Rising interest rates have been a headwind for companies in the real estate investment trust (REIT) sector. Commercial real estate issues have bedeviled office and retail properties. Commercial property prices have been falling, and rolling over debt has been a problem for many developers. The logistics sector has been largely immune to the pressure, as capacity is limited and demand is strong. Prologis (NYSE: PLD) just announced strong earnings. Is the stock a buy?
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Prologis is one of the biggest global logistics REITs. The company has a massive footprint, with 5,563 buildings with 1.2 billion square feet of space in 19 countries. If you drive along the highway close to major metropolitan areas, you will probably see these massive facilities with dozens of truck bays. These facilities generally store inventory for retailers and manufacturers.
Source Fool.com