3 Interesting Industrial REIT Players for 2013: Prologis Inc (PLD), Digital Realty Trust, Inc. (DLR)

Page 1 of 2

Global economic conditions have not been so stable in last couple of years. In the present scenario, the US economy is showing signs of recovery, but the market is still not supportive of high investment in bonds. This is mainly because the Fed is focusing on keeping the interest rates low. Under these circumstances, REITs are proving to be the next best alternative for investors looking for high yields and risk adjusted growth.

Prologis Inc (NYSE:PLD), Digital Realty Trust, Inc. (NYSE:DLR) and DCT Industrial Trust Inc. (NYSE:DCT) are some of the most promising industrial REITs operating in the US market.

Prologis Inc (NYSE:PLD)Industrial REIT With a Global Presence

Prologis owns development projects in 21 countries across geographies like America, Europe and Asia. It is working in developing projects totaling 565 million square feet. With its diverse portfolio and global investments, it continues to develop industrial REITs as strong investment alternatives. Its stock offers a dividend yield of 2.9%. Prologis stood out among its competitors by providing 25% appreciation to its investors in 2012. It is the largest industrial REIT and has a market cap of $16 billion. The company’s share price has increased by 44% since its IPO in 2010.

This stock is worth considering and is expected to yield high returns on investment.

Investor Favorite

Digital Realty is a top pick of investors these days given its better than expected performance last quarter and high dividend growth. The dividend has increased 10 times since 2004 and is maintaining a current annual yield of 4%. Its high growth is being driven by high revenues and funds from operations. Digital Realty is one of the top performing industrial REITs, and it has an equity market capitalization of $8.1 billion. It is a must buy stock considering both short and long term investment perspectives.

Losing on the Growth Front

DCT Trust recently reported significant expansion and progress in the Houston market. The company has announced several new projects, including an industrial center, that have been marked for completion in the year 2013. This reflects the high demand and pressure from the market for new industrial properties. Rising investments are supporting the company in completing these projects on an early basis.

DCT has been facing losses since 2009 as its operating costs are increasing and it is earning flat revenues year after year. It is also experiencing losses because of the high charges associated with real estate depreciation and amortization.

Although the company is expanding, it is losing growth both on revenue and profit fronts. Investors are losing confidence in the company. This stock is a clear no-buy in the near future. Long term investments can be considered in the company as it is expected to be able to bring down losses once the world economy becomes more stable.

Growth Driving Factors

The Fed is planning to keep interest rates low till the following two objectives are achieved:

1). Unemployment rate of 6.5%

2). Inflation of 2.5%

Interest rates are expected to be low at least for a year. This is creating a perfect growth opportunity for bond-like equities, which can give higher yields at low risk, as investments like 10 year Treasuries are offering rates as low as 1.88%.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!