Revealed: Brad Thomas’ “Amazons Secret Royalty Program”

Brad Thomas of Intelligent Income Investor is out with a new stock teaser.

This time he claims you can make $28,544 per year from Amazon.

Sounds interesting!

The good news is that Brad left enough clues in this presentation to figure out the name of the stock, and I reveal it in the video below

Additionally, I'll tell you whether the stock Brad is recommending is actually worth investing in.

If you'd rather read about my findings, there will be a transcript of the video below the video:

Transcript Of Video

What Is Prologis?

Prologis is a global leader in industrial real estate, particularly in logistics and distribution facilities. Founded in 1991 and based in San Francisco, California, the company owns, operates, develops, and manages a wide portfolio of high-quality properties in strategically positioned locations.

Its properties include warehouses, distribution centers, and logistics facilities, which serve as crucial points in the supply chain for over 5,000 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.

The company's focus is on sustainable design and innovative technology integration, aiming to reduce environmental impacts and optimize efficiency in its buildings.

Prologis has a presence in many major markets across North America, Latin America, Europe and Asia.

Furthermore, the company also provides a range of value-added services to its clients, including supply chain consulting, logistics technology solutions, and capital deployment strategies.

Due to its large scale and prime property locations, Prologis is considered a key player in the commercial real estate market and plays a vital role in global trade and commerce.

Pros Of Investing In Prologis

Investing in Prologis could be attractive for several reasons.

Firstly, the company operates within a strong industry. The demand for industrial real estate, particularly logistics and distribution facilities, continues to grow, driven by the increasing shift towards e-commerce and supply chain diversification.

This is especially the case as companies around the world look to optimize their supply chains, making the need for well-located distribution and logistics facilities greater than ever.

Secondly, Prologis' global presence across North America, Latin America, Europe, and Asia gives the company access to multiple markets and a diverse customer base, which can help provide stability to their operations and revenues.

This broad geographical reach reduces reliance on any single market and provides opportunities for growth.

In addition, Prologis has demonstrated its commitment to sustainability and innovative technology integration.

The trend towards sustainable practices and green buildings is becoming increasingly important in real estate, and Prologis is at the forefront of this trend. 

Their focus on creating energy-efficient buildings may attract tenants seeking to reduce their environmental footprint, leading to higher occupancy rates and potentially higher rental income for Prologis.

The company also offers a range of value-added services to its clients, such as supply chain consulting and logistics technology solutions.

These services not only generate additional revenue but also deepen the relationship with their tenants, potentially leading to longer lease terms and reduced turnover.

Lastly, the company has a solid track record of financial performance, demonstrating management's capability to navigate various market conditions. This proven track record provides some assurance to investors about the company's ability to manage its operations and financial obligations effectively.

As with any investment, it's crucial to conduct thorough research and consider the potential risks before investing in Prologis or any other company.

Cons Of Investing In Prologis

There are several reasons one might consider not investing in Prologis, or exercising caution before doing so.

Firstly, like any real estate company, Prologis is exposed to the risks inherent in the real estate market.

Changes in property values, fluctuations in rental rates, and occupancy levels can have a direct impact on the company's revenues and profitability.

In an economic downturn, demand for industrial real estate may decrease, which could result in lower rental rates and higher vacancy levels.

Regarding interest rates, Prologis, similar to other real estate investment trusts (REITs), tends to carry a relatively high level of debt to finance property acquisitions and developments. When interest rates rise, the cost of borrowing also increases, which can squeeze profits.

Higher interest rates also make new borrowing more expensive, which could limit Prologis' ability to expand and develop new properties.

Furthermore, increased rates often lead to higher capitalization rates (the rate of return on a real estate investment property based on the income that the property is expected to generate), which can lead to a decrease in property values.

Additionally, higher interest rates may make bonds and other fixed-income investments more attractive relative to REITs, which could lead to a sell-off in REIT shares, depressing their price. As a result, Prologis' stock price might suffer in a high interest rate environment.

Finally, despite its global presence, Prologis could be vulnerable to geopolitical risks and changes in trade policies. Tensions between trading partners, new tariffs, or other trade restrictions could disrupt global supply chains, potentially reducing the demand for the company's logistics and distribution facilities.

As always, it's crucial to perform thorough due diligence before making investment decisions, taking both the potential rewards and risks into account.