Prologis: AI Creates An Opportunity, But The Price Is High

Prologis, Inc. remains a core holding, but I maintain a Hold rating due to valuation concerns after a 43% total return since my last Strong Buy. PLD delivered impressive Q2 results, with Core FFO per share up nearly 12% and strong diversification across customers and geographies. I’m enthusiastic about PLD’s data center and power pipeline initiatives, targeting 7.5%-10% yields and leveraging its logistics platform for new growth. Despite PLD’s leadership and dividend growth, a forward P/FFO above 24x and limited upside make current risk/reward unattractive for adding shares.

I've covered Prologis, Inc. (PLD) several times on Seeking Alpha. I published my last bullish article a year ago. I declared PLD a Strong Buy. And since then, I've watched it outperform the broad market.

I'm Cash Flow Venue and I've been investing for years trying to build my dividend portfolio. I like dividends doing the work for me, but I also have a separate growth portfolio.I'm an M&A Advisor, which means that I advise people and businesses on selling (but sometimes buying) their businesses.I usually work on some financial models, due dilligence, and negotiations. Oh, yes - and I have to attend too many meetings :) Wha'ts my industry focus? I invest in technology, real estate, software, finance, and consumer staples. I've spent years advising clients from these industries. That's why I pay the closest attention to these sectors when investing and writing.I started writing on Seeking Alpha to learn and share ideas. Dividend investing has played a big role in my financial journey. I believe it’s one of the simplest and most accessible ways to work toward financial freedom. By sharing what I learn, I hope to make the process feel less complicated for anyone building long-term wealth. In the end, the goal is simple: move closer to financial freedom through dividend investing.