Prologis: Business May Benefit From Trade War
Summary
- The past for Prologis has been stable but dull, with no significant growth prospects.
- Due to duties, there could be congestion in the logistics of goods, potentially leading to higher inventories.
- It is likely that some companies will decide to bring manufacturing back to the U.S., creating long-term demand for Prologis’s services.
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Financial markets are in a bad mood right now and are concerned about the trade war. But there are so many different companies trading in the U.S. market. And so, even in a trade war, there will be those companies that have more to gain than to lose. One such company I consider to be Prologis, Inc. (NYSE:PLD)
Company Portrait
Prologis excerpted from Wikipedia:
Prologis, Inc. is a real estate investment trust headquartered in San Francisco, California that invests in logistics facilities.[5] The company was formed through the merger of AMB Property Corporation and Prologis in June 2011, which made Prologis the largest industrial real estate company in the world.
The company has a huge amount of land and real estate owned. In the 2024 annual report, the following map of the company’s total holdings was presented.
Prologis Property (Prologis Inc. report 2024)
Prologis is the largest industrial lessor in the world. The company describes its activities as follows:
We predominately invest in logistics facilities. Our properties are typically used for distribution, storage, packaging, assembly, and light manufacturing of consumer products. The vast majority of our operating properties are used by our customers for retail and online fulfillment and business-to-business transactions.
In 2024, the company had revenue of $8.2 billion and profit of $3.7 billion. You can see more detailed figures in the table below.
Key Financial Indicators of Prologis, Inc. (mln. dollars) (Yahoo Finance)
With a price per share of $96, the company has a capitalization of $89 billion. The P/E ratio is 24 units. The company also has preferred stock (OTCQB:PLDGP) with a capitalization of $41 billion.
