Why Everyone Is Talking About Prologis
Supply chain woes are resulting in supply chain "wows" for some publicly traded companies, including those real estate investment trusts (REITs) that specialize in warehouses all along the global distribution nervous system.
That includes the biggest of industrial REITs: Prologis (NYSE: PLD), which says that demand is at an all-time high for warehouse space. The company said in an October report that strong retail sales have driven vacancy among U.S. warehouses to a new low of 3.9%, as net absorption -- space newly occupied minus space newly vacant -- hit a record high of 115-million square feet in this year's third quarter, more than double last year's level.
Individual and institutional investors have responded to this sort of talk by pouring money into stocks, projects, and acquisitions. That reflects in the performance of the 13 REITs that Nareit -- the REIT national trade group and data tracker -- places in the industrial niche. As of Sept. 30, the group had posted a year-to-date total return of 21.96%, even after a shaky September. Prologis, meanwhile, had notched a return of 53.80% through Nov. 29 of this year, and there's reason to believe this run is not over.
Source Fool.com
