TRNO - Prologis: Q2 2024 Results Update - Still A Strong Buy

2024-07-18 01:57:39 ET

Summary

• PLD will benefit greatly with the market conditions improvements likely to occur in 2025.
• The management revised (upwards) its 2024 guidance regarding core FFO per share and acquisition volume.
• PLD has solid business metrics and a fortress-like balance sheet reflected within the best-in-the-industry credit metrics.
• The Company's growth pipeline is secured through vast ownership of land and growth paths on top of its core business.
• There's still an upside potential from the valuation standpoint, with dynamically growing dividends along the way.

Investment Thesis

I bought a certain stake of shares around the time of my last publication on Prologis ( PLD ). That was my first position in the Company and I consider adding more despite its recent stock price increases. Despite a decrease in occupancy rate, it is still solid given the market headwinds, which are likely to turn around in 2025. Moreover, PLD achieved high rent bumps, increased its 2024 acquisition volume and core FFO guidance, and has the best-in-the-industry credit metrics that support impressive dividend growth....

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