FR vs PLD: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: FR is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. FR and PLD share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined FR and PLD exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

First Industrial Realty Trust is a real estate investment trust that owns, develops, and manages industrial properties, mostly bulk and regional distribution warehouses plus lighter industrial and flex buildings. As of early 2026 it owned or had under development roughly 71.6 million square feet concentrated in 15 target US markets such as Southern California, Phoenix, Dallas, Chicago, Pennsylvania, and South Florida. As a REIT it leases space to logistics, e-commerce, manufacturing, and distribution tenants, collects rent, and is required to distribute most of its taxable income to shareholders, which is why the dividend is central to the investment case.

Full FR guide

Prologis (NYSE: PLD) is a self-administered, self-managed real estate investment trust focused exclusively on industrial and logistics properties. The company owns and operates approximately 1.3 billion square feet across roughly 5,882 buildings in 20 countries, with a strong concentration in high-barrier, last-mile markets in North America, Europe, and Asia. Revenue comes primarily from long-term leases on warehouse, distribution center, and fulfillment facility space, supplemented by a Strategic Capital segment that manages approximately $60 billion in third-party assets on behalf of institutional co-investment partners. Rental income is the dominant and most stable revenue stream, while strategic capital fees (including periodic promote income) add a more variable layer of earnings.

Full PLD guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• FR drivers: Rent growth on lease renewals; Development and land pipeline.
• PLD drivers: E-Commerce as a Structural Tailwind; Reshoring and Supply Chain Reconfiguration.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Like all REITs, First Industrial is sensitive to interest rates: higher rates raise its borrowing costs, can pressure property values, and make its dividend yield less attractive versus bonds. For PLD, the primary bear case centers on the interest rate environment: Prologis carries a debt-to-EBITDA ratio near 5x, and sustained elevated rates could raise refinancing costs, expand capitalization rates, and compress net asset values even if occupancy holds.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick FR if you believe its drivers more; PLD if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the FR and PLD guides.

FR. First Industrial trades on funds from operations (FFO) rather than standard earnings per share, because depreciation makes GAAP net income a poor proxy for a property company's cash generation. At roughly 21 times 2025 FFO the stock is valued as a growth-oriented industrial REIT, richer than diversified or slower-growth REITs but below sector leader Prologis. Figures are approximate and as of July 2026; verify current numbers before acting.

PLD. For industrial REITs, Core Funds from Operations (Core FFO) is a more relevant cash-flow metric than GAAP net earnings, as GAAP figures are affected by depreciation, gains on property sales, and promote income timing. PLD's trailing GAAP P/E of approximately 37x is roughly 50% above the broader real estate sector average, reflecting the market's premium for its scale, portfolio quality, and long-term demand drivers. The dividend payout ratio on a GAAP earnings basis exceeds 100%, which is normal for REITs given depreciation, but coverage on a Core FFO basis remains comfortable.

Headline figures (approximate, JULY 2026): FR shows revenue (fy2025) ~$727.6 million, nareit ffo per share (fy2025) ~$2.96 (up ~12%), ffo (fy2025) ~$403.8 million, in-service occupancy (ye2025) ~94.4%; PLD shows revenue (full year 2025) ~$8.79 billion, net earnings attributable to common stockholders (fy2025) ~$3.32 billion, core ffo per diluted share (fy2024, most recent full-year figure) ~$5.56, trailing p/e ratio ~37x (based on TTM EPS of ~$3.45).

FR and PLD are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined FR and PLD exposure against your real portfolio. It is not an investment adviser.