Prologis, Inc. · NYSE:PLD
Prologis — Merger or Acquisition (June 2022)
14 slides from Prologis's merger presentation, Jun 13, 2022
Slide 1: Prologis and Duke Realty Merger Conference Call
Prologis and Duke Realty Merger Conference Call 06.13.2022 Caption text sample. Fontana, California
Slide 2: Important information: Forward-Looking Statements
2 Important information Forward - Looking Statements The statements in this communication that are not historical facts are forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended
Slide 3: Transaction overview
3 Transaction overview • No changes to Prologis executive management team • Duke Realty to receive one seat on the Prologis Board of Directors • Prologis will hire a number of Duke Realty personnel Management and Board Composition • Core FFO* per share accretive by ~$0.20 - 0.25 • AFFO* per share to
Slide 4: Strategic rationale
4 Strategic rationale Strategic Fit • Highly complementary portfolio / 94% hold portfolio • 153MSF operating portfolio / Combined 1,097MSF operating portfolio • Development in progress totaling 11MSF / Combined development in progress totaling 68MSF • Portfolio additions to Prologis’ holdings in its
Slide 5: Superior combined entity
5 Superior combined entity Duke Realty assets would be complementary to, and enhanced by, Prologis’ leading logistics platform Occupancy 3 97.4% Lease Mark - to - Market 47% (52% in US 2 ) Building Sq Ft 1 1,000MSF Development Buildout 4 Strategic Capital Operational Solutions, Solar, EV, Workforce,
Slide 6: Duke Realty: A leading U.S. portfolio
6 Seattle $18.6M NOI / 4.0 MSF Northern California $21.1M NOI / 3.6 MSF Southern California $113.1M NOI / 19.2 MSF Dallas $58.5M NOI / 17.2 MSF Houston $29.7M NOI / 5.8 MSF Minneapolis $28.7M NOI / 5.4 MSF Chicago $65.3M NOI / 18.1 MSF Indianapolis $42.4M NOI / 14.7 MSF Columbus $20.5M NOI / 6.5 MSF
Slide 7: Strategically deepening Prologis' geographic presence
7 Strategically deepening Prologis’ geographic presence 20% 10% 10% 7% 7% 0% 5% 10% 15% 20% 25% Southern California Northern California New Jersey Chicago Pennsylvania TOP U.S. MARKETS BY % OF CASH NOI 1 Duke Realty Prologis TOP U.S. MARKETS BY SQUARE FEET 2 114 70 56 51 50 0 20 40 60 80 100 120 Sou
Slide 8: Synergies and accretion
8 Future Incremental Property Cash Flows and Essentials Income $70 - 90M Lower Cost of Capital $5 - 10M Incremental Annual Development Value Creation Potential $300M Future Potential $375 - 400M Synergies and accretion * This is a non - GAAP financial measure. Timing Category Estimated Impact (Annua
Slide 9: Capitalization
9 Capitalization * This is a non - GAAP financial measure. Pro forma Adjusted EBITDA includes the impact of G&A and property management synergies b ut excludes any potential purchase accounting and revenue synergies. 1. Prologis and Duke Realty standalone share counts as of March 31, 2022. Prologis
Slide 10: Prologis can unlock substantial value from Duke's assets
10 Strategic Capital Franchise Operations Energy Workforce Global Leader in ESG Prologis Ventures Global Procurement Platform Transportation Digital PLATFORM DIFFERENTIATORS Prologis can unlock substantial value from Duke’s assets PROLOGIS ENTERPRISE CAPABILITIES PROLOGIS ESSENTIALS 10 Strategic Cap
Slide 11: Strong track record of shareholder returns
11 +5.9% +6.0% +8.4% +8.5% +11.5% DJIA S&P 500 Nasdaq Composite Equity REIT Index PLD Strong track record of shareholder returns Source: FactSet as of June 10, 2022. AVERAGE ANNUAL TOTAL SHAREHOLDER RETURN SINCE 1997 AMB IPO The Prologis platform and business model has outperformed key benchmarks +5
Slide 12: Prologis public M&A has created meaningful value
12 Prologis public M&A has created meaningful value Premium 1 15.6% 21.3% 31.8% NAV - to - NAV Premium 2 21.8% (3.5)% 25.9% Performance Since Acquisition 3 122.5% 48.9% - Outperformance Since Acquisition 3 38.1% 22.4% - Portfolio Hold % 93% 71% 94% Source: Bloomberg, Company filings, FactSet. 1. Rep
Slide 13: A highly compelling transaction
13 13 A highly compelling transaction • Duke Realty has built a business that has performed well compared to other industrial REITs • Highly complementary assets will enhance Prologis’ current portfolio • Significant synergies will drive accretion • Prologis’ scaled platform can unlock value in Duke
Slide 14: €*; PROLOGIS’
€*; PROLOGIS’