Is Prologis (PLD) a High Growth Stock?
Baron Funds, an investment management company, released its “Baron Real Estate Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund rose 6.17% (Institutional Shares) compared to a 4.90% return for the MSCI US REIT Index (the “REIT Index”) and an 8.71% return for the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”). For 2022, the fund declined 28.44% compared to a 23.84% decline for the MSCI Real Estate Index and a 25.37% decline for the REIT Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Funds highlighted stocks like Prologis, Inc. (NYSE:PLD) in the Q4 2022 investor letter. Prologis, Inc. (NYSE:PLD) is a logistics real estate company. On January 31, 2023, Prologis, Inc. (NYSE:PLD) stock closed at $129.28 per share. One-month return of Prologis, Inc. (NYSE:PLD) was 10.53%, and its shares lost 17.83% of their value over the last 52 weeks. Prologis, Inc. (NYSE:PLD) has a market capitalization of $119.336 billion.
Baron Funds made the following comment about Prologis, Inc. (NYSE:PLD) in its Q4 2022 investor letter:
“Following strong quarterly results, the shares of Prologis, Inc. (NYSE:PLD), the world’s largest industrial REIT, performed well in the fourth quarter of 2022. The company owns a high-quality real estate portfolio that is concentrated in major global trade markets and large population centers across the Americas, Europe, and Asia. Prologis has an unmatched global platform, strong competitive advantages (scale, data, and technology), and attractive embedded growth prospects. The company is the only industrial REIT with an ‘A’ credit rating.
Following a roughly 33% decline in its shares in 2022, we believe Prologis’ current valuation of only 22 times cash flow and a 4.6% implied capitalization rate is compelling given that the company’s rents on its in-place leases are more than 65% below current market rents, thus providing a strong runway for growth in the next three to five years.”
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Prologis, Inc. (NYSE:PLD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held Prologis, Inc. (NYSE:PLD)at the end of the third quarter, which was 49 in the previous quarter.
We discussed Prologis, Inc. (NYSE:PLD) in another article and shared the list of best stocks in each sector. In addition, please check out our hedge fund investor letters Q4 2022 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.
