Have You Missed This Reopening Stock?
With the effects of the pandemic beginning to ease on the U.S. economy, investors are taking a new interest in companies that will benefit from more normal demand. But this isn't the only way to play the reopening trade. Another one is to invest in the companies that provide services to these consumer-oriented businesses. One business at the center of this action is Prologis (NYSE: PLD), which is the biggest logistics real estate investment trust (REIT) in the United States.
Companies like Amazon.com, Home Depot, and FedEx lease space in Prologis' facilities to house their inventory. Amazon is the biggest customer, with 6.1% of net effective rents. Prologis' complexes, located along major arteries in the U.S., are massive, containing dozens of truck bays. Inside these facilities, retailers keep much of their inventory for stores and online shopping. The company owned just under 1 billion square feet in its 4,703 global facilities as of the end of 2020. And e-commerce accounted for 25% of new demand for space, which means that Prologis supplies a lot of brick-and-mortar tenants.
Source Fool.com
