Forget Rent Hikes, This Is Where Long-Term Growth Will Come From for Prologis
Prologis (NYSE: PLD) is one of the world's largest real estate investment trusts (REITs), with a market cap of about $120 billion. That size is important to keep in mind as you look at its long-term business opportunity. Of late, however, investors have been more focused on the short term. Here's why you may want to dig deeper.
Supply chain problems related to the coronavirus pandemic caused investors to rush into the warehouse market. As the leader of this REIT sector, Prologis was a big beneficiary. The story is pretty simple. With more people stuck at home, online shopping grew quickly. Companies needed more warehouse space to accommodate those sales. On top of that, supply chain snarls caused by the pandemic resulted in companies holding higher levels of inventory than normal. Again, a need for more warehouse space was the end result.
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Source Fool.com