Prologis Spends $3.1B On Property, The Latest In A String Of Deals With Blackstone

Prologis Inc PLD agreed to acquire some 14 million square-feet of industrial properties from  Blackstone Inc BX for $3.1 billion in cash. 

The deal cost represents about a 4% cap rate in the first year and a 5.75% cap rate when adjusting to today's market rents.

"These high-quality properties are complementary to our portfolio and fit perfectly into our long-term strategic plan for growth. The acquisition demonstrates our unique ability to add significant scale to our portfolio - expanding customer relationships and increasing opportunities for our growing Essentials platform." said Prologis president Dan Letter.

Over the last 11 years, Prologis and Blackstone have concluded over a dozen transactions together.

The transaction is expected to close by the end of the second quarter.

In April, the logistics real estate firm reported first-quarter 2023 revenues of $1.77 billion, up 45%, on a continued average solid occupancy rate.

Core funds from operations (FFO) rose 12% Y/Y to $1.22 per share in the first quarter.

Price Action: PLD shares are trading higher by 0.77% at $117.80 premarket on the last check Monday.