Prologis, a leading logistics real estate investment trust (REIT), plans to acquire SEGRO for $18.8 billion, significantly expanding its footprint in Europe and diversifying its portfolio. This move leverages structural growth in e-commerce and Prologis' scale advantages in prime logistics locations. Despite increased interest expenses, the company maintains strong operating leverage, high occupancy rates, and robust rent growth, supported by a solid balance sheet with a 4.5x debt/EBITDA ratio. Trading slightly above 20 times funds from operations (FFO), below its historical range, Prologis offers an attractive risk-return profile with expected high single-digit earnings and dividend growth for long-term investors.
Prologis shares are trading at USD 126.96 on Pluang, down 1.24% as of Nov 07, 2026 12:01 WIB. The stock shows strong investor interest with 100% buy orders and a dividend yield of 3.33%.
