W
e recently compiled a list of the top high-growth real estate stocks that are profitable in 2024, and Prologis, Inc. (NYSE:PLD) stands out as one of the leaders. In this article, we'll examine how PLD compares to other high-growth real estate stocks.

    The US real estate sector is currently facing challenges, including a recent surge in mortgage rates. According to the Mortgage Bankers Association, the average contract rate on a 30-year fixed-rate mortgage rose by 22 basis points in the week ended October 4, marking the highest weekly increase in over a year. This has led to a decline in refinance applications and flat purchase applications.

    Despite these challenges, many homebuyers are returning to the market due to the Fed's rate cuts. Glenn Kelman, Redfin CEO, believes that while the rate cut may not have a significant impact this season, it will help homebuyers in 2025. However, he notes that low inventory remains a major long-term problem for the market.

    Natural disasters such as hurricanes are also impacting US real estate, particularly in Florida. Eddie Shapiro, Nest Seekers International president and CEO, believes that Florida is a resilient market and that rebuilding efforts will be swift.

    To compile our list of high-growth real estate stocks, we started with 30 companies with the largest market caps in the sector. We then screened out those with positive net income over the last 12 months and a 5-year net income CAGR higher than 10%. Finally, we ranked the remaining companies by their hedge fund ownership as of Q2 2024.

    Prologis, Inc. (NYSE:PLD) is a global leader in logistics real estate, leasing modern facilities to over 6,700 customers across various categories. With a legacy spanning over 40 years, PLD has created an unmatched portfolio of high-quality logistics real estate worldwide.

    As a leading company, Prologis has a global scale and expertise, with a portfolio totaling approximately 1.2 billion square feet in 19 countries as of June 30. The firm's distribution centers handle 2.8% of the global GDP annually, solidifying its position as a top global company.

    In the fiscal second quarter, PLD reported Core FFO per diluted share of $1.34 and leased 52 million square feet in its portfolio. Despite subdued customer demand, the firm benefits from the embedded NOI potential of its premier global portfolio and is capitalizing on growth prospects in data centers and energy.

    With a solid market cap of $110.04 billion and held by 56 hedge funds as of Q2, Prologis, Inc. (NYSE:PLD) ranks first on our list of high-growth real estate stocks that are profitable in 2024. However, we believe some undervalued AI stocks hold greater promise for delivering higher returns within a shorter timeframe.