Easterly Global Real Estate Fund — Easterly Investment Partners LLC on Prologis, Inc.
Thesis
Prologis owns high-quality global logistics assets with embedded net-operating-income growth from mark-to-market rent increases and a substantial development pipeline. Shares lagged during the quarter because investors remained cautious about near-term logistics demand and the normalization of industrial fundamentals after the unusually strong post-pandemic period. Easterly nevertheless considers the company's long-term growth profile attractive.
“While the company's long-term growth profile remains attractive, expectations for industrial fundamentals continued to normalize following the unusually strong post-pandemic period.”
Key risks
- Near-term weakness in logistics demand
- Further normalization of industrial real estate fundamentals