Prologis gains properties in key U.S.
markets; Expands its Essentials offerings to 500+ new
customers
SAN
FRANCISCO, Oct. 3, 2022 /PRNewswire/ -- Prologis,
Inc. (NYSE: PLD) ("Prologis") today announced the completion of its
all-stock acquisition of Duke Realty Corporation (NYSE: DRE) ("Duke
Realty") following approval by the shareholders of
Prologis and Duke Realty. Valued at approximately $23 billion, including the assumption of debt,
the completed transaction expands Prologis' presence in key U.S.
markets.
"In addition to the day-one accretion and avenues for further
earnings growth, this acquisition gives us an even stronger ability
to support our customers and their growth," said Prologis
Co-founder, CEO and Chairman Hamid R.
Moghadam. "We're gaining high-quality properties and more
than 500 new customers in key markets. These new customers will be
able to tap into our Essentials platform, which delivers end-to-end
solutions to address critical supply chain challenges and
contributes to their broader sustainability efforts."
Acquisition Highlights
Prologis has a strong history of successfully integrating
new assets into the business and creating value for customers
through its scaled platform. The acquisition of this highly
compatible portfolio from Duke Realty includes:
- 142 million square feet of fully operational logistics
buildings (~480) in 19 major U.S. markets, including Southern California, New Jersey, South
Florida, Chicago,
Dallas and Atlanta
- 7 million square feet of buildings under development;
approximately 17 million square feet of developable land
- Over 500 new customers
Prologis also announced that Duke Realty's Chairman and CEO
James Connor has been appointed to
the Prologis Board of Directors effective immediately upon the
closing of the acquisition.
Delivering World-Class Logistics Real Estate and Essentials
Solutions
Today, more than $2.2 trillion of
goods flows through Prologis logistics facilities annually around
the world, including products people rely on every day, such as
food, medicine and other critical goods. As e-commerce and overall
consumption continue to grow, so does the desire for high-quality
logistics facilities located in areas of dense population.
With the acquisition, Prologis is expanding its presence in
major regions in the U.S. and adding Savannah, Georgia, the fourth-largest U.S.
gateway for container imports. With an expanded U.S. presence in
key logistics hubs, Prologis will be even better poised to meet
customer needs.
Prologis will be actively onboarding Duke Realty customers it is
gaining, including introducing them to the Prologis Essentials
platform, a proprietary suite of solutions and services designed to
solve the challenges modern logistics facilities experience.
Advisors: Goldman Sachs Group, Inc. and Citigroup served
as financial advisors and Wachtell, Lipton, Rosen & Katz served
as legal advisor to Prologis. Morgan Stanley & Co. LLC served
as the lead financial advisor and Hogan Lovells US LLP served as
legal advisor to Duke Realty. J.P. Morgan Securities LLC and Alston
& Bird LLP also served as financial and legal advisors,
respectively, to Duke Realty.
About Prologis
Prologis, Inc. is the global leader in logistics real estate
with a focus on high-barrier, high-growth markets. As of
June 30, 2022, the company owned or
had investments in, on a wholly owned basis or through
co-investment ventures, properties and development projects
expected to total approximately 1.0 billion square feet (95 million
square meters) in 19 countries. Prologis leases modern
logistics facilities to a diverse base of approximately 5,800
customers principally across two major categories:
business-to-business and retail/online fulfillment.
FORWARD-LOOKING STATEMENTS
The statements in this communication that are not historical
facts are forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These
forward-looking statements are based on current expectations,
estimates and projections about the industry and markets in which
Prologis operates as well as beliefs and assumptions of Prologis.
Such statements involve uncertainties that could significantly
impact Prologis' financial results. Words such as "expects,"
"anticipates," "intends," "plans," "believes," "seeks," and
"estimates," including variations of such words and similar
expressions, are intended to identify such forward-looking
statements, which generally are not historical in nature. All
statements that address operating performance, events or
developments that Prologis expects or anticipates will occur in the
future — including statements relating to the transaction between
Prologis and Duke Realty, rent and occupancy growth, acquisition
and development activity, contribution and disposition activity,
general conditions in the geographic areas where Prologis operates,
Prologis' debt, capital structure and financial position,
Prologis' ability to earn revenues from co-investment
ventures, form new co-investment ventures and the availability of
capital in existing or new co-investment ventures — are
forward-looking statements. These statements are not
guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict.
Although Prologis believes the expectations reflected in any
forward-looking statements are based on reasonable assumptions,
Prologis cannot give assurance that its expectations will be
attained and, therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in such
forward-looking statements. Some of the factors that may
affect outcomes and results include, but are not limited to:
(i) risks related to diverting the attention of Prologis management
from ongoing business operations; (ii) failure to realize the
expected benefits of the transaction; (iii) significant transaction
costs and/or unknown or inestimable liabilities; (iv) the risk of
shareholder litigation in connection with the transaction,
including resulting expense or delay; (v) the risk that Duke
Realty's business will not be integrated successfully or that such
integration may be more difficult, time-consuming or costly than
expected; (vi) risks related to future opportunities and plans for
the combined company, including the uncertainty of expected future
financial performance and results of the combined company following
completion of the transaction; (vii) national, international,
regional and local economic and political climates and conditions;
(viii) changes in global financial markets, interest rates and
foreign currency exchange rates; (ix) increased or unanticipated
competition for Prologis' properties; (x) risks associated with
acquisitions, dispositions and development of properties, including
increased development costs due to additional regulatory
requirements related to climate change; (xi) maintenance of Real
Estate Investment Trust status, tax structuring and changes in
income tax laws and rates; (xii) availability of financing and
capital, the levels of debt that Prologis maintains and its credit
ratings; (xiii) risks related to Prologis' investments in
co-investment ventures, including Prologis' ability to establish
new co-investment ventures; (xiv) risks of doing business
internationally, including currency risks; (xv) environmental
uncertainties, including risks of natural disasters; (xvi) risks
related to the coronavirus pandemic; and (xvii) those additional
factors discussed under Part I, Item 1A. Risk Factors in Prologis'
Annual Report on Form 10-K for the year ended December 31, 2021. Prologis undertakes no
duty to update any forward-looking statements appearing in this
communication except as may be required by law.
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SOURCE Prologis, Inc.
