8-KLeadership ChangesAcquisitions & DispositionsRegulation FD+1

Prologis, Inc. 8-K Report, Acquisition Completed (Oct 3, 2022)

Filed October 3, 2022For Securities:PLDPLDGP

Summary

Prologis, Inc. (PLD) has officially announced the completion of its acquisition of Duke Realty Corporation (DRE) on October 3, 2022. This significant transaction, initially agreed upon in June 2022, consolidates Prologis's leading position in the industrial real estate market by integrating Duke Realty's substantial portfolio. The merger involved a stock-for-stock exchange, where DRE shareholders received 0.475 shares of Prologis common stock for each share of DRE common stock they held, along with cash for fractional shares. This acquisition is expected to enhance Prologis's geographic reach and property offerings, particularly in key growth markets. The company also announced an increase in its board size to accommodate a new director, James B. Connor, effective with the merger's closing. Investors can find detailed financial information regarding the acquired assets and pro forma combined statements in the accompanying exhibits, providing transparency into the integration of the two entities.

Key Highlights

  • 1Completion of the acquisition of Duke Realty Corporation (DRE) by Prologis, Inc. (PLD) effective October 3, 2022.
  • 2DRE shareholders received 0.475 shares of PLD common stock for each share of DRE common stock, plus cash for fractional shares.
  • 3The merger was executed through a series of subsidiary mergers, with Prologis Merger Sub surviving the DRE merger and DRE OP surviving the partnership merger.
  • 4Prologis expanded its board of directors to twelve members with the appointment of James B. Connor.
  • 5The filing incorporates by reference extensive financial statements for Duke Realty and pro forma combined financial statements for the merged entity.
  • 6The transaction is expected to bolster Prologis's presence in key industrial real estate markets.

Frequently Asked Questions

The acquisition of Duke Realty is a significant strategic move for Prologis, aiming to expand its portfolio and market presence in the industrial real estate sector. While this 8-K focuses on the completion mechanics, investors should refer to the incorporated pro forma financial statements (Exhibit 99.4) to understand the combined entity's financial position, including assets, liabilities, and potential synergies, which will influence future earnings and valuation.

Duke Realty Corporation common stock was converted into the right to receive 0.475 shares of Prologis, Inc. common stock for each share of Duke Realty common stock outstanding, along with cash in lieu of any fractional shares.

Yes, effective upon the merger's completion, Prologis increased the size of its board of directors from eleven to twelve members and appointed James B. Connor to the board. No other immediate changes to management or officer positions were detailed in this specific filing.

The audited and unaudited financial statements for Duke Realty Corporation and Duke Realty Limited Partnership, as well as the unaudited pro forma condensed combined financial statements for Prologis, Inc. and Prologis, L.P., are incorporated by reference into Item 9.01 of this 8-K filing as Exhibits 99.2, 99.3, and 99.4, respectively.