Prologis, Inc. is a leading industrial real estate investment trust (REIT) that acquires, develops, operates and manages industrial real estate space in the Americas, Asia and Europe. The company principally targets investments in distribution facilities for customers who are engaged in global trade and depend on efficient movement of goods through the global supply chain.
As of Jun 30, 2022, Prologis owned or had investments in properties and development projects aggregating around 1.0 billion square feet of space in 19 countries either on a wholly owned basis or through co-investment ventures. Modern distribution facilities are being leased by the company to around 5,800 customers. These customers belong to two main categories: business-to-business and retail/online fulfillment.
The company has been actively banking on its growth opportunities through acquisitions and developments. Since the ProLogis–AMB merger in 2011 through year-end 2020, this industrial REIT has accomplished investment transactions aggregating more than $131.4 billion across 30 global markets. These investments comprise a wide array, including the largest M&A transactions in the real estate sector as well as individual off-market deals of less than $5 million.
In the second quarter of 2022, Prologis’ share of building acquisitions amounted to $846 million, with a weighted average stabilized cap rate (excluding other real estate) of 3.9% in the reported quarter. Development stabilization aggregated $817 million, while development starts totaled $1.67 billion, with 25.6% being build-to-suit.
In October 2022, Prologis closed on the acquisition of Duke Realty in an all-stock transaction valued at $23 billion, including the assumption of debt, following the approval of the shareholders of both companies. The transaction boosts Prologis' presence in the key markets of the United States and aids its expansion into the fourth-largest U.S. gateway for container imports, Savannah, GA.
Note**: All EPS numbers presented in this report represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.