There's Nothing Amazon or FedEx Can Do to Slow Down This Warehouse Landlord
The U.S. economy has suffered through two consecutive quarters of gross domestic product declines, which is an unofficial measure of a recession. Amazon.com (NASDAQ: AMZN) and FedEx (NYSE: FDX) have both announced plans to pull back, notably with regard to the size of their distribution networks. That's led to steep declines in warehouse real estate investment trusts (REITs) like Prologis (NYSE: PLD). There's a very important reason why dividend growth investors might still find this warehouse giant attractive.
Wall Street has a bad habit of overreacting to news. So when retailer Amazon announced that it was going to be shutting some of its distribution centers, subleasing them to others, investors got it in their heads that the demand for warehouses was set to decline. That negative view got compounded by news that shipping giant FedEx was closing locations amid a decline in shipping demand.
Image source: Getty Images.
Source Fool.com
