Prologis Controls 1.3bn Sq.Ft., Posts 30% Rent Spreads and 3.2% Yield
Prologis owns 1.3bn sq.ft. of logistics space in high-growth markets and trades near $142.66 with a trailing P/E of 31.3 and a forward P/E of 42.2. Its mid-90% occupancy, 30% cash rent spreads, 5x net debt/EBITDA with $7bn liquidity, 3.2% yield and 11-year dividend growth support its buy case.
1. Global Logistics Footprint
Prologis controls roughly 1.3bn sq.ft. of warehouse space across high-barrier, high-growth markets worldwide, positioning it at the center of global trade and supply chain infrastructure.
2. Demand and Supply Dynamics
Elevated inventory levels, faster delivery expectations and supply chain reconfiguration drive durable demand for well-located logistics facilities, while higher financing and construction costs constrain new development activity.
3. Operating Metrics and Pricing Power
Occupancy stands in the mid-90% range, cash same-store NOI growth is in the mid-single digits, and cash rent spreads near 30% reflect strong pricing power as legacy leases reset to market rates.
4. Financial Position and Dividend
Net debt to EBITDA is approximately 5x, supported by more than $7bn in liquidity and a weighted average interest rate just above 3%, with a 3.2% yield, 11 consecutive years of dividend increases and a 70% payout ratio.