Prologis to snap up DCT

The $8.4 billion stock-for-stock transaction is expected to close in the third quarter.    Prologis Inc. and DCT Industrial Trust Inc. announced Sunday they have entered into a definitive merger agreement in which Prologis will acquire DCT for $8.4 billion in a stock-for-stock transaction, including the assumption of debt.
   The news comes as the industrial real estate market continues to benefit from elevated demand for logistics infrastructure due to the e-commerce boom. Consequently, Prologis thrived off of this, posting consolidated net earnings of $392 million for the first quarter of 2018, up from $221 million for the first quarter of last year.
   Through its acquisition of DCT, Prologis will deepen its presence in high-growth markets, including Southern California, the San Francisco Bay Area, New York/New Jersey, Seattle and South Florida, the two companies said.
   The deal also diversifies Prologis’ customer roster through the addition of about 500 new relationships, said Prologis CEO for the Americas Eugene Reilly.
   The transaction is expected to close in the third quarter of 2018; however, it is subject to the approval of DCT stockholders and other customary closing conditions.
   Under the terms of the deal, DCT shareholders will receive 1.02 Prologis shares for each DCT share they own.
   Denver-based DCT specializes in the ownership, development, acquisition, leasing and management of bulk-distribution and light-industrial properties in high-demand distribution markets across the United States. As of March 31, the company owned interests in about 73.7 million square feet of properties leased to around 840 customers.
   As of March 31, San Francisco-based Prologis owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 683 million square feet (63 million square meters) in 19 countries.