W
e recently analyzed the performance of Prologis, Inc. (NYSE:PLD) against other profitable real estate stocks. The recent Fed rate cut has made buying a home more affordable for the first time since 2020, with homebuyers needing to earn $115,000 to afford the typical home. However, Senior Economist Elijah de la Campa believes this won't lead to cheaper housing in the near future due to already priced-in mortgage rates.
The decline in mortgage rates has led to a surge in refinancings, with mortgage applications reaching their highest levels since July 2022. According to the Mortgage Bankers Association, applications to refinance or purchase a home increased 11% week-over-week, while refinancing applications climbed 20%. This marks the second consecutive week of double-digit gains.
Our methodology for identifying profitable real estate stocks involves screening companies with positive net income and growth over the past five years. We ranked shortlisted companies in ascending order of their hedge fund holdings as of Q2 2024. Prologis, Inc. (NYSE:PLD) ranks second among the 13 most profitable real estate stocks now.
As a global leader in logistics real estate, Prologis focuses on high-barrier, high-growth markets and leases modern logistics facilities to over 6,700 customers worldwide. The company has built its legacy through acquisitions, development, and maintenance of high-quality logistics real estate globally. With an irreplaceable portfolio of over 1.2 billion square feet in the world's most vibrant commerce centers, Prologis is a preferred partner for top retail, e-commerce, and logistics companies.
The REIT leased 52 million square feet in its portfolio during the second quarter, representing a 27% increase over the first quarter. While customer demand was subdued, it is improving and expected to continue improving, which is a positive omen for Prologis. The company also sees future growth opportunities in data centers and energy.
Prologis maintains one of the largest global portfolios of logistics real estate and an industry-leading position. As of Q2, the stock is held by 56 hedge funds, ranking it second among our list of most profitable real estate stocks now.
