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Duke Realty Corp. DRE recently secured a lease with a transportation company for its newest facility in Camp Creek Business Center. This reflects solid demand for the company’s properties as the 239,024-square-foot industrial development on 28.7 acres at 2000 Centre Court in East Point, GA is still under construction.
Reflecting positive sentiments, shares of Duke Realty were marginally up to $61.82 during Wednesday’s trading session.
Duke Realty’s Camp Creek Business Center, a multi-building development with more than five million square feet of space, garners solid interest from tenants in search of modern logistics space in convenient locations. Camp Creek Business Center’s connectivity to I-285 through multiple interchanges and Camp Creek Parkway, and direct access to the cargo area of Hartsfield-Jackson Atlanta International Airport are likely to have attracted the tenants, helping it to achieve 100% leasing.
Duke Realty is also witnessing solid demand for its well-located, modern industrial real estate in Washington, D.C. Recently, this industrial REIT secured a lease deal at TransDulles Centre 22633 for 24,050 square feet of space at 22633 Davis Drive in Sterling, VA, which enabled DRE’s Washington, D.C. portfolio achieve 100% occupancy.
Demand for logistics infrastructure and efficient distribution networks have been shooting up amid the e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, thereby helping the industrial real estate market to prosper.
Apart from the fast adoption of e-commerce, logistics real estate is anticipated to benefit from a likely increase in inventory levels post the global health crisis, offering scope to industrial landlords, including Duke Realty, Prologis PLD, Terreno Realty Corporation TRNO and Rexford Industrial Realty, Inc. REXR to enjoy a favorable market environment.
Given Duke Realty’s solid capacity to offer modern, high-quality logistics facilities, it is well poised to bank on this trend. It is witnessing healthy demand in its markets and leased 9.5 million square feet of space during the September-end quarter. Tenant retention was 71.5% for the reported quarter and 86.2% after considering the immediate backfills.
However, with the asset category being attractive in these challenging times, there is a development boom in several markets, which is likely to fuel competition and curb pricing power.
Duke Realty currently carries a Zacks Rank #3 (Hold). DRE’s shares have gained 21.8%, outperforming its industry’s increase of 3.8% over the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Prologis carries a Zacks Rank of 3 at present. Prologis’ 2021 funds from operations (FFO) per share is expected to increase 8.4% year over year.
The Zacks Consensus Estimate for PLD’s 2021 FFO per share has been revised marginally upward in a month.
Terreno Realty holds a Zacks Rank of 2 (Buy) at present. The 2021 FFO per share for Terreno Realty is expected to increase 19.4% year over year.
The Zacks Consensus Estimate for TRNO’s 2021 FFO per share has been revised marginally upward in two months.
The Zacks Consensus Estimate for Rexford Industrial’s ongoing-year FFO per share has moved 5.2% north to $1.63 over the past two months.
The Zacks Consensus Estimate for Rexford Industrial’s 2021 FFO per share suggests an increase of 23.5% year over year. Currently, REXR carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Prologis, Inc. (PLD): Free Stock Analysis Report
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Terreno Realty Corporation (TRNO): Free Stock Analysis Report
Rexford Industrial Realty, Inc. (REXR): Free Stock Analysis Report
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