2 stocks will be more than Prologis in 10 years from now

Proges (NYSE: PLD) It's one giant Real Estate Investment Trust (REIT) department. This is the world's largest real estate trust fund with a market value of over $100 billion. The global leader in logistics real estate has over $200 billion in managed assets, with a 5,900 building interest in 1.3 billion square feet of space in 20 countries. Its warehouse property is essential to support global trade and e-commerce.

And Prologis is the leader Real Estate Investment Trust Nowfrom now on, it may not be considered the crown for ten years. Two REITs may be More value than the 2035 Prologis quinix (NASDAQ:EQIX) and Real estate income (NYSE:O). This is the reason They may be larger than Prologis over the next 10 years.

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Equinix is ​​already one of the world's largest real estate investment trusts Market value Nearly $85 billion. This is the leader Data Center REIT With 270 data centers in 35 countries.

The company's data center Crucial for support Increase digitalization as they provide backbone infrastructure cloud computing and artificial intelligence (AI) applications. The demand for data center capacity is strong and growing. According to McKinsey's estimates, the world will need to invest a staggering $5.2 trillion to build data centers that can handle AI processing loads by 2030, and another $1.5 trillion to support non-AI-AI applications.

This allows Equinix to expand its global data center portfolio. The company currently has 56 major projects in 24 countries. It may build more facilities in the coming years. The demand for data centers is so powerful that even Prologis has been used by using some available land Selectively develop data centers.

Real estate income Current clock In eight countries, the world's seventh largest REIT has $59 billion in real estate assets. It owns over 15,600 properties and its 342 million square feet of space has been rented to nearly 1,600 customers. These properties span sectors in retail (79.9% of its base rent), industrial (14.4%), gaming (3.2%) and other (2.5%). It focuses on investing in long-term protected property Net lease.

Over the years, the company completed the investment portfolio of net leased properties from other investors by acquiring other net leased real estate investment trusts. Leasing transaction for sale Invest in development projects with owners and operators. It spends billions of dollars a year to grow its portfolio. For example, last year, it invested $3.9 billion in real estate acquisitions and acquired REIT Spirit Realty in a $9.3 billion deal.

Over the years, real estate revenues have steadily diversified their portfolios, opening the door to new growth markets. For example, it entered the U.S. industrial market in 2011 that is Now is a $2 trillion investment opportunity. It also expands to Europe ($85 trillion in addressable market), U.S. casino properties ($400 billion) and U.S. data centers ($500 billion). Coupled with its core U.S. retail platform, REITs have a total of $14 trillion in addressable market opportunities.

The company also enhanced its development capabilities by creating a private capital investment fund platform, removing a page from Prologis' script. The strategy will enable IT to take advantage of the $18.8 trillion U.S. private real estate market (10 times the public real estate investment trust market). It is working to launch its first fund (US Core Plus Fund), which will allow it to acquire more properties in the future while earning incremental management fee income.

Preface: Growing into The world's largest real estate investment trust fund by building a leading global logistics real estate portfolio. It enhances its growth by developing data centers and launching private funds.

The company still has a lot of growth. But given the growth potential of competitors Equinix and Realty's revenue, it may not be the largest REIT in a decade. Both can knock Prolonis out in the next 10 years. Growth potential allows them to buy and hold strong real estate investment trusts for a long time.

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Matt Dilallo has positions in Equinix, Prologis and Realty income. Motley fool has a place and recommends Equinix, Prologis and Realty revenue. Motley Fool recommends the following options: Long-term January 2026, Prologis’ $90 call. Motley Fool has a disclosure policy.

Forecast: 2 stocks in 10 years were originally published by Motley Fool