Prologis, Inc. (PLD)
Prologis, Inc. is the global leader in logistics real estate, owning and managing approximately 984 million square feet of properties across 19 countries. The company focuses on high-barrier, high-growth markets, serving a diverse customer base involved in business-to-business and retail/online fulfillment.
Company Overview
Prologis, the undisputed global leader in logistics real estate, offers investors a compelling opportunity to capitalize on the burgeoning e-commerce and supply chain modernization trends, boasting a vast portfolio, strategic market positioning, and a robust 2.95% dividend yield.
Investment Thesis
Investing in Prologis presents a compelling opportunity due to the company's dominant market position, strong financial performance, and favorable industry tailwinds. With a market capitalization of $127.21 billion and a healthy profit margin of 38.8%, Prologis demonstrates financial strength. The company's focus on high-barrier, high-growth markets positions it to benefit from the increasing demand for logistics space driven by e-commerce and supply chain modernization. The dividend yield of 2.95% provides an attractive income stream for investors. Key value drivers include rental growth, occupancy rates, and strategic acquisitions. Upcoming catalysts include continued expansion in key markets and further development of its technology-driven logistics solutions. Given these factors, Prologis is poised to deliver attractive returns for investors.
Key Highlights
- Market capitalization of $127.21 billion, reflecting its dominant position in the logistics real estate market.
- Profit margin of 38.8%, indicating efficient operations and strong pricing power.
- Gross margin of 59.6%, showcasing the value-added nature of its logistics facilities and services.
- Dividend yield of 2.95%, providing a steady income stream for investors.
- Beta of 1.44, suggesting higher volatility compared to the overall market.
Competitors
Strengths
- Global leader in logistics real estate.
- Large and diversified portfolio of properties.
- Strong financial performance and profitability.
- Experienced management team.
Weaknesses
- High beta indicates higher volatility.
- Susceptibility to economic cycles.
- Dependence on occupancy rates.
- Exposure to interest rate fluctuations.
Catalysts
- Ongoing: Continued expansion in key logistics markets.
- Ongoing: Development and deployment of technology-driven logistics solutions.
- Ongoing: Strategic acquisitions to expand portfolio and market share.
- Ongoing: Increasing demand for sustainable logistics facilities.
- Upcoming: Potential for increased rental rates in high-demand markets by Q4 2026.
Risks
- Potential: Economic slowdown impacting demand for logistics space.
- Potential: Rising interest rates increasing borrowing costs.
- Potential: Increased competition from other REITs.
- Potential: Geopolitical risks affecting global trade and supply chains.
- Ongoing: Fluctuations in occupancy rates impacting rental income.
Growth Opportunities
- Expansion in High-Growth Markets: Prologis has the opportunity to further expand its presence in high-growth markets, particularly in Asia and Latin America, where e-commerce adoption is rapidly increasing. These markets offer significant potential for new development and acquisitions, driving rental income and asset appreciation. The market size for logistics real estate in emerging markets is estimated to reach $500 billion by 2030, presenting a substantial growth opportunity for Prologis. This expansion is expected to contribute significantly to revenue growth over the next 5-10 years.
- Development of Technology-Driven Logistics Solutions: Prologis can leverage technology to enhance its logistics offerings and create new revenue streams. This includes developing advanced warehouse management systems, robotics solutions, and data analytics platforms. The market for logistics technology is projected to reach $150 billion by 2028, offering Prologis a significant opportunity to capture market share. These solutions can improve efficiency, reduce costs, and enhance customer satisfaction, driving long-term growth.
- Strategic Acquisitions: Prologis can pursue strategic acquisitions to expand its portfolio and enter new markets. This includes acquiring smaller REITs or private logistics companies with complementary assets and capabilities. The market for logistics real estate acquisitions is estimated at $100 billion annually, providing ample opportunities for Prologis to grow through M&A. These acquisitions can accelerate growth, increase market share, and diversify the company's revenue base.
- Sustainability Initiatives: Prologis can capitalize on the growing demand for sustainable logistics facilities by investing in green building technologies and renewable energy sources. This includes developing LEED-certified buildings, installing solar panels, and implementing energy-efficient lighting systems. The market for green logistics is projected to reach $80 billion by 2027, offering Prologis a competitive advantage. These initiatives can attract environmentally conscious tenants, reduce operating costs, and enhance the company's reputation.
- Value-Added Services: Prologis can expand its service offerings to include transportation management, supply chain consulting, and e-commerce fulfillment. This allows the company to generate additional revenue streams and deepen its relationships with customers. The market for logistics services is estimated at $1 trillion annually, providing Prologis with a significant opportunity to expand its service offerings. These services can enhance customer loyalty, increase revenue per customer, and differentiate Prologis from its competitors.
Opportunities
- Expansion in emerging markets.
- Development of technology-driven logistics solutions.
- Strategic acquisitions to expand market share.
- Growing demand for sustainable logistics facilities.
Threats
- Economic downturns affecting demand for logistics space.
- Increased competition from other REITs.
- Rising interest rates increasing borrowing costs.
- Geopolitical risks impacting global trade.
Competitive Advantages
- Scale: Prologis possesses an unmatched global portfolio of logistics properties.
- Location: Strategic focus on high-barrier, high-growth markets.
- Expertise: Deep industry knowledge and operational excellence.
- Customer Relationships: Long-standing relationships with a diverse customer base.
About
Founded in 1983, Prologis, Inc. has evolved into the world's preeminent owner, operator, and developer of industrial logistics real estate. The company's journey began with a vision to streamline supply chains and optimize distribution networks. Today, Prologis stands as a testament to that vision, commanding a leading position in the global logistics landscape. As of December 31, 2020, Prologis owned or had investments in properties and development projects expected to total approximately 984 million square feet (91 million square meters) spread across 19 countries. These strategically located facilities cater to a diverse clientele of approximately 5,500 customers, spanning the business-to-business and retail/online fulfillment sectors. Prologis specializes in modern logistics facilities equipped with advanced technology and sustainable features. The company's geographic footprint extends across key logistics hubs in North America, Europe, and Asia, enabling it to serve multinational corporations and regional businesses alike. Prologis differentiates itself through its scale, expertise, and commitment to innovation, consistently delivering superior value to its customers and shareholders.
What They Do
- Owns, develops, and manages logistics real estate.
- Leases modern distribution facilities to businesses.
- Provides space for business-to-business commerce.
- Offers facilities for retail and online fulfillment operations.
- Operates in high-barrier, high-growth markets globally.
- Develops sustainable and technologically advanced logistics solutions.
- Provides supply chain optimization services.
Business Model
- Leasing logistics facilities to a diverse customer base.
- Generating rental income from its vast portfolio of properties.
- Developing new logistics facilities to meet growing demand.
- Acquiring existing logistics properties to expand its footprint.
FAQ
What does Prologis, Inc. do?
Prologis, Inc. is the global leader in logistics real estate, focusing on owning, developing, and managing modern distribution facilities. The company leases these facilities to a diverse base of approximately 5,500 customers, primarily in the business-to-business and retail/online fulfillment sectors. With a presence in 19 countries and a portfolio of approximately 984 million square feet, Prologis plays a crucial role in facilitating global trade and supply chain efficiency. The company's strategic focus on high-barrier, high-growth markets positions it to benefit from the increasing demand for logistics space driven by e-commerce and supply chain modernization.
Is PLD stock a good buy?
Prologis stock presents a compelling investment opportunity given its dominant market position, strong financial performance, and favorable industry tailwinds. With a market capitalization of $127.21 billion and a profit margin of 38.8%, Prologis demonstrates financial strength. The company's focus on high-growth markets and technology-driven solutions positions it for continued growth. The dividend yield of 2.95% provides an attractive income stream. However, investors should consider the company's high beta of 1.44 and potential risks related to economic cycles and interest rate fluctuations. Overall, Prologis is a solid long-term investment for those seeking exposure to the growing logistics real estate market.
What are the main risks for PLD?
Prologis faces several key risks, including economic downturns that could reduce demand for logistics space, rising interest rates that could increase borrowing costs, and increased competition from other REITs. Geopolitical risks and disruptions to global trade could also negatively impact the company's performance. Additionally, fluctuations in occupancy rates could affect rental income. The company's high beta suggests greater volatility compared to the overall market. Investors should carefully consider these risks before investing in Prologis stock.
Industry Context
Prologis operates within the REIT - Industrial sector, which is experiencing robust growth driven by the expansion of e-commerce and the increasing complexity of global supply chains. The demand for modern logistics facilities is surging, particularly in urban infill locations and near major transportation hubs. The competitive landscape includes other REITs such as American Tower (AMT), Digital Realty Trust (DLR), Extra Space Storage (EXR), Equinix (EQIX) and EastGroup Properties (EGP), but Prologis distinguishes itself through its unparalleled scale, global reach, and technology-driven approach. The industrial REIT sector is expected to continue its growth trajectory, fueled by rising consumer spending and the need for efficient distribution networks.
Key Customers
- Business-to-business companies requiring distribution space.
- Retailers and e-commerce companies needing fulfillment centers.
- Third-party logistics providers (3PLs).
- Manufacturers requiring warehousing and distribution solutions.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q4 2025 | $2.09B | $1.40B | $0.00 |
| Q3 2025 | $2.05B | $763M | $0.00 |
| Q2 2025 | $2.03B | $570M | $0.00 |
| Q1 2025 | $1.99B | $592M | $0.00 |
Source: Company filings
Chart & Info
Price Chart
Prologis, Inc. (PLD) stock price: $0.00 (+0.00, +0.00%)
Why Bull
- •Recent insider buying signals confidence in PLD's future, suggesting executives believe the stock is undervalued.
- •Community sentiment has shifted positively, with many discussing the company's robust logistics network as a key growth driver.
- •Market perception is bolstered by PLD's strategic expansions, which are seen as positioning the company well for future demand.
- •Positive earnings forecasts from analysts have contributed to a bullish outlook among retail investors.
Why Bear
- •Concerns over rising operational costs have led some investors to question the sustainability of PLD's profit margins.
- •Recent social sentiment reflects worries about potential supply chain disruptions impacting logistics performance.
- •Some community members highlight increasing competition in the logistics sector, which could pressure PLD's market share.
- •Market developments indicate a cautious approach from institutional investors, reflecting uncertainty about broader economic conditions.
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Technical Analysis
Rationale
AI-generated technical analysis for PLD including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for PLD.
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Current price: $0.00
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PLD.
Price Targets
Wall Street price target analysis for PLD.
Insider Flow (30d)
MoonshotScore
Score Factors
- Revenue Growth 4/100
- Gross Margin 10/100
- Operating Leverage 4/100
- Cash Runway 5/100
- R&D Intensity 5/100
- Insider Activity 6/100
- Short Interest 5/100
- Price Momentum 0/100
- News Sentiment 5/100
What does this score mean?
The MoonshotScore rates PLD's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
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These 2 Finance Stocks Could Beat Earnings: Why They Should Be on Your Radar
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Frequently Asked Questions
What does Prologis, Inc. do?
Prologis, Inc. is the global leader in logistics real estate, focusing on owning, developing, and managing modern distribution facilities. The company leases these facilities to a diverse base of approximately 5,500 customers, primarily in the business-to-business and retail/online fulfillment sectors. With a presence in 19 countries and a portfolio of approximately 984 million square feet, Prologis plays a crucial role in facilitating global trade and supply chain efficiency. The company's strategic focus on high-barrier, high-growth markets positions it to benefit from the increasing demand for logistics space driven by e-commerce and supply chain modernization.
Is PLD stock a good buy?
Prologis stock presents a compelling investment opportunity given its dominant market position, strong financial performance, and favorable industry tailwinds. With a market capitalization of $127.21 billion and a profit margin of 38.8%, Prologis demonstrates financial strength. The company's focus on high-growth markets and technology-driven solutions positions it for continued growth. The dividend yield of 2.95% provides an attractive income stream. However, investors should consider the company's high beta of 1.44 and potential risks related to economic cycles and interest rate fluctuations. Overall, Prologis is a solid long-term investment for those seeking exposure to the growing logistics real estate market.
What are the main risks for PLD?
Prologis faces several key risks, including economic downturns that could reduce demand for logistics space, rising interest rates that could increase borrowing costs, and increased competition from other REITs. Geopolitical risks and disruptions to global trade could also negatively impact the company's performance. Additionally, fluctuations in occupancy rates could affect rental income. The company's high beta suggests greater volatility compared to the overall market. Investors should carefully consider these risks before investing in Prologis stock.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.