Prologis Successfully Raises Equity

Citigroup has published a research report on Prologis

following the company's successful equity raise which has resulted in Citigroup maintaining its Buy rating. In the report, Citigroup writes "Between the ~$1bn successful equity raise, the $1bn sale of assets to Blackstone, the planned exit from non-industrial assets, a ramp in new development, and a right-sized dividend, mgmt has continued to re-focus PLD to be a stronger, better capitalized firm with a higher quality portfolio. Industrial fundamentals continue to firm up, with the second consecutive quarter of positive net absorption and growing demand for build-to-suit development as global trade and inventories continue to climb back. With current valuation at a ~7.7% implied cap rate (REITs at 6.4%) and double digit core earnings growth over the next several years, we continue to view this as an enhanced buying opportunity." Citigroup has also maintained its $14 price target. Prologis closed yesterday at $12.63.