Question Description
Prologis, Inc., (NYSE: PLD), an equity real estate investment trust (REIT), prides itself as being, “The world’s leading industrial real estate company”, with its roots tracing back to 1983. Through many major portfolio acquisitions, dispositions and real estate development projects worldwide, Prologis today has a market capitalization of over $74 billion.OnOctober 27, 2019, Prologis agreed to purchase domestic rival, Liberty Property Trust (NYSE: LPT), in an all stock deal worth $12.6 billion. On February 4, 2020, Prologis completed this transaction.
The 52 week trading range has been between $59.82 – $109.11 per share. In February 2020, the company’s board of directors announced a $.05/share increase in the quarterly dividend. Its 10/26/20 closing price was $100.47 per share and has a current yield of approximately 2.32%. Imagine, with the push of a button one can own a piece of this global real estate giant without setting foot on foreign soil.
However, Prologis faces a multitude of uncertainty, including, but not limited to unsettling geopolitical events, trade tariffs, concerns over global GDP slow-down, as well as, extreme financial market volatility. Oh and let’s not forget the ongoing threats of competition and potential vacancies.
That said, do you think PLD will continue to evolve and maintain its status as one of Wall Street’s most sought after global warehouse and distribution center REITS? From a global real estate practitioner’s perspective only, not that of a stock market technician, assert and endorse your stance as to why you would or would not consider investing in this company.