Is Development Decline a Warning Sign, or Is Prologis Waiting for the Right Time to Strike?
Shares of real estate investment trust (REIT) Prologis (NYSE: PLD) are down by 30% from their 2022 highs. A number of factors drove that decline, but an important one is a concern among investors that warehouse demand is softening. The company's own actions in the first quarter didn't do much to dispel that narrative.
When it comes to REITs, Prologis is one of the giants, sporting a huge market cap of more than $110 billion even after its substantial stock price decline. It owns nearly 5,500 buildings on four continents totaling a massive 1.2 billion square feet of leasable space. Add in its investment-grade rated balance sheet and it's clear that this is a REIT with the wherewithal to make big moves, such as its $23 billion acquisition of peer Duke Realty in late 2022.
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Source Fool.com
