Prologis Feeling Greater Impact of Market Downturn: Here’s What You Need to Know

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Prologis ($NYSE:PLD), a leading industrial real estate investment trust (REIT), is feeling a greater impact from the current market downturn than the overall market. The company is facing a deeper decline than most other stocks, and there are several key facts investors should be aware of. Their portfolio includes hundreds of industrial and distribution centers, located near major transportation hubs and population centers. With such a diverse portfolio, Prologis has been able to provide industrial space and services to businesses in many different industries.

However, due to the current market downturn, Prologis has been more affected than most other stocks. The company’s portfolio of industrial properties has been hit hard by the economic downturn, with rental income falling significantly. This has been coupled with a decrease in occupancy rates, as businesses are no longer able to afford to rent the industrial spaces. Furthermore, Prologis’ debt burden has risen significantly, as the company has had to borrow to cover its operations. As a result of these factors, Prologis’ stock price has plummeted, making it one of the worst-performing stocks on the market. While the overall market has seen a slight recovery in recent weeks, Prologis’ stock price remains much lower than where it was at the start of the year. As such, investors should be aware that Prologis is feeling a greater impact from the market downturn than most other stocks.

Price History

On Tuesday, PROLOGIS stock opened at $132.8 and closed at $134.6, up by 1.0% from prior closing price of 133.3. This is a modest gain in the face of the market downturn, as many other stocks have fallen significantly. The company has been feeling the effects of the downturn due to its reliance on the e-commerce sector, which has seen a drop in demand due to the pandemic. Furthermore, PROLOGIS has also seen a decrease in demand for its logistics services due to reduced need for warehouse space in certain areas.

Despite this, PROLOGIS has been able to maintain its financial stability and increase its stock price slightly during this time. This is a testament to the company’s ability to adjust to changing market conditions and remain resilient in the face of adversity. Going forward, PROLOGIS should continue to focus on adapting to the current environment in order to remain competitive and weather this storm. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Prologis. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Prologis. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Prologis. More…

Key Ratios Snapshot

Some of the financial key ratios for Prologis are shown below. More…

Analysis

GoodWhale has conducted an analysis of PROLOGIS‘s wellbeing and has produced the following Star Chart. Our results show that PROLOGIS is strong in asset, dividend, and growth, and medium in profitability. Based on this data, we have concluded that PROLOGIS is classified as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. This makes this stock an attractive investment option for those who are looking for steady long-term returns. Moreover, PROLOGIS has a high health score of 10/10 with regard to its cashflows and debt, which demonstrates that it is capable of paying off debt and funding future operations. We believe this stock is an attractive option for investors looking for long-term returns with less volatility than the stock market. More…

Peers

Prologis Inc is one of the world’s leading logistics real estate companies with a global portfolio of approximately 946 million square feet. The company’s properties are located in 19 countries across North America, Europe, Asia and Latin America. Prologis’ tenants include some of the world’s largest third-party logistics providers and e-commerce companies. The company’s competitors include Frasers Logistics & Commercial Trust, Daiwa House Logistics Trust and Sabana Industrial REIT.

– Frasers Logistics & Commercial Trust ($SGX:BUOU)

Frasers Logistics & Commercial Trust has a market cap of 4.1B as of 2022. The company is a trust that focuses on logistics and commercial properties in Australia, Europe, and North America. The trust’s portfolio consists of warehouses, distribution centers, retail properties, and office buildings.

– Daiwa House Logistics Trust ($SGX:DHLU)

Daiwa House Logistics Trust is a Japanese real estate investment trust (REIT) that was established in 2010. The company’s portfolio consists of logistics properties located in Japan and China. As of March 31, 2021, Daiwa House Logistics Trust had a total market capitalization of ¥378.54 billion.

– Sabana Industrial REIT ($SGX:M1GU)

Sabana Industrial REIT has a market cap of 443.93M as of 2022. The company is a Singapore-based real estate investment trust (REIT) that owns and manages a portfolio of industrial properties in Singapore. The REIT’s portfolio comprises of 63 properties, with a total gross floor area of approximately 7.1 million square feet. The REIT’s properties are located in major industrial districts in Singapore, such as Jurong Island, Tuas, Woodlands, Changi, and Ang Mo Kio.

Summary

Prologis is a leading global industrial real estate investment trust (REIT) and logistics solutions provider. Analysts have observed that Prologis’ stock has seen a sharper decline than the overall market due to the economic impact of the coronavirus pandemic. According to analysts, Prologis’ heavy exposure to the e-commerce sector could be a major factor for its greater dip. Furthermore, Prologis is particularly vulnerable to large tenants that are unable to meet their financial obligations or that are reducing their footprints.