5 Best Real Estate Stocks To Buy Now

2. Prologis, Inc. (NYSE:PLD)

Number of Hedge Fund Holders: 49

Prologis, Inc. (NYSE:PLD) is a California-based corporation that owns and leases warehouses that become a platform for providing logistics solutions. The company owns the biggest collection of logistics real estate in the world.

In a research note issued on August 24, Blaine Heck at Wolfe Research upgraded Prologis, Inc. (NYSE:PLD) stock from a Peer Perform to an Outperform rating and gave it a target price of $200. The analyst revised his rating after incorporating the estimates for 2024 into his financial model. Heck has based the target price on the assumption that there will be a recession in late 2022, but Prologis, Inc. (NYSE:PLD) will continue to see its bottom line expand as it has a growth trajectory better than the industry outlook. Prologis, Inc. (NYSE:PLD) offers an annual forward dividend yield of 2.91% as of September 26.

Baron Funds shared its outlook on Prologis, Inc. (NYSE:PLD) in its Q2 2022 investor letter. Here’s what the firm said:

“In the second quarter, the shares of Prologis, Inc., the world’s largest industrial REIT, declined 29% as its valuation was reset for the higher interest rate environment and the possibility of still strong but perhaps moderating rent growth. On the other hand, the shares of Duke Realty Corporation, a $25 billion industrial REIT, declined only 7% in the second quarter, in large part because the company agreed to merge with Prologis at a 30% premium. We acquired additional shares in both companies in the most recent quarter. We are optimistic about the prospects for the combined Prologis/Duke Realty entity. Prologis is merging with its largest REIT competitor in Duke Realty. Duke’s industrial portfolio is among the best in industrial real estate. The company has an excellent track record in development and construction. We believe the merger has strategic and financial merits including acquiring a high-quality portfolio in mostly similar or attractive real estate markets and the likelihood of realizing both additional revenue and cost savings. We will have more to say on Prologis/Duke Realty in future shareholder letters.”