How COVID-19 Has Helped Prologis

When assessing the real estate investment trusts (REITs) that have been impacted by COVID-19, few have managed to escape in decent shape. Mall REITs, mortgage REITs, and office REITs have all been negatively affected by the drop-off in business. Yet the closure of many retail establishments has accelerated the use of e-commerce, which has benefited REITs like Prologis (NYSE: PLD) that specialize in logistics and e-commerce.

Essentially, Prologis owns massive warehouses. If you drive along the interstate near major cities, you will see massive logistics centers with fleets of tractor-trailers parked at them. These are ubiquitous on the New Jersey turnpike between Philadelphia and New York City, for instance. Companies like Amazon.com, Home Depot, FedEx, and UPS lease space in these buildings to store inventory. Prologis has warehouses at various parts of the supply chain, from the huge multi-state facilities to the "last-touch" facilities in urban areas that are used to facilitate same-day or two-day shipping.

Image source: Getty Images.

Source Fool.com