My growth-oriented pick entering 2026 is Prologis Inc. (PLD), the global leader in logistics real estate. With roughly 1.3 billion square feet of warehouses in high-barrier, high-growth markets worldwide, Prologis sits at the center of the global movement of goods and functions as essential infrastructure, highlights Nikolaos Sismanis, analyst at Sure Retirement.
What makes Prologis compelling today is that its growth is driven more by structural forces than by the economic cycle. Even after the post-pandemic normalization, the company consistently notes healthy demand for well-located logistics space as customers hold more inventory, shorten delivery times, and reconfigure supply chains around geopolitical risk.
At the same time, new supply is moderating as financing and construction costs remain elevated. Because of that combination of durable demand and constrained supply, I believe that a scaled, low-cost leader like Prologis is poised to continue to shine.
You can easily see these trends in Prologis’ operating metrics. Occupancy across the global portfolio has held in the mid-90s, while cash same-store NOI continues to grow at a mid-single-digit pace. Cash rent spreads on new and renewed leases remain exceptionally strong, around 30%, as legacy leases roll up to current market rates.
Prologis’ balance sheet also more looks more like an investment-grade corporation versus a typical Real Estate Investment Trust. Net debt to EBITDA is around 5x, backed by over $7 billion of available liquidity, and its weighted average interest rate is just above 3%. Debt maturities are laddered out over roughly eight to nine years.
The income component is also attractive for a growth name. At a recent price of around $128 per share, Prologis yielded roughly 3.2%. Moreover, note that Prologis has raised its dividend for 11 consecutive years, while its payout ratio stands at about 70%. Along with its robust balance sheet and development pipeline, Prologis should be able to keep growing its FFO and dividend for years to come.
Recommended Action: Buy PLD.
