Prologis (PLD) Slid Due to a Slower Leasing Environment

Baron Funds, an investment management company, released its “Baron Real Estate Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund rose 3.61% (Institutional Shares) in the quarter compared to a 1.46% decline for the MSCI US REIT Index (the REIT Index) and a 6.13% gain for the MSCI USA IMI Extended Real Estate Index (the MSCI Real Estate Index). In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as Prologis, Inc. (NYSE:PLD). Prologis, Inc. (NYSE:PLD) is a global leader in logistics real estate. The one-month return of Prologis, Inc. (NYSE:PLD) was -2.88%, and its shares lost 15.38% of their value over the last 52 weeks. On August 1, 2025, Prologis, Inc. (NYSE:PLD) stock closed at $104.91 per share, with a market capitalization of $97.363 billion.

Baron Real Estate Fund stated the following regarding Prologis, Inc. (NYSE:PLD) in its second quarter 2025 investor letter:

“The shares of Prologis, Inc. (NYSE:PLD), a best-in-class industrial REIT, underperformed in the second quarter due to a somewhat slower leasing environment (following a robust first quarter) as many companies paused lease decision making while awaiting more clarity on global tariffs and trade policies. Our sense is that leasing activity has still improved from the beginning of the year and that significant pent-up demand could be unleashed as business confidence improves.

We recently had the pleasure of hosting CEO Hamid Moghadam for a meeting in our office, and we were left with the following takeaways: 1. A reminder that Prologis benefits from a high-quality real estate portfolio, an unmatched global platform, strong competitive advantages (scale, data, and technology), and an exceptional management team….” (Click here to read the full text)

How Prologis' Consistent Dividends Continue to Attract Income Investors

A large logistic facility within the industrial real estate sector.

Prologis, Inc. (NYSE:PLD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Prologis, Inc. (NYSE:PLD) at the end of the first quarter which was 55 in the previous quarter. While we acknowledge the risk and potential of Prologis, Inc. (NYSE:PLD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PROLOGIS, INC. (NYSE:PLD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Prologis, Inc. (NYSE:PLD) and shared the list of top stock picks from Goldman Sachs REIT Stocks. Baron Real Estate Fund re-established its position in Prologis, Inc. (NYSE:PLD) during Q1 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.