What Prologis actually does

Prologis is the world’s largest owner of industrial real estate: warehouses and distribution centers near ports, airports and big cities. Its tenants include retailers, e-commerce companies and logistics firms that need space to store and move goods quickly.

How the business makes money

It collects rent under leases that typically include scheduled increases. When demand for space is high and little new space is available, it can raise rents on renewal. It also develops new buildings and runs funds that invest alongside outside investors.

The dividend story

As a REIT, Prologis distributes most of its taxable income. It pays quarterly and has raised its dividend most years since 2012. The yield is moderate compared with other REITs, reflecting its growth focus.

What to keep an eye on

  • Interest rates. They affect borrowing costs and REIT valuations.
  • Supply. New warehouses can pull rents down.
  • Trade and consumer demand. Less shipping means less space needed.
  • Tenant concentration. Large customers matter.

Quick take

Prologis is a high-quality logistics REIT that benefits from e-commerce, with interest rates as the main sensitivity.