Will Prologis' Expansion Strategy Drive the Next Phase of Its Growth?

Prologis Inc. PLD has been actively banking on its growth opportunities in high-barrier, high-growth markets through strategic acquisitions. The company is in a sweet spot, given the rising e-commerce trends propelling the demand for industrial distribution warehouses.Per PLD’s September 2025 Investor Presentation, from 24% in 2024, e-commerce penetration is expected to reach 29% in 2028. Moreover, e-commerce space intensity is more than 3X to brick and mortar due to the requirements of higher product variety, greater inventory and reverse logistics.Customer proximity is valuable as services like same-day delivery are gaining traction. One percent of cost savings in transport and labor results in around 17% increased capacity for rent. Therefore, companies are making immense efforts to improve supply-chain efficiencies, pushing demand for logistics infrastructure and efficient distribution networks. The last-mile properties in high-income urban areas are witnessing solid pricing, occupancy and growth in rentals.Given Prologis’ solid capacity to offer modern logistics facilities, it is well-positioned to bank on this trend. The company is acquiring assets in areas typically located in large, supply-constrained infill markets in proximity to airports, seaports and ground transportation facilities, which ensures rapid distribution of customers’ products.From the beginning of the year through Oct. 15, 2025, the company’s share of acquisitions amounted to $1.19 billion. For 2025, the company anticipates acquisitions at Prologis share between $1.25 and $1.50 billion.How Are Other Industrial REITs Capitalizing on Growth Opportunities?Terreno Realty Corporation (TRNO) is well-poised to enhance its portfolio in six major coastal U.S. markets, namely New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle and Washington, D.C. These markets display solid demographic trends and witness healthy demand for industrial real estate.From the beginning of the year through Nov. 4, 2025, the company has acquired assets worth $601.7 million. Acquisitions under contract stand at $82.3 million, and acquisitions under letter of intent stand at $11.4 million.Stag Industrial (STAG) is driving growth through strategic acquisitions. From the beginning of the year through Oct. 28, 2025, STAG has acquired 1.97 million square feet, with an aggregate value of $212.4 million. During the same period, the company bought out two vacant land parcels for $8.4 million.PLD’s Price Performance, Valuation and EstimatesShares of Prologis have risen 20.7% in the past three months compared with the industry’s growth of 3.7%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, PLD trades at a forward 12-month price-to-FFO of 20.78, above the industry, as well as its one-year median of 18.85. It carries a Value Score of D.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for PLD’s 2025 funds from operations per share has been revised marginally upward over the past week.Image Source: Zacks Investment ResearchAt present, Prologis carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prologis, Inc. (PLD): Free Stock Analysis Report Terreno Realty Corporation (TRNO): Free Stock Analysis Report Stag Industrial, Inc. (STAG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks