Prologis

PLD

Market cap $119B

The Investment Committee give you their top stocks to watch for the second half.

Falling Fed Funds rates and attractive REIT yields, along with technicals, make REITs increasingly appealing. Industrial REITs show robust fundamentals, with high occupancy, minimal delinquencies, excellent revenue growth, and strong leasing spreads, earning the designation as Winners of REIT Earnings Season. This article examines each company in the sector for liquidity, FFO growth, cash flow growth, and dividend growth, to single out one company as the best investment right now.

Realty Income operates on a lucrative triple-net-lease structure. Prologis boasts major clients that rely on its logistics real estate assets.

PLD rallies as demand for its global logistics hubs and data-center conversions drives growth amid leasing delays and elevated interest expenses.

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Prologis delivered another strong quarter, showcasing consistent performance and reaffirming its leadership in the industrial REIT sector. Prologis beat Core FFO estimates and raised NOI guidance, supported by robust leasing spreads and strong tenant demand for its infill properties. Despite volatility in Net Promote Income, Prologis' core operations and long-term growth remain intact, driven by a substantial development pipeline.

Prologis (PLD) reported earnings 30 days ago. What's next for the stock?

REITs offer compelling value and income, with VNQ yielding 3.8% versus the S&P 500's 1.1%, and trade at historically wide valuation discounts. The current macro environment favors high-quality, undervalued dividend stocks, as falling long-term rates could boost demand for income-generating assets like REITs. REITs demonstrate strong financial health, stable dividends, and sector diversity, making them attractive for both income and potential total return upside.

PLD's 20% stock rally reflects strong leasing, strategic development and a push into data centers amid a solid financial footing.

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