Duke Realty Corporation: |
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(State of Formation) |
(Commission File Number) |
(IRS Employer Identification No.) |
Duke Realty Limited Partnership: |
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(State of Formation) |
(Commission File Number) |
(IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class |
Trading Symbol |
Name of each exchange on which registered | ||
Item 8.01. |
Other Events. |
• | its expectation that the strategic fit between the Prologis and Duke Realty portfolios will allow Prologis to capture significant cost and revenue synergies, including approximately $310 to $370 million in annual run-rate synergies starting in the first year following the transaction |
Comparable Companies |
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Duke Realty |
Prologis |
First Industrial |
EastGroup |
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P/FFO Per Share Multiples |
22.5x | 23.4x | 21.5x | 22.3x | ||||||||||||
P/AFFO Per Share Multiples |
24.8x | 26.7x | 25.7x | 28.4x | ||||||||||||
Implied Cap Rate |
4.1 | % | 3.5 | % | 4.8 | % | 4.1 | % | ||||||||
P/(D) to NAV Per Share (Cons.) |
(17 | )% | (9 | )% | (24 | )% | (15 | )% | ||||||||
P/(D) to NAV Per Share (GSA) |
(18 | )% | (5 | )% | (26 | )% | (16 | )% |
Selected Precedent Transactions |
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Announcement |
Acquirer |
Target |
Premium to Unaffected Price | |||
November 5, 2021 |
Industrial Logistics Properties Trust | Monmouth Real Estate Investment Corporation | 24% | |||
October 27, 2019 |
Prologis, Inc. | Liberty Property Trust | 21% | |||
May 7, 2018 |
The Blackstone Group L.P. | Gramercy Property Trust | 15% | |||
April 29, 2018 |
Prologis, Inc. | DCT Industrial Trust Inc. | 16% | |||
February 10, 2006 |
LBA Realty LLC | Bedford Property Investors, Inc. | 18% | |||
June 6, 2005 |
Prologis, Inc. | Catellus Development Corporation | 16% | |||
May 4, 2004 |
Prologis, Inc. & Eaton Vance Management | Keystone Property Trust | 12% | |||
October 29, 2001 |
CalWest Industrial Properties, LLC (CalPERS & RREEF) | Cabot Industrial Trust | 18% |
Year Ending December 31, |
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(in millions, except per share data) |
2022E |
2023E |
2024E |
2025E |
2026E |
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Total Net Operating Income |
$ | 4,835 | $ | 5,534 | $ | 5,512 | $ | 6,142 | $ | 6,915 | ||||||||||
Adjusted EBITDA (1) |
$ |
4,562 |
$ |
5,244 |
$ |
5,205 |
$ |
5,809 |
$ |
6,564 |
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AFFO, Excluding Gains and Promotes ( 2 |
$ | 2,899 | $ | 3,259 | $ | 3,704 | $ | 4,118 | $ | 4,630 | ||||||||||
AFFO, Excluding Gains and Promotes/Share ( 2 3 |
$ | 3.78 | $ | 4.24 | $ | 4.81 | $ | 5.34 | $ | 5.99 | ||||||||||
Unlevered Free Cash Flow ( 4 |
$ | 477 | $ | 2,018 | $ | 1,490 | $ | 1,790 | $ | 2,419 | ||||||||||
Dividend/Share |
$ | 3.16 | $ | 3.54 | $ | 3.96 | $ | 4.44 | $ | 4.97 |
Year Ending December 31, |
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(in millions, except per share data) |
2022E |
2023E |
2024E |
2025E |
2026E |
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Total Net Operating Income |
$ | 881 | $ | 995 | $ | 1,155 | $ | 1,344 | $ | 1,538 | ||||||||||
Adjusted EBITDA (1) |
$ |
821 |
$ |
936 |
$ |
1,096 |
$ |
1,283 |
$ |
1,478 |
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AFFO ( 2 |
$ | 663 | $ | 766 | $ | 888 | $ | 1,017 | $ | 1,137 | ||||||||||
AFFO/Share ( 2 3 |
$ | 1.70 | $ | 1.92 | $ | 2.16 | $ | 2.43 | $ | 2.70 | ||||||||||
Unlevered Free Cash Flow ( 4 |
$ | (677 | ) | $ | (1,482 | ) | $ | (1,384 | ) | $ | (1,268 | ) | $ | (1,097 | ) | |||||
Dividend/Share |
$ | 1.15 | $ | 1.27 | $ | 1.39 | $ | 1.51 | $ | 1.63 |
Year Ending December 31, |
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(in millions, except per share data) |
2022E |
2023E |
2024E |
2025E |
2026E |
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Total Net Operating Income |
$ | 6,029 | $ | 6,793 | $ | 6,845 | $ | 7,582 | $ | 8,457 | ||||||||||
Adjusted EBITDA (1) |
$ |
5,761 |
$ |
6,525 |
$ |
6,571 |
$ |
7,293 |
$ |
8,170 |
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AFFO, Excluding Gains and Promotes (1) |
$ | 3,628 | $ | 4,166 | $ | 4,742 | $ | 5,301 | $ | 5,959 | ||||||||||
AFFO, Excluding Gains and Promotes/Share (1) |
$ | 3.81 | $ | 4.37 | $ | 4.96 | $ | 5.54 | $ | 6.21 | ||||||||||
Unlevered Free Cash Flow (1) |
$ | (317 | ) | $ | 1,406 | $ | 1,035 | $ | 1,521 | $ | 2,344 | |||||||||
Dividend/Share |
$ | 3.16 | $ | 3.54 | $ | 3.96 | $ | 4.44 | $ | 4.97 |
Item 9.01. |
Financial Statements and Exhibits. |
Exhibit Number |
Description | |
2.1 | Letter Agreement, dated as of September 16, 2022, by and among the Prologis Parties and the DRE Parties. | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
DUKE REALTY CORPORATION | ||
By: | /s/ ANN C. DEE | |
Ann C. Dee | ||
Executive Vice President, General Counsel and Corporate Secretary | ||
DUKE REALTY LIMITED PARTNERSHIP | ||
By: | Duke Realty Corporation, its general partner | |
By: | /s/ ANN C. DEE | |
Ann C. Dee | ||
Executive Vice President, General Counsel and Corporate Secretary |