2 Hot Real Estate Stocks That Are on Track for Major Growth
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.
Source Fool.com
