When an asset is described as "hot" on Wall Street, it suggests that investors are buying it hand over fist. But nothing goes up or down in a straight line, so there is always an opportunity for those with a focus on the long term. Right now, Prologis (NYSE: PLD) and Innovative Industrial Properties (NYSE: IIPR) are out of favor. But don't let that fool you: They have rewarded investors well, and have plenty of growth opportunities.
Prologis' core business, owning warehouses, is among the most boring in the world. They are just a way station for products as they travel across the world. Still, the supply chain doesn't work without warehouses, and this real estate investment trust (REIT) not only owns a lot of them, but they are generally very well located. To put a number on that, Prologis owns 1 billion square feet of warehouse space spread across four continents and 19 countries. Most of these assets are located in key shipping hubs.
The stock is down around 30% so far in 2022. That's an opportunity to add this long-term growth story to your portfolio, though -- and note that it is still up more than 100% over the past five years. Where's that growth going to come from? A major acquisition in the near term, development over the long term, and rent hikes all along the way.
For further details see:
2 Hot Real Estate Stocks That Are on Track for Major Growth