The Most Overhyped REIT In The World

Prologis, Inc. (NYSE:PLD) is engaged in the ownership, acquisition, development, management of logistics properties in the world's primary population centers. The company has a massive portfolio that is comprised of over 684 million square feet, 3,319 buildings, and over 5,200 customers.

Summary

  • "Don’t get me wrong, for saying it is overhyped is not a criticism of the company." Eric Parnell.
  • I consider the term more of a validation that the business model is working.
  • For those lucky investors who own Prologis today, congratulations!

A few days ago, my friend and Seeking Alpha contributor Eric Parnell wrote an article called “The Most Overhyped Company In The World”. As usual, Parnell wrote a thought-provoking piece in which he did a fine job articulating the reasons to own (or not own) shares in Amazon (NASDAQ:AMZN). He explained:

“Don’t get me wrong, for saying it is overhyped is not a criticism of the company. As mentioned at the beginning of my story, I love Amazon.com. I use their website regularly to buy products, I watch a bunch of their original programming as well as rent shows and movies, and I have owned a handful of Kindles over the years since their introduction changed book reading as we know it.
It is a great company that in my view has done a service to consumers across America in lowering prices and forcing long complacent bricks and mortar retailers to up their game by lowering prices, improving the shopping experience and becoming more innovative in serving their customers.”

He added:

“Put simply, they succeed. A lot…Instead, it is a commentary on those analysts and investors that opine about the stock and the impact of what the company may be doing at any given point in time might have on any number of industries across the business landscape. Good company. Great performing stock in recent years. But way too much hype nowadays.”

I agree with most of Parnell’s thesis, I also love Amazon, and I rely on it every day for book sales and to purchase books, including a recent paperback I purchased, Be My Guest by Conrad Hilton.

As I read over the 400+ comments on Parnell’s article, I began thinking to myself, “what is the most overhyped REIT in the world?”

To answer that question, I decided I would write an article along the same lines as Parnell. In other words, the use of the term “overhyped” is not a criticism of the REIT, but instead I consider the term more of a validation that the business model is working, and that I would like to own the stock, as soon as Mr. Market signals that the beauty pageant is over.

Prologis is a Global Leader on Logistics

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