The demand for warehouse space and speedy supply chain logistics has increased significantly due to the fast pace of e-commerce adoption and the race for a more efficient supply chain by large retail companies. It was reported that e-commerce requires three times more logistics space than brick and mortar retail stores.
PLD is properly positioned to benefit from these developments because of its 1.2 billion square foot real estate portfolio and the irresistible supply chain solution the company provides. This strong demand will be the tail wind for PLD rent pricing power and low vacancy.
Here is why i am bullish Rent revenue: in real estate, location is king. PLD property bank is located in attractive places, so its upside potential is high which will drive revenue growth.
Development revenue: The company land bank is being utilized for fresh projects which has potential to support the development of $39 billion of new logistics space.
Customer base: The company has invested in premium locations easily accessible from urban areas and sea ports, hence the patronage from top brands like amazon, home depot, fedex, ups, walmart, pepsi etc.
Ai deployment: Prologis ventures has focused its investments in innovative technologies to solve problems relating to sustainability, construction and ESG. Prologis is using Testfit’s real estate software to help identify new warehouse sites. This software provides insight into design, constructability and costs in early-stage site planning. "Innovation and staying ahead of what's next has been fundamental to our company’s forty-year success,” said Will O’Donnell, managing director, Prologis Ventures. “TestFit is a perfect example of how we continually invest in new technologies such as AI, that empower our employees.”
Bullish XABCD Pattern
Technical indicators Price is already stretching the lower Bollinger band, so a rapid reversal is imminent. The oversold stochastics is also backing the bullish signal from Bollinger band.
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