A Prologis holding. Photo by Prologis.

SAN FRANCISCO–Prologis is acquiring rival industrial REIT DCT Industrial Trust in a stock-for-stock deal for $8.4 billion. The deal, which boards of directors for both companies have approved, comes as e-commerce activity is driving industrial demand to new heights.

BTIG estimates that the deal represents “$67.91/sh” for DCT’s stock, a 15.6% premium over market close on Friday, April 27. It also estimates the implied cap rate on the transaction at 4.3% to 4.5%, which is 40 to 60 basis points lower than its most recent NAV estimate. BTIG analysts write that while the rationale makes sense — portfolio overlap, last-mile/infill focus, strong development platform — “Prologis offered a sizeable premium (26.3x 2018 FFO/sh) in an already aggressively priced sector.”

Complementary Portfolios

Denver-based DCT Industrial Trust’s 71 million square foot operating portfolio will expand Prologis’ presence in Southern California, the San Francisco Bay Area, New York/New Jersey, Seattle and South Florida. Prologis chairman and chief executive officer Hamid R. Moghadam said the REITs’ respective portfolios are very complementary and will allow Prologis “to capture significant scale economies immediately.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.

More from this author


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.