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Prologis (PLD) Rewards its Shareholders: Should You Buy?

On Apr 5, 2016, we issued an updated research report on Prologis, Inc. PLD. This San Francisco, CA-based real estate investment trust (REIT) is engaged in acquisition, development, operation and management of industrial real estate space in the Americas, Asia and Europe.

In Jan 2016, Prologis reported fourth-quarter 2015 core funds from operations (“FFO”) of 64 cents per share, beating the Zacks Consensus Estimate by 2 cents and improving from the year-ago quarter figure of 48 cents. Results were driven by growth in revenues and occupancy gains. Further, the company expects 2016 core FFO in the range of $2.50–$2.60 per share, reflecting an expected growth of 14% year over year.

Notably, Prologis follows the long-term strategy of providing attractive risk-adjusted returns. In Feb 2016, Prologis’ board approved a 10.5% hike in its annualized dividend rate to $1.68 from the prior year, rewarding the shareholders. In 2015, on a combined basis, Prologis raised dividend by 21% from that of 2014, on a run-rate basis.

Prologis currently carries a Zacks Rank #2 (Buy). Investors interested in the REIT industry may consider stocks like DCT Industrial Trust Inc. DCT, Easterly Government Properties, Inc. DEA and Douglas Emmett Inc DEI. Each of these stocks holds the same Zacks Rank as Prologis.

Note: 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.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
PROLOGIS INC (PLD): Free Stock Analysis Report
 
DOUGLAS EMMETT (DEI): Free Stock Analysis Report
 
DCT INDUSTRIAL (DCT): Free Stock Analysis Report
 
EASTRLY GOV PPT (DEA): Free Stock Analysis Report
 
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