2024-01-24 08:00:00 ET
Summary
- Recent retraction in the REIT sector presents buying opportunity for long-term investors.
- High-quality REITs like Prologis offer growth in capital appreciation as well, not just dividends.
- Prologis has outperformed popular stocks like Starbucks and Amazon over the past 5 years, showing REITs are not just income plays.
- PLD's management expects occupancy to drop slightly in Q1, which could suppress the stock price.
- Negative investor sentiment surrounding interest rates could also cause the share price to experience further volatility.
Introduction
With the recent retraction in the REIT sector ( VNQ ) in the last month, many are now trading at fair valuations again after the optimism of rate cuts have seemed to fizzle a bit. This prompted me to do an analysis on one of the highest-quality REITs, Prologis ( PLD ). Higher-quality businesses like PLD usually come at a premium but sometimes you can catch them at a decent valuation....
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For further details see:
Prologis Q4: A High-Quality REIT That's Still An Attractive Buy