It has been a long time since I post. While O (reality income) was being collected, O's stock price rose sharply, which made the purchase a little burdensome. It is good to collect them as high dividend stocks, but I would like to post because I think that a comparison with the second place in the real estate industry is necessary while I thought that I should collect AMT because I had to take into account the dividend growth.
There is a difference in that AMT mainly leases communication towers, while PLD (Prologis) operates commercial REITs. And I think it is good to take the first and second place at the same time as it is around 10% due to the difference in market capitalization.
-About Company
ProLogis is a real estate trust holding company that invests in logistics facilities around the world. The company was founded in 1983 and is headquartered in San Francisco, California, with 1,600 employees. In order to facilitate the distribution of products produced around the world, it has established partnerships with companies with the world's top brands, and is operating a business that constructs, leases, and operates distribution spaces. Currently, it owns 3,307 buildings and 900 million square feet of logistics and distribution space in 19 countries on four continents, or invests through real estate and development plans through joint ventures. The company is a partner of PLD and is also investing in logistics facilities that support airport, port, rail and highway systems around the world. The sales share is 88% in the real estate sector and 11% in the capital operation sector.
Certainly, you can see that it is a completely different type of rental from other real estate REITs. And as other companies grow, the demand increases. If there is an economic crisis or the business is not open, more space is needed because inventory is accumulated. If the business goes well, it will produce more products and will need more space next year. Therefore, there is always a need for a place to store logistics.
The industry share is about 27% (as of the fourth quarter of 2020). Compared with competitors in the distribution center, it is competing with Simon Property Group (SPG). For reference, AMT's market share in the communication tower industry is about 50%.
-Stock chart
Over the past five years, PLD shares have exceeded the market rate of return.
Blue (AMT) and red (PLD) have been on a similar trend for 10 years, while O has not recovered its full high since the corona and the rate of increase has been slow, and is currently falling. However, the growth rate was similar until the coronavirus. We are seeing that the first and second place in the industry are beating for granted in their ability to cope with crises.
-Financial Statements
Market Cap: 94,666.1 billion won
Odds rate: 2.2%
If you compare it with AMT, it is definitely ahead in terms of operating margin.
Although it is a REIT stock, its dividend payout ratio does not exceed 100% of net profit. Even though Ritz stocks usually have a high dividend payout due to corporate tax cuts. For reference, AMT's dividend to net profit ratio exceeds 100%. Therefore, it can be said that the company's ability to secure cash is better than AMT because it is ahead of its dividend payout ratio.
-Dividend details
Overall dividend rating: ProLogis pays a dividend of $2.52 per share per year and currently shows a dividend yield of 2.20%. ProLogis has not yet had a clear record of increasing dividends. ProLogis' odds are 76.13%. ProLogis' dividend rate is expected to reach 65.80% next year based on earnings estimates. This means that Prologis can continue or increase its dividend.
It is maintained at less than 3% due to the share price increase. Since it did not rise during the coronavirus, the dividend rate is expected to decrease further because there is room for upside in the future.
-conclusion
1. Dividend payout ratio itself is safer than AMT due to its low dividend growth rate.
2. The same dividend rate as AMT, but since the rental business itself is different, it is taken at the same weight in terms of dispersion.
3. Both AMT and PLD will show similar share price growth in SPY, but it's a better choice in terms of dividends, so let's become a US real estate owner (building owner)!
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