Prologis is a global industrial REIT that owns and manages space for warehouses, manufacturing, distribution, and large-scale storage. PLD has become the world's largest industrial REIT by focusing on business-to-business fulfillment and e-commerce. As of the end of 1H24, the company's portfolio includes 5,576 buildings with 1.2 billion square feet of space. The REIT has a presence in 19 countries on four continents with about 70% of the portfolio is in the U.S, 20% in Europe, 6% in South America, and 5% in Asia. About 86% of current NOI comes from North American assets. The company's top tenants are Amazon, Home Depot, and FedEx, with Amazon accounting for about 5% of net effective rent. PLD partners with other companies in joint ventures to reduce risk, and its ownership share of total square footage is about 65%. About one-fifth of properties currently have at least 500,000 square feet of space. The REIT has a co-investment program labeled Strategic Capital that creates venture opportunities for institutional capital partners. PLD has faced pressure from an oversupply of warehouse space due to slowing sales at online retailers. In response, the company has focused on customized facilities. In early 2023, all new development projects were customized, 99% of total units were leased or in negotiations, and joint venture promote income was a key driver of earnings growth. As of 1Q24, about 43% of new developments were built to suit. Management estimates that the weighted-average stabilized yield of new assets was about 6.3% in 2023. The company has about 2,500 employees and a market cap of $115 billion. It is a member of the S&P 500.

We've highlighted cautious insider-sentiment for several months now, but also noted that selling by insiders into a consistently rising market is not unusual. So while 'caution' has been our word of choice, we haven't called for a major equity correction. More recently, volatility has spiked in the form of rotation from semiconductors to almost anything else, a belief that the Fed will indeed cut rates in September, the attempted assassination of Donald Trump, a massive IT breakdown that crippled many global entities, and the suspension of Joe Biden's presidential campaign. There are indeed many reasons to feel some uncertainty -- and in keeping with that, the weekly insider-sentiment data from Vickers Stock Research has pushed deeply into bearish territory. But one week is not a trend, and the current data is built on low transaction volume because of trading restrictions during earnings season. So while we're still not ready to ring any alarms -- and might even call any reset in stocks prices healthy for the long term -- we'll continue to monitor the trading activity of corporate insiders to see if this one-week spike shows signs of growing. On a sector basis, selling by insiders last week was greatest in Information Technology, with shares valued at $335 million sold versus less than $9 million bought, followed by Financials ($73 million sold). Meanwhile, buying outpaced selling in Energy and Real Estate. This week, analysts at Vickers highlighted insider transactions of interest at Morgan Stanley (NYSE: MS) and AutoNation Inc. (NYSE: AN

Prologis was formed by the June 2011 merger of AMB Property and Prologis Trust. The company develops, acquires, and operates around 1.2 billion square feet of high-quality industrial and logistics facilities across the globe. The company also has a strategic capital business segment that has around $60 billion of third-party AUM. The company is organized into four global divisions (Americas, Europe, Asia, and other Americas) and operates as a real estate investment trust.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.