million, with a weighted average stabilized cap rate of 3.7% in the reported quarter. Development stabilization aggregated $212 million, while development starts totaled $1.02 billion, with 36.6% being build to suit.

Note**: All EPS numbers presented in this report represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Prologis a decade ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in July 2012 would be worth $3,733.29, or a 273.33% gain, as of July 12, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

The S&P 500 rose 187.33% and the price of gold increased 5.79% over the same time frame in comparison.

Analysts are anticipating more upside for PLD.

Given Prologis’ capacity to offer high-quality facilities in key markets and its robust balance-sheet strength, it is well-poised to bank on the favorable trends in the industrial real estate industry. Along with the fast adoption of e-commerce, this asset category is poised to gain from a likely rise in inventory levels. In May, Prologis proposed to acquire Duke Realty in an all-stock transaction valued at $61.68 per share. However, Duke Realty termed the offer “insufficient” but remained open to exploring opportunities to maximize shareholder value. Going forward, the rising supply of industrial real estate in several markets might fuel competition and curb pricing power. Also, the stabilization of e-commerce sales growth is a concern for rental rate growth. Shares of Prologis have underperformed the industry in the past three months.

The stock has jumped 12.31% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2022; the consensus estimate has moved up as well.

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