In this article, we will take a look at the 14 Best Real Estate Stocks to Buy According to Hedge Funds.
In its December outlook report, Morgan Stanley said that the balance of risks and opportunities in real estate is moving away from broad macro factors like trade uncertainty, interest rates, and fiscal stimulus. Instead, performance over the next 12 to 24 months is expected to be driven more by sector-specific trends, individual markets, and asset-level fundamentals.
The firm noted that fiscal and monetary policy, along with deregulation, are creating conditions that support procyclical growth across most economies. This backdrop has improved the investment case for real estate, particularly for assets that have already repriced by 20–25% over the past three years.
The report also pointed out that a mix of motivated sellers, more active buyers, and better access to debt financing is helping create a more favorable environment for transaction activity and asset values to recover. At the same time, slower construction activity and the growing gap between rising replacement costs and current property valuations indicate that the next real estate cycle could last longer than usual, as supply is expected to remain limited.
Meanwhile, CNBC reported that the economy in 2025 did not perform as strongly as expected, which has influenced the outlook for commercial real estate this year. According to a Deloitte survey covering 850 global chief executives and senior leaders at major real estate ownership and investment firms across 13 countries, industry leaders are slightly less optimistic than they were heading into 2025. About 83% of respondents said they expect revenue to improve by the end of 2026, down from 88% in the previous year’s survey.
The survey also found that fewer firms are planning to increase spending, while more expect to keep spending levels unchanged. Even so, 68% of respondents said they anticipate higher expenses in 2026. Most participants indicated that they expect the cost of capital to improve, and growth is projected across most asset classes. Overall sentiment has eased compared with last year, but it remains noticeably stronger than levels seen in 2023, according to Deloitte’s findings.
Given this, we will take a look at some of the best real estate stocks according to hedge funds.
Our Methodology:
For our list of the best real estate stocks to invest in, we started with a list of stocks pulled from ETFs, stock screeners, and web rankings. We then utilized Insider Monkey’s Q3 2025 database to discover the best stocks held by hedge funds. The list is organized in ascending order of hedge fund sentiment around each stock.
Note: We only included companies that have recently reported noteworthy developments likely to impact investor sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14. Cushman & Wakefield Limited (NYSE:CWK)
Number of Hedge Fund Holders: 19
Cushman & Wakefield Limited (NYSE:CWK) reported its Q4 2025 results on February 19, posting the highest fourth-quarter and full-year revenue in its history. Services revenue continued to move higher and rose 8% year-over-year, or 6% in local currency, compared with the fourth quarter of 2024. Capital markets revenue also stayed strong, marking its fifth straight quarter of double-digit year-over-year growth.
The company’s cash flow improved meaningfully, as it generated more than $125 million in additional cash flow compared with 2024. Michelle MacKay, Chief Executive Officer of Cushman & Wakefield, made the following comment:
“Our fourth quarter results capped off an exceptional year for Cushman & Wakefield (CWK). In 2025, we drove 34% adjusted earnings per share growth, improved cash flow by more than $125 million and prepaid $300 million in debt.”
She also said commercial real estate markets remained healthy. Demand stayed steady across major asset classes. Pricing and liquidity improved as well. She further added:
“Commercial real estate end markets are healthy, supported by solid demand across all major asset classes and improved pricing and liquidity. We have entered 2026 with excitement and momentum as we execute against the compelling long-term strategic priorities and financial targets that we presented at our 2025 Investor Day.”
Services revenue increased 8%, or 6% in local currency. Growth came from all segments. Project management stood out, especially in EMEA and APAC. Leasing revenue also improved and rose 6%, or 5% in local currency, driven by strong performance in the Americas and EMEA.
Cushman & Wakefield Limited (NYSE:CWK) operates as a global commercial real estate services firm. It serves property owners and occupiers. The company runs its business across three regions: the Americas, Europe, the Middle East and Africa (EMEA), and Asia Pacific (APAC).
13. W. P. Carey Inc. (NYSE:WPC)
Number of Hedge Fund Holders: 27
On February 17, BofA raised its price recommendation on W. P. Carey Inc. (NYSE:WPC) to $72 from $63. It reiterated an Underperform rating on the stock. The analyst said the firm had updated its price targets across the triple-net REIT sector following fourth-quarter results. The firm noted that acquisition activity remained strong in Q4, while most net lease REITs were still targeting investment spreads in the 100–150 basis point range. It also pointed out that higher investment activity could create potential upside to current guidance.
Speaking during the company’s Q3 2025 earnings call, President and CEO Jason Fox said 2025 had been an exceptional year for W. P. Carey, driven by consistent execution across its platform. He noted that the company delivered solid financial results and strengthened its position for long-term growth. Fox highlighted several milestones, including 5.7% growth in AFFO, record investment activity, industry-leading rent growth, and a total shareholder return of 25%. He added that the company was well-positioned to carry that momentum into 2026, supported by a strong pipeline of deals, continued access to favorable capital, expected rent increases, and stable tenant credit quality.
Fox also said the company completed a record $2.1 billion in investments during the year. These deals came with a weighted average initial cash cap rate of 7.6% and an average yield slightly above 9%, with lease terms averaging 17 years. He noted that industrial and warehouse properties made up the majority of activity, accounting for 68% of total investments, while retail represented 22%. Geographically, he said 26% of investments were made in Europe, with the remaining 74% focused on North America.
He also pointed to the company’s $322 million investment in Life Time Fitness properties, which became its third-largest tenant based on annual base rent. In addition, Fox said W. P. Carey had officially launched its Carey Tenant Solutions platform. He explained that the platform had already completed $50 million in projects, with another $290 million underway, and was expected to play a larger role in future growth through build-to-suit developments, expansions, and redevelopment opportunities.
W. P. Carey Inc. (NYSE:WPC) operates as a net lease real estate investment trust, owning a diversified portfolio of commercial properties. Its portfolio includes 1,662 net lease properties spanning about 183 million square feet.
12. AvalonBay Communities, Inc. (NYSE:AVB)
Number of Hedge Fund Holders: 28
On February 13, Citi analyst Nicholas Joseph lowered his price recommendationon AvalonBay Communities, Inc. (NYSE:AVB) to $198 from $212. The analyst maintained a Neutral rating on the stock.
A few days earlier, on February 9, Cantor Fitzgerald also updated its view on AVB, raising its price target to $186 from $179 but maintaining a Neutral rating. The analyst noted that the five multifamily REITs under coverage reported fourth-quarter results that came in below consensus expectations. However, he added that the more important indicator going forward would be new lease rate growth, especially as the market moves into the key spring and summer leasing season.
During the company’s Q4 2025 earnings call, CEO Benjamin Schall said the results reflected the overall strength of AvalonBay’s portfolio, along with the steps the company had taken to support growth and the effectiveness of its operating teams. He highlighted strong resident retention, noting that turnover came in at 41%, the lowest level the company has ever recorded.
Schall also said the company launched $1.65 billion in new development projects, which are expected to deliver an initial stabilized yield of 6.2%. In addition, AvalonBay raised nearly $900 million in equity on a forward basis, with an implied initial cost of about 5%. He added that the company also repurchased nearly $490 million worth of its own shares, at an average price of $182 per share, reflecting confidence in its long-term outlook.
AvalonBay Communities, Inc. (NYSE:AVB) is a real estate investment trust that focuses on developing, acquiring, redeveloping, and managing apartment communities. Its operations are organized across Same Store, Other Stabilized, and Development/Redevelopment segments.
11. Weyerhaeuser Company (NYSE:WY)
Number of Hedge Fund Holders: 29
On February 13, Citi raised its price recommendation on Weyerhaeuser Company (NYSE:WY) to $32 from $30. The firm kept its Buy rating on the stock, signaling continued confidence in the stock. Earlier in the month, on February 2, Truist also lifted its price objective slightly to $29 from $28 but maintained a Hold rating. The analyst explained that weaker fourth-quarter volumes were mainly due to timing, as the company had already pushed more sales into the summer months before log prices began to decline. Truist added that Weyerhaeuser’s Q1 EBITDA outlook, which calls for results to remain roughly flat quarter-over-quarter, reflects lower pricing and volumes. Management has chosen to hold back some activity for later in the year, when log prices are expected to improve.
On January 29, the company reported an adjusted loss of $0.09 per share for the quarter, compared with a profit of $0.11 per share a year earlier. The housing market remained a key headwind, as higher mortgage rates continued to keep many buyers on the sidelines in the second half of 2025. Pending home sales fell 3% from the prior year, reflecting weaker job growth and broader economic uncertainty.
Even so, Weyerhaeuser said its timberlands segment is expected to show modest improvement in early 2026, with slightly higher sales volumes and somewhat lower log and haul costs in the first quarter.
Weyerhaeuser Company (NYSE:WY) operates as a timberland-focused REIT and is one of the largest private timberland owners in North America. The company owns or controls about 10.4 million acres in the US and also manages additional timberlands in Canada under long-term agreements.
10. Extra Space Storage Inc. (NYSE:EXR)
Number of Hedge Fund Holders: 33
On February 5, Wells Fargo lowered its price recommendation on Extra Space Storage Inc. (NYSE:EXR) to $150 from $160. The firm reiterated an Overweight rating on the shares. The firm said it remained somewhat cautious on the storage REIT sector, noting that stocks had already climbed about 9% year-to-date on optimism tied to housing trends. However, it warned that 2026 outlooks could come in slightly below Street expectations.
During the company’s Q4 2025 earnings call, CEO Joseph Margolis said Extra Space delivered core FFO growth of 2.5% for the quarter and 1.1% for the full year. He acknowledged that operating conditions and supply pressures were still challenging but noted that the environment had begun to improve. Margolis highlighted encouraging signs across the business. He said 16 of the company’s top 20 markets posted year-over-year gains in move-in rates, pointing to improving customer demand. Revenue trends also strengthened sequentially, helping same-store revenue return to growth, rising 0.4% during the quarter.
He also emphasized the company’s disciplined approach to capital allocation. During the period, Extra Space repurchased about $141 million of its own shares, acquired 27 operating properties for $305 million, and issued $80 million in bridge loans. Margolis said the company’s broad external growth platform continued to create opportunities across different channels and positioned it well to expand compared with many of its peers.
CFO Jeff Norman said the company also made progress on the expense side. Same-store operating costs rose just 1.1%, reflecting improved cost control. Property taxes declined 3.4% as prior increases began to normalize, while property operating expenses, including utilities, dropped more than 5%.
He added that these savings were partly offset by higher healthcare costs and increased marketing spending. However, he explained that the additional marketing investment helped drive stronger move-in activity and supported the company’s efforts to build revenue momentum heading into 2026.
Extra Space Storage Inc. (NYSE:EXR) is a self-storage REIT that owns, operates, and manages storage properties. It also provides lending, acquisitions, and development services, offering flexible month-to-month storage options for both personal and business customers.
9. Mid-America Apartment Communities, Inc. (NYSE:MAA)
Number of Hedge Fund Holders: 34
On February 13, Citi trimmed its price recommendation on Mid-America Apartment Communities, Inc. (NYSE:MAA) to $148 from $155. The firm maintained a Neutral rating on the stock. A few days earlier, on February 9, Cantor Fitzgerald analyst Richard Anderson raised his price objective slightly to $141 from $137 and also kept a Neutral rating. He noted that while the multifamily REITs under his coverage reported fourth-quarter results that came in below expectations, the more important factor to know would be new lease rate growth, especially as the market approaches the busy spring and summer leasing season.
During the company’s Q4 2025 earnings call, CEO Brad Hill said core FFO came in as expected, even though the market continued to deal with elevated supply levels. He pointed to early signs of improvement, noting that occupancy rose by 10 basis points and same-store blended lease performance improved by 40 basis points compared with the prior year. Hill said the company entered 2026 in a stronger position, with revenue trends starting to move in the right direction. He expects blended lease rates to improve by 110 to 160 basis points, while effective rent growth is projected to increase by about 85 basis points compared with 2025 levels.
He also highlighted continued investment in technology and property enhancements. This includes expanding digital initiatives and rolling out community-wide WiFi across its properties. In addition, capital spending on redevelopment and repositioning projects is expected to increase by more than 10% in 2026.
Hill also discussed development activity, noting that the company acquired a shovel-ready project in Scottsdale, Arizona, bringing its total active development pipeline to $932 million. The company also purchased land in Arlington, Virginia, where it plans to build a 287-unit apartment community. He added that these development projects are expected to deliver stabilized NOI yields in the range of 6% to 6.5%.
Mid-America Apartment Communities, Inc. (NYSE:MAA) is a multifamily REIT that owns, operates, acquires, and selectively develops apartment communities. Its portfolio is primarily concentrated in the Southeast, Southwest, and Mid-Atlantic regions of the United States.
8. Public Storage (NYSE:PSA)
Number of Hedge Fund Holders: 40
On February 21, Goldman Sachs analyst Caitlin Burrows raised her price recommendation on Public Storage (NYSE:PSA) to $330 from $321. The analyst kept a Buy rating on the stock following its Q4 results. She said one of the company’s biggest advantages is its ability to acquire large amounts of assets while still generating strong returns, largely because of its lower cost of capital. This puts Public Storage in a position to pursue deals that many competitors may pass on. She also noted that the company’s ability to continue developing properties across different market cycles has been a steady and reliable source of earnings growth.
During the company’s fourth-quarter earnings call, CEO Joseph Russell spoke about what he described as a major leadership transition. He announced that Tom Boyle had been promoted to CEO and Trustee, calling it a generational change for the company. Russell said he had worked closely with Boyle for nearly ten years, and highlighted Boyle’s strong track record as CFO and CIO, where he played a key role in capital allocation, financial planning, and overall business performance.
Russell said Joe Fisher, the company’s new President and CFO, brings deep industry experience and is well respected in the REIT sector, making him a strong addition to the company’s leadership team. He also talked about the launch of PS4.0, describing it as the next phase in Public Storage’s long-term strategy. Russell noted that the company has delivered strong results in recent years. Between 2023 and 2025, Public Storage led its sector in same-store revenue growth, NOI growth, and NOI margins. He added that the company also posted the strongest core FFO per share growth and generated total shareholder returns of 18.6%, outperforming its peers during that time.
Public Storage (NYSE:PSA) is a self-storage REIT that owns and operates storage facilities across its network. Its properties provide storage space for both individuals and businesses, typically on flexible month-to-month lease terms.
7. Ventas, Inc. (NYSE:VTR)
Number of Hedge Fund Holders: 40
On February 14, Morgan Stanley raised its price recommendation on Ventas, Inc. (NYSE:VTR) to $90 from $80. It maintained an Equal Weight rating on the stock. The firm said the increase followed a strong quarterly performance and reflected expectations for further upside in 2026, driven by improving occupancy and potential acquisition opportunities. Morgan Stanley also noted that it would be looking for updates on recent operating trends in early March, especially with upcoming industry conferences approaching.
Speaking on the company’s Q4 2025 earnings call, Chairman and CEO Debra Cafaro said 2025 had been a standout year for Ventas, supported by the solid execution of its 1-2-3 Strategy, which focuses heavily on senior housing. She explained that demand remained strong, fueled by an aging population, while new supply stayed relatively limited. This imbalance helped create favorable conditions for the company and supported stronger operating results.
Cafaro said Ventas is well-positioned to benefit from what she described as a long-term growth opportunity in senior housing. She noted that normalized FFO per share rose 9% for the year, while same-store SHOP cash NOI climbed 15%, reflecting strong performance across its senior housing portfolio. She also highlighted the company’s strong returns for shareholders. Ventas delivered total shareholder returns of 35% in 2025, significantly outperforming industry benchmarks and even beating the broader S&P 500 during a year when the overall market posted strong gains.
Ventas, Inc. (NYSE:VTR) is a healthcare-focused REIT that owns a diversified portfolio of properties, including senior housing communities, outpatient medical buildings, research centers, hospitals, and other healthcare facilities. In total, the company owns around 1,400 properties across North America and the United Kingdom.
6. Digital Realty Trust, Inc. (NYSE:DLR)
Number of Hedge Fund Holders: 43
On February 6, TD Cowen raised its price recommendation on Digital Realty Trust, Inc. (NYSE:DLR) to $185 from $179. The analyst kept a Hold rating on the shares. The firm pointed to stronger-than-expected fourth-quarter results and said there could be further upside ahead. In particular, it noted that higher renewal spreads in 2026 could help drive better Core FFO per share growth than the company’s current outlook suggests.
CEO Andy Power described 2025 as a turning point for both Digital Realty and the data center industry overall. He said the company closed the year with record results and beat its own guidance on revenue, EBITDA, and core FFO per share. Leasing activity was especially strong. Power noted that Digital Realty signed more than $1 billion in new leases for the second year in a row, with total bookings reaching $1.2 billion in 2025. That figure was nearly 70% higher than the company’s average annual bookings over the past five years, showing how quickly demand has accelerated.
He also highlighted strong momentum in interconnection and colocation, which have become key growth areas for the company. Power said bookings for its interconnection offerings reached nearly $340 million during the year, marking a new record and rising more than 35% compared with 2024. This growth reflects increasing demand from customers looking for reliable, scalable infrastructure to support cloud computing, AI, and data-heavy workloads.
Digital Realty Trust, Inc. (NYSE:DLR) is a data center REIT that owns, develops, and operates facilities that support digital infrastructure. Its data centers help businesses, cloud providers, and technology companies store data, run applications, and maintain global connectivity.
5. Welltower Inc. (NYSE:WELL)
Number of Hedge Fund Holders: 52
On February 18, Morgan Stanley raised its price recommendation on Welltower Inc. (NYSE:WELL) to $215 from $200. The firm maintained an Overweight rating, signaling continued confidence in the company’s growth outlook.
On the fourth-quarter earnings call, CEO Shankh Mitra said 2025 marked a turning point for Welltower. He highlighted strong performance across the business, with revenue rising 36%, EBITDA increasing 32%, and FFO per share growing 22%. He also noted that the company strengthened its balance sheet by reducing leverage, while continuing to invest in its platform, including technology and people, to support long-term expansion.
Mitra said the company made several important strategic moves during the year. These included launching its private funds management business, updating incentive programs for its teams and operating partners, and continuing to roll out its Welltower Business System to improve execution. He also pointed to the launch of the Tech Quad initiative, which is aimed at building stronger technology capabilities and helping the company operate more efficiently.
Investment activity remained a major focus. Mitra said Welltower completed nearly $11 billion in net investments, with most of the capital directed toward senior housing in high-growth markets. He added that the company funded much of this activity through the $7.2 billion sale of its outpatient medical business, allowing it to concentrate more on senior housing, where it sees the strongest long-term opportunity.
He added that the company entered 2026 with strong momentum. In just the first six weeks of the year, Welltower had already completed or put under contract $5.7 billion in acquisitions, with another $2.5 billion in potential deals in the pipeline. According to Mitra, the company continues to see steady investment opportunities and remains well-positioned to keep growing.
Welltower Inc. (NYSE:WELL) is a healthcare real estate company focused on senior housing and wellness communities across the United States, the United Kingdom, and Canada. Its portfolio includes more than 2,000 properties, primarily serving older adults through housing and care-focused environments.
4. Crown Castle Inc. (NYSE:CCI)
Number of Hedge Fund Holders: 56
On February 17, Barclays analyst Brendan Lynch lowered his price recommendation on Crown Castle Inc. (NYSE:CCI) to $91 from $101. The analyst reiterated an Equal Weight rating on the stock. The update came after the company’s latest earnings report, as the firm adjusted its financial model to reflect the new results and outlook.
During the company’s Q4 2025 earnings call, CEO Christian Hillabrant said Crown Castle delivered full-year results that came in above the midpoint of its guidance across key financial metrics. He said this reflected the company’s ongoing efforts to improve operational execution and run its business more efficiently.
Hillabrant also said the company is in the middle of a major transition aimed at strengthening its long-term position and creating more value for shareholders. He explained that Crown Castle is taking steps to streamline its business and simplify its structure as part of a broader strategic shift. A key part of that plan is the sale of its small cell and fiber businesses, which the company expects to complete in the first half of 2026. Hillabrant noted that roughly 60% of Crown Castle’s workforce is expected to move with those assets. He said this reflects the company’s decision to focus more heavily on its core tower business and operate as a pure-play U.S. tower company.
He also addressed the company’s situation with DISH, confirming that Crown Castle exercised its right to terminate the agreement after DISH failed to meet its payment obligations. Hillabrant said the company is now pursuing recovery of more than $3.5 billion in unpaid amounts tied to that contract.
Crown Castle Inc. (NYSE:CCI) owns and operates more than 40,000 cell towers and about 90,000 route miles of fiber across the United States. Its core business involves leasing space on its communications infrastructure to wireless carriers and other customers under long-term agreements.
3. CoStar Group, Inc. (NASDAQ:CSGP)
Number of Hedge Fund Holders: 57
On February 20, Jefferies upgraded CoStar Group, Inc. (NASDAQ:CSGP) to Buy from Hold. It set a new price target of $67, down from $84. The firm said ongoing investor debate around Homes.com has created what it sees as a compelling entry point for the stock. The analyst also noted that the presence of activists “simply heightens” CoStar’s focus, suggesting increased pressure could help drive execution. Jefferies pointed out that the stock has largely moved sideways over the past five years, as the company went through its biggest investment phase to build out a new business. Looking ahead, the firm expects strong long-term growth, projecting that CoStar’s adjusted EBITDA could triple to $2.4B by 2030, with margins expanding to 36%.
On February 18, CoStar also released a new forecast showing that its outlook for the US retail market remains largely unchanged through 2026. The company said retail vacancy, which was previously expected to peak just below 4.4%, is still projected to rise slightly in early 2026 before gradually declining later in the year and into 2027.
At the same time, store closures, while slowing overall, are still expected to increase in the first half of 2026. The company noted that uneven retail sales trends are pushing some tenants to reduce their store footprint. Full-year net absorption is projected to come in at just over 16 million square feet, which would mark the third weakest year for retail space demand in the past decade, ahead of only 2020 and 2025.
CoStar Group, Inc. (NASDAQ:CSGP) is a global leader in commercial real estate information, analytics, and online marketplaces. Founded in 1986, the company focuses on digitizing real estate data and providing tools that help businesses and individuals make better property decisions.
2. Equinix, Inc. (NASDAQ:EQIX)
Number of Hedge Fund Holders: 58
On February 12, BMO Capital raised its price recommendation on Equinix, Inc. (NASDAQ:EQIX) to $1,050 from $925. It maintained an Outperform rating on the stock. The firm said its updated view reflected stronger-than-expected 2026 guidance. The analyst pointed to accelerating momentum across the business. Demand remained strong, with bookings growth reaching 42%. Cabinet additions also stayed healthy, reinforcing confidence in the company’s outlook.
A day earlier, on February 11, Equinix projected full-year revenue above market estimates. The forecast reflected rising demand tied to artificial intelligence, which has increased the need for data center capacity. Shares rose more than 6% in extended trading following the announcement. Companies continue to invest heavily in generative AI, and the trend has increased demand for specialized data centers, which has directly benefited Equinix.
For 2026, the company expects revenue between $10.12 billion and $10.22 billion. This came in above estimates of $10.07 billion, according to LSEG data. Equinix also expects first-quarter revenue between $2.50 billion and $2.54 billion, ahead of estimates of $2.46 billion. The company has continued expanding its footprint. It invested in new data centers in growing markets such as Chennai, India, and Jakarta, Indonesia, aiming to meet rising demand.
In the fourth quarter, Equinix reported revenue of $2.42 billion, slightly below estimates of $2.46 billion. The company said results were modestly affected by the timing of a leasing transaction tied to one of its sites. That transaction is now expected to close in early 2026.
Equinix, Inc. (NASDAQ:EQIX) operates as a digital infrastructure company. Its platform includes International Business Exchange (IBX) and xScale data centers across the Americas, Asia-Pacific, and Europe, the Middle East, and Africa. It also provides interconnection services, digital solutions, and consulting and support to help businesses connect and scale their operations.
1. Prologis, Inc. (NYSE:PLD)
Number of Hedge Fund Holders: 59
On February 2, RBC Capital analyst Michael Carroll raised his price recommendation on Prologis, Inc. (NYSE:PLD) to $135 from $132. The analyst reiterated a Sector Perform rating, following the company’s fourth-quarter FFO beat. He said the overall results and outlook were mostly in line with expectations, but management’s tone was encouraging. In particular, he noted growing confidence in improving market conditions and the company’s ability to continue expanding its private capital business.
According to a February 4 report by The Wall Street Journal, Prologis has been in early discussions with investors about launching a new co-investment fund focused on data centers. If it moves forward, it would mark the company’s first investment vehicle targeting a sector outside its core logistics business. CFO Tim Arndt said investor interest has been stronger than expected, noting that “The interest is very real, and probably beyond our expectations.” He added that the company expects to decide in the coming months whether to proceed and what the structure of the fund might look like.
Prologis has already been building data centers for several years, but recently it has stepped up those efforts by hiring additional staff and investing in equipment to support expansion. A new co-investment vehicle could give the company another source of capital to accelerate growth in that segment. For 2026, Prologis expects to start between $4 billion and $5 billion in new development projects, with data centers making up around 40% of that total. By comparison, the company launched about $3 billion in new developments last year, with data centers accounting for only about 10%. As of the end of 2025, Prologis co-owned roughly $34 billion in real estate through its asset management platform, while wholly owning another $128 billion in properties.
Prologis, Inc. (NYSE:PLD) is a global real estate company focused on logistics and industrial properties. It operates through two main segments: Real Estate, which includes rental operations and development, and Strategic Capital, which manages investment partnerships and co-investment vehicles.
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