Key Takeaways
- • Prologis will acquire Duke Realty in an all-stock transaction valued at approximately $26 billion, including debt assumption, with Duke Realty shareholders receiving 0.475 Prologis shares per Duke Realty share held ($61.68 per share valuation).
- • The transaction adds 153 million square feet of industrial operating properties across 19 major U.S. logistics markets, plus 11 million square feet of development in progress ($1.6 billion expected investment) and 1,228 acres of land with approximately 21 million square feet of build-out potential.
- • Prologis plans to retain approximately 94% of Duke Realty's assets and exit one market, strengthening its footprint in high-performing geographies including Southern California, New Jersey, South Florida, Chicago, Dallas, and Atlanta.
- • Both boards unanimously approved the all-stock merger agreement, expected to close in the fourth quarter of 2022, positioning Prologis to leverage its track record as a value creator in logistics real estate amid evolving e-commerce dynamics.
Summary
Prologis, Inc. and Duke Realty Corporation announced a definitive merger agreement under which Prologis will acquire Duke Realty in an all-stock transaction valued at approximately $26 billion, including assumption of debt. Under the agreement terms, Duke Realty shareholders will receive 0.475 Prologis shares for each Duke Realty share held, representing a per-share valuation of $61.68. Both companies' boards of directors unanimously approved the transaction.
The acquisition substantially expands Prologis's industrial real estate portfolio with high-quality assets in strategically important U.S. markets. On an owned and managed basis, the combined portfolio will include 153 million square feet of operating properties across 19 major U.S. logistics geographies, complemented by 11 million square feet of development in progress representing approximately $1.6 billion in total expected investment. Duke Realty's landholdings—1,228 acres owned and under option—provide significant future development capacity, with estimated build-out potential of approximately 21 million square feet.
Prologis Co-founder, CEO and Chairman Hamid R. Moghadam emphasized the strategic rationale, stating that Duke Realty has executed a "disciplined repositioning strategy" over the past decade, building "an exceptional portfolio in the U.S. located in geographies we believe will outperform in the future." Prologis indicated its proven track record as a value creator in logistics would drive incremental shareholder value from the combined entity. Duke Realty Chairman and CEO Jim Connor characterized the transaction as validation of the company's portfolio quality and decades-long track record in value creation.
The portfolio addition concentrates Prologis's presence in key West Coast and Sun Belt markets, including Southern California, New Jersey, South Florida, Chicago, Dallas, and Atlanta—geographies perceived as poised for outperformance. Prologis intends to hold approximately 94% of Duke Realty's assets, with strategic exit of one market. The all-stock structure and expected fourth-quarter 2022 close reflect both companies' confidence in long-term industrial logistics demand despite near-term e-commerce slowdown considerations.
The acquisition substantially expands Prologis's industrial real estate portfolio with high-quality assets in strategically important U.S. markets. On an owned and managed basis, the combined portfolio will include 153 million square feet of operating properties across 19 major U.S. logistics geographies, complemented by 11 million square feet of development in progress representing approximately $1.6 billion in total expected investment. Duke Realty's landholdings—1,228 acres owned and under option—provide significant future development capacity, with estimated build-out potential of approximately 21 million square feet.
Prologis Co-founder, CEO and Chairman Hamid R. Moghadam emphasized the strategic rationale, stating that Duke Realty has executed a "disciplined repositioning strategy" over the past decade, building "an exceptional portfolio in the U.S. located in geographies we believe will outperform in the future." Prologis indicated its proven track record as a value creator in logistics would drive incremental shareholder value from the combined entity. Duke Realty Chairman and CEO Jim Connor characterized the transaction as validation of the company's portfolio quality and decades-long track record in value creation.
The portfolio addition concentrates Prologis's presence in key West Coast and Sun Belt markets, including Southern California, New Jersey, South Florida, Chicago, Dallas, and Atlanta—geographies perceived as poised for outperformance. Prologis intends to hold approximately 94% of Duke Realty's assets, with strategic exit of one market. The all-stock structure and expected fourth-quarter 2022 close reflect both companies' confidence in long-term industrial logistics demand despite near-term e-commerce slowdown considerations.
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