Why Prologis, Inc. (PLD) Is a Top REIT Dividend Stock for 2024

As the global leader in logistics real estate, Prologis, Inc. (PLD) has consistently demonstrated its ability to generate strong returns and distribute attractive dividends to shareholders. With a focus on high-barrier, high-growth markets, Prologis has built a robust portfolio of modern logistics facilities that cater to the increasing demand from business-to-business and retail/online fulfillment customers. This article explores why Prologis is among the best REIT dividend stocks to buy for 2024.

Prologis' strategic focus on logistics real estate has enabled it to capitalize on the growing need for modern, efficient facilities that support the e-commerce boom and supply chain optimization. As of September 30, 2024, the company owned or had investments in approximately 1.2 billion square feet (116 million square meters) of properties in 20 countries, leased to around 6,700 customers. This diverse customer base and extensive global footprint contribute to Prologis' stable cash flows and dividend growth.



Prologis' dividend growth history and payout ratio are key factors that make it an attractive REIT dividend stock. The company has maintained a consistent dividend growth streak for over 16 years, with a quarterly dividend of $0.96 per share in 2024, representing a 10.3% increase from the previous year. Prologis' current dividend yield is 3.35%, which is higher than the sector average of 3.155%. The company's payout ratio is not disclosed, indicating that it may be retaining a significant portion of its earnings for reinvestment, which could drive future growth and further enhance its dividend-paying capabilities.



Prologis' strong financial position and manageable leverage support its dividend sustainability. As of Q3 2024, the company's debt-to-EBITDA ratio was 5.1x, indicating manageable leverage. Additionally, Prologis had approximately $6.6 billion in available liquidity, providing a safety net for dividend payments. The company's projected earnings for 2024, 2025, and 2026 are largely safeguarded, with 99%, 99%, and 98% expected in USD or secured through hedging via derivative contracts. Furthermore, 96.2% of the company's equity is denominated in USD, reducing currency risk.

Prologis' diverse customer base and lease structure contribute to the stability and growth of its dividend payouts. As of Q3 2024, Prologis leased to approximately 6,700 customers, providing a broad revenue base. Additionally, its lease structure, with an average lease term of 7.4 years, offers a steady cash flow stream, supporting consistent dividend distributions. Prologis' ability to maintain a high occupancy rate, currently at 97.5%, further enhances its dividend sustainability.

In conclusion, Prologis, Inc. (PLD) is a top REIT dividend stock to consider for 2024. Its strategic focus on logistics real estate, strong dividend growth history, attractive payout ratio, and robust financial position make it an appealing choice for income-focused investors. As the global leader in logistics real estate, Prologis is well-positioned to continue generating strong returns and distributing attractive dividends to shareholders in the coming years.