Prologis Inc. emerged as the largest equity real estate investment trust in the US in terms of market capitalization in 2024, S&P Global Market Intelligence data shows.
The San Francisco-based industrial REIT recorded a market capitalization of $97.90 billion at the end of 2024, down 20.5% year over year.
Demand for industrial space remained subdued as tenants implemented cost-cutting measures amid high inflation and interest rates. However, Prologis indicated that demand might be stabilizing.
"Looking ahead, market vacancy is at or near its peak and will hover there as utilization of groups and global rents will bottom sometime mid-[2025]," Prologis CFO Timothy Arndt said on the REIT's third-quarter 2024 earnings call.
Datacenter REIT Equinix Inc. ranked second, with a market capitalization standing of $90.98 billion as of 2024-end, a 20.3% increase from 2023.
In third place, communications tower REIT American Tower Corp. had a market capitalization of $85.71 billion at the end of 2024, down 14.8% on an annual basis.
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Among the 25 largest REITs, healthcare REIT Welltower Inc., with a market capitalization of $78.48 billion, booked the highest year-over-year increase at 57.2%.
Meanwhile, Alexandria Real Estate Equities Inc. booked the largest drop at 22.6%. The office REIT had a market capitalization of $17.05 billion at the end of 2024.
Largest property sectors
The industrial sector was the largest REIT sector by market capitalization, totaling $158.03 billion as of 2024-end. Healthcare REITs were a close second with $157.73 billion.
Other sectors with at least $100 billion in market capitalization included datacenter, communications and multifamily.
S&P 500 breakdown per sector
Real estate companies on the S&P 500 had a total market capitalization of $1.012 trillion as of Dec. 31, 2024, down from $1.022 trillion at the end of 2023.
The sector had the second-smallest total market capitalization in 2024, just behind the materials sector, which had $964 billion.
The information technology sector accounted for nearly a third of the total market capitalization of all S&P 500 companies, totaling $16.508 trillion at the end of 2024.
