BMO raises PT on Prologis, Eastgroup on resilient occupancy

BMO lifts PT on real estate investment trusts Prologis PLD.N and Eastgroup Properties EGP.N

Brokerage says stable occupancy and solid cash income growth should help industrial REITs withstand slower rent growth and support current valuations

Adds PLD's leasing is slightly ahead of plan, demand remains strong in key regions, and development activity is returning to normal with more speculative projects expected in 2026

Reiterates "market perform" rating on PLD and "outperform" rating on EGP

As of last close, YTD Prologis was up 5% and Eastgroup up 6.6%